Software-Defined Network, SDN

Current trends, such as the growth of the number of devices connected to the Internet, the exponential growth of information, the development of cloud technologies, BYOD, big data, are changing corporate telecom before our eyes. There is an increase in network traffic, and business is increasingly having to configure large-scale networks.

Software-Defined Networking (SDN) and Network virtualizations Function Virtualization (NFV Network Function Virtualization) technologies can simplify this task, which allow you to bring network elements under the control of the configurable, ON make them more intelligent, and facilitate their management.

Traditional network management typically requires each device connected to the network to be configured separately. For example, configuring a VLAN access control list on multiple Cisco switches inevitably entails entering each and making the necessary settings. This approach has worked successfully in the past, but can become time-consuming when organizations add devices brought by employees and numerous cloud services to the network.

SDN can help because the goal of network management is to allow different devices (whether owned by a company, employees, as well as various manufacturers) to connect to networks and use their resources with restrictions based on the principles of "who-where-how-why" with each connection. This requires constant application of policies among all devices. In the future, the policy change administrator will not be forced to spend hours making changes to each device separately, and these changes must be consistent throughout the enterprise. This is the role of SDN. They provide consistent, relatively fast network management, allowing changes across the entire network from a single management console.

It is also important that the network virtualization mechanism is built on the basis of free software, which allows network administrators to manage large data flows faster and more efficiently from one console.

Virtualization destroys the business of server manufacturers: today it makes no sense to buy a new server for a new application, and therefore the cost of hardware can no longer be increased. Manufacturers need to look for new sources of revenue, for example, better adapt their products to virtualization, and today the products of many companies are initially optimized for hypervisors. With the advent of SDN, a similar situation will be observed in the network equipment market - network virtualization is designed to remove the fundamental limitation on cloud development. You can still manually manage networks within several clusters within the same data center, but when there are many such clusters and they are geographically distributed, the task becomes more and more complicated. When it comes to organizing interaction between different data centers, this is exactly the field for Cisco.

SDN poses new challenges for network equipment manufacturers to support new cloud scenarios, such as the ability to transmit multiple packets over long distances. At the same time, VMware plans to release hardware-independent virtualization systems for network equipment.

Proprietary control panels of routers and switches are black boxes for users, and SDNs potentially allow them to be bypassed, making the panels open for remote access by third-party programs through open protocols such as OpenFlow. Bandwidth may suffer, but now it is not so important - today it is much more important to be able to scale networks indefinitely, eliminate their isolation, transparent controls and reliability. Any organization interested in cloud building should take a closer look at network virtualization and SDN technologies. In the next five years, all network equipment manufacturers will adapt their solutions to SDN, and in seven to ten years, software-defined networks will become common practice.

Prerequisites for SDN and NFV

A number of experts characterize the current situation in the network industry as "critical and revolutionary." Closed (proprietary) solutions that dominate the market represent "black boxes" for applications, and compatibility of solutions from different vendors is ensured at best at the interface level. Networks are too complex, which makes it difficult to scale and manage them, reduces their reliability. Obviously, this hinders the further development of networks and applications functioning in them^[1]

The main prerequisites for the emergence of the concepts of "Software-Defined Networking" (SDN virtualizations) and Network Function Virtualization (NFV) are, first of all, the rapid growth of data traffic and the number of devices connected to the network.

At the same time, the traffic itself becomes heterogeneous - if in the late 1990s. its basis was the transfer of data and files that do not require special requirements for the channel, with the exception of the data transfer rate, then by the mid-2000s the issues of service quality assurance (QoS), minimum channel delay (latency), etc. came to the first place. This is primarily due to a change in the structure of user traffic, in which Real Time Communications (Real Time Communications), RTC VoIP video services, etc. began to prevail. Operators have a real need for dynamic traffic prioritization. For example, in some cases, the priority should be made for the ftp protocol, in others - for SIP and vice versa.

In the field of mobile communication, the installation of additional macrocells (base stations) after reaching a certain density threshold for their placement no longer gives a significant increase in the capacity and capacity of radio access networks (RAN), so the next step is the use of small cells (femto and picocells). As a result, configuring large-scale networks becomes a complex task and requires major changes in the principles of network construction, operation, and management.

SDN and NFV concepts

SDN and network function virtualization (NFV), according to analysts, undermine the market for traditional network products and threaten the profitable business of companies such as Cisco, Juniper Networks and Hewlett-Packard on hardware. SDN and NFV move network management and task definition functions from expensive hardware to software that can run on cheaper mass-produced systems. The goal is to create more mobile, programmable and automated networks.

The key principles of software-configurable networks are separation of data transfer and management processes, centralization of network management using unified software tools, virtualization of physical network resources. The OpenFlow protocol, which implements a manufacturer-independent interface between a logical network controller and network transport, is one of the implementations of the concept of a software-configurable network and is considered the driving force behind its distribution and popularization.

The main essence of SDN is to physically separate the network control plane from the forwarding functions by transferring control functions (routers, switches, etc.) to applications running on a separate server (controller).

As a result, a flexible, controlled, adaptive and economical architecture should be obtained, which is able to effectively adapt to the transmission of large streams of heterogeneous traffic.

The main ideas of SDN include:

• Traffic separation (data plane) and signaling/control plane
• Significant simplification of data plane network elements
• A single, unified, vendor-independent interface between the management layer and the data layer
• logically centralized network management performed by a controller with a network operating system installed and implemented on top of network applications;
• Virtualization of physical network resources.

The basic ideas of SDN were formulated by specialists from Stanford and Berkeley universities back in 2006, and the research initiated by them found support from large operators Internet and companies Google(,,,, and Deutsche Telekom Facebook). As Microsoft Verizon Yahoo a result, a consortium was formed in March 2011, the composition of Open Networking Foundation (ONF) which is rapidly expanding, in 2013 it included more than 100 companies, including,,,,,,,,, etc Brocade Citrix Oracle. Dell Ericsson HP IBM Marvell NEC VMware

ONF develops, first of all, the OpenFlow protocol, which implements the interaction of the controller with network devices, but a number of members of this organization are interested in more universal specifications. In April 2013, Cisco, Citrix, and IBM formed a OpenDaylight.org framework that aims to release an open, public SDN standard based on free software.

