are you prepared for the disruptions of software defined networking?
DESCRIPTION
- Grasp the market situation, including how SDN will evolve, and drivers and restraints - Obtain a technical and market trends perspective from discussions held with carriers and enterprises - Get a comprehensive view of the competitive landscape, including the impacts of the SDN disruption on existing vendors Listen On Demand: https://www.brighttalk.com/webcast/5567/95625TRANSCRIPT
SDN DisruptionSDN Disruption
Driving the Next Wave of Telecom InnovationDriving the Next Wave of Telecom Innovation
Ronald Gruia
Director, Emerging Telecoms
December 12th 2013December 12th 2013
© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Today’s Presenter
Ronald Gruia, Program Leader, Principal Analyst - Emerging Telecoms
Frost & Sullivan
Functional / Industry Expertise:
•16 years of telecom industry expertise accumulated at Frost & Sullivan (12 years) and Nortel Networks (4 years). Particular expertise in:
-NGN Transition: LTE (4G), IP Multimedia (IMS), Software Defined Networking (SDN), services and standards
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services and standards
-Telco 2.0: business models, next-gen VAS (Value Added Services), RCS, service brokering
-The Enterprise of the Future: IP Telephony, WLANs, UC, Speech, FMC, and VoIP apps
• Strong experience base covering telecom and power systems industry:
• U.S. Patent holder: principal inventor of an algorithm optimizing a multimedia application
• 100+ speaking engagements at telecom conferences and industry shows
• Featured columnist at TheStreet.com, IMS/NGN Magazine, Processor Magazine and TMC.net
• Quoted on Business Week, Financial Times, Forbes, Wired, API, Reuters, MarketWatch, etc.
• Appearances on CNBC (US), Business News Network (BNN), RoB TV and TechTV (Canada), Decision TV (Brazil), TeleSemana (Latin America), and Telecom TV (UK, live from Spain)
SDN Disruption
Agenda
• SDN Defined
• Have We Seen This Concept Before?
• What is Different This Time Around?
• SDN Benefits & Caveats
• SDN Competitive Landscape
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• SDN Competitive Landscape
• Other Related Ongoing Efforts
• SDN Use Cases
• Early SDN Deployments
• SDN Layer Disaggregation of Traditional Networks
• How SDN is Disrupting the Market
• SDN: Hot Investment Opportunity
• Conclusions
SDN Defined
• SDN (Software Defined Networking) is a novel approach to networkingenabling carriers to achieve a more efficient control of their infrastructure, drawing upon customization and optimization to deliver innovative network services. SDN allows a controller to determine how packets are forwarded by networking elements, separating the control and data planes within switches/routers. There are 3 key distinctive features in an SDN architecture:
• Separation of the control plane from
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• Separation of the control plane from the data plane
• A centralized controller and view of the network
• Programmability of the network by external applications
• This is yet another instance of the ongoing “ITfication” of the telecom Industry.
Source: SDN Central
Have We Seen This Concept Before?
• Layer separation concept not new (e.g. IMS)
“Stovepipe” Service Model IMS Service Approach
IP Multimedia Subsystem
Application Servers
ControlLayer
ApplicationLayer
...
Pu
sh
to
Ta
lkS
erv
ice
Qo
S
Billin
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. . . . . . . .
Inte
rac
tiv
eG
am
ing
Se
rvic
e
Qo
S
Billin
g /
OS
S
Pre
sen
ce
. . . . . . . .
Vid
eo
Str
ea
min
gS
erv
ice
Qo
S
Billin
g /
OS
S
Pre
sen
ce
. . . . . . . .
Billing / OSS
QoS
Session Management
and control
5
PSTNWLANRAN
IP Multimedia Subsystem
. . .
Network Subsystem
Base Station Subsystem
Layer
TransportLayer
AccessLayer
...
...
Multi-service IP Network
Qo
S
Billin
g /
OS
S
Pre
sen
ce
. . . . . . . .
Qo
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. . . . . . . .
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. . . . . . . .
Presence
Common functions are replicated Common functions are reutilized
Source: Frost & Sullivan
Have We Seen This Concept Before? (Cont’d)Tech
no
log
y A
dvan
ces
Distributed
Control Plane
w/in Switch
All Data w/in
Control Plane
Early ‘00’s
Separated
Control & Data
Planes
Late ‘00’s
History of SDN Before OpenFlow (BO)
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Source: Frost & SullivanTime
Tech
no
log
y A
dvan
ces
Source: Frost & Sullivan, adapted from Wiretap Ventures/ SDN Central presentation
Separated
Control &
Data Planes
Early ‘90’s
w/in Switch
Mid- ‘90’s
What is Different This Time Around?
