network function virtualization (nfv) and software-defined networks (sdn):priorities and supplier...
DESCRIPTION
The TBR Networking & Mobility research team invites you to a thought leadership webinar on Tuesday, Feb. 11, 2014, which will outline how suppliers must prepare for an impending sea change in their marketplace as well as the initiatives they’ve taken to prepare to adopt this model. TBR believes software-defined networking (SDN), closely followed by network function virtualization (NFV), will be service providers’ major purchases in 2014. TBR will address SDN and NFV throughout the year in reports and studies. This webinar stakes out the preliminary findings, status of the markets and key research directions. Executive Analyst Michael Sullivan-Trainor will share his perspective on the latest trends and provide webinar attendees with additional insight into vendor performance and the future of the NFV market. He will then field questions from the audienceTRANSCRIPT
TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
Network Function Virtualization:Where’s the Business Case?
Technology Business Research (TBR) Quarterly Webinar Series
Feb. 11, 2014
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Webinar Presenter
Michael Sullivan-TrainorExecutive Analyst, Networking and Mobility Practice
Email: [email protected]
Twitter: @mikest
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• NFV Hype Cycle
• NFV Investment Cycle
• Operator Expectations
• Use Cases
• NFV Initiatives
• Packaging Challenges
• Supplier Impact
• Business Case Requirements
• Virtualization of Home Environment
• Next Steps
• TBR NFV Dashboard
AgendaNetwork Function Virtualization: Where’s the Business Case?
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NFV: Compete with service agility
SOURCE: NFV GROUP WHITE PAPER
Network Function Virtualization: Where’s the Business Case?
Category Definition
Key Concept
Transforming the network from a large number of different elements with separate functionality to a collection of high-volume servers, storage elements, Ethernet switches and IT systems able to run applications from independent developers.
Required Carrier-grade reliability, scalability and security and the ability to automate operations across hundreds of virtual machines
Expectation Reduce capex while increasing operational efficiency and application/services agility
Standard Groups
ETSI sponsored NFV Industry Specification Group (members: AT&T, BT, CenturyLink, China Mobile, Colt, Deutsche Telekom, Orange, KDDI, NTT, Telecom Italia, Telefonica, Telstra, Verizon); now 100-plus members http://portal.etsi.org/NFV/NFV_List_members.asp
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NFV: What operators expect and what it will takeNetwork Function Virtualization: Where’s the Business Case?
Benefits Implications
Rapid service innovationDecrease service time to market
Transformation of end-to-end services infrastructure to software-based deployment
Improve operational efficiencyReduce opex in service deployment and operations
Implement common automation and operating procedures
Reduced power usage Reduce opex for energy
Migrate workloads, and power down unused hardware
Deploy best-of-breed, decoupled network elements from multiple playersIncrease vendor independence
Implement standardized open interfaces between network functions and their management entities
Improve capital efficiencyReduce capex for hardware
Reduce costs by eliminating dedicated hardware implementations
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SOURCE: NFV GROUP WHITE PAPER
Network Function Virtualization: Where’s the Business Case?
Use Case Description
1. NFV IaaSInfrastructure as a Service
Computing, Storage and Network as a Service for end users
2. NFV SaaSVirtual Network Function as a Service
Software as a Service for end users
3. NFV PaaSVirtual Network Platform as a Services
Platform as a Service for end users
4. Virtual Network Forwarding NFV internetworking: defining the logical connectivity paths between virtual appliances
5. Virtualization of Mobile Core and IMS
Virtualization of Evolved Packet Core and IMS elements: MME, Gateways, CSCF, HSS
6. Virtualization of Mobile Base Station
Baseband radio processing using IT virtualization techniques for signal processing capacity aggregation and centralization
7. Virtualization of Home Environment
Replacing customer premise residential gateway and set-top boxes with virtual services in the network
8. Virtualization of CDNs Running content delivery network nodes as virtual appliances on operator infrastructure
9. Fixed Access Network Functions Virtualization
Applying virtualization to reduce the complexity of access nodes, links and network services
“As an industry we need to accelerate the journey toward NFV. There are 2 main parts: One, a wide array of best of breed ‘virtual network functions’ that currently run on purpose-built hardware, and two, an NFV cloud platform that’s optimized to run these functions at scale.” Axel Clauberg, VP IP and Fixed Access Architecture, Group CTO team, Deutsche Telekom AG
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Other candidates for network function virtualization
Solutions
OSS/BSS
Policy Control
Deep Packet Inspection
Session Border Controllers
Security appliances (firewalls, IDS/IPS, SSL VPNs)
Server load balancers
WAN acceleration
Network Function Virtualization: Where’s the Business Case?
