08 (idnog02) sp transition to ng infrastructure based on nfv service offering by jason kalai
TRANSCRIPT
SP Transition to NG Infrastructure based on NFV Service Offering Jason Kalai Product Sales Specialist, Data Center
Global Service Provider
Cisco Confidential 2 © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Open Source
SDN
OpenFlow
Open Compute APIs
Virt
ualiz
atio
n
abstraction HYPERVISOR
Data Centers
OPNFV
X86
AUTOMATION
3GPP Policy
An Emerging Conversation Map
Opportunity Over-the-top players
Con
tent
New Business
Models
BANDWIDTH
Total Cost of Ownership
Inte
lligen
t N
etw
ork
OPEX
Revenue
Agility
SPEED
Over-the-top applications
Con
sum
er
Expe
ctat
ions
NE
ED
FO
R S
PE
ED
Open High-Value OTT Applications Lo
w-V
alue
S
P P
ipes
Optimize
Elastic
Acce
lera
te
Clo
ud-D
riven
E
cono
mic
s BUSINESS AGILITY
Business Transformation
Monetize Bus
ines
Tr
ansf
orm
atio
n
CH
AN
GIN
G
BU
SIN
ES
S
MO
DE
LS
Ope
ratio
nal
Agi
lity
Vanishing SP Business
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Industry Trends
Agility New
Revenue Streams
CAPEX/OPEX Impermanent
Faster Time
to Market
Scalable Capacity
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Industry’s Mission : Business Transformation
Automation is Not New – But Drives Business Success
Virtualized Resource Pools
(network ready compute/storage)
Virtualized Network Functions
Dynamic Set-Up, Tear Down and
Provisioning
On-Demand Workload Movement with Service Profiles
Data Center
Network Workload Portability
Orchestration
Full Access to Resource Pools
Anywhere in the Cloud
Cloud Services
Cost reduction and agility leads to success for all
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Several Industry Trends
Pace of Change is Accelerating – Simplification is Imperative
Open Source, Open APIs Enabling Faster Innovation and Wide Participation Open
Source
NFV SDN Network Functions Virtualization, NFV
Transforming Network Architectures & Operations
Software Defined Networking, SDN Abstracting to Better Application & Network Interaction
Each Addressing an Aspect of the Challenges and Opportunities
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Make My Business Better Key Benefits of SDN/NFV Programmability
Source: Heavy Reading ~ 80 Respondents Q3/2014
Great insourcing of software development
Greater outsourcing of network operations
Greater participation in applications/services
Increased network supplier choice
Development of new business models
Faster innovation
Greater agility in adapting to services demand
0 10 20 30 40 50 60 70 80 90 100 Percent of Respondents
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Most Important NFV Requirements Elasticity, Performance, Security
Source: Heavy Reading ~ 80 Respondents Q3/2014
7 19
22 22
26 40
42 44
49 51
60
0 10 20 30 40 50 60 70
Energy efficiency Migration & coexistence with existing platforms
Service continuity Resilience
Network stability Ease of operations (automation of functions) Portability (of functions across data centers)
Management & orchestration Security
High performance Elasticity (scale hardware resources as needed)
Weighted Score
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SDN/NFV Market Potential Rapid Deployment Growth Through 2018
0
500
1000
1500
2000
2500
3000
3500
2014 2015 2016 2017 2018
HW
SW
Services
Annual
SDN Market
Sources: ACG, ABI, Analysis Mason, Doyle, Heavy Reading 2014
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2014 2015 2016 2017 2018
NFV Market
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Service Provider Virtualization Priorities
Sources: ACG, ABI, Analysis Mason, Doyle, Heavy Reading 2014
Technology Segments
8
17
23
23
31
32
36
45
51
54
59
0 10 20 30 40 50 60 70 Weighted Score
DPI, Load Balancing
Policy, Signaling
OSS/BSS, Analytics
VoLTE, SIP Trunking
Mobile Packet Core (EPC)
Voice Core (IMS)
Business CPE
Content Delivery
Home Gateway / Set Top
Edge (Session Border Control)
Radio Access Network 0 500 1000 1500 2000
$ Millions
Business
Cloud
Machine to Machine
Video
Consumer
Service Segments
Mobile
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Our Industry’s Mission : Business Transformation
Automation is Not New – But Drives Business Success
