5G Network Slicing - Management and Orchestration Aspects

A Strategy Analytics white paper sponsored by Hewlett Packard Enterprise and Intel

www.strategyanalytics.com

Report Snapshot

This report sponsored by Hewlett Packard Enterprise evaluates the impact

5G Service Based Architecture (SBA) on Network Slicing. New kinds of

Management and Network Orchestration (MANO) are required to ensure

that guaranteed End to End (E2E) Quality of Service (QoS) ‘on Demand’

can be delivered efficiently, automatically and at low cost with Network

Slicing.

Communications Service providers (CSPs) need vendors who can assist

their digital transformation to help them evolve to this new dynamic ‘5G

Ready’ environment. New processes and highly automated network and

service management are essential to address the complex, highly

dynamic nature of 5G SBA Network Slice MANO.

Within 3-5 years, CSPs should begin to reap the rewards from this

investment and achieve their goal of offering differentiated services with

Network Slicing at price points that will open up major new and profitable

markets. To do this they need vendors with proven capabilities to address

the service orchestration challenges they face today.

Prepared for HPE and Intel by

March 2019

Sue Rudd, Director Networks & Service Platforms

email: srudd@strategyanalytics.com

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Table of Contents

Overview 3

What is Network Slicing? 3

Network Slicing should not physically ‘Slice’ but rather ‘Dynamically Allocate the Network.’ 4

How 4G handles Network Slicing 4

4G offers several interim approaches to Network Slicing today 4

5G Service Based Slicing 5

5G Goal is ‘Every Network Function as a Service and Pool of Resources for all Services’ 5

5G defines Mechanisms for Characterizing Service Instances as Slice Types and Assigning them to Slices

and Slice Instances 6

Characterizing the Service Instances as Slice/Service Types 6

Virtualization and Dynamic Assignment are Critical for Profitable 5G Network Slicing 7

5G Demands a new approach to Network Management and Orchestration 7

5G and Network Slice Management need to go beyond NFV MANO 7

Dynamic Network Slicing is highly complex to manage 8 Agile handling of Dynamic Slice Management and Orchestration 8 New management systems already deliver ‘5G ready’ Network Slicing solutions 8

Where are we on Network Slicing Roadmap? 9

State of Network Slicing 9 Stages of Network Slicing Evolution (2017 – 2026) 9 Summary of Evolution Stages shown in figure above. 9

Simplify & Automate to avoid Escalating Costs of Management and Orchestration 10

Intent Based Orchestration 10

Benefits of Intent Based Orchestration 10

Role of the Information Model in Network Slicing 10

Use Case Example of Connected Cars 11

Process for Creating new Network Slice based on Information Model 11

Revenue Opportunities for 5G Slicing 13

Key Markets & Use Cases 13

Implications 14

Business Case improves as CSPs leverage Virtualization and Automation to evolve to Dynamic 5G

Slicing 14

About Hewlett Packard Enterprise 15

About Intel 15

About Strategy Analytics 15

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Overview

Network Slicing allows Communications Service Providers (CSPs) to create multiple logical networks or slices each of which can support multiple sessions or service flows for an end user or for network services with very different throughput and performance requirements running over a common virtualized physical infrastructure.

Network slicing enables new revenue generation from services that require a guaranteed Quality of Service (QoS) at lower OPEX and with greater CAPEX efficiency than dedicated VPNs or ‘nailed-up’ dedicated networks resulting in significantly increased incremental contribution to the CSPs’ bottom line through new service launches.

This report sponsored by Hewlett Packard Enterprise and Intel evaluates the impact 5G Service Based Architecture has on Network Slicing and the new kinds of Network and Service Management and Orchestration that are required to ensure guaranteed End to End (E2E) QoS ‘On Demand’ will be delivered efficiently, automatically and at low cost.

What is Network Slicing?

The most recent requirements for 5G Network Slicing were laid out in 3GPP’s Release 15 Specification ‘System Architecture for the 5G System’ that was ratified by ETSI in September 2018 and forwarded for approval to ITU2020.

A network slice is technically defined as a logical End-to-End (E2E) virtual connection that can be dynamically created to link User Equipment (UE) and associated applications to a particular service resource – compute server, data store or other – whether at a Cloud Data Center or elsewhere. In Next Gen. Network Slicing virtualized connectivity resources are assigned based on the requirements of the applications in order to meet desired E2E QoS parameters and/or a pre-agreed Service-level Agreement (SLA).