Thus, SDN tries to separate the two planes - network management and transport, and ultimately ensure the centralization of the control of the distributed network in order to more efficiently use resources and automate the management of network services. NFV is focused on optimizing network services within the network by separating network functions (for example, DNS, caching, etc.), from the actual implementation of hardware. It is believed that NFV allows you to universalize software, speed up the implementation of new network and service functions and does not require abandoning the already deployed network infrastructure.

For mobile networks, virtualization is expressed, in particular, in the concept of C RAN - Cloud or Centralized radio access network. In this case, the radio subsystem (remote radio heads, RRHs) and antennas are separated from the basic units (control modules) of the base station (baseband units, BBUs), which are located in the so-called base station hotel and are connected through an optical fiber cable to the RRHs units. Thus, operators can build cloud radio access networks on the NFV principle, placing in the cloud the main functionality of the base station, which is responsible for digital signal processing, synchronization, management, statistics collection, etc. It is possible that this type of cloud and virtual radio access networks can significantly change the balance of power in favor of IT vendors.

SDN forms a virtual layer for the network, similar to how a hypervisor or virtual machine does it for servers or desktops. The OpenFlow protocol allows SDN software to communicate with the corresponding network elements - routers and switches through the open Application Programming Interface (API). The path of packets in a software-configurable network is determined not by the equipment of the manufacturers and the algorithms for processing data streams "hardened" in them, but by a special control loop in the software.

A virtualized network function can run on one or more virtual machines. Thus, the services turn out to be insensitive to the hardware itself. These can be standard servers, storage systems, switches. NFV allows you to program services that were previously available only in the form of hardware solutions^[2].

SDN Architecture Diagram

SDN and NFV allow you to simplify network configuration, scale networks and services on demand, automate network management, increase the power of physical infrastructure by overlaying virtual, reduce CAPEX and OPEX, and in the future, quickly reconfigure the business to meet current tasks.

The first major SDN network was implemented in 2012 by Google based on proprietary switches. Thus, she managed to remove the restrictions inherent in the solutions used by traditional operators. Traffic is redirected between data centers in a way that is convenient and beneficial at the moment. In addition to Google, SDN technology is used by NTT, Pertino, AT&T, Telecom Italia and a number of other companies^[3].

There are two strategic areas for implementing SDN, NFV and clouds. The first is related to improving network efficiency and service flexibility. The main goal is to reduce the cost of network operation and reduce time to market. The second is aimed at benefiting from a combination of new business opportunities. The goal in this case is different - the formation of new differentiated cloud services and dynamic, depending on the current demand profile, their provision. The first path is followed by such companies as the German Deutsche Telekom and the Spanish Telefonica, the second - by the Japanese NTT and the American AT & T.

Practical effect of NFV/SDN implementation for B2B customer

• Service Management from Personal Account
• Obtain Network Features as Clear SLA Services.
• Reduce the cost of maintaining your own network functions and IT systems by transferring them to the "side" of the operator
• Access to the Services in 24/7 mode even when changing the physical location of the office
• Access to the Services in the minimum time when connecting an additional office
• Possibility of Test operation of the service without the need for its implementation

Practical effect of implementing NFV/SDN for the provider

• Lower connection costs - services are virtualized and do not require dedicated hardware
• Use of COTS equipment (standard x86 architecture equipment)
• Reduction or complete cancellation of visits to the client to connect additional services
• Access to the Services in 24/7 mode even when the client moves
• Reduced time for both connecting a new client and adding new services
• Lower operating costs
• Scale services quickly and elastically, depending on your needs
• Unified connections on the network - reducing the number of different types of terminal equipment

Integrator as Service Provider

• No costs for bringing the service to market - the platform can be placed in a third-party Date Center or on the integrator's own servers located at the Operator.
• Using the Revenue Sharing model: there is a customer - there is revenue, no customer - no cost
• The accumulated experience and expertise make it possible to implement and bring to the market new services in the shortest possible time
• Flexible use of both "vendor" and Open Source solutions for implementing network functions
• Support and development of the solution is on the side of the integrator

Software Defined Everything (SDX)

The key consumers of the SDX concept are datacenters, operators, and large corporations whose technology and IT infrastructure requires flexible approaches to design, implement, and manage network architecture and its operation.

SDN for DaaS and BYOD

Recently, virtualization has become popular on the market, including in DaaS (Desktop-as-a-service) format. This model involves providing a ready-made virtual workplace that each user can customize for their tasks. Application or desktop virtualization technologies are indispensable here to centrally manage enterprise applications for security and monitoring. Thus, controlled access of employees from any device is organized and significantly reduces the likelihood of leakage of confidential data through the employee's personal devices. This approach helps to implement the BYOD model ("bring your own device"), while greatly simplifying infrastructure management and ensuring the security of corporate data. Over time, this leads to a significant reduction in operating costs and increases employee loyalty.

In this scenario, SDN can take full advantage. Adding a new virtual workstation does not require configuring various network equipment, as well as adding new rules on service devices (Firewalls, ADC and others).

All actions can be automated and performed from one place - the orchestrator. The system that will deal with the configuration of the hypervisor, storage system and network.

SDN Transition Strategy

To deploy SDN as quickly and efficiently as possible, you must first identify the challenges you may face when implementing new technologies^[4].

First, you need to identify the goals that SDN implementation pursues. Project managers need to be clear about what this is for and to ensure that units that may have never interacted with each other in the past work together are coordinated.

Second, provide a new approach to network monitoring. Since the network seems to be a single, logical whole, special requirements are imposed on the synchronization of endpoints and the controller. The tasks of monitoring communication channels between SDN components must be solved through the SDN solution itself or by third-party systems. In addition, monitoring is necessary when finding the place where a particular problem appears that may arise at the junction of various technologies.

Thus, before you begin deploying SDN, IT professionals need to understand what infrastructure is already available and what needs to be done so that the underlying systems can quickly respond to changes associated with the implementation of SDN technologies.

