software-controlled networking: cloud, nfv and sdn are
TRANSCRIPT
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Webinar
Software-controlled networking: cloud, NFV and SDN
are important for next-generation networks
September 2013
Glen Ragoonanan
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Our research portfolio includes 27 programmes covering the
complete depth and breadth of the telecoms sector
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Deliverables: research programmes include a combination of:
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 4
Executive summary and business environment
SDN use cases
Recommendations
Market definitions
Contact details
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
What is software-controlled networking?
More importantly, what does it mean to me?
The role of software-based solutions has continuously increased as IT and telecoms networks
have converged, and these networks are evolving towards a software-controlled networking (SCN)
environment.
SCN technologies focused on by CSPs and vendors are anchored to virtualisation: cloud
computing, network function virtualisation (NFV) and software-defined networking (SDN).
To identify key technology components of the evolving virtualised next-generation networks
(vNGNs) we developed a layered SCN architecture. The layers identified are:
user, infrastructure, platform, control, service, and development, where management and
security spans all layers.
However, technologies should not be implemented without a business case. The business case for
investing in SCN technologies is unclear to most, with only Tier-1 CSPs exploring it at present.
vNGN transformations will be an evolution, not a revolution, as IP NGN and each CSP will evolve
differently based on its unique business, competitive and technology environment.
CSPs’ telecoms and IT networks will follow different virtualisation paths because they will have to
address different environmental challenges.
5
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Software-controlled networking is the path along which CSPs’
networks are evolving – virtualised NGN
Figure 1: Landscape of increasing software control in the network [Source: Analysys Mason, 2013]
6
Legacy IN IMS
architecture
Telecoms
application
servers (TAS,
NG-IN)
Cloud
computing
(IaaS, PaaS
and SaaS)
SON
NFV
SDN
Increasing software control in the network
Prepaid
services,
GSM
IP-NGN, EPC,
OCS
Data services,
SOA, RCS-e
Content (apps, video),
OTT services,
virtualisation
HetNets, FMC, network
virtualisation, cost
Policy
control
Mobile data services,
diameter routing, cost
PSTN is a persistent legacy – particularly in incumbents
Key
drivers
Circuit switching Packet switching
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Convergence and innovation drive transformation to reduce
costs and time to market for new technologies The major drivers behind convergence and innovation in
next-generation telecoms networks are:
cost optimisation: to reduce capex and opex
flexibility: to reduce deployment and operational
complexities and further reduce opex
business value: to accelerate time to market for new
technologies in order to deliver new and established digital
(telecoms and OTT) services, which can reduce payback
periods for new technologies and increase revenue
sooner.1
In an advanced SCN environment, CSPs and suppliers will
be able to differentiate themselves on the basis of their
software and applications, not their hardware.
The SCN markets of cloud computing, NFV and SDN have
been very active during the past year, as vendors position
themselves in the evolving SCN value chain. The market has
undergone about USD4 billion in vendor mergers and
acquisitions, and attracted about USD220 million in venture
capital funding for more than ten SDN start-ups worldwide.
7
Figure 2: Overview of the evolving telecoms landscape SCN
technologies target [Source: Analysys Mason, 2013]
1 New digital services are explored in Analysys Mason’s Digital Economy Software Strategies programme, which covers M2M, commerce and billing services, as well as B2C and B2B cloud-based services.
IT
Telecoms
Apps
Cost
optimisation Flexibility
Business
value
Convergence and
innovation
IT
Telecoms
Apps
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
The impact of SCN technologies: The effect on each of the
telecoms software market segments in our taxonomy will vary
Network function virtualisation (NFV) is the virtualisation of
the telecoms-specific network functions that currently work
on embedded hardware, so that it can begin working on
high-performance servers.
Software-defined networking (SDN) refers to the architecture
used to make the network control plane (which is presently
embedded or locked firmware) remotely accessible and
modifiable via third-party software clients, such as those
based on the OpenFlow protocol.
Cloud computing is an IT model for providing on-demand
network access to a shared pool of configurable, virtualised
computing resources (for example, processors, servers,
storage, applications and network interfaces (NIC)) that can
be rapidly provisioned and released with minimal
management effort or interaction. Cloud computing is widely
used to virtualise telecoms software (OSS, BSS, SDP) in
communications service providers’ (CSPs’) private clouds.
8
NFV will be dominant in the revenue management and SDP
segments. As a result, systems integration will need to evolve
to more of a ‘NFV integration’ paradigm.