Network slicing is, therefore, a method that provides End to End (E2E) virtual network connectivity to link all service resources that each application/service flow requires - communications, compute processing and storage. For efficiency, Network Slicing should eventually enable multiple logical networks to operate across a shared physical network infrastructure. Then CSPs will be able to use a single physical network to support the needs of very diverse users – each of whom would receive exactly the QoS that each application requires, even though multiple application service flows are sharing a slice and multiple slices are also sharing the common physical network.

In 5G therefore, Network Slices will be logical E2E and dynamically created. The three ‘anchor’ horizontal use cases for 5G: Enhanced Mobile Broadband (eMBB), Ultra-Reliable Low Latency Communications (uRLLC) and massive Machine Type Communications (mMTC) are all candidates for Network Slices as shown in the figure below.

Figure 1. Network Slicing means multiple Logical networks over the same network infrastructure

Source: Lee Hines HPE CMS in ‘5G Service Based Architecture (SBA) Evolution to IT-centric practices’ Webinar, Aug, 2018

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Network Slicing should not physically ‘Slice’ but rather ‘Dynamically Allocate the Network.’

In Next Generation networks and especially 5G ‘Network Slicing’ does NOT actually mean that Communications Service Providers (CSPs) physically slice their networks - although some CSPs have done just that in the past in order to ‘nail up’ paths for dedicated use, just like ‘wireline circuits’, and to ensure they meet customer Service Level Agreement (SLA) requirements. NGMN’s 2016 Description of Network Slicing Concept proposed, however, that all Network Slices share a common pool of network resources. Despite that GSMA’s April 2018 Network Slicing Use Case Requirements still allow for ‘network level isolation’ where individual vertical customers do not share network function or resources with the other customers.”

In the medium term initially, 5G allows for ‘slice isolation’ where applications/service flows share a common slice but not a common pool of virtual physical resources. Such physical slicing, however not only creates traffic load management problems for other users but also lower reliability for the slice itself. At the same time, this approach loses the critical financial savings of virtualized resource sharing.

Next-generation Network Slicing should, therefore, focus on logical ‘operational isolation’ where multiple application/service flows can share a common slice and (where possible) also share virtual physical resources with other slices for maximum network resource utilization. SDN will still allow end users to have independent monitoring, and logical control of their network slice(s) - as permitted by CSPs.

How 4G handles Network Slicing

4G offers several interim approaches to Network Slicing today

Several early mechanisms for mobile Network Slicing have been used with 4G/LTE in advance of the 5G Network Slicing standards. The major ones as summarized in the figure below

Figure 2. Multiple Network Slicing Mechanisms are available for 4G Today

Network Slicing Approach

How it works

Dedicated Core Network (DECOR)

Enables a User Equipment (UE) device to be directed to a specific Evolved Packet Core (EPC) when it joins the network and avoids the need to allocate additional access network PLMN IDs. DECOR was standardized in 3GPP Releases 13 and 14. UE is effectively ‘nailed up’ and is deployable today only with appropriate software updates to devices.

Access Point Name (APN)

Routes segments of access traffic E2E via the correct gateway for the service e.g. VoLTE, but APN approach requires a priority radio bearer to route RAN traffic to a dedicated P/GW. Approach is complex and can be hard to manage and scale even over dedicated core networks without automation

Multi-Operator Core Network (MOCN)

Developed for MVNOs and other arrangements where several operators share the same RAN for access while routing traffic to their own core networks. Significant overhead is associated with allocation of dedicated access IDs and resources in MOCN and needs significant automation to scale down this solution for private enterprise networks or IoT services

Source: Strategy Analytics, Networks and Service Platforms

All of the above mechanisms – and additional PLMN and eDECOR variations - require significant effort to configure and coordinate across diverse network elements. Automation is essential to make these and other 4G PLMN mechanisms even minimally easy to use.

Without tools for SDN control of dynamic scalable virtualization of network resources only premium business cases i.e. for customers willing to pay 20% above standard fixed VPN prices are likely to be profitable. 4G/LTE architecture currently allows only these relatively ‘static’ slices and the only mechanism available to enforce QoS in 4G/LTE is QoS Class Identifier (QCI) which has nine levels, but cannot truly guarantee any of them. Similarly, the routers on the backbone fixed infrastructure can only request, but not guarantee priority QoS for any of the slice applications over IP, unless the communications connectivity is ‘nailed-up’ and user contention is prevented.