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NFV Initiative examples
AT&T Verizon Vodafone
NFV Initiative Domain 2.0 Supplier Program;NFV ETSI ISG Founder
NFV ETSI ISG Founder
NFV ISG Participant
Current status NFV POC NFV POC NFV interest
Purchase bias Looking for industry-standard solution
Looking for point solution to enhance internal work
Looking for industry-standard point solutions
Leading suppliers ALU, Ericsson, IBM, HP, Cisco
ALU, Ericsson, IBM, HP, Cisco
ALU, Ericsson, NSN, IBM, Cisco
Network Function Virtualization: Where’s the Business Case?
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Network function virtualization supplier positionsCategory Solutions Partners
Alcatel-Lucent
• CloudBand provides a management platform for orchestrating and automating NFV platforms.• Opened NFV/cloud research facility in
Kfar Saba, Israel
CloudBand Ecosystem Program — community of SPs, developers and suppliers to accelerate NFV (13 members: Deutsche Telekom, Telefonica, Citrix, Intel, Vyatta, Radware, Red Hat, HP, Nuage Networks, Gigaspaces, StackIQ, Inktank and Nominum)
Cisco Open Network Environment, Quantum HCL Technologies, Leap Wireless
Ericsson Cloud System, Virtual Network System moving toward NFV platform
Joined OpenStack to contribute to development of solutions
HP Cloud Service Automation, Matrix, Aggregation Platform
Intel
IBM PureFlex, Virtual Core Mobile, Service Activator
Optus, Connectem
NSN • Liquid Net includes virtualized elements for radio networks, applications and management.• Liquid Applications are being trialed for
base station functions, IMS and TAS.
IBM, Intel, CD Networks,India-based service providers,SK Telecom
Network Function Virtualization: Where’s the Business Case?
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Brave new world of solution packaging
Session-based licensing and third-party certification
Own Function
Own Platform
Own Hardware
Own Function
Own Platform
Third-party Hardware
Own Function
Third-party Platform
Third-party Hardware
Systems Supplier Software Supplier ISV
Services Supplier — Consulting, Integration, Manage/Operate, Maintain
Service Provider Direction — Lower Cost via Standards
Virtual
Abstraction
Server
What’s your charging model for virtual instances of network functions?
Network Function Virtualization: Where’s the Business Case?
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Benefits NFV Supplier ImpactDecrease service time to marketTransformation of end-to-end services infrastructure to software-based deployment
Professional and Managed Services• Consulting on NFV architecture• Design and integration of NFV
elements and interworking• Implementation and validation• Outsourcing and out-tasking of NFV
Reduce opex in service deployment and operationsImplement common automation and operating procedures Deployment and Maintenance Services
• Software installation lower revenuethan hardware-based rollout• Consolidated automated operations
requires less support servicesReduce opex for energyMigrate workloads, and power down unused hardware
Increase vendor independenceImplement standardized open interfaces between network functions and their management entitiesReduce capex for hardwareReduce costs by eliminating dedicated hardware implementations
Software Revenue• New versions of software• New management software
Hardware Revenue• Fewer servers & storage hardware• Rationalized network equipment
Network Function Virtualization: Where’s the Business Case?
