1 CONFIDENTIAL– INTERNALUSEONLY

NFVITBDayBandungMarch21st,2016

NetworkFunctionVirtualization(NFV)TelcoPerspective

C.G.GustianaGMStrategicTechnologyPlanning,Telkomsel

|TELKOMSEL - Confidential

Key

Mes

sage

sNFV in a nutshell, trend in the industry

How the others are doing, describing various deploymentstrategies, benchmark, case studies that possible to be done oradopted by the CSP

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Today’s Agenda

The Values that NFV bring, main drivers for CSP/Telcos to adopt or acquired NFV technology

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Telkomsel’s NFV insight, some introduction, overview, sneakpeak on how Telkomsel doing this NFV, future possibilities for localindustry or developer, etc

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Network Function Virtualization (NFV) definition :

Leveraging standard IT virtualization technology to consolidate many network equipment types to reduce cost and improve flexibility, operability, and maintainability – ETSI NFV ISG

§ Vendor agnostic§ CAPEX and OPEX optimization§ Common hardware (COTS) support§ New service creation capability increased§ Multi tenancy support§ Self provisioning and orchestration support§ More flexible and simplify network

architecture§ Fast time to market§ Hypervisor needed and specific management

system§ Resource pooling (compute, storage,

network) for any function

characteristics:

NFV Approach, from Legacy & Vendor Specific to Standardize & Commodity Hardware

SOURCES: ETSI NFV ISG White Paper

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Main Difference betwween Legacy vs NFV Deployment

§ Procure New Hardware (Dedicated /proprietary for specific network function, usually take long time on delivery, Hardware reuse is impossible, especially for different vendor)

§ Finding Space and Power required§ Install Hardware§ Commissioning, Integrate, Operate§ Redo the whole process for the other or

new network function

Serial & Iterative Process

§ One hardware (x86 COTS) can be used by several network function

§ Hardware procurement and delivery is faster, since the hardware is a common commodity

§ Procure Hardware, Finding Space & Power, Installation, Commissioning, only needed to be done at the initial deployment

§ All Network Function is only software based and can be Install remotely and parallely

§ Fail fast support to achieve faster time-to-market

Parallel ProcessVs

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The main architectural constituents of the NFV Architectural Framework are :

§ The NFVI (Network Functions Virtualization Infrastructure), which provides the virtual resources required to support the execution of the Virtualized Network Functions. It includes Commercial-Off-The-Shelf (COTS) hardware, accelerator components where necessary, and a software layer which virtualizes and abstracts the underlying hardware

§ The VNF (Virtualized Network Function) is the software implementation of a network function which is capable of running over the NFVI. The VNF is the entity corresponding to today’s network nodes, which are now expected to be delivered as pure software free from hardware dependency.

§ The NFV M&O (Management and Orchestration), which covers the orchestration and lifecycle management of physical and/or software resources that support the infrastructure virtualization, and the lifecycle management of VNFs. NFV Management and Orchestration focuses on the virtualization-specific management tasks necessary in the NFV framework. The NFV M&O also interacts with the (NFV external) OSS/BSS landscape, which allows NFV to be integrated into an already existing network-wide management landscape

NFV ETSI ISG Architectural Framework

SOURCES: ETSI NFV ISG White Paper

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NFV ETSI ISG Use Cases Reference

§ Switching elements: BNG, CG-NAT, routers.§ Mobile network nodes: HLR/HSS, MME,

SGSN, GGSN/PDN-GW, RNC, Node B, eNode B.

§ Functions contained in home routers and set top boxes to create virtualised home environments.

§ Tunnelling gateway elements: IPSec/SSL VPN gateways.

§ Traffic analysis: DPI, QoE measurement.§ Service Assurance, SLA monitoring, Test

and Diagnostics.§ NGN signalling: SBCs, IMS.§ Converged and network-wide functions: AAA

servers, policy control and charging platforms.

§ Application-level optimisation: CDNs, Cache Servers, Load Balancers, Application Accelerators.

§ Security functions: Firewalls, virus scanners, intrusion detection systems, spam protection..

Network Functions Virtualization is applicable to any data plane packet processing and control plane function in mobile and fixed networks. Potential examples that can be listed include (not in any particular order):

SOURCES: ETSI NFV ISG White Paper

7 SOURCES: Infonetics ServiceProviderNFVSurvey,2015

§ There is no clear correlation between criticality of Network Function with operator decision on which NF going to be transformed into NFV first

Mobile Core, vEPCcompared with vIMSCore, .. Which one is the most critical NF ?

BasedonInfonetics SurveyOperators Adoption on NFV Use Cases

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Main Driver for Telco operators going into NFV

What happen online in 60 seconds?