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5G Service Based Slicing

Today we have a new 5G Service Based Architecture (SBA) and standards for the initial application of Network Slicing. A good summary is available from 3GPP here ‘3GPP System Architecture Milestone of 5G Phase 1 Achieved’.

5G Goal is ‘Every Network Function as a Service and Pool of Resources for all Services’

To create the new 5G specifications, Radio, Core and IT experts have worked with NGMN and 3GPP to design a network architecture that will support both IT or end user services and internal operator network services as part of a common 5G Service Based Architecture. As service providers move to this new ‘flat’ request/response message based architecture, they are finally able to decompose monolithic Virtual Machines (VMs) into their component Virtual Network Functions (VNFs) - now renamed as Service Functions (SFs) - and implement them as ‘Cloud Native’ containerized microservices. In SBA these SFs offer their services to any other SFs that are authorized to make use of them. Services are defined E2E as a logical sequence of SFs across a given network scope. Combinations of SFs – implemented as interoperable microservices - are strung together to create application-specific service flows across E2E, across ‘virtual networks’ created as logical slices on top of a common set of network resources.

The figure below shows some realistic examples of E2E 5G network slices – across diverse networks of different scope - Radio, Transport, Edge, Core and/or Cloud - composed from combinations of SFs running over one or more physical operator networks.

Slice A. Green for instance, is a Mobile Broadband (eMBB) slice designed to support Communications, Entertainment or Internet Access across a single Operator network.

Slice B. Orange supports Machine to Machine (mMTC) applications for Retail, Shipping or Manufacturing across two Operator Domains.

Slice C. Blue supports Ultra Reliable Low Latency (URLLC) services for Automotive, Medical or Infrastructure Services across End to End (E2E) network domains over separate network domains e.g. Radio Subnetwork/RAN, Transport Network or Fixed Backhaul or the Edge Network, Core Network and Cloud.

Figure 3. Delivering 5G End to End (E2E) Services –Mobile Broadband, M2M/mMTC, URLLC - with Network Slicing

Source: Leo Popkh HPE CMS in Fierce Webinar ‘5G Slicing – Management and Orchestration Aspects’ January 2019

The scope of each slice may also vary. Some applications may span the full scope of all networks from RAN to Cloud, while others e.g. Multi-Access Edge Services (MEC) might be processed at servers with the RAN and others only in the Core.

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5G defines Mechanisms for Characterizing Service Instances as Slice Types and Assigning them to Slices and Slice Instances

Characterizing the Service Instances as Slice/Service Types

To characterize each service instance 3GPP TS 23.501 specifies formal Slice/Service Types (SST) for the three ‘anchor’ horizontal use cases for 5G: Enhanced Mobile Broadband (eMBB), Ultra-Reliable Low Latency Communications (uRLLC) and massive Internet of Things (mIoT) (similar to massive Machine Type Communications (mMTC)). Different slices will be instantiated for different services types and initially these are either committed services with specific Service/Slice Types (SST) See figure below, or ‘dedicated customers’ like enterprise VPNs or SD-WANs.

Figure 4. Slice/Service Type (SST) Values 1 through 3 for eMBB, uRLLC and mIoT

Source: 3GPP TS 23.501, section 5.15.2.2-1

For 5G Network Slicing the original 2016 NGMN Description of Network Slicing Concept proposed three layers - a service instances layer, a network slice instance layer and a resource layer. Network slice instances are built by the combination of optimized sub-network component instances that can eventually be shared among multiple network slices. To describe this mapping, NGMN uses network slice blueprints i.e. templates. Multiple service instances can run on top of a network slice instance - e.g. verticals with the same or similar QoS requirements and characteristics. The figure below shows how the NGMN approach should work. Each service instance is assigned to a network slice instance and some of these may share optimized sub-network instances. Note below: Network Slice Instances 3 and 4 share a sub-network instance yellow and Service Instances 4 and 5 share Network Slice Instance 4 – yellow, green and blue

Figure 5. NGMN Three layered perspective [NGMN-Concept].

Source: NGMN cited in 5G - PPP ‘Network Slicing In 5Gtango’

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Virtualization and Dynamic Assignment are Critical for Profitable 5G Network Slicing

If every application/service flow were to be nailed up to a static connection with static dedicated resources there would be no economic advantage for Network Slicing compared to fixed VPNs or even ‘dedicated connections’. Once several service instances can share a slice/slice instance there are some efficiency gains. If these slice instances can also share optimized subnet instances; and then finally also share a common pool of physical resources CSPs will be able to capture significant economies of scale from Network Slicing that should open up new mass markets for QoS based offerings.