Virtualized Resource Pools
(network ready compute/storage)
Virtualized Network Functions
Dynamic Set-Up, Tear Down and
Provisioning
On-Demand Workload Movement with Service Profiles
Data Center
Network Workload Portability
Orchestration
Full Access to Resource Pools
Anywhere in the Cloud
Cloud Services
Cost reduction and agility leads to success for all
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Network Function Virtualization in SP Segment
Video Headend
Mobile Gateways
PE / Service Edge
Mobile & Tablet
STB & TV
CE Router / Broadband
Today
Mobile & Tablet
STB & TV
CE Router / Broadband
Service 1
Service 2
Content 2
Desired End State
On-Net / Off-Net
On-Net / Off-Net
On-Net / Off-Net
Content 1
SP’s Cloud
Partner Cloud
Today’s Service Delivery In “Connected” Model
Any Device, Any Service, Any Content, Any Where, Any Time
Target is to Achieve Optimized TCO, Agility, Cloud Consumption & economics. SP’s now “can afford to go wrong”
Transition
NFV = Networking + Cloud ! A Key Enabler of this Evolution Top of the Mind for All SP’s
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NSO (Powered by tail-f NCS)
VNF-M
OpenStack/ VCenter
ODL/Controller
SP’s OSS/BSS or Prime Order Fulfillment
KVM (or ESXi)
Ceph (or Cinder/Swift)
VTF / OVS
SP’s Portal / Prime Service Catalog
VNF 1 (Cisco or 3rd Party)
NSO
VNF 2 (Cisco or 3rd Party)
NSO
VNF 3 (Cisco or 3rd Party)
NSO
X86 Server X86 / SAN Network Switch
NFV Reference Architecture from ETSI
Service Assurance
Animated
Wikipedia definition of NFVI – Set of resources that are used to host and connect virtual functions
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Cloud & NFV is Set to Change the Server Market Adoption
Workloads & Network Functions are getting Cloudified Source: Dell’Oro
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Analysis Mason View NFV Software Revenue Growth May take 5 years, till then investment in Hardware (Infra) & Services will be the driver
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Motivations Behind the NFV Led Approach
Unified NFV Infrastructure (Telco Grade DC)
vMS (As a tenant for NFVI)
Virtual Packet Core (As a tenant for NFVI)
IT/VPC (As a tenant for NFVI)
Virtualized Infrastructure
Manager
Tenants Tenants Tenants
Converge Infrastructure, Get it right once, achieve higher agility
Animated
vMS (Virtual Managed Service)
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Cisco Evolved Services Platform
Service Provider DC
Storage Network Compute
Open APIs
Customers Secure
Broadband Internet
Service Catalog
Orchestration Engine
Flexible CPE
Cisco ISR Meraki MX
Ethernet NID
CSR1Kv ASAv vIPS WSAv
Cisco Virtual Managed Services ( vCPE + Security)
Self-Service Portal
Sources: ACG Research, Cisco BTA, Cisco SPTG
Operations Savings
New revenue Stream from Enterprise customer
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Customer Requests Service
Cisco NFV Solution for Virtualized Managed Services
Enterprise Customer
Internet / Cloud / VPN
Service Orchestrator
VNF Manager Virtual Topology Manager
System Management
and High Availability
Internet/VPN (Managed CPE)
SP Managed Service POD
Compute
Compute
Compute
Compute
TOR Switch
Compute
Compute
Compute
Compute
Compute
Compute
TOR Switch
Compute
Compute
Security (Managed FW) NAT WAAS
Managed Services
Customer request is delivered from the SP Managed Service POD. The managed service is
orchestrated by Portal
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Customer 1 Wants FW, NAT
Internet / Cloud / VPN SP Managed Service POD
SP Datacenter
Customer 2 Wants vCPE, vFW, vWAAS
vFW NAT
vCPE vFW vWAAS
Customer service is instantiated as a virtual service in the managed service POD. Multiple services
combined into a service chain
Multi-tenanted service chains
Service Orchestrator
VNF Manager Virtual Topology Manager
System Management
and High Availability
Internet/VPN (Managed CPE)
Security (Managed FW) NAT WAAS
Managed Services
Customer Requests Service
Multi-Tenanted Service Instantiation & Service Chaining
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6% 1%
10%
6%
4%
4%
12%
4% 24%
1% 3%
2%
4%
3%
3%
6%
8%
1% 0.5% Cisco Virtual Network
Functions
CPE HW + Support
SP OPEX
SP DC Compute + Network
