Network virtualization market development status in 2022

Network virtualization software allows companies to virtually discover and view network conditions, recreate network conditions, and improve network performance.

Physical networks that were manually set up by companies can now be managed and configured through network virtualization software. The technology is being embraced by companies, with 92% of them using network virtualization as of 2020.

Learn all about the world of network virtualization below:

Network Virtualization Market

According to market data forecasts, the network virtualization market is valued at US$18 billion in 2021 and is expected to grow to US$51 billion by 2027, with a compound annual growth rate (CAGR) of 23%.

Several industries are driving the growth of the network virtualization market: banking, financial services, and insurance (BFSI), manufacturing, retail, healthcare, education, and transportation.

Relatedly, 45% of enterprises are planning or considering migrating their servers to a network virtualization architecture, and 25% are considering migrating their storage to network virtualization, according to SpiceWorks.

There are a variety of other operational and cost drivers in the area of ​​network virtualization:

• CAPEX and OPEX savings for enterprises
• Growing demand for mobility
• Growing demand for data center and server virtualization
• Investing in 5G technology
• Reduce costs for telecom operators

Also learn about the virtualization market.

Network virtualization capabilities

There are two key types of network virtualization:

• External network virtualization: Pull multiple local networks into a single network to improve efficiency.
• Internal network virtualization: A network that emulates a physical network.

feature:

• Switch
• routing
• Load Balancing
• Distributing Firewalls
• Scenario-aware micro-segmentation
• Automation and cloud management

Benefits of Network Virtualization

• Energy costs: According to VMware, energy savings average 80% due to limited servers. "Virtualization enables the repurposing and retirement of some existing servers. According to the Uptime Institute, retiring a single 1U rack server can save $500 per year in energy, $500 in operating system licensing and $1,500 in hardware maintenance costs," EnergyStar said.
• Reduce hardware costs: Reduce the number of servers in the network.
• Disaster Recovery: Virtualizing hardware resources and data supports disaster recovery (DR) planning, testing, and execution
• Reduce hardware costs: Reduce the number of servers in the network.
• Agility and speed: Team members can access IT resources faster to improve the network
• Improved security: Captures and eliminates cyber threats such as malware, making the network and related applications safer and less likely to cause problems.

Network Virtualization Use Cases

Hepta Technologiae Informática had 300 virtual machines and they wanted better security, and they felt like using VMware NSX.

"VMware NSX is a network virtualization platform that follows the same model that has been used for server virtualization," said Jorge Filho, virtualization analyst at Hepta Technologiae Informática.

The software has "tools that aid in troubleshooting, such as traffic monitoring in a graphical interface, packet capture, and trace flows," Filho said.

Cisco's Application Centric Infrastructure (ACI) for software-defined networking (SDN) is implemented in data centers to "manage internal user traffic on the applications used, and in turn separate external users from tenants," said a telecommunications engineer at TrustRadius Industries.

“The platform is very scalable, which makes network migration much easier for implementers,” they said.

According to an article in Fierce Telecom, Verizon CEO Lowell McAdam believes that virtualization will be able to save the company nearly $10 billion by 2021.

FierceTelecom reports that John Stratton, Verizon executive vice president and president of global operations, also called network virtualization a "very powerful" opportunity.

"We have a very, very strong technology team that has been working on finding ways to leverage the investments we've made there and in the direction of network virtualization," Stratton said.

Stratton said Verizon customers "still want a very intuitive, simple, effortless online experience," and he believes network virtualization can help provide that experience.

Network virtualization providers

These are some of the leading companies in the network virtualization market, and the software they offer:

• VMware: VMware NSX
• RedHat: RedHatVirtualization(RHV)
• Microsoft Azure: Hyper-V Network Virtualization
• Cisco: Cisco ACI
• Anuta Networks: NFV Management and Orchestration (MANO)
• MicroFocus: MicroFocus Network Virtualization
• Arista: VXLAN