When both the slice instances and the physical network resources are virtualized under SDN and NFV MANO with ‘Cloud Native’ Virtual Network Functions (VNFs) CSP costs could be 40 to 60 percent below those of today’s SD-WAN services. This cost reduction comes from both dynamic capacity utilization of the common virtualized physical resources and from the operational efficiency of automated management of ‘well groomed’ traffic over common communications paths with the same QoS parameters.

5G Demands a new approach to Network Management and Orchestration

The changes 5G brings have a major impact on how mobile networks are built, created, managed and used. Since all 5G E2E Services are created from Service Functions (SFs) - formerly referred to as VNFs - the management and orchestration systems must go beyond the traditional NFV MANO functionality to focus on the dynamic composition of those services instead of primarily on the network resources. There are key differences in functionality that results from the paradigm shift to ‘Network Slicing as a Service’. Specifically:

Service Orchestration and Slice Management need to be Application aware Service Orchestration and Slice Management need to be Quality Aware Control Plane is aware of Slice (Network Slice Selection Function (NSSF) etc.) but not of its Services

In addition, Network Slicing will create new market opportunities that may have separate special requirements such as very low latency VPNs for ‘Services at the Edge’ or unique vertical markets. Service functions and network components may also come from a diverse range of vendors and operators running multiple network domains or at multiple separate locations. All these dramatically increase the challenges for network operations.

5G and Network Slice Management need to go beyond NFV MANO

The figure below shows the recent timeline for the evolution of management and orchestration requirements from 2014 to the present. Prior to 2014 NFV introduced the basic MANO functions and in 2015 and 2016 we saw the advent of Service Orchestration for vCPE. In 2017 Application Configuration Orchestration was added and then in 2018 service providers began to manage the pre-cursors of 5G and Enterprise services - SD-WAN, Platform as a Service (PaaS) and early versions of both Network Slicing and Multi-Access Edge Computing (MEC). The need for new Management and Orchestration capabilities became apparent. So in addition to E2E Service Orchestration CSPs started to look for ways to include all aspects of Slice Management, Application Orchestration and Container Management as part of a broader view of 5G Management and Orchestration.

Figure 6. 5G Network Slicing requires additional E2E Service Orchestration and Slice Management

Source: Leo Popkh HPE CMS in Fierce Webinar ‘5G Slicing – Management and Orchestration Aspects’ January 2019

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Dynamic Network Slicing is highly complex to manage

As described above CSPs need simultaneously to manage all aspects of both 5G network and 5G service enablement, instantiation and orchestration including:

Service Orchestration with: Slice Management Application Configuration Management

Network Resource Orchestration with: Container Management

Network Slicing also has particularly demanding requirements for real time monitoring to meet customers’ per slice E2E Service Level Agreements (SLAs), dynamic policy settings to optimize slice traffic, dynamic assignment of network resources and target driven ‘intent based’ automation. All these create a unique and complex challenge that demands truly dynamic network and service management capabilities that fully support efficient 5G Network Slicing operations.

Agile handling of Dynamic Slice Management and Orchestration

To be ready for 5G CSPs need vendors to deliver a highly complex set of dynamic management and orchestration capabilities that take the necessary automated actions to manage 5G Network Slicing. See the figure below.

Figure 7. 5G changes Capabilities Required to Build, Operate and Manage Network and Service functions

Capability Required Action to be Taken Dynamic Assignment of Apps to Network Slices

Real time assignment of multiple apps. per User Equipment (UE) device to non-static slices

Dynamic Instantiation for diverse Service Slice Types

Instantiation of Network Slices ‘On Demand’ with the associated Policy Enforcement to ensure target QoS level is met for multiple diverse parameters - Bandwidth, Latency, Packet Loss etc.