Key Drivers and Restraints of Implementation

There are many reasons for choosing SDN. First, classic approaches to solving network problems based on their virtualization lag behind the level of development of server and DSS virtualization. As a result, the networks turn out to be static and do not correspond to^[5] rapid dynamics of the development of^[6].

Secondly, when scaling networks, a large number of distributed network devices appear. In the changed conditions, the means of traditional control become heavy and ineffective.

Thirdly, the traditional binding to this or that network vendor, who works out the necessary measures in advance in the event of certain network transformations, also turns out to be untenable. The main problem is that business is not guaranteed support for future applications and services, which deprives it of flexibility in choosing the future path of development.

• Monthly global IP traffic in 2016 will be 110 EB, CAGR=32%, according to analysts.
• Video will account for 55% of traffic, web - 23%, file exchange - 21%, voice - only 1%.
• The ARPU has been steadily declining.
• At the same time, CAPEX and OPEX are growing!

The world is becoming "cloud-centric."

THERE IS A GROWING GAP between the current largely static and over-reserved telecommunications network architecture and IT infrastructure, on the one hand, and the cloud adaptive concept of service and application consumption, on the other.

Traffic growth from various devices faces a "narrow neck" of networks

• Soon there will not be a single piece of land without a fixed or mobile connection.
• The high density of coverage with fixed broadband networks is stimulated by the distribution of services based on cable and fiber optic networks.
• There is an explosive increase in the number of mobile devices that are always online.
• And in fixed and mobile networks, the nature of the load changes - from communications to cloud-centric interworking.
• The increase in the number of M2M devices increases the load on the network.
• The transition to cloud services requires both vertical (increasing resources) and horizontal (new points of presence) rapid scaling of network functions and their interaction - in a few seconds/minutes as opposed to days/weeks.

Requirements for the quality of content are constantly growing, the nature of its consumption and generation is changing, so new approaches to the transmission and control of flows of heterogeneous traffic are needed.

• The structure and volume of traffic on networks is determined by the consumption profile of users, and the dynamics of traffic is becoming more and more uneven.
• Applications are distributed that combine a large number of devices and generate a large amount of traffic (machine-to-machine interaction, the Internet of Things). Efficient scaling of such applications requires new network architectures that can seamlessly connect the plane of data transmission and signal transmission.
• Efficient management of such loads and traffic in networks is impossible due to endless redundancy, which is very expensive.

Comparison of Traditional Networks and SDNs

The traffic control loop in the SDN of the network moves from the level of devices and network elements (physical or virtual) to the centralized level of special software.

From the point of view of operators, interest in SDN is associated with increasing the efficiency of network equipment, reducing costs, increasing network security and providing the opportunity to programmatically create new services and quickly download them to network equipment.

SDN forms a virtual layer for the network, similar to how a hypervisor or virtual machine does it for servers or desktops.

• The OpenFlow protocol allows SDN software to communicate with the corresponding network elements - routers and switches through the open Application Programming Interface (API).
• The path of packets in the SDN network is determined NOT by the equipment of the manufacturers and the algorithms for processing data streams "hardened" in them, but by a special control loop in the software.

The main drivers of SDN/NFV market development include:

1. Lower capital and operational costs, TCO

In the case of mobile communications, the cost savings on CAPEX are especially significant if the operator has a sufficiently developed fiber optic network. In this case, the company can reduce capital costs using C-RAN up to 60%. Otherwise, the savings will CAPEX be about 30%. The reduction of CAPEX, in particular, is due to the reduction of base blocks (BBUs). For the same reason, there is a decrease in OPEX - due to lower energopotrebleniya¹ and lower maintenance costs. According to China Mobile, the "green" alternative in the form of cloud radio access networks reduces electricity bills by 71% compared to traditional networks.

According to NEC, the implementation of the Virtualized Package Core (vEPC) under the NFV concept will enable the mobile operator to significantly reduce the total cost of ownership (TCO) (Fig. 2).

2. Speed of service implementation and adaptation

The virtual (software) ecosystem is initially programmable to a significantly greater extent than the "classic" network. It is expected that this feature will allow you to quickly implement and adapt the service and get away from the current middleboxes concept - a huge number of software and hardware in the operator's network that implement the corresponding service.

At the same time, one of the main restraining factors for the development of SDN is the lack of a single standard and the desire of a number of vendors to impose "their" solution on the market, although this approach is absolutely contrary to the basic principles of SDN. As a result, there is still a lot of uncertainty in SDN, and potential consumers of software-configurable solutions have taken a wait-and-see attitude, following the emergence of successful large projects in this area.

Common goals driving the development of the SDN direction include^[7]:

• Flexibility in creating, VPN allocating bandwidth and allocating network segments
• Interfaces that allow users to select standard network patterns
• creation of system interfaces;
• Quick detection and replacement of failed connections
• Powerful firewall between users and the outside world
• Significantly reduce man-hour costs for network management
• Automatically scale to meet your needs and traffic volume.

The rationale for the SDN's economic effect is still an art form. Quantifying intangibles, such as a higher level of security or responding more quickly to a change requirement, is a complex matter. As a result, attention is preferred to focus on tangible things, such as reducing network maintenance costs, reducing product acquisition costs, etc. Intangible benefits, however, are much more valuable than tangible benefits, especially if the enterprise as a whole becomes more flexible as a result.

SDN, NFV, and Cloud Implementation Strategies

What will be the data centers of the future?

Standard. Heterogeneity is the reality of clouds, you need to be able to manage it, so the next breakthrough in the industry in the direction of improving efficiency will not be possible without standardization. There are not enough standards for cloud integration and scaling, a single platform open to all vendors, a common technology stack. Hence the complexity and high cost of hybrid configurations assembled from many clouds. In the case of a software approach, you can create an open platform built on a modular principle. The question is no longer the impossibility of doing this, but the required qualifications of the data center designers. The future lies with software-defined data centers that will replace Service Desk portals by automating management processes. Piecemeal management of network, memory, security, computing, and applications will be replaced by integrated management of on-demand application delivery processes without IT intervention^[8] the^[9].