Cisco Orchestration
16%
15%
16% 24%
28%
Cisco Virtual Managed Services Enabling Significant Business Advantages
• ~ 65 % Reduced OPEX (Up to 78%) • ~ 200% Return On Investment • ~ $200 Million Increased Revenues
5 Year Business Analysis
Sources: ACG Research, Cisco BTA, Cisco SPTG 2014
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Customer Reference - DT
• Telco VPN Services • Remote VPN, Basic, Full, and Premium • Self-Service Telco Cloud Portal • Converged IP/Optical - Native IPv6 • All Network Elements Virtualized • Improved Customer Experience Up to 65% Reduced OPEX
• Global Managed Network Services Market by 2018 • $62B Total >> 13% CAGR
Sources: MarketsandMarkets, Cisco BTA 2014
Telco Portal
Cisco Evolved Programmable Network
CSR1Kv ASAv WSAv ESAv
Cisco Evolved Services Platform
Service Catalog
Orchestration Engine
DT Data Center
Virtual Packet Core/Mobility
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Mobile Broadband / Location Venues
Self-Service Portal Service Provider DC
Services Platform
Virtual EPC
Virtual SON
Virtual Policy
vISE Services Bus
Network Storage Compute
Operations Savings New revenue
Orchestration Platform
Open APIs
Service Catalog
Orchestration Engine
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Service Provider Monetization Use Case Framework
Make Money
Save Money
Subscriber-Centric
§ Congestion-aware content § Application-based plans § Sponsored data offers § Mobile targeted advertising § Location/venue analytics § Location-based ads / services
§ Service bundling § Customer loyalty program
Network-Centric
§ Tiered pricing plans § Shared data plans § Multi-device plans § Dual persona plans § Freemium
§ Happy hour plans § Video optimization § Network expansion with Small Cells
¥ € £ $
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Congestion-Aware Content Delivery
Challenge: Unpredictable network congestion deters premium and on-demand quality of service (QoS) offers for high-bandwidth apps (such as gaming, video, enterprise apps)
Ensure that the subscriber experience meets service expectations and entitlements
Truly monetize QoS (for example, turbo boost, bandwidth on demand)
Monetize exclusive and premium content (for example, NFL, Champions League, etc.)
¥ € £ $
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Application-based Plans
Challenge: Provide incentives for increased mobile data usage by price-sensitive subscribers, and/or to justify upgrade from 3G to LTE
Including a "comes with data" option for popular apps like Spotify, Twitter, Facebook, etc. gives greater certainty
Fee-based apps (such as Spotify) create opportunities for mobile network operator (MNO) revenue share
Cross-marketing with App Provider drives new customer conversions
¥ € £ $
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Sponsored Data Offers
Challenge: Data Quota-conscious users who ration consumption of rich-media content are using less mobile data and not upgrading to higher data plans
Gain additional revenues from data quota savvy subscribers
Increase non-access revenue sources (advertisers, sponsors)
Create business partnerships with content providers to increase usage
¥ € £ $
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Mobile Targeted Advertising
Challenge: Mobile Ads not effectively targeted and personalized, leading to poor CPM rates; Operators not getting revenues from OTT mobile advertising.
Monetize operators’ real-time network analytics (such as network conditions, subscriber profiles, mobile content usage, etc.) to anonymously target mobile ads
Create new partnerships in Ad ecosystem of content providers, ad networks, advertisers
¥ € £ $
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Location-Based Analytics
Challenge: Enterprises and venues want to use the “gold mine” of Wi-Fi location-based information
Service Providers increase revenues through sales of reports to enterprises and venues (e.g., $5,000/report)
Analytics can align with service providers’ “big data” strategy
Venues can use reports for data-driven decisions
¥ € £ $
XaaS (IaaS, SaaS, PaaS, UCaaS, BigData)
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Complexity
Revenue & Revenue/Sq. Ft.