Dynamic Creation and Assignment of VPNs

‘On Demand’ Creation and Instantiation of Secure ‘Private virtual VPNs’ and associated service flow over pre- defined Network Slices

Dynamic Sharing of 5G Core Service Functions

Sharing of Core Services across Multiple slices e.g. VoIP or IMS

Management of E2E Slices across Diverse Domains

Creation and Guarantee QoS of Slices across multiple Access, Connectivity, Service and Content Domains. e.g. End to End (E2E) Slices across :

RAN, Core, Backhaul and Cloud Data Center Converged Fixed and Mobile Access and Service Infrastructure

Real Time E2E Monitoring and Pro-active Intervention

E2E Telemetry and Monitoring with Predictive Analytics to trigger Policy Rules that assure E2E quality by pre-empting degradation of service performance

Highly Heterogeneous Infrastructure Environment

Management and orchestration of multiple service flows across multiple diverse carrier domains and multiple vendors’ equipment and service platforms

Hybrid Public and Private Cloud

Creation and management of global E2E slices across private and public carrier boundaries e.g. for connected cars for a global automobile manufacturer

Source: HPE CMS and Strategy Analytics

New management systems already deliver ‘5G ready’ Network Slicing solutions

Even before 5G arrives, CSPs are finding that they would benefit significantly from new ‘5G ready’ dynamic network and service management that will allow them to:

Easily instantiate, manage and monitor services E2E as 5G Network Slices Allow those services to be tailored to meet variations in requirements e.g. via SDN control for enterprise

parameters Enable BSS systems to quickly create service catalog and revenue options for new Service Slice Types Activate and orchestrate new specialized 5G services faster, more reliably through secure Network Slicing Minimize capacity ‘Over-Provisioning’ with truly dynamic resource virtualization Control costs with optimization of Network, Compute and Storage resources from the core to the increasingly

distributed Edge – both virtually and physically

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Where are we on Network Slicing Roadmap?

State of Network Slicing

2018 saw multiple Network Slicing Proof of Concept (PoC) demonstrations move into pre-commercial testing with some live commercial versions running in a limited fashion over 4G. But the complexity of configuration and management has made many CSPs look to new pre-5G management and control mechanisms for simpler more robust configuration and operations tools.

Standards emerged for both3GPP Release 15 Network Slicing standard for 5G Non-Stand Alone (NSA) and in the

Management and Network Orchestration (MANO) requirements for Network Slicing – See: Study on management and orchestration of network slicing for next generation network. Additional work is also well underway on

Network Slicing as an integral part of 3GPP Release 16 for 5G Stand Alone (SA) as part of the new 5G Service Based Architecture.

Stages of Network Slicing Evolution (2017 – 2026)

Although the term Network Slicing has been used narrowly in the router world for several years to create dedicated VPNs with separate physical router connectivity and in 4G for allocating paths that it takes on a new meaning in the SDN controlled virtualized world of 5G telecoms, where the primary function of Network slicing is to enable multiple logical networks to run on top of a shared physical network infrastructure not just for connectivity but also for compute and storage functions i.e. all the functions a complete service instance requires.

Today we are just at the beginning of this new simpler cost effective Network Slicing evolution. Below we chart the key stages of that evolution over the next 5 to 7 years that will bring massive changes in communications networking as 5G is deployed over truly virtualized physical and logical infrastructure under SDN control.

Figure 8. Projected Roadmap for Evolution of Network Slicing

Source: Strategy Analytics, Networks and Service Platforms

Summary of Evolution Stages shown in figure above.

Stage 1. (2016 – 2923) Configure and Monitor VPN-like Static Service Flows over 4G with QCI controlled SLAs using DECOR, APN, MoCAM etc. to handle multiple service flows for the same customer over the same SD-WAN or VPN Stage 2. (2018 – 2024) Shared Virtual Resources Per Slice under SDN based control for 4G or Pre-5G Slices with ‘Bandwidth on Demand’ for new Application/Session Flows and Service Instances' Stage 3. (2019 – 2026) Multiple diverse Service Instances Per Slice with dynamic Load Management within Network Slices over Pre 5G and 5G NSA. Stage 4. (2022 - 2030) Network-wide Virtual Slicing where all slices can dynamically share all physical network resources operating in fully Service Based Architecture (5G SA and 3GPP Release 16+).

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Simplify & Automate to avoid Escalating Costs of Management and Orchestration

To drive down the potentially exorbitant operations cost of these highly complex dynamic 5G services CSPs must first look at how to simplify and standardize their processes for Network Slice configuration, instantiation, integration, deployment, orchestration, monitoring and maintenance. Operators need to standardize their ‘best of breed’ processes, develop appropriate policy rules and apply both ‘open loop’ and ;closed loop’ machine learning to recognize dynamically changing conditions in real time and define actions in ways that allow them to automate 5G Network Slicing Management and Orchestration from ‘Soup to Nuts’.

