This growth will be driven by the continued increase in SDN and NFV within the carrier infrastructure.
The 33-page report, prepared by Rayno Media Inc. and distributed by The Rayno Report, highlights the strong demand from service providers to increase the agility and flexibility of dynamic enterprise data services. They believe the way to achieve this is through the implementation of next-generation LSO software that integrates orchestration, compliance, control, performance, assurance, usage, analytics, security, and policy for enterprise network services.
 
The report's findings are based on a joint study, "Emerging 'Third Network' Dynamic Services and the Role of LSOs," conducted with the MEF. Throughout the study and individual interviews, Rayno Report gathered data from professionals at more than 55 service providers worldwide.

Some additional findings:
• The LSO market will emerge by merging and integrating technologies in existing Operation Support Systems (OSS), SDN, and NFV markets, along with a new class of native LSO software.
• Software-defined networking (SDN) and network functions virtualization (NFV) will be the primary drivers of LSO.
• Global operators have expressed skepticism regarding the readiness of existing OSS and BSS systems to establish themselves in the emerging SDN/NFV landscape, according to the LSO market research.
 
R. Scott Raynovich, Chief Analyst at Rayno Report and author of the report, said the research findings were compelling and powerful.
“Our research indicates that global telecom operators have undoubtedly finally ‘seen the light’ regarding the capabilities of the cloud model and are eager to invest in technology that provides them with more dynamic network provisioning, management, and monitoring services,” said Raynovich.
“The communications industry is transitioning to more dynamic connectivity service delivery on more automated and connected networks,” said Stan Hubbard, Director of Communications and Research at the MEF. “The MEF is defining LSO capabilities and supporting APIs that will help overcome the OSS challenges that hinder the full realization of the benefits of SDN- and NFV-enabled networks. Our joint study with Rayno Report provides insightful data on the pace of change and the major obstacles that must be overcome along the way.”
 
Companies mentioned and/or referred to in this report: Alcatel-Lucent, Amdocs, Anuta Networks, CENX, Ciena, Cisco Systems, Cyan Networks, Ericsson, Glue Networks, Infovista, Netcracker, Oracle, Overture Networks Siaras, UBIqube and WebNMS.

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