Open Open InnovationInnovation
Open Open InnovationInnovation
SoftwareSoftware
Defined Defined
NetworkingNetworking
(SDN)(SDN)
SoftwareSoftware
Defined Defined
NetworkingNetworking
(SDN)(SDN)
3rd party apps
ecosystem
creation
Lower CAPEX,
OPEX reduction
Control plane
separation
fosters quicker
innovation
Source: Frost & Sullivan
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Network Function Network Function
Virtualization (NFV)Virtualization (NFV)
Network Function Network Function
Virtualization (NFV)Virtualization (NFV)
� SDN has two other pillars to stand on: openness and NFV
OPEX reduction
and enhanced
agility
• NFV and SDN: very complementary, mutually beneficial but not inter-dependent; SDN can improve NFV performance (simplify compatibility, ease operations), NFV enhances SDN via virtualization, IT orchestration and management techniques
• ONF (Open Networking Foundation) handles SDN, ETSI/NFV Forum manage NFV
• IT value chain now has more experience under its belt with the “ITfication” of the telco industry and realizes that over-provisioned networks do not yield a winning model
• OpenFlow spec openness; standards driven by operators and vendors
What is Different This Time Around? (Cont’d)
NFV and SDN are closely related, but really meet different goals:
NFV versus SDN:
• NFV: re-definition of network equipment architecture
• NFV was born out of a need to meet Service Provider (SP) needs:
• Lower CAPEX by reducing/eliminating proprietary hardware
8
• Consolidate multiple network functions onto industry standard platforms
• SDN: re-definition of network architecture
• SDN comes from the IT world:
• Separate the data and control layers, while centralizing the control
• Deliver the ability to program network behavior using well-defined
interfaces
SDN Benefits & Caveats (Operator’s Perspective)
Benefits:
• Faster provisioning: improving “service velocity” is a key catalyst
• Applications / APIs - Service exposure: new revenue generation opportunity
• Single, central point of network control: network intelligence
• CAPEX/OPEX reduction: reduces up-front costs, improves resource utilization and simplifies provisioning and operations
• Programmability (operator’s own processing, QoS, control, program, etc.)
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Caveats:
• Interoperability (multi-vendor, multi-operator environments, etc.)
• Limited internal skillsets: achieving operational excellence is sine-qua-non
• Lack of OSS tool support: enterprise CIOs / operator CTO execs need better orchestration and management tools
• Scalability (single controller: single point of failure, inter-domain issues, etc.)
• Increase in infrastructure complexity: the lack of technological maturity exacerbates this issue
SDN Competitive Landscape
• Current SDN market still at a nascent stage
• Startups and established players still refining their solutions
• OpenFlow emerging as a de-facto SDN standard, though spec is still being worked on
• SDN market participants can be divided in the following categories:
• Large NEVs (Network Equipment Vendors): Alcatel-Lucent, Cisco,
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Ericsson, Huawei, Juniper, NEC, NSN, etc.
• New entrants, including startups and SDN specialists: long list comprising most of the 200+ companies listed on SDN Central
• Specialists: vendors tackling different areas such as network security, policy (PCRF), OSS/BSS, etc. embracing the SDN architecture, including Radware, Amdocs, Oracle/Tekelec, etc.
• Others: Large IT Vendors: Dell, HP, IBM, etc. and data center providers/specialists such as VMware
Other Related Ongoing Efforts
• Project OpenDaylight
• Open-source project being led by Cisco, IBM and other vendors
• Goals: accelerate SDN adoption under the auspices of the Linux Foundation; spur third-party app development via common platform
• Well received initially; HackFest happened on Sept.10th
• Project Clearwater
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• Collaborative open-source effort led by Metaswitch and a few carriers to implement IMS for massively scalable cloud computing environments
• Goals: provide open-source core IMS codebase embracing NFV; enable massive scale and telco grade reliability in private/public cloud setups
• Open Compute Project (OCP)
• Facebook-led initiative to create specifications for more efficient servers, storage and networking infrastructure. First meeting took place in May at MIT in order to stimulate knowledge transfer
SDN Use Cases
Early SDN use cases:
• Data center and distributed clouds (enterprise/private cloud/regulated)
• Home network management
• Mobile operator (MVNO extensions, video optimization, etc.)
• Network visualization
SDNCTL
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Other use cases:
• Cloud service provider data center (hyper-scale, Web 2.0)
• Service provider cases: WAN edge/optimization, mobile backhaul, mobile LTE core (EPC), RAN, metro aggregation, wired core / edge
• Specialist cases: network security, OSS/BSS (“elastic” PCRF, etc.)
Customer types:
• Enterprise, operators, cloud/SaaS players, public sector
Early SDN Deployments
• NTT Communications:
• Deployed NEC infrastructure to deliver its Enterprise Cloud Service (as part of its virtualized data center infrastructure)
• Optimized ICT costs while managing global corporate ICT ops.
• Google B4 Software Defined WAN (transport SDN foundation)
• Announced at ONS 2012; built custom switches with OF agent
• Filling up the G-scale backbone network pipes for efficiency
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• Deutsche Telekom TeraStream project:
• IPv6 network in Croatia for broadband services
• Tail-f NCS controller running Netconf, Yang; Cisco network equipment
• Colt Telecom Carrier Ethernet Service:
Leverages SDN to offer a multi-vendor carrier Ethernet service using Cyan’s:
• Blue Planet software to orchestrate, provision, and control Accedian EtherNIDs
• Z-Series optical platforms to automate service provisioning
SDN Layer Disaggregation of Traditional Networks
APIs / Apps
Orchestration
Big Tap (Big Switch),
Embrane, Gigamon, Infoblox,
Arista, Amdocs, Cyan, Embrane,
Ericsson, NEC, NSN, Oracle,
Piston, PLUMgrid, Rackspace
“Classic” Network SDN Network Function
The orchestration layer
automates a sys admin day-to-
day tasks, such as change
management and provisioning,
which reduces OPEX.
Applications reside on the app
layer on top of the controller,
which is accessed via APIs.
These APIs allow applications
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Cisco or Juniper
customer HW
IOS / JUNOS
Hardware
Controller
Broadcom
Switchx86 server
Cumulus Linux
Floodlight (Big Switch), Open
Daylight (Cisco, Juniper, HP),
NSX/Nicira (VMware), PLUMgrid
APIs / Apps Embrane, Gigamon, Infoblox,
RadwareThese APIs allow applications
to tap network functionality.
The controller abstracts
routing information away from
hardware to a centralized
point, containing routing and
configuration data.
Packet forwarding function
or what sends packets on