Co-location
Hosting
PaaS
SaaS
Internal CRM, BSS, OSS Virtual Desktop Disaster Recovery Cloud Burst Development and Test
Service Providers are Expanding Services SP Services (Internal & External )
IaaS
UC aaS Video aaS “X” aaS
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Infrastructure as a Service Example: Compute as a Service
CRM
BSS
ServicesServices
SP Web service
Internal Mail System
SP Cloud
App
OS
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OSApp
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Light VMs
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AverageVMs
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Power VMs
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Compute as a Service Implementation Example
CRM
BSS
ServicesServices
SP Web service Web Hostng
Internal Mail System
SP Cloud
App
OS
App
OSApp
OS
App
OSApp
OS
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Light VMs
App
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OS Power VMs
§ DC size: 5,000 sq. ft. § # of VMs : 16,000 § Annual saving: $10M+ § Gross margin: 80% § Net margin: 60% § Annual growth (revenue): 10% § NPV of cash flow: $40M+
4,000
5,000
7,000
UCaaS
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UCaaS
Enterprise Business • Grow revenue • Lower overall
operating costs
• Acquire/retain customers
• Drive new market offering or business practices
• Improve workforce productivity
Enterprise IT Initiatives(3)
• Improve IT efficiency
• Streamline/improve business processes
• Increase IT resources to drive business innovation
• Improve customer management capabilities
Medium and large businesses will appreciate the economies provided by hosted IP telephony, but will seek such solutions mostly so they can focus on core businesses processes and gain access to applications and capabilities that they can test without making a capital investment.
Elka Popova, Global Program Director,
Frost & Sullivan
7 out of 10 Enterprises are investing in Collaboration solutions
30% will be Hosted
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Cloud Collaboration Services leverage business transformation to create SP value
New Revenue opportunities for MSP • Mitigate exposure of traditional business offers to price erosion
and costly churn, offset decline in traditional voice revenues • Monetize network capacity and IP services
MSP competing to win end-customer • Create differentiated UC proposal to compete with OTT and SI • New UC consumption model
Offer premium customer experience to Enterprises in cost-effective way • SP is taking care of complexity of enterprise collaboration across
networks, devices, places and experiences • Cost effective solution for provisioning, operations, management
and billing
$105 M/ 5yr Hosted Collaboration
incremental opportunity (1)
$2 M/yr Recovered voice
revenue if reducing churn by 1% (1)
41% Lower Ent TCO )
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Hosted Collaboration Solution architecture transforms SP services delivery
End Customer Experiences
Network Transformation
Service Transformation
Operations Transformation Improve operational efficiencies, optimize resources, assure the services and end-user
experience
Smoothly transition to Cloud infrastructure to optimize and
scale capacity
Accelerate Time to Market, introduce new services & monetize IP infrastructure Voice & Video
Voicemail & Integrated Messaging Mobility
Scalable System Architecture
Unified Communication System 8.0
Optimized Virtualization Platform
Presence & Instant Messaging Conferencing
Web 2.0Web 2.0 CollaborationCollaboration
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Summary: Hosted Collaboration Solution change business dynamics with cloud service
Business Models
Own HCS
Buy HCS as a Service from whitelabel partner
Provide HCS as a service to other MSPs
Faster to sell
Short sales and delivery cycle
Defined service, price, delivery models
Increased customer loyalty
OPEX market trend
Rich functionality
Upsell strategy
Simpler to operate
No onsite equipment to manage
Virtualization in Data Center
Shorter service delivery
Service Provisioning and Assurance Tools
Cisco Services support
Joint Go To Market
Joint Beachhead accounts approach
Joint Funnel review
Marketing Support
Sales Trainings
Joint demand creation activities
Big Data
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Manual systems/processes basic reporMng tools for high -‐gained customer segmentaMon
Marketing / Customer Lifecycle Management– SP Allows SPs to profile, target and monetize high-value customers through targeted BTL campaigns
Today (Manual, siloed systems and processes)
Data Infomediary (Integrated internal and external systems and processes)
SP Benefit • Rapid (2-‐4) campaigns/day • Churn reducMon by 4-‐8% • Higher offer take up rate • New service innovaMon, based on emerging consumpMon paVers
• Service Mering and value based charging
End User Benefit • More relevant / targeted offers
• InnovaMve services • Pricing and placement based on specific consumer needs
Current Situation • Few ~2-‐4 campaigns/month • High churn – ineffecMve broad segments (Mn subs) based on standard KPIs like ARPU and LoS
• Incomplete customer view • Slow, batch, manual data extracMon and reporMng
Scope of Impact
Billing IN/ CDR Charging VAS
IVR OBD CRM SMS
Customer side Network side
CLM data mart
IN/CDR Billing Charging
VAS
SMS Call center OBD
IVR
External systems Internal customer side systems Internal systems
Fine grained micro-‐segmentaMon engine, campaign management and predicMve analyMcs
• Routers / switches
• Towers • Media gateways
• Social media • Market research • Credit agencies • Retailers, Banks, etc.
Virtualized Data services / federaMon layer
Batch Real-‐;me
Metrics that show marketing efficiency – tied to pain point –
how much being spent for example
Thank You