That’s according to a report from market research company IHS, which said that carriers have firmed up plans to move services from edge routers and onto NFV servers.
They also intend to move metro and transport functions to packet optical transport systems.
However, Michael Howard, a senior analyst at IHS said revenue will grow slowly and the move doesn’t mean that spending on routers and switches won’t show a dramatic downturn.
However, he said that virtual routers – called vRouters, will grow by 125 percent worldwide between this year and next.
The entire service provider market amounted to $3.3 billion in the first quarter of this year, with Alcatel-Lucent, Cisco, Huawei and Juniper the leaders of the pack.