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Business Case Requirements: A Test of Faith
Costs• Increased software capex• Increased professional
services capex/opex
Benefits• Decreased hardware capex• Decreased deployment and
maintenance capex/opex• Decreased operational costs• Potential increased revenue from
faster provisioning• Potential increased revenue from
innovative service
Business Case Scorecard
Costs — Very Likely• Higher software capex• Higher professional services
capex/opex
Benefits• Decreased hardware capex: likely• Decreased deployment and
maintenance capex/opex: likely
Uncertain• Decreased operational costs • Revenue from faster provisioning• Revenue from innovative service
Network Function Virtualization: Where’s the Business Case?
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Business Case: Virtualization of Home Environment
Costs• Increased software capex• Increased professional
services capex/opex
Benefits• Decreased RGW and STB costs• Decreased deployment and
maintenance capex/opex• Decreased operational costs• Updates and new home services
• Potential increased revenue from faster provisioning
• Potential increased revenue from innovative service
Network Function Virtualization: Where’s the Business Case?
Business Case Scorecard
Costs — Very Likely• Higher software capex• Higher professional services
capex/opex
Benefits• Decreased hardware capex: likely• Decreased deployment and
maintenance capex/opex: likely
Potential• Decreased operational costs • Revenue from faster provisioning• Revenue from innovative service
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Next Steps
Operators move from POC to trials, testing technical issues and business case
Suppliers hone business case as well as product packaging
Most likely use cases to offer strong business cases will achieve deployment velocity
Network Function Virtualization: Where’s the Business Case?
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NFV DashboardTBR Dashboard Portfolio
Tracking:
• Business case for service provider adoption
• Lead NFV services platforms
• Best practices around licensing policies
• First-mover examples
SOURCE: NFV GROUP WHITE PAPER
Brave new world of solution packaging
Session-based licensing and third-party certification
Own Function
Own Platform
Own Hardware
Own Function
Own Platform
Third-party Hardware
Own Function
Third-party Platform
Third-party Hardware
Systems Supplier Software Supplier ISV
Services Supplier — Consulting, Integration, Manage/Operate, Maintain
Service Provider Direction — Lower Cost via Standards
Virtual
Abstraction
Server
What’s your charging model for virtual instances of network functions?
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Questions?Q&A
Michael Sullivan-TrainorExecutive Analyst, Networking & Mobility Practice
Email: [email protected]: @mikest
James McIlroy Vice President of SalesEmail: [email protected]: 603.929.1166
Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannel
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NMP Syndicated Research CoverageTelecom Vendors Operators Benchmarks
• Accenture Telecom & Mobility• Alcatel-Lucent• Cisco Systems• Ericsson• HP Telecom & Mobility• Huawei• IBM Telecom & Mobility• Juniper Networks• Nokia Solutions and Networks• Samsung Telecommunication
Systems• ZTE
• AT&T• Sprint• T-Mobile USA• Verizon
Enterprise Coverage:• AT&T Business Solutions• BT Global Services• Orange Business Services• Verizon Enterprise Solutions• Vodafone Enterprise Services
• Telecom Vendor Benchmarko Telecom Infrastructure Services
(TIS) Telecom Infrastructure Services
Benchmark Telecom Infrastructure Services
Margin Benchmark Telecom Infrastructure Services
Addressable Market Forecast Telecom Infrastructure Services
North America Addressable Market Forecast
• Enterprise Network Vendor Benchmarko Enterprise Networking
Addressable Market Forecasto Network Infrastructure Services
(NIS) Benchmark• U.S. & Canada Mobile Operator
Benchmark
Enterprise Networking Cable Providers(Reports include content on Ent. Networking)• Accenture Telecom & Mobility• Cisco Systems• HP Telecom & Mobility• Huawei• IBM Telecom & Mobility• Juniper Networks
• Comcast• Time Warner Cable
Internet Companies
• Google• Microsoft Telecom & Internet
TBR Networking & Mobility Practice Syndicated Coverage
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TECHNOLOGY BUSINESS RESEARCH, INC.
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Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators.
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