The challenge of automating the complexity of 5G systems is described in Strategy Analytics recent report ‘Complex

Converged 5G Network Operations Demand Automation and AI’. HPE is one vendor that has focused on a key approach

for 5G Automation - a process referred to as Intent Based Orchestration.

Intent Based Orchestration

Intent based orchestration - as used by HPE - describes the entire process of network and service configuration and service operations for network functions, service functions and all infrastructure resources. When an operator enters his ‘intent’ i.e. requests a future state of an E2E service or Network Slice from the User Interface (UI) on an operations console, the intent based system translates that request into machine readable service and network descriptors as a ‘target’ objective. In parallel, it characterizes, tracks and analyses the current state of the system in terms of virtual and physical resources.

To instantiate or reconfigure a particular service/slice the establishes the current state of the network – which is monitored continuously and compares that to machine view of the future requested state for the service. The system calculates the delta that is needed to get to the new state subject to Configuration and Policy Rules and known outcomes of configuration changes that it has established from Machine Learning over time. The system can then automatically trigger the commands to make the necessary changes to achieve the new state without requiring new scripts or any software to be written by the operator. Alternatively the system can run ‘open loop’ and request that the operator approve any less routine changes to the configuration etc.

Note: HPE’s goal for Intent based Orchestration is to enable operations staff to specify what the result of a network or service change needs to look like - not how it is to be done - and then let the network management and orchestration system figure out how to achieve the desired target state in real time, even as virtual network function instances and service flows per slice are appearing and disappearing.

Benefits of Intent Based Orchestration

Significant OPEX cost savings have already been demonstrated by service providers who adopt Intent based Service Orchestration as a fundamental part of network automation. In addition to operations cost savings a key benefit of adopting Intent based orchestration is that the system can provide accurate machine readable input on the state of the network and all active service flows in real time. This helps to ensure that an operator can maintain a continuously updated information model for its network, which in turn makes it much faster to highlight and ameliorate any configuration or software release compatibility problems. Note: Configuration problems alone are estimated to cause over 60 percent of CSP network performance issues.

Role of the Information Model in Network Slicing

The process of creating a new Network slice depends importantly on the use of a well developed information model to provide a formal representation of the relevant network and service functions and their relationships, constraints, rules, and configuration options.

The information model can then provide the ‘data semantics’ for the automated Service Orchestration (SO) process to specify both the current and target relationships between all types of network and service functions, and logical and physical network entities.

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Use Case Example of Connected Cars

Consider the case of a single Vehicle (UE) that we own which is equipped with three services that require three distinct slices as follows:

Slice 1. mIoT (mMTC) low throughput - Navigation Data, Maintenance Data and Statistics Slice 2. eMBB (Mobile Broadband) - Info and Entertainment/video streaming Slice 3. URLLC (Ultra Reliable Low Latency) Autonomous driving service or Low latency Safety Monitor

When our car starts up the first step is to register all three services. The diagram below shows the process for registering Slice 3 the low latency service with the 5G AMF - Access and Mobility Management Function, and for establishing the Slice 3 low latency Session with the SMF - Session Management Function for intelligent services.

As we drive on, Slice 1 provides us with traffic and navigation data on a timely basis that does not require very low latency delivery by the network. At the same time our passengers in the rear seat are happily watching a movie that is streaming over Slice 2 from the Internet. Meanwhile the Slice 3 service continuously monitors our car’s location, trajectory and velocity, as well as that of surrounding vehicles.

Figure 9. Automotive Use Case - Registration and Establishment of mIoT, eMBB and URLLC Slices

Source: Leo Popkh HPE CMS in Fierce Webinar ‘5G Slicing – Management and Orchestration Aspects’ January 2019

A few minutes later our car stops for a red traffic light. The light turns green, but just as we begin to push the accelerator to move forward, suddenly the car brakes are applied by an in vehicle command triggered from Slice 3’s network based service. The Slice 3 service application has not only detected a speeding vehicle that is running the red light in the other direction, but has also calculated that its path will intersect with ours; and based on its policy rules has triggered the command to apply the brakes and override our control. The intelligent low latency Slice 3 service has prevented an accident.

Process for Creating new Network Slice based on Information Model

Below, we describe the process for creating a new Network Slice based on an operator’s Information Model.

A new network slice is initially defined using a Network Slice Template (NST) or blueprint that is consistent with the Information Model. The template includes descriptors written in human/machine readable language that describe the network slice characteristics including the list of required service functions to be instantiated to create the required network slice instance(s) along with related SLA, monitoring and policy information etc. The Network Slice Template for each Service Slice Type is the activated via Orchestrator.

