The vast majority of network functions virtualization (NFV) deployments in the next year will be for enterprise virtual customer premises equipment (vCPE), according to analyst Michael Howard with IHS Markit.

Also known as vBranch, vCPE has been growing in importance over the last several years because it allows enterprises to save and to make money. They can replace physical CPEs with software, and then they can quickly innovate and launch new services.

According to a recent IHS Markit NFV strategies survey, 100 percent of service provider respondents said they will deploy NFV at some point, with 81 percent expecting to do so by 2017. Moreover, 59 percent of operator respondents have deployed or will deploy NFV this year.

The IHS Markit survey results are based on interviews with purchase-decision makers at 27 global service providers.

In 2015 and 2016, the top barriers to deploying NFV have been integrating it into existing networks and the lack of carrier-grade products.

According to IHS Markit, many carriers in 2016 are moving from their NFV proof-of-concept (PoC) tests and lab investigations to working with vendors on commercial NFV products.

When announcing the results of its NFV strategies survey today, IHS Markit didn’t say anything about the kinds of vCPE that enterprises are deploying. However, the SD-WAN market has been going gangbusters as enterprises deploy the technology in their branch offices. That could account for the high deployments of vCPE.