SDN will be prevalent in the segments that are closest to the
network and devices – that is, network management systems,
service assurance and device management. SDN
implementations will also impact custom development because
of the lack of commercial ‘off-the-shelf’ solutions (COTS).
SON is and will continue to be prevalent in engineering
systems, network management systems, and the network
planning and optimisation services in design consulting and
outsourced operations.
Eventually, it will be possible to host all OSS, BSS and SDP
systems in a cloud architecture.
Hosted managed services are delivered from a cloud
architecture using cloud computing technology. An increasingly
software-oriented environment could result in the majority of
product-related services being delivered as cloud services.
Business consulting and PSTN will be unaffected.
Definition of SCN market terms Expected impact on the telecoms software market
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
The impact of SCN technologies: However, almost all
segments will be influenced
9
Figure 3: Telecoms software market segments impacted by major SCN technologies in the next 5 years [Source: Analysys Mason,
2013]
SCN technology that will have an impact: SDN NFV No impact: SON Cloud computing
Professional services
Business
consulting
Design
consulting
Product-related
services
Systems
integration
Custom
development
Outsourced
operations
Hosted managed
services
Revenue
management
Partner and interconnect
Business optimisation
Mediation
Service delivery
platforms
Content management
Telecoms application
servers
Policy management
Subscriber data
management
Customer care
Customer interaction
Customer relationship
management
Subscriber
management
Service fulfilment
Order management
Inventory
management
Activation
Engineering systems
Service assurance
Service management
Fault and event
management
Performance
monitoring
Workforce
automation
Probe systems
Network management systems
Mobile Residential broadband Business data services PSTN
Device management
Billing
Prepaid
Postpaid
Convergent
and interconnect
optimisation
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Virtualisation will continue to blur the hardware and software
boundaries between cloud computing, NFV and SDN Cloud computing and NFV: the same, but different:
Cloud computing is the virtualisation of commodity IT
hardware and applications/software, which can run at least
99% availability level.
NFV is the virtualisation of telecoms-specific network
functions into applications that will run at least 99.999%
availability on suitable carrier-grade hardware and software.
Cloud computing is acceptable for non-real-time telecoms
software (OSS, BSS and SDP) on x86 servers, but is not
yet proven for telecoms network functions.
Telecoms software systems that provide network functions
can easily reside in a private cloud computing architecture.
The SDN roadmap has to navigate and mature in the data
centre before it can reach the CSPs’ networks (CSP SDN).
There is an overlap of NFV and SDN in the core/aggregation
layer of CSPs’ network.
CSP SDN is still largely in R&D and remains an open
opportunity for telecoms and non-telecoms vendors alike.
Trials to date have clearly separated SDN/OpenFlow from
CSP SDN – but this can change as R&D continues and SDN
vendors provide solutions for both data centres and CSPs as
part of their strategy.
10
Figure 4: ICT convergence in CSPs’ networks from cloud
computing, NFV and SDN technologies [Source: Analysys
Mason, 2013]
Next-generation telecoms Enterprise
OSS
NFV
SDN
Enterprise IT
Cloud management:
Virtual domain, IT
hardware, and
network
IT hardware
Cloud computing
Enterprise IP network
SD
N/O
pen
Flo
w
CS
P S
DN
Revenue management
Charging, Fraud, Interconnect
Control layer
IMS, Diameter, SIP
Network layer
Multi-service IP-based
network
Access layer
Multi-technology fixed and
mobile access networks
Core / aggregation
Distribution
Transport
Customer
care Virtualised
applications (SaaS)
Service layer
Service delivery platforms
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Market drivers and inhibitors for NFV and SDN for CSPs
11
Drivers
Cost reduction (capex and opex)
Faster time to market
Reduced network complexities (control and
management)
Competitive pressure
Maturity of virtualisation technologies
Inhibitors
Lack of carrier-grade (99.999%) hardware and
software technologies
CSPs need to acquire the return on investment on
existing network assets
Risk associated with fully open-source solutions:
lack of differentiation or uniqueness
high potential for security threats
Incompatibility with established networks and
OSS/BSS
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
The OSS layer for NFV and SDN for CSPs will gravitate
towards the NFV standards, not open source solutions
12
Figure 5: The evolution of the CSP OSS layer [Source: Analysys Mason, 2013]
NFV will move away from open-source solutions and towards COTS, and CSP SDN will be different from data
centre SDN. Open source approaches have not been successful in the telecoms sector because it does not
allow CSPs or vendors to differentiate and does not deliver reliable, carrier-grade solutions.
