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While some in the telecom industry have been resistant to pursue network virtualization, new Accenture research on the enterprise market reveals otherwise.
The Accenture Enterprise Survey 2016, which surveyed 363 small, medium and large enterprises, shows that the market is ripe for network virtualization. Nearly all respondents (95 percent) believe that network services will be virtualized, and 89 percent believe they themselves will evolve to an “as a service” model within the next three years. In fact, 33 percent are already using such solutions.
Enterprise respondents also expect network virtualization to lead to cost reductions. For 72 percent of companies, the cost to maintain the network is the key criterion influencing their decision. And those who have already pursued network virtualization say they are already seeing cost reductions averaging 25 percent. These early adopters cite speed, reduced cost of ownership and increased security as additional benefits.
An Accenture Enterprise Survey in 2016 among 363 small, medium and large companies, found nearly all (95%) believe that network services will be virtualized, while 33% of companies are already using such solutions.
Companies that have already adopted network virtualization services report 25% cost reduction (TCO) on average and also increased security. Security is a key concern, in fact for 40% of the companies, it is a key barrier.
Two thirds of the companies plan to adopt these solutions for all of their network services. Enterprises say they’ll invest between 20-30 percent of their IT budgets in network virtualization services within the next three years.