The main difference is that the traditional data center is a set of hardware devices (servers, network devices, storage systems, computing and software control resources), while SDDC is built as an add-on over the existing hardware infrastructure, where all data center subsystems are virtualized and assembled into a secure software system. The configuration, management, and maintenance of data center virtual components is done programmatically, then the necessary commands are automatically transferred to^[10] hardware resources^[11]

The purpose of the software-configurable data center (SDDC) technology, which has recently become popular, is to improve the performance of the center by optimizing at the application and hypervisor levels. However, Forrester analysts believe (autumn 2013) that when managing centers, one should strive to optimize at the level of specific business processes - processing financial data, solving supply problems, and so on - and not at the level of individual applications, be it ERP systems, CRM, HCM and others.

Why switch from a traditional data center to SDDC?

The main backbone element in a traditional data center is often called a switch. This network device is responsible for three main functions: connected device management, traffic management, and physical data transmission.

When switching to a software-defined data center model, device and traffic management functions are centralized and translated into software form. Their teams ensure the smooth operation of the entire SDDC infrastructure. Only the data transfer function remains for the switch.

As a result of these changes, the switch becomes simpler. But the data center gets additional features: the tasks of scaling the infrastructure are simplified, the configuration and management functions become more flexible, additional resources appear for working with the application load, optimization, error correction.

The transition to SDDC also allows you to get higher processing power, increase storage resources and network switching, and this is achieved without allocating additional territory under the data center or installing new racks.

Without collecting up-to-date information about the data center, there is no forward movement

Reality and competition in the market lead to the fact that data center owners have to constantly update their own fleet of equipment, increase computing power and achieve increased efficiency in its management. To do this, they need to have complete information about the current infrastructure. If the set of collected data is incomplete, then it is extremely difficult to make informed decisions. Without a clear understanding of what is happening in the data center, the equipment periodically falls into an idle state.

With the development of virtualization in data centers, the requirements for its hardware are also growing. To ensure the availability of infrastructure and control the consumption of computing resources, they are not limited to collecting information. You need to receive it in full and be sure that the collected data is up to date. If these conditions are met, you can optimize your physical infrastructure and switch to data center software management.

The collected information about equipment in traditional data centers is often stored in spreadsheets. When the time comes for inventory and modernization, it is with them that the search for free space begins. These "documents" check the reserves of electrical capacity, check the sufficiency of resources for cooling, the presence of free ports for connection.

However, these methods of data collection are now becoming less inefficient, especially as the popularity of clouds and virtualization grows. When updating a data center with its optimization, you need to use specialized tools to collect and analyze data.

Software-Defined Data Center (SDDC) with NFV Devices

The solution is to replace the hardware components of the data center infrastructure with a set of x86 servers connected to a single communication field that form the computing environment and a set of Virtual appliances that implement the functionality of these hardware components.

SDDC Global Market

According to Research & Markets, the volume of this segment of the global market amounted to $25.61 billion in 2016. Over the next five years, steady growth is expected with an average annual growth rate of 26.57%. According to the forecast, by the end of 2021 this market will reach the level of 89.21 billion dollars.

Unlike the usual data centers, the basis of which is hardware - servers, storage systems, network devices, etc. - SDDC is an add-on over the existing infrastructure, which is managed programmatically. This means that it is necessary to protect such data centers differently - traditional information security solutions are too resource-intensive and slow down business applications. This is especially noticeable at the moments of scanning and updating the anti-virus databases launched by the virtual machine. At the same time, disconnecting a virtual machine for a long period entails a weak place in the security system, since the information security components installed on it stop working.

Dynamics, projects, activities

Industry alliances are developing SDN and NFV

2016

Definition of Forrester

IHS: Fast transition to SDN is canceled

According to the results of a new IHS study for 2016, the main share of SDN implementation in data centers now falls on the installation^[1] test benches^[2].

In 2015, 89% of surveyed service providers expressed a desire to build test stands for SDN research. Real results, according to the 2016 report, were lower - 67%. The number of pre-operational inspections and real SDN implementations has also significantly decreased compared to what was expected in 2015.

This report also notes the slowdown in implementations of bare-metal switches (BMS) - network devices supplied without embedded software, but with a software boot environment that provides the installation of compatible network operating systems. These devices are primarily intended to replace proprietary network switches.

Orange Business Services and AT&T to develop SDN standards

and Orange Business Services AT&T signed a cooperation agreement in the summer of 2016 to develop open source and standardization initiatives that will speed up the adoption of standards for software-defined network technologies software-defined networking SDN virtualizations (-) and network function virtualization -. NFV Companies share a strategic vision that not only equipment, but also networks should become more intelligent, which will reduce costs and complexity of operation. The joint efforts of partners will bring closer the emergence of more maneuverable, flexible and responsive networks of the future to the needs of users for the industry and business customers.

The deployment of new virtual network services and functions is now overly complicated. Network service providers and other network companies have to deal with private standards, closed architectures and hardware from many different vendors targeting different platforms and specifications. AT&T and Orange are organizing a discussion on industry standardization issues to move together to address them. The adoption of common standards and interfaces will help the industry simplify technological integration, improve operational efficiency and reduce costs, which will speed up innovation and development processes.

When SDN and NFV technologies are based on common, open and interoperable technology standards, this will help overcome the difficulties of providing network services with a high degree of security and native intelligence that takes into account the features of the applications used. The emergence of an ecosystem of interoperable services and hardware providers will positively affect both software-defined network technologies and business customers who can deploy services faster and easier, configure their infrastructure in real time and create innovation.

Based on a network-centric approach, AT&T and Orange intend to make the benefits of their vision of SDN and NFV technologies more accessible to both business customers and the industry. Companies will focus on the following tasks:

• Ensure that both customer-based telecommunications equipment and network services are truly universal through the creation of common network infrastructure specifications and can operate in any software-defined network environment with different network software.
• Simplify and make the implementation of NFV more efficient with common guidelines and templates that will make the technology's vendor ecosystem more mature and the technology easier to use.
• Develop standardized application programming interfaces that enable software-defined network architectures from different vendors to communicate with each other, making deployment of virtualized network functions and services faster and easier.