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In the example below the new slice shares a common core with other services. Figure 10. 5G Entity Relationship Diagram showing 4 Steps to New Slice Creation

Source: Leo Popkh HPE CMS in Fierce Webinar ‘5G Slicing – Management and Orchestration Aspects’ January 2019

As the figure above indicates there are four steps to be executed to create the new Network Slice. The first two steps establish the virtual connections between SFs and the relevant Core Network Service(s) (Core NS) on the right side of the figure. The next two on the left side instantiate the slice/service functions and create the E2E slice.

Step 1. The Service Orchestration (SO) triggers NFV Orchestrator (NFVO) to instantiate both the Core Network Service and new

5G Service Functions (SFs). The Orchestrator must deal with a very heterogeneous set of SFs and will encounter significant

complexity in this step whenever the required functions are logically and physically distributed across multiple different

network domains. Resource Orchestration will separately have to find the best physical way to connect the resources needed

for the chain of SF microservices to meet E2E Network Slice SLA requirements.

Step 2. SO now chains the slice service functions according to the different business logic flows specified in service lookup at the

Network Repository Function (NRF). The SO establishes connectivity over Virtual Links (VLs). Although Core Network Service has

been established, there may be different ways that the slice logic and service flows are implemented depending for example on

whether the anchor service uses a legacy 3G or 4G core that requires interworking with 5G NSA or whether it is a native slice

with a 5G SA Service Based Architecture Core.

At the end of this step the Core Network service is established, new functions are deployed and all are connected through the

VLs but we have not yet created the Network slice

Step 3. To actually create the Slice within which the SFs will operate, the SO triggers NFVO to instantiate the specified functions

within the Slice. For example there are three functions to be activated to instantiate Slice 3 in the Automotive Use Case

described above. See Figure IX: The target Access and Mobility Management Function (AMF) User Plane Function (UPF) at P/GW-U Application Function (AF) i.e. any related application or slice specific application

Step 4. To deliver and monitor the new Network Slice this step defines all the network and service domains associated with the

slice/service. So dynamically and in real time the SO maps the Slice instances and Sub-net instances to those domains and

networks. This step also creates an E2E mapping of the service slice chains across all the logical and physical network resources.

It is apparent from the above that to capture the economic value of making Network Slicing truly virtualized and dynamic, Service Orchestration is essential to manage the complexity and perform the real time dynamic mapping of diverse functions across shared resources in multiple domains. A process that can only be done in real time by a highly automated system leveraged (and simplified) by Intent based orchestration.

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Revenue Opportunities for 5G Slicing

In the marketplace in 2018 Network Slicing has already found a potential ‘anchor market’ that would evolve from today’s booming SD-WAN and Enterprise VPNs to a Next Generation, 5G network slicing solution for business customers willing to pay a premium of 20 percent or more, for guaranteed QoS under a Service Level Agreement (SLA). As ‘5G ready’ cloud native SDN/NFV infrastructure begins to roll out in the next several years, pre-5G and 5G network slicing will be able to fully virtualize SD-WAN and secure VPN services. Once network resources are fully virtualized, significant CSP cost savings could allow SD-WAN prices to be set at 40-60 percent below today’s levels to open new markets at a lower price point.

This will create significant new SD-WAN revenue opportunities for SME VPNs and collaborative B2B cloud solutions that do not exist today. In parallel many IoT and M2M apps. that are too low value for CSPs to address today could be aggregated profitably with other unrelated apps. that have similar performance requirements, to create low priority shared slices. The potential market for Network Slicing is expected to be massive as each class of ‘best efforts’ traffic moves to the right Service Slice Type that will deliver the Quality of Experience (QoE) it’s users prefer and are willing to pay for. See the figure below.

Figure 11. Potential Opportunity for Network Slicing with QoE grows to overUS$250 bn. by 2026

Based on A.D. Little Chart cited by BT at Network Slicing Summit, Berlin Oct. 2018 and in TIP Phase I. Project Overview ‘Creating Ecosystems for End-to-End Network Slicing’.

The global chart above projects the expected rate of switchover of QoE sensitive customers and indicates a global market for Network Slicing of USD 250 Billion by 2022 and USD 500 Billion by 2026 with CAGR rate of 34% per year.