Smart phones drive the massive traffic of data, putting huge strain to

the CSP’s network infrastructures

SOURCES: Cisco VNI Mobile 2014, Internal Analysis

Costs for addressing data traffic growth is getting higher, while the

data revenues declines

§ CostdominatedbyDatausage§ Newservicesdemandincrease

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Values and Benefits that NFV Bring to the Industry

ReduceCapitalExpenditures(CAPEX)§ Reduce hardware cost using COTS / commodity servers§ Service delivered in software, no dependency on vendor hardware

(price will be decreased)

ReduceOperationalExpenditures(OPEX)§ Quick and easy to move and scale the functionality, eliminate to deploy

and maintain specialized hardware for specialized functions.§ Reduce space, power and cooling costs§ Automation can be used to simplify roll out and ongoing management.

AccelerateTime-to-Market

DeliverAgilityandFlexibility§ Able to easily move, scale, and configure services as the demands of

customers or the business changes.§ Operator doesn’t have to buy a new server / hardware system every new

service with small scale needed.

§ Simple installation and provisioning to quickly deploy services§ Virtualized function enable easiness of conducting trial, segregation with

production can minimize the potential of risk.

TechnologyTrends§ Legacy vendors are starting to look into NFV technology.§ Several operators in the world already conducted trial and RFP.§ The rise of software-based company that develop NFV enrich the NFV

vendor options.§ Based on research done by Infonetics NFV widespread commercial

deployments will start from Y2016

SOURCES: ETSI, sdxcentral, Internal Analysis

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IT Cloud vs Network Cloud NFV Requirements

Enterprise (IT) Carrier (Network)

VirtualizationLayer

Oracle,CRM,Exchange

SAP,CRM,HRIS

COTSHardware

VirtualizationLayer

GGSN,SGSN EPC,IMS

COTSHardware

§ SLA 99.95% – 99.99 %§ Focus on the compute

and storage capacity§ Most application running

in light load§ Simple network

connection (internet and intranet)

§ No large flow between VMs

§ No strict requirement on the network latency and QoS

§ SLA 99.999%§ Focus on the compute

and networking capacity§ Most application running

in heavy load§ Complex network

connection (signaling, Media, OM)

§ Large flow between VMs

§ Strict requirement on the network latency and QoS

vs

SOURCES: ETSI, sdxcentral, Cisco, Internal Analysis

Operators General NFV Requirements

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Posible NFV Implementation or Deployment Scenarios

SOURCES: ETSI, Cisco, Internal Analysis

VNFCaseSpecific,e.g.

vMS,VPCOrchestrationLed

InfrastructureLed

VNFLed

• Cloudify &AutomateDCInfra• LeverageOpensource• Virtualize,Programmable&Provisionable

• ServiceElasticity• EaseofProvisioning;Timetomarket

• Servicedrivenapproach• ServiceAgility• Businessoutcomedesired

IncludesVNF-MandNFVOrchestrator

Compute,Network&SDNController,Storage,VIM(OpenStack)&Automation

OrchestrationLed

InfrastructureledapproachakaNFVIisgaining

prominence!

Integrating multiple virtual appliances from different vendors. Network operators need to be able to “mix & match” hardware from different vendors, hypervisors from different vendors and virtual appliances from different vendors without incurring significant integration costs and avoiding lock-in.

Challenges that needs to be answered by the SPs

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Posible NFV Migration Scenarios

SOURCES: Ericsson, NFV Strategy Rec. for Tsel

Scrap & Grow, retire legacy network and start fresh with NFV

Grow & Grow, co-exist between legacy and NFV, decision based on cost-based analysis to find best match between technology availability, performance and operation cost

Cap & Grow, limit legacy network until hardware retired, grow with NFV and slowly transform legacy network to NFV on new capacity expansion.

Slice & Grow, start NFV with network slicing for specific need and slowly migrating legacy slice to new NFV slice

CostEfficient

LessComplex Operation

Time to New

Revenue

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Operators Adoption Positioning and Time Line

SOURCES: NFV/SDNTelecomMarketLandscape,TechnicalBusinessResearch,Oct.2015

RateofAdoption

Strategic

Importance

Low

High

High

Telefonica

SKTelecom

BT

KPNKT

VodafoneTelenor

DTNTT

AT&T

CenturyLink

VerizonKDDI

OrangeChinaTelecomChinaMobile

Etisalat

ChinaUnicom

Bharti

Tier-2Operators

Singtel Telstra

SoftBank

PlanningStage

Mainstream

EarlyAdapter

Source:SDNandNFVVendorLeadership/GlobalServiceProviderSurvey,

Infonetics,Aug.2015NFV/SDNTelecomMarketLandscape,

TechnicalBusinessResearch,Oct.2015CiscoServiceProvidersSurvey,Nov2015

2014 20202013 2015～ 2016

POCs• Operators,

vendorslearninlab

• Fewfieldtrials

FieldTrials• VendorsproductizeNFV/SDNsoftwareinoperatorlabtrials• Afewmorefieldtrials• ～ 10Commercialdeployments

