Network Functions Virtualization (NFV) is a technology that allows network services to be virtualized and run on standard hardware instead of specialized devices. This means that functions like firewalls, load balancers, and routers can be implemented as software applications, making networks more flexible and easier to manage. By using NFV, service providers can quickly deploy new services and scale them as needed without the constraints of physical hardware. This approach reduces costs and improves efficiency, enabling faster innovation in the telecommunications industry and enhancing the overall performance of networks.