The service provider SDN market, including hardware, software and services, is forecast to grow from $289 million in 2015 to $8.7 billion in 2020, with a 2015–2020 compound annual growth rate (CAGR) of 98 percent, according to IHS. Some highlights:
- SDN and NFV represent the shift from a hardware focus to software one: Software and outsourced services will comprise 46 percent of SDN revenue in 2020
- SDN orchestration and controller software revenue is forecast to grow to over $1.8 billion in 2020
- But by 2020, there will be more value in SDN apps than in orchestration and control, which will be priced reasonably due to competitive pressure
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