EarlyCommercialDeployments• Manyoperatorsdeploy1or2

usecases• ～ 15morecommercial

deployments

Wider-spreadCommercialDeployments• MainstreamAdoption• OperatorsdeployseveralNFV/SDNuse

cases,thenmoreeachyear

2022

LateMajority

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Global NFV Implementation Use CasesVirtual EPC Deployment§ NTT Do Como Inc. first announced for a commercial launch of NFV back in May

2014§ 70% of the whole network will be virtualized by 2018§ The solution is provided by Vmware, Fujitsu and NEC

Deployed program called “UNICA” for IoT and M2M Project

Core Network Modernization based on NFV§ By August 20th, 2014, Vodafone VHA has chosen Ericsson to replace and

upgrade complete national core network§ The upgrade include such as EPC, IMS, policy control and MSS circuit core

Network (2016)

§ 30% of the infrastructure has been virtualized and continue until 2023§ Some vendors like Huawei, ALU, Ericsson, NSN, NEC, Vmware and Red Hat

KVM are collaborating in this initiative§ Optimize its network to build services around IoT and M2M

Signaling based on NFV§ Vodafone Germany has implemented signaling control including SS7 and

Diameter into single platform based on NFV, in early January 2015§ the solution is provided by Netnumber and VMWare§ Source : http://www.lightreading.com/spit-(service-provider-it)/diameter-routing-

signaling/netnumber-decrees-the-end-of-signaling-silos/d/d-id/712972

SOURCES: various vendors and public analysis

Deployed program called “Domain 2.0”§ calls for the company to virtualize more than 75 percent of its network using

software-driven architecture by 2020

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Typical or Generic SPs Adoption Scenario on NFV are Aligned with Future Network Architecture Requirements for 5G

SOURCES: ETSI, sdxcentral, Internal Analysis

LegacyEPC

LegacySignaling

MME SPGW

DRA STP

LegacyCSCore

MSS MGW

VirtualizedSTP,IMS,EPC

XXXIMS EPC

VirtualizationPlatform(NFV)

GenericPlatform(COTS)

Scalability&Flexibility

NetworkExtension

STP IMS MSS MME

SPGWDRA HSS GiLAN

NFVOrchestratorDynamicresourcecontrol

Automation

NFVEnhancement

SDNacrossDC CloudTelcoSDN

BusinessExtension

NFVEvolvedDistributed

Serviceoptimized

CoreNetwork

RadioAccessNetwork

3G4G

5G

Today Future

Future services and business require network to have scalability, agility, flexibility and faster time deployment. Corenetwork evolution is needed to meet the services and business requirement.

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Telkomsel Insight, Virtualization Experience ... A Miles away toward NFV

IT Virtualization Architecture

Telkomsel IT Group has been using virtualizationtechnology since Y2008, started from VMware 4.1. Thebasic reasons of virtualization implementation are:§ The operational easiness (install new server and

service) which resulting faster time-to-market.§ Cost efficiency, since several small applications can be

installed in the same physical hardware, separated bydifferent virtual machines. Space, power, cooling usagealso reduced.

Hardware

Using Intel Architecture x86 COTS server. Brand usage are : Dell, Fujitsu, HP, IBM

Hypervisor

Using only VMware ESXi as the hypervisor / virtual infrastructure.

Operating System

Various operating system used as the foundation of an application. e.g : Windows, Linux, FreeBSD

Applications

Application type are from the small scale to the enterprise level. e.g : web server, tcash, smsbulk, microsoft exchange, active directory.

except/exclude : OCS, CRM, OSDSS, Oracle

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Telkomsel Encourage Openness, Welcoming wide variety of eco-system and players including Academia ..

Virtual compute

Industry groupofCommunication ServiceProviders(CSPs)andNetworkEquipmentProviders (NEPs)tospecifyNFV

business/functionalrequirements andtheinterfaces

necessarytosupport them

Opensource softwaresuiteforcloud computing

Integration project undertheLinux Foundationtocreateacarrier-ready NFVReferencePlatform (anIaaSplatform)

outofopen-sourcecomponents.

Openplatform fornetworkprogrammability forSDN

User-driven organizationdedicated tothepromotion

andadoptionofSDNthrough openstandards

development

§ Reducing vendor lock-in§ Community development brings a higher feature

velocity§ Cost efficient leads to TCO savings§ Flexibility and freedom§ Interoperability

Opensource NFV Platform

Enables a wide variety of eco-systems and encourages openness. It opens the virtual appliance market to pure software entrants, small players and academia, encouraging more innovation to bring new services and new revenue streams quickly at much lower risk

Benefits that can be achieved by the industry

Virtual storage

Virtual network

Virtual Infrastructure Manager (VIM)

DPDK

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