ConteXtream Predicts SDN and NFV Solution Adoption for Telcos to Reach Market Tipping Point in 2014

Optimization and Monetization Benefits to Fuel Customer Confidence and Widespread Market Acceptance

Mountain View, Calif. – January 22, 2014ConteXtream, Inc., a leader in network virtualization solutions, unveiled its 2014  predictions today stating market maturation will be the key driver to the growth and expansion of  Software Defined Networking (SDN) in the global telco market.  In addition, the company cited that Network Functions Virtualization (NFV) will fuel the adoption of SDN due to its immediate low risk cost-to-deployment benefits as well as its faster time-to-market ‑ success factors that continue to erode the barriers to adoption.  Furthermore, by years end, deployment traction by telcos on production traffic will be the key indicator that telco customers have fully embraced SDN and NFV solutions with widespread market acceptance.

“Carriers have found themselves in an extremely competitive, demanding and dynamic environment that requires a solution, however many have been hesitant to virtualize their networks, mainly out of fear and a lack of clarity of the risks and benefits,” said Nachman Shelef, CEO of ConteXtream. “We expect to see the adoption of SDN by carriers greatly increase in 2014 thanks in large part to the breaking down of barriers to adoption, including uncertain cost-benefit tradeoffs, a lack of standardization and technology maturity and interoperability. In addition, the better understanding of the opportunity for monetization and optimization through SDN and NFV, along with production deployment references, will enable carriers to more confidently adopt the technology, sparking change throughout the telco industry.”

ConteXtream’s prominent Board of Advisors offers their thoughts and predictions for SDN and NFV in 2014 below:

Dino Farinacci, Founder of lispers.net and Former Cisco Fellow
After working nearly a decade on Locator/ID separation, we continue to find more use-cases for Locator/Identifier Separation Protocol (LISP). One popular use-case, Network Virtualization Overlays (NVOs), appears to be making traction with carriers. Carriers can not only enable mobility and elasticity for connecting subscribers to network functions, but they can do it in a surprisingly low-cost manner. By using programmable interfaces to control, manage, and monitor devices that incorporate LISP, deployments are indeed accelerating. This acceleration coupled with the consensus building of the European Telecommunications Standards Institute (ETSI) NFV Industry Specifications Group, will result in even more telcos virtualizing their networks.

Randy Katz, United Microelectronics Corporation Distinguished Professor in Electrical Engineering and Computer Science, University of California, Berkeley
“While some suggest SDN will remain more hype than reality, I see that 2014 as the year SDN breaks through as more service providers start deploying the technology. A better understanding of the benefits of increased utilization, de-fragmentation and faster introduction of new services will drive carriers towards the solution of virtualization. They will view network virtualization as a critical step for future-proofing their networks and alleviating service deployment complexity. The carrier industry is adopting software approaches for scaling capacity and functionality for media applications, subscriber functions, and all kinds of virtualized middle boxes. Their operating models are transforming into those of traditional Internet software companies, with no turning back. The use of overlays to address traditional integration and migration challenges, like co-existence with legacy networks, will be a major factor in accelerating adoption as well.”

Eric Benhamou, Chairman and CEO, Benhamou Global Ventures
“While SDN’s early focus was in its potential use in enterprises and data centers, the transformative power the technology holds for telcos is now taking center stage, as these companies search for new ways to remain profitable and competitive. The attractiveness of SDN for venture capital funds is very interesting, as investment in SDN companies rose from $10 million in early 2009, to $500 million in the first quarter of 2013. I expect that accelerated adoption of SDN-based architectures and products by telcos this year will continue as telcos find it easier to adopt these solutions by replicating the solutions at early production deployments by leading carriers. The continued momentum within the investment community will in-turn help to fuel this transformation of the networking industry.”

About ConteXtream
ConteXtream is a privately held software-defined-networking (SDN) company that enables carriers to deliver network capacity and functions in the same way cloud providers deliver applications effectively utilizing standard compute and storage. ConteXtream's SDN offering is carrier-grade and enables Network Function Virtualization (NFV) for various solutions deployed on carrier network (link to solutions page). Deployed by Tier-1 operators, ConteXtream's Carrier-SDN dynamically and elastically connects subscribers to services and enables carriers to leverage standard, low-cost server hardware and hypervisors to virtualize functions and services, while replacing costly purpose-built proprietary systems.

Headquartered in Mountain View, Calif., ConteXtream is backed by Benhamou Global Ventures, Gemini Israel Funds, Norwest Venture Partners and Sofinnova Ventures as well as Comcast Ventures and Verizon Investments. For additional information, visit www.contextream.com.

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