Network Functions Virtualization (NFV) is an IT concept that refers to virtualization of dedicated networking hardware components like routers.
Network Functions Virtualization (NFV) basically replaces dedicated networking hardware devices and components with software components. These networking hardware components are replaced by the concept of virtual machines which can be hosted by the dedicated servers and under the supervision of hypervisors. These virtual machines are capable of performing all networking tasks that were previously performed by dedicated networking hardware devices and components like routers, load balancers etc. The basic purpose of Network Functions Virtualization (NFV) is to provide a smart and efficient solution for networking environment which is less dependent on hardware components and more dependant on software components like virtual machines.