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Software: TIA report touts strong cloud investments through 2017

Software is becoming an increasingly important part of telecommunication networks and deployments as both wired and wireless carriers look to add functionality to operations while increasing simplicity and reducing costs. RCR Wireless News is keeping an eye on recent developments through its weekly “Software” wrap up.

The Telecommunications Industry Association released a report claiming that cloud computing is set to be one of the fastest-growing segments in the telecommunications space through at least 2017, with a forecast 50% increase in spending on cloud services and data center construction over the next four years.

The findings, which are part of TIA’s “2014 ICT Market Review & Forecast,” predict that business and consumer spending on cloud computing will surge from nearly $67.8 billion this year to $107 billion in 2017, with spending on constructing new data centers increasing 26% to $29.7 billion in 2017. Spending on data center construction is expected to show double-digit growth through next year, with slower growth into 2017.

“Data is fueling unprecedented growth and technological change, and it’s clear from our report that this trend is not ending any time soon,” explained TIA President Grant Seiffert in a statement. “As data becomes increasingly integral to business operations, both large and small U.S. companies will spend heavily on cloud services and data center construction. At the same time, the ‘Internet of Things’ and continued smartphone demand will exponentially expand the amount of data available. Our research makes it clear that it’s all about data – building the infrastructure to manage, store and protect it.”

The report also notes that:

–Large companies will increasingly move to the cloud as their data needs grow.
–Explosive growth in IoT and ongoing increases in mobile smart devices will contribute to increased cloud spending.
–Following its recent shift to the “cloud first policy,” the federal government will be a major contributor to the growth of cloud computing.

–Japanese telecom operator NTT DoCoMo recently conducted testing into what could be an eventual move toward virtualizing mobile core network services based on network function virtualization technology. The testing included work with equipment vendors NEC, Alcatel-Lucent, Cisco, Ericsson, Huawei and Nokia Networks.

The proof-of-concept trials reportedly showed the “feasibility” of a move toward using NFV to power a virtualized evolved packet core, as well as interoperability of each vendor’s EPC software. The testing included work on scalable data processing capabilities for congested network traffic and “immediate network recovery in the event of hardware failure.”

“Thanks to collaborative efforts in the mobile network industry, NFV is soundly moving toward practical realization, rather than just ending up as a pie-in-the-sky dream,” said Seizo Onoe, EVP and CTO at DoCoMo, in a statement. “I am delighted that we have confirmed the feasibility of NFV through multivendor initiatives with many of the top ICT players.”

The carrier said it was looking to utilize a virtualized mobile network for the commercial deployment of services by early 2016.

DoCoMo has been involved in a number of NFV projects, including the Linux Foundation’s recent launch of its Open Platform for NFV project. The Linux Foundation explained that due to the multiple open-source NFV initiatives already in place, the OPNFV will look to work with “upstream projects to coordinate continuous integration and testing while filling development gaps.” The project is set to initially work on building NFV infrastructure and virtualized infrastructure management tapping into existing open-source components.

Make sure to check out the latest in telecom-related software news at RCR Wireless News’ dedicated software page. Also, if you have telecom software news to share, please send it along to: [email protected].

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