This could lead to control and management (that is, the OSS layer) of CSPs’ virtualised network functions and
SDN gravitating towards the NFV standards.
Data centre SDN will continue to gravitate towards open-source solutions and innovations, unless a strong
COTS network operating system (NOS) is developed.
Open
innovation
SDN
NFV
5–7 years 7 years
Open
innovation
SDN
NFV
Open
innovation
SDN
NFV CSP OSS
CSP OSS
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 13
Executive summary and business environment
SDN use cases
Recommendations
Market definitions
Contact details
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 14
SDN use cases
Roadmapping SDN – from the data centre to CSPs’ networks
The possibilities of SDN for CSPs
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
The SDN roadmap has to navigate and mature in the data
centre before it can reach the CSPs’ networks
The following SDN deployment scenarios illustrate the maturity of SDN in data centres in
delivering the concept of an SCN environment on commodity IT hardware for a carrier-grade
workload using an SDN control plane for centralised orchestration and management.
The use cases demonstrate that SDN solutions and, ultimately, OpenFlow are not yet mature
enough to support CSP networks. Their usefulness is currently limited to the data centre.
CSP SDN is still in the R&D phase for most vendors. They are collaborating with some CSPs. As a
result, the benefits of CSP SDN remain questionable.
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Deutsche Telekom’s TeraStream project: a cloud-enabled SDN
architecture Business problem
Cost, complexity, scaling for traffic growth and competitive
pressure have driven Deutsche Telekom to explore a radical,
lower-cost network architecture.
Technical solution
It developed a cloud-enabled, native-IP architecture called
TeraStream, which Hrvatski Telekom is trialling in Croatia.
TeraStream is a redundant architecture to allow live testing
as well as low-latency disaster recovery. The Cloud Service
Centre will host virtualised instances of cloud computing,
content and network functions, using NFV technologies.
Cisco’s CloudStack, using OpenFlow, is in the data centre.
Tail-f’s NCS is controlling the metro network, but with a non-
OpenFlow solution. Alcatel-Lucent’s CloudBand is the cloud
computing solution in the data centre.
Analysis
The need to reduce network costs and complexity are the
primary drivers for TeraStream. Deutsche Telekom aims to
roll this model out to its other operations if it is successful.
SDN has so far been more successful in the data centre.
The operator does not expect to develop COTS solutions and
is partnering with vendors such as Alcatel-Lucent, Cisco and
Tail-f on TeraStream.
16
Figure 6: Deutsche Telekom’s Cloud Service Center concept
[Source: Deutsche Telekom, 2013]
Figure 7: Deutsche Telekom’s current use of non-OpenFlow
SDN in the metro network [Source: Deutsche Telekom, 2013]
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Google’s G-Scale uses OpenFlow-enabled SDN to reduce the
scaling cost of its private inter-data-centre WAN Business problem
The cost per bit of scaling traditional WAN network architecture
to meet growing demands on bandwidth was increasing.
Google needed to scale the network to deliver high availability
(data replicated across sites) and low-latency access to its
services for users.
Technical solution
Google built G-Scale, its internal WAN backbone for about
13 data centre sites, using custom hardware running Linux,
OpenFlow software controllers and adapters, centralised
traffic engineering capabilities, open source routing stacks for
BGP and IS-IS contributing to Quagga (a network routing
software suite). G-Scale was completed in about 18 months.
It used multiple Google hardware chassis in each site to
provide fault tolerance and scale.
Analysis
G-Scale provides scalability and centralised control and
management of Google’s WAN with uniform hardware.
Google can scale its WAN infrastructure on demand and
deliver higher bandwidth at a lower cost per bit.
G-Scale will not be commercialised. Google is an open
source advocate, like the ONF, and contributed to Quagga.
17
Figure 8: Google’s WAN [Source: Google, 2013]
Figure 9: Google’s G-Scale [Source: Google, 2013]
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
NTT Communications embarks on an SDN-enabled global
cloud platform for enterprise customers Business problem
NTT Communications wanted to scale its global cloud service
platform at a lower cost. The long time-to-market cycle, as
well as the complexity of controlling and managing cloud
computing services for enterprise customers is reducing profit.
Technical solution
NTT used its established relationship with NEC to implement
a fully virtualised (compute, storage and network) enterprise
cloud platform for nine data centre locations in eight
countries as of March 2013.