Key Markets & Use Cases

There are a wide variety of markets that will be willing to pay incremental fees for premium Network Slicing – especially those with low latency or very bursty bandwidth requirements. Several of these are shown below.

Figure 12. Potential Premium Markets for Network Slicing

Source: Leo Popkh HPE CMS in Fierce Webinar ‘5G Slicing – Management and Orchestration Aspects’ January 2019

Networks & Service Platforms

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Even at the low end, latency tolerant IoT apps. that can tolerate over 30 seconds or more response time e.g. consumer thermostat monitoring or golf course watering systems could be very interested in lower pricing for a low priority but highly secure network slice. Network Slicing could in fact be the key to profitability for network connected low end IoT apps. if they can be aggregated as service flows over a common secure but low priority low cost Network Slice.

3GPP, NGMN Alliance, GSA, GSMA and 5G Americas as well as 5G-PPP all have well developed Use Cases.

Implications

Business Case improves as CSPs leverage Virtualization and Automation to evolve to Dynamic 5G Slicing

In today’s pre-5G environment CSPs often find it costly to deploy and manage End to End (E2E) Network Slices and frequently resort to costly dedicated VPNs to deliver SD-WAN services that are marketed at a discount from leased lines, but cost the CSP almost as much to provide.

Pre-5G horizontal uses cases for network slicing often describe static slices for single applications or a single corporate user e.g. for SD-WANs. The business case for this burgeoning market is not sustainable unless the underlying network resources can be virtualized. And CSP network capacity and operations resources are far better utilized if there are at multiple service flows within a slice.

Once 5G SBA arrives and all slices dynamically share a common pool of virtualized physical network resources, the business case for the service provider improves dramatically. If a CSP shares a portion of the cost savings with customers of virtual VPNs and SD-WANs, prices could be 40 to 60 percent lower. This would open up a new market for underserved SMEs, while still improving CSP margins. As a bonus all enterprise customers could see simultaneous improvements in reliability, scalability and even security - to levels above those of today’s offerings.

CSPs need vendors who can assist their digital transformation to help them evolve to this new dynamic ‘5G Ready’ environment. New processes and highly automated network and service management are essential to address the complex, highly dynamic nature of 5G SBA Network Slice MANO.

Within 3-5 years, CSPs should begin to reap the rewards from this investment and achieve their goal of offering differentiated services with Network Slicing at price points that will open up major new and profitable markets. To do this they need vendors with proven capabilities to address the service orchestration challenges they face today.

Networks & Service Platforms

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About Hewlett Packard Enterprise

Accelerating your success in the digital and 5G era

HPE’s focus on 5G continues a 25 year heritage of working with communications service providers to evolve their core systems through 2G, 3G, 4G and now 5G. Bringing together telecom expertise with IT practices allows HPE to lead with a true telco cloud approach. HPE solutions for the telecom industry include core to edge systems, with specific products for subscriber data management, end user applications and services, operations and business support systems, platforms and infrastructures. Coupling telco-specific solutions with advisory services and industry expertise, HPE helps enable communication service providers to generate revenue, automate their operations, and help retain subscribers while reducing costs to become agile, competitive and 5G-ready digital service providers.

Learn more about how HPE is accelerating digital service provider transformation at hpe.com/dsp/services.

About Intel

Intel Inside®. Network transformation outside.

The era of 5G-powered experiences starts today with Intel® technologies.

Transitioning to “cloud-optimized” networks is foundational for handling the growing network traffic of today and the diverse, data-intensive workloads and performance demands of the 5G future. That is why Intel is unique in the industry for its ability to provide platforms suitable to meet the multi-faceted challenges, performance and programmability demands for each of these areas and across a myriad of form factors to suit almost any need. All of this builds upon the foundation of Intel’s decades of investments in fostering the essential hardware, software and security ecosystems to maximize application performance and reduce the complexity of customer deployments.

With proven leadership, massive footprint across cloud and data center, and a rich technology portfolio spanning wireless, wireline, computing and cloud, Intel is the right strategic partner to help communications service providers drive powerful infrastructure-wide transformation to increase velocity and adaptability in the face of change.

Learn more about how Intel is helping enterprises and communication service providers with cloud-optimized and 5G-ready platforms at www.intel.com/networktransformation

About Strategy Analytics

Strategy Analytics provides strategic and tactical support to global clients across the market and product lifecycle including consulting projects and whitepapers. Feel free to contact the author srudd@strategyanalytics.com with any questions on this report or for further details on how we can assist you.