2015

Huawei, Open Network Operating System and Open Networking Foundation will create SDN ecosystem

On March 12, 2015, it became known about Huawei's plans, together with the Open Network Operating System (ONOS) and the Open Networking Foundation (ONF), to create an open innovative industry ecosystem SDN, which helps operators increase the profitability of SDN networks.

Ultra-fast connections and a cost-cutting course have led to software-defined networking (SDN) playing a key role in transforming operator network architecture.

The company's collaboration was announced at a press conference in which executives exchanged ideas on developing an open, innovative SDN environment and agreed on the process of creating an open source SDN platform.

At a briefing, Huawei announced that its SDN solutions fully support the ONOS platform. Huawei intends to maintain close cooperation with ONOS, ONF and Open Platform for NFV (open platform for NFV), aimed at creating a single, open and programmable SDN network architecture.

Acquisitions and investments in the SDN global market (infographics)

2012

TechRepublic surveyed 111 respondents in the spring of 2012 about new technologies that they intend to implement over the next 12 months. As you can see in the graph below, SDN is not their first choice, but this was not a surprise due to the fact that half of the respondents surveyed were unfamiliar with SDN. But among those who have at least heard something about SDN, 64% may plan to implement them next year.

Many organizations reported that they planned to apply SDN, but very few really did - only 5% reported implementation, as seen in the first schedule. Interestingly, 56% of respondents are interested in SDN next year, which means it is unlikely that this will fall into their 2014 budgets.

VMware acquired a number of technologies and companies in 2012 to build a solution stack for the data center of the future. This is, first of all, a startup Nicira, bought for a fairly large sum of $1.26 billion, offering an open platform for distributed network services that allows you to centrally manage computer networks, which, in particular, will make it possible to release network equipment virtualization systems independent of hardware manufacturers soon. Another acquisition is DynamicOPs, a cloud automation company. Its products allow you to control the processes of providing resources and managing services in heterogeneous environments: private and public clouds, physical infrastructures, structures based on various hypervisors and web services. All this together makes it possible to end-to-end management of virtual, physical and multi-cloud environments while ensuring integration with existing processes and systems.

In the fall of 2012, Nicira has a beta version of the Virtual Extensible Local Area Network (VXLAN) solution for enterprise data centers, which allows you to scale segments of local networks over networks from clouds.

Time Feed: SDN and NFV Technology Development

Traffic consumption by subscribers is becoming increasingly uneven. The need for network resources dynamically changes depending on the time of day, major events, business activity, and so on. On the part of end users, requirements for the quality of content are constantly growing, the nature of its consumption and generation is changing, so new approaches to the transmission and control of flows of heterogeneous traffic are needed.

2006-2011

The principles of software-configurable networks were formulated in 2006 by specialists from Berkeley and Stanford, and in 2007 a protocol was developed with, open source OpenFlow which allows you to get away from "manual" network control, and a laboratory of Open Network Technologies - ON.lab.

In 2009, software-configurable network technologies appeared in the list of 10 fast-growing technologies compiled annually by MIT Technology Review [2], after which they became (along with the Openflow protocol) the object of close attention not only in academic research, but also from the commercial sector.

In 2011, the Open Networking Foundation (ONF) consortium was created to promote and standardize SDN and coordinate the development of OpenFlow. The ONF includes more than 40 of the world's technology leaders. Many leading network equipment manufacturers produce SDN/NFV solutions.

SDN situation in Russia

2024

The volume of the Russian software market for software-defined networks for the year increased to 14.1 billion rubles

At the end of 2024, expenses on the Russian software market for software-defined networks (SDN) amounted to about 14.1 billion rubles. This is 0.7% more compared to the previous year, when costs were estimated at 14 billion rubles. Relevant data are provided in the iKS-Consulting study, the results of which were released at the end of August 2025.

The volume of the market under consideration in 2021 reached 20.2 billion rubles, with 99.3% of this amount accounted for foreign suppliers. The share of Russian players was only 0.7%, or 0.1 billion rubles in monetary terms. In 2022, there was a decline associated with the deterioration of the geopolitical situation: costs decreased to 17.3 billion rubles. In 2023, a further decrease in sales followed.

The authors of the study note that the Russian SDN market is at an early stage of its development. Until 2022, the sector was formed mainly due to foreign manufacturers of network equipment, such as Cisco, Huawei, Arista, Juniper, HPE, etc. At the same time, the need to create domestic SDN solutions was minimal. However, the departure of global suppliers from the Russian Federation radically changed the situation and led to an urgent need for Russian SDN products, comparable in their characteristics to the best global counterparts, which for the most part belong to the group of software and hardware systems. As a result, more active developments of domestic SDN systems began. Nevertheless, despite the intensive import substitution processes in the software area, Russian players in 2024 occupied only 3.2% of the SDN sector, which is equivalent to 0.5 billion rubles. Foreign companies continue to dominate with a total share of 96.8%.

Analysts believe that the supply of solutions of foreign SDN developers to Russia will continue on parallel imports: their volumes by 2031 after a strong fall in 2022-2024. approach the pre-crisis level in ruble equivalent. At the same time, it is expected that by the end of 2025 active sales of the first domestic boxed SDN solution developed by Basis will begin - primarily in the B2B and B2G industries, as well as in the telecom segment, which fall under the requirements for critical information infrastructure (CII).

The organic growth of the SDN market will be provided by companies that have already switched, or will switch to a dynamic IT infrastructure. Already, both B2B and B2G companies (Gostech and GEOP) are actively using virtualization solutions. According to iKS-Consulting, at the end of 2024, the number of such companies amounted to 125.4 thousand, the study says.

In the future, the SDN market in Russia will be formed by telecom operators, cloud providers and data centers, as well as large national companies with state participation and B2G (due to high rates of import substitution and an increase in information security requirements). The SMB segment is projected to favor the SDN as a Service model. The main area of ​ ​ development will remain the SDN software segment - until the problems with processors for network devices intended for SDN hardware and software solutions are resolved.