The OpenFlow-enabled SDN uses NEC’s ProgrammableFlow
solution to provide flexible on-demand, intra- and inter-data-
centre network resources and capacity.
Analysis
NTT’s SDN reduces network cost, complexity (control and
management) and provides on-demand scalability.
This solution is not a completely open source SDN/OpenFlow
solution, which demonstrates the need for carrier-grade
solutions for the CSP market.
In-house development will drive SDN R&D and deployment in
its network, in the absence of COTS. Internal development is
the company’s traditional business and operations model.
18
Figure 10: NTT’s virtualised cloud service platform [Source:
NEC, 2013]
Figure 11: The benefits of a fully virtualised data centre [Source:
NEC, 2013]
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 19
SDN use cases
Roadmapping SDN – from the data centre to CSPs’ networks
The possibilities of SDN for CSPs
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
SDN and NFV has achieved some success, but an end-to-end
SDN solution that meets CSPs’ business objectives is needed
A robust and interoperable OSS layer that will co-
exist with established OSS and traditional network
infrastructure, with the roadmap to provide a unified
abstracted SDN control and management layer for
the hardware and network functions.
An SDN transformation roadmap that provides
technology and operational transition plans that
meet the CSPs’ business objectives in phases.
Examples of clear, quantifiable benefits of using
NFV/SDN in specific target areas (such as policy,
IMS and optical) so that CSPs can justify the
investment.
New target areas and use cases, such as:
dynamic app-aware traffic engineering with SDN
dynamic service chaining of Gi network functions
at the Gi interface for both NFV and SDN
SDN for IPv6 networks with IPv4 service
compatibility.
20
NFV is available for:
policy control (PCRF, AF, OCS, OFCS, recently
PCEF)
ISP (caching, load balancing, DNS/DHCP, traffic
management, BRAS, AAA)
IMS components (CSCF, MGCF, MRFC, MGW,
TAS, NG-IN, RCS-e)
routing (Diameter, OSPF, RIP, BGP, IS-IS)
mobile (MME, HSS, PGW, SON, ANDSF).
SDN/OpenFlow is prevalent in CSPs’ data centres.
Some SDN success has been noted in CSPs’
transport networks:
Tail-f’s NCS multi-vendor SDN controller in
Deutsche Telekom’s TeraStream metro network
NTT’s inter-data-centre WAN connectivity using its
own technology and NEC’s.
What is needed to evolve to SDN for CSPs? NFV and SDN successes for CSPs to date
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
We have identified four use cases that should form the
building blocks of CSPs’ end-to-end SDN strategy
21
Figure 12: Potential SDN use cases for CSPs [Source: Analysys Mason, 2013]
New or replacement hardware introduced in the network could be automatically discovered and sent configuration information from an SDN control plane, based on the network configuration policy.
New network functions could be pre-configured in the SDN architecture at the controller layer and be automatically configured when connected to the network.
Auto-network configuration
After network changes (such as node addition, configuration change or failure), the time it takes for these changes to propagate throughout an SDN could be considerably shorter.
The SDN controller could manage this convergence more efficiently than traditional network techniques, such as broadcast and replication.
Faster network convergence
SDN could enable centralised and uniform control and management of network configuration, policies, changes, rollbacks and upgrades.
Centralised control and management
SDN could facilitate interactions between (or integration of) multiple policy management systems across the network and service layer to:
manage the network
auto-provision subscriber-requested services, based on service policies.
Policy-driven and simplified operations
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Policy-based management is becoming pervasive, which is
important for SDN1 – centralised or distributed?
22
Figure 13: Hierarchy of major policy and network management
systems in CSPs’ operations [Source: Analysys Mason, 2013]
1 For further details, see Mark H. Mortensen’s Mobile operators with multiple policy management systems need new monitoring and control architecture. Available at www.analysysmason.com/Research/Content/Comments/Interacting-policy-mgmt-Jan2013-RMA02-RMA04.
Figure 14: Potential evolution to a master policy management
system in a CSP’s SDN operations [Source: Analysys Mason,
2013]
SON
Low-level
Signalling
Service control
Differentiated services
Network
Master
policy
control
SON
High-level
SON
Network
Service
SON
Low-level
Signalling
Service control
Differentiated services
Network
Service
policy
control
SON
High-level
SON
Network
Service
Network
policy
control
SON policy
control
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 23
Executive summary and business environment
SDN use cases
Recommendations
Market definitions
Contact details
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Recommendations for CSPs
CSPs should:
understand that virtualisation is the next evolution for networks, but it adds performance and cost layers.