According to analysts, iKS-Consulting in the future, the CAGR in the area under consideration will be 8.9%. In 2025, the volume of the industry is expected to reach 15.5 billion rubles, and by 2031 it will increase to 25.5 billion rubles. At the same time, the share of Russian suppliers will be 27.8%.^[3]

The volume of the Russian SDN solutions market at the end of the year remained at the level of ₽14 billion

The volume of the Russian software-defined network solutions (SDN) market in 2024 amounted to ₽14 billion, which corresponds to the previous year. The share of domestic developments amounted to less than 3% - ₽400 million in other products or solutions. This was announced on May 29, 2025 by a representative of iKS-Consulting.

According to Vedomosti, in 2021 the SDN solutions market in Russia was larger and amounted to ₽20,2 billion, and in 2022 - ₽17,2 billion. The decline is primarily due to the departure of Western vendors from the Russian market after the imposition of sanctions.

SDN is a technology that allows you to centrally manage networks to which various network equipment is connected, including industrial Internet of Things devices. Control is carried out using a single software device.

Cloud founder and CEO XDenis Khleborodov explains that SDN is an approach to network management in which software takes over management functions. The technology allows you to flexibly manage load, scale networks and greatly simplify the maintenance of huge infrastructures.

SDN in public clouds is of strategic importance. It is thanks to this technology that the cloud acquires the quality of hyperscale, the ability to isolate client networks and real-time manageability. The technology also plays a key role in carrier networks.

The SDN segment in Russia occupies about 20% of the entire Russian software market. The market is still being formed in the country - domestic solutions are presented as part of other products at Rostelecom, MFI Software and ICS Holding.

In various industries, SDN networks are used by 10% to 30% of companies. Technology sector companies - cloud providers and telecom operators that use technology to distribute the load on telecommunications equipment - have a higher SDN penetration rate.

SDN solutions of the company of the financial and public sector, transport and logistics are actively used. These industries need modern approaches to network infrastructure management for high performance and security.

VK Tech has developed its own Sprut SDN, which is available to users of the VK Cloud cloud platform. SDN Sprut is an advanced router with dynamic and static routing, allows you to increase network speed by 34% and increase application efficiency in the cloud without increasing cost of ownership.

The representative of MTS Web Services said that the operator uses SDN technologies as part of the virtualization infrastructure in all cloud platforms. SDN provides isolation of the IT systems of different clients, allowing them to safely coexist in a common environment.

The technology is used for load balancing and networking between client services within the cloud, and provides routing capabilities in a virtual infrastructure. This enables operators to efficiently manage resources and provide quality services.

By 2031, the market will reach ₽32,8 billion, and Russian solutions will occupy about 44% of all vendors, iKS-Consulting predicts. This indicates a significant growth potential for domestic developments in this segment.

The only independent boxed product without dependence on the external cloud on the Russian market is represented by Basis, the developer of the Russian analogue, and VMware Angie Software, an ex-development team. nginx The largest vendors of SDN solutions are companies in the field information security that supply their solutions with a package with other products.^[4]

Forecast and estimate for 2016-2017

SDN and NFV forecasts in Russia are not yet as rosy as for the global market. The introduction of SDN/NFV in commercial networks will take place in 2016-2017, according to 80% of Russian operators and providers participating in the CNews Analytics survey. The same period is indicated by more than 60% of Russian operators surveyed by J'son & Partners Consulting (Jason and Partners Consulting). The volume of the Russian SDN segment by 2017 will amount to $25-30 million. This is the assessment of the world's leading vendors. The main users of SDN and NFV will be the owners of large data centers and federal telecom operators.

• SDN is the "missing link" in virtualization.
• SDN is a new network architecture, the network management layer is abstracted.
• SDN uses all existing equipment, although it introduces qualitatively different principles of its operation and organization of network management.
• SDN is best suited for converged infrastructures.
• SDN is a key innovative approach to network architecture development.
• The key consumers of SDN are data centers, operators, corporations.
• In Russia, SDN technologies are recognized as decisive at the government level.
• Software-defined networks will appear among the leaders of the Russian market in 2016-2017.
• So far, SDN is seen by Russian operators only as a way to reduce costs.
• However, leaders are already aware that this provides fundamentally new BUSINESS opportunities.

2014

In 2014, the Ministry of Education and Science of the Russian Federation held a competition for the study and development of IT infrastructure management tools in corporate and departmental computer networks based on PKS/SDN and BCC/NFV technologies. The Russian government has included SDN and NFV in the list of priority areas of science, technology and technology. The task is to form problem-oriented computing environments to solve complex application problems.

"In 2014, the first startups in the field of SDN and NFV were launched in the Russian Federation - WiMark Systems and NFWare, and the first Russian SDN controller RUNOS (Russian Network Operation System) was created," Mr. Smelyansky continued. Successful testing of CPIX solutions took place at Huawei, Rostelecom, Voentelecom, United Instrument-Making Corporation (Rostec) and others.

The topics of SDN and NFV already go beyond the university and academic community and begins to attract the attention of domestic vendors. Thus, at the Army-2015 International Military-Technical Forum, held Ministry of Defence Russia in June 2015, a Zelax (Zelax) domestic manufacturer of communications technology from Zelenograd, announced, in particular, his readiness to create a modern high-performance router and equipment for software-configurable PKS/SDN networks.

In early 2014, the Russian government included SDN and NFV in the list of priority areas for the development of science, technology and technology. The task is to form problem-oriented computing environments to solve complex application problems.

2013

In 2013, Russian abbreviations were introduced for SDN and NFV - ACS (software-configurable networks) and BCC (network services virtualization)

"In 2013, on the initiative of the CPIX, a consortium of Russian universities for the development of SDN technologies was created in the Russian Federation, which included 14 universities from Moscow, St. Petersburg, Orenburg, Nizhny Novgorod, Yaroslavl, Tomsk, Belgorod and Volgograd," said Ruslan Smelyansky, director of NP SPICS. - The country has introduced Russian abbreviations for SDN and NFV - ACS (Software-Configurable Networks) and BCC (Network Services Virtualization). "

2012

In 2012, the first R&D division in the field of SDN was created within the framework of the Center for Applied Research of Computer Networks (CPIX), and the first SDN network in Russia was built on its basis. At the same time, the first R&D in the field of SDN was carried out for Rostelecom.