ETSI NFV claims that the performance level of virtualisation is approaching carrier-grade performance in terms of reliability,
availability and processing throughput. Performance benchmarks on live networks have yet to confirm this claim.
Virtualisation adds a higher software cost layer onto the hardware compared with embedded software because of its ability to
provide elasticity and flexibility. The benefits of this cost for cloud computing and NFV are tangible in terms of power, cooling and
floor space cost savings.
be stakeholders in the development of NFV and CSP SDN solutions and collaborate with vendors. BT, Deutsche Telekom, NTT
Communications, Portugal Telecom, Telefónica and Verizon are leading by example in this respect.
use NFV as the first step to realising the benefits of virtualisation and eventually evolve to CSP SDN by identifying specific
network functions that can be virtualised – particularly those in the core and on x86 hardware, such as PCRF, caching, and some
TAS and IMS components.
measure the benefits of virtualisation accurately in order to develop cost key performance indicators by benchmarking costs
prior to the deployment.
expect CSP SDN transformation programmes to be long (more than 10 years) and complex, and recognise that traditional
networking and infrastructure will continue to coexist with SDN environments because PSTN, as well as new and different OSS, will
be required for both environments. Early adopter CSPs will have to use in-house skills initially because COTS and vendor
capabilities and skills will increase over time.
embrace the advantages of an IT culture because SCN will increase the convergence between IT and telecoms. For example,
CSPs need to be open to using new vendors, focusing on flexibility and cost reduction as the core requirements in architectural
design, and be more open to using software solutions that accelerate delivery time and ease operations.
24
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Recommendations for vendors: Hardware, software and
services are the three main market opportunities Hardware
It is not clear whether NFV and SDN will drastically increase
the depreciation of telecoms hardware. However, it is clear
that NFV and SDN will require new and different carrier-
grade hardware that is analogous to high-performance server
chassis. Ultimately, hardware can become the bottleneck in
SDN architecture and increase the value of this opportunity.
Software
Software will represent the highest revenue opportunities for
functions such as virtualisation (network OS, hypervisors),
OSS (SDN controllers, orchestrators and managers), NFV
components (such as PCRF), high availability, integration
adapters and security, among others.
Services
The three main professional service opportunities associated
with NFV and SDN are:
transformation or migration to a NFV and SDN environment
management of a complex combination of SDN and
traditional networks (including legacy), which will co-exist
integration of different multi-vendor technologies for OSS,
BSS, SDP, NFV, SDN and other competitive technologies
that emerge during the next 10 years.
25
Figure 15: SCN market opportunity segments in cloud, NFV and
SDN Analysys Mason will explore [Source: Analysys Mason,
2013]
Sub-segments Market
opportunities SCN markets
Cloud computing
NFV
SDN
Hardware
Software
Services
Core
Distribution
Access
Hypervisors
NFV components
OSS
Transformation
Co-existence
Integration
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 26
Executive summary and business environment
SDN use cases
Recommendations
Market definitions
Contact details
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Pro
fess
ion
al s
erv
ices
: C
o-e
xis
tence
, in
teg
ration
, tr
ansfo
rma
tio
n
Telecoms
Access
Distribution / Transport
Core / Aggregation
IT
End users and
end devices
Software-controlled networking architectural categories
27
Figure 16: Software-controlled networking architectural categories [Source: Analysys Mason, 2013]
Enterprise Virtualised next-generation networks (vNGN) Legacy
User layer
Infrastructure
layer
Platform layer
Control layer
Service layer
Development
layer
Mobile Fixed Hetnets
BYOD CPEs
Mobile smart devices
IP-enabled devices
Robustness, resilience
Network operating system
(NOS)
Multi-service
IP core network
Multi-service
IP-enabled, optical
transport network
IP
network
Hypervisors (hardware
virtualisation)
Intelligent
networks
and SS7
IMS, diameter and SIP OSS Policy control
Telco
SDP BSS
IMS
applications
Cloud, OTT,
e-commerce
services
Home gateway
services
M2M
services
Elastic
connectivity
services
Service
accessibility (over
FMC, hetnets)
ICT applications development (by CSPs, DCPs, vendors and third-party developers)
IT development Telecoms development
Man
ag
em
en
t
Secu
rity
Op
en
so
urc
e
High availability (HA)
Multi-technology controllers
Multi-tenant SaaS
Session boarder controllers
IT manager of
managers (MoMs)
AP
Is
AP
Is
AP
Is
Inte
gra
te
Access
Wi-Fi smart devices
Performance acceleration
Scalability, elasticity
IP NGN
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 28
Definitions of SCN market and revenue types
Figure 17: SCN market definitions [Source: Analysys Mason, 2013]
Market Definition
Cloud computing Covers cloud infrastructure (hardware, software/applications and services) and management of CSPs’ internal private cloud infrastructure
and cloud management for enterprise customers. Cloud management covers the software systems that enable customers to order,
activate, assure, bill and secure cloud services. This definition excludes network virtualisation, which we include in SDN.
Network function
virtualisation (NFV)
This market is defined by the parameters identified by the ETSI Industry Specification Group (ISG). It covers network functions such as
routing, switching, IMS functions, caching, PCRF, PCEF, MME, SMSC, HSS and media processing.
Software-defined
networking (SDN)
Specifically covers SDN work that is currently confined to the data centre. Most is currently related to the OpenFlow protocol and led by the
Open Networking Foundation (ONF), but some non-OpenFlow solutions are included. We expect SDN in CSPs networks (CSP SDN) will
take on a different form, beyond OpenFlow. We will focus on and include the CSP SDN market as it evolves.
Figure 18: SCN market revenue type definitions [Source: Analysys Mason, 2013]
Revenue type Definition
Hardware Includes the hardware and maintenance associated with each SCN market.
Software Includes product (licence software and maintenance) and product-related services (installation and configuration of product software
supplied), in each SCN market. Also includes hardware control and management software, such as virtualisation, high availability, security,
management, application optimisers, middleware and certified APIs.
Professional
services
Services that suppliers provide and are associated with their hardware and software services, such as implementation, systems
integration, support and maintenance. This includes design, deployment, systems integration, product and solution support, and managed
services in each SCN market. Excludes CSPs’ in-house development.
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 29
Sub-segments Definition1
Infrastructure layer Covers mainly infrastructure/hardware, and lesser software and services, security and management that provide storage, computing and
networking resources in CSPs’ core/aggregation, distribution/transport and access IT and telecoms network layers to reach end users.
Platform layer Includes mainly software and services above the hardware infrastructure, security and management for virtualisation (NOS, hypervisors),
high availability, scalability/elasticity, performance, and resilience. Platform software maybe implemented on bare-metal hardware.
Control layer Includes hardware, software and services above the platform layer, security and management for control of the underlying platform and
infrastructure with functions such as OSS (multi-technology (NFV, SDN, IT) controllers, orchestrators and managers), multi-service IP
network control (IMS, Diameter, SIP), and NFV components (for example, policy control).
Service layer Includes hardware, software and services above the control layer, security and management for creating, enabling, delivering and
managing services with functions such as BSS, SDP, API exposure, applications, and service accessibility (handover, etc.)
Development layer Includes hardware, software and services above the service layer, security and management for application development from network
and service API exposure from the service layer. This will be available to third-party developers.
User layer This market is not sized but noted as part of the ecosystem. Analysys Mason’s Mobile content and applications programme follows the
device and consumer segment in more detail.
Multiple layers Management and security spans all layers and is covered in each. Open-source software will assist R&D to COTS across all above layers,
but will not contribute to revenue. As such only COTS revenue contributes to the sizing of SCN markets.
Definitions of SCN market layered sub-segments [1]
Figure 19: SCN market sub-segments by architectural layers definitions [Source: Analysys Mason, 2013]
1 Bold text indicates the largest source of revenue in each layer and will be the focus in market sizing.
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Definitions of SCN market layered sub-segments [2]
Figure 20: SCN market sub-segments by architectural layers by cloud/virtual layers definitions [Source: Analysys Mason, 2013]
Virtual layers Definition
IaaS Includes the infrastructure layer only, to deliver storage, computing and networking.
PaaS Includes the platform and control layers to increase availability, robustness, performance, elasticity and control/manageability to the
underlying infrastructure layer.
SaaS Includes the service and development layers to develop, deliver and manage service on a robust underlying PaaS.
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Software-controlled networking: cloud, NFV and SDN are important for next-generation networks 31
Executive summary and business environment
SDN use cases
Recommendations
Market definitions
Contact details
© Analysys Mason Limited 2013
Software-controlled networking: cloud, NFV and SDN are important for next-generation networks
Contact details
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