Polls show that about 2/3 of Russian specialists noted that their interest in SDN is still only purely theoretical in nature. Meanwhile, "the use of the principles of programmable network management and virtualization of network services to form problem-oriented computing environments designed to solve complex applied problems" is included in the government's "List of priority scientific tasks that require the use of the capabilities of federal centers for collective use of scientific equipment." "The task is aimed at developing a complex of network and information technologies for building flexible, adaptable to the specifics of infrastructure research based on the new concept of organizing network space and computing services."

The main expected results include, in particular, "the creation of a high-tech infrastructure for conducting research in the field of national-scale computer networks, the development of the next generation Internet, testing solutions in the field of security of the national information space" and "building a distributed platform for programmable network management that ensures fault tolerance and high availability of resources, re-organization of network services and network infrastructure, coordinated resource planning."

Due to the fact that the share of network equipment of foreign production in Russia accounts for, according to some estimates, more than 90%, and due to the deterioration of relations with the West, the task of replacing imports is quite acute. In this regard, the implementation of successful SDN projects gives the country a chance to become a significant partner of the leaders of this segment of the IT market.

In February 2012, on the basis of the laboratory of computer complexes of the Faculty of VMK Moscow State University, the Center for Applied Research of Computer Networks (TsPI KS, resident of the Skolkovo Foundation IT cluster) was created, whose tasks include conducting scientific research in the field of network technologies, including SDN. In July of the same year, OJSC "" Rostelecom signed a contract with TsPI KS for the design and creation of an experimental segment of the cloud platform for DPC SDN-based. In May 2014, Rostelecom began work on the implementation of SDN and NFV.

Thus, the concepts of SDN and NFV in Russia are at the formation stage. According to J'son & Partners Consulting analysts, to accelerate readiness for commercial implementation, it is necessary to study and adapt regulatory aspects, technical requirements and regulatory issues; creation of associations of research universities, laboratories, specialized academic institutions, representatives of the telecom community, startups, Russian developers; attracting leading foreign experts in the field of SDN to Russia; integration of Russian researchers and experts into international SDN-related projects.

In general, the success of SDN in Russia and the emergence of a new large market segment (network application software) depend on the interest of all participants in the ICT market, primarily from domestic IT companies and operators, academic and industry institutions, the regulator and other government agencies.

Global market

2021: The market for software-defined infrastructures for data centers exceeded $12 billion

The volume of the global software-defined infrastructure (SDI) market in 2020 reached $12.17 billion, an increase of 5% compared to 2019. Such data were published on June 9, 2021 in the analytical company IDC.

The study notes that the dynamics turned out to be lower in comparison with previous years, but higher relative to the costs of other "key technologies against the background of a difficult pandemic year." Analysts consider the main segments of the SDI market:

• software-defined computing solutions (software-defined compute/SDC/, their share in 2020 - 53%);
• software-defined storage/SDS/, 36%;
• software-defined networking (SDN), 11%.

Software-defined infrastructure solutions have long been popular among companies seeking to reduce costs, complexity and risks in their data centers, says Eric Sheppard, vice president of research at IDC's Infrastructure Platforms and Technology Group. "And while this technology has been available for years, recent technological advances are creating new features and capabilities that align today's software-defined infrastructure solutions with today's data centers. Software-defined infrastructure is rapidly evolving and becoming the preferred platform for modernizing and transforming data centers around the world.

Software-Defined Compute Research Director at IDC Gary Chen said software-defined computing has become the standard in data centers thanks to server virtualization. However, the market continues to evolve and recent modernization projects have shifted the market growth towards cloud systems and containers, in particular, he added.

SDC technologies enable virtualization of groups of physical compute modules. Such software is often sold with other infrastructure solutions, application platforms and management software.

Experts note that it is becoming more difficult to increase the efficiency of a data center by increasing the efficiency of its individual components due to the achievement of the practical ceiling of the latter. The struggle here is for shares of a percent, and it becomes economically unprofitable to conduct this struggle, given the investments necessary for this. But the potential remains to increase the efficiency of the object as a whole by increasing the digital connectivity of systems and nodes, using special software that allows conducting data center components as a well-coordinated orchestra.

An example is given with the cooling system in the data center:. you can get very tangible savings if the software and hardware "brain" of the data center controls the operating modes of the cold generation system and the electrical system , depending on the current load, and even predicts its changes.

The data centers themselves are becoming more and more software-controlled, given their interaction with the external environment (for example, taking into account the integration of the data center with the external electrical network, including smart power supply networks , with the building management system in which it is located , etc.).

The following companies are named the largest manufacturers of software-defined infrastructure solutions:

• IBM;
• Dell;
• Microsoft;
• Oracle;
• VMware;
• HPE;
• Intel;
• Amazon Web Services (AWS);
• Cisco;
• Hitachi;
• Fujitsu;
• NEC;
• Nokia;
• Citrix;
• Juniper Networks;
• Wipro;
• Radware;
• Red Hat;
• Nexenta Systems;
• Brocade.^[5]

2019

The market size of software-defined networks and data centers is $51.7 billion

In 2019, the global market for software-defined networks and data centers (SDN, SD-WAN and SDDC technologies) reached $51.7 billion. This is evidenced by the data of the analytical company MarketsandMarkets.

Experts did not specify the dynamics regarding 2018, but they say that the market is growing and will remain so. It is expected that sales costs for software-defined solutions on a global scale will increase by 25.5% annually, and by 2024 they will reach $160.8 billion.

According to analysts, several factors contribute to the rise of the market, including an increase in demand for virtualization and cloud computing in data centers. With them, companies get unified management of all data center components, such as network, server, storage, security, and other resources. Owners of large-scale IT infrastructures, such as cloud service providers, carriers and corporations, are increasingly using software-defined technologies, the study said.

The demand for SD-WAN rises the most, and this is largely due to the growing needs of the business in simple means of managing network traffic. SD-WANs help you disconnect and manage data planes and provide centralized management during network administration.

In addition, digital transformation projects, increased traffic in networks and emerging technologies such as 5G, the Internet of Things and M2M communications help the development of the SD-WAN segment.

The fastest spending on software-defined data centers and networks is growing among telecommunications operators and cloud providers.

IDC experts confirm the growing demand for software-defined technologies. For example, sales of SDS (software-defined storage) solutions will increase by 13.5% annually and exceed $16 billion by 2021.

Analysts attribute the segment's growth to an accelerating trend from traditional IT infrastructures, which predominantly use the classic dual-controller storage array architecture, to standard-hardware cloud environments. The main drivers of the SDS segment in the world are three areas: object and file data storage, as well as hyperconvergence infrastructure (HCI), the IDC notes.

The further development of the global software-defined technology market is expected to be stimulated by the increasing penetration of cloud technologies into all areas related to information processing and storage. Analysts call the introduction of fifth-generation mobile networks another important factor that will affect the development of the segment in the near future.

Software-Defined Networking and Data Center Market to Grow at 25.5% Annually]]

According to the researchers, 5G networks will lead to a sharp increase in data volumes, their processing and storage will require new approaches to automating IT processes, which in turn will be easiest to provide with software-defined solutions. In terms of regional distribution, it is projected that North America (mainly the United States) will occupy most of the global market for such systems, followed by EMEA, Asia-Pacific and South American countries.

MarketsandMarkets notes that the United States has become the leader due to large-scale digital transformations in companies of various sizes. The pace of technology adoption in the American market is so high that it helps organizations virtualize their IT infrastructure and simplifies network management, hence the surge in demand for software-defined technologies.^[6]

Infonetics Research Forecast

According to Infonetics Research, SDN will reach $13 billion by 2019, up from $781 million in 2014.

2018 (forecast)

• $11 billion - Infonetics Research estimate
• $8 billion - IDC estimate
• CAGR 89.4% - IDC score
• Investor valuation: $35 billion - venture capital agency Lightspeed Ventures estimate
• 90% of telecom infrastructure owners want to implement SDN and NFV, according to an Infonetics Research survey

According to a report by Transparency Market Research, the average annual growth rate of this market in the period up to 2018 will be 61.5%, and its volume by the end of this period will reach $3.52 billion (data for the summer of 2013^[7].

This data is in line with the December forecast of IDC analysts expecting an increase in total turnover in the SDN market from $360 million in 2013 to $3.7 billion by 2016. Meanwhile, in another report released in early 2014, officials from SDN startup Plexxi, the SDNCentral website and venture capital firm Venture Partners argue that the SDN market will grow significantly faster - up to $35 billion by 2018.

Despite the discrepancy in numbers, the authors of most studies agree that for several years the SDN direction, promising higher network programmability and scalability by separating network intelligence from physical infrastructure, will grow rapidly as enterprises adapt to changes in data centers due to trends such as cloud computing, mobility, big data and BYOD ('bring your device').

In 2012, businesses interested in greater productivity, flexibility, and cost-effectiveness of their networks accounted for more than 35% of the SDN market. However, according to the authors of the report, cloud service providers will be the fastest to master this area in the coming years, since SDN will allow them to reduce operating and capital costs and provide customers with new services, thereby providing additional income.

Cloud building and orchestration will continue to be the fastest growing part of the SDN direction. The second most important part is SDN switching. 'SDN switching provides the first level of SDN network infrastructure, and the growth in demand for such solutions is generated by companies wishing to master SDN technology,' the report notes.

The largest consumer of SDN technology is North America, but it will spread fastest in the Asia-Pacific region in the next five years thanks to the widespread adoption of BYOD practices in China, India and Australia.

The report also notes that this' fragmented by nature 'industry is represented by a large number of vendors. Their incomplete list includes not only players who have already proven themselves in the network market, such as Cisco Systems, Juniper Networks, IBM and Hewlett-Packard, but also startups like Big Switch Networks and larger companies, including Intel, VMware and Google, seeking to increase their influence in the SDN market.

2014

The global SDN market for cloud and enterprise network providers will reach $960 million in 2014, and by 2018 will exceed $8 billion - this is the IDC forecast made in the SDN Momentum Builds in Datacenter and Enterprise Networks study in August 2014. This suggests a steady cumulative average annual increase (CAGR) of 89.4%. In the SDN ecosystem, IDC analytics include the physical network equipment used, controllers, network virtualization software, security services, various applications, as well as SDN-related professional services.

Software-defined networks are becoming a key driver of innovation and network development, the researchers note, thanks to a combination of several market and technological factors. Among them are the growing popularity of cloud applications and services from companies and cloud providers, the convergence of infrastructure (computing/storage/networks) and the transition to software-defined data centers, the accumulated experience of server virtualization and awareness of its advantages, the growing need for a flexible network structure to support critical technologies of the 3rd platform (clouds, mobility, Big Data and the Internet of Things). "SDN is central to innovative approaches to addressing the challenges of today's networks associated with the advent of Platform 3, especially virtualization and cloud," says Rohit Mehra, IDC Vice President of Network Infrastructure. As SDNs grow in popularity in data centers for cloud deployments, he believes, corporate IT services are beginning to recognize the usefulness of SDNs for WAN and campus networks, given the need for more dynamic approaches.

2013

According to SDNCentral forecasts, the global SDN market amounted to $1.5 billion in 2013, and by 2018 it will reach $35.6 billion, i.e. it will increase almost 24 times. At the same time, by the end of the forecast period, about 40% of all costs for data networks will be associated with SDN. According to Research and Markets forecasts, in 2012-2016 the average annual growth of the global software-controlled network market will be 151%.

See also

• SDN Software-Defined Network Solutions and Projects Catalog Software-Defined Networks
• Data centers of Russia and technologies for data centers
• Virtualization Solutions and Projects
• NFV Network Functions Virtualization
• Software-Defined Optical Network (SDON) Software-Configured Optical Networks
• SD-WAN
• Software-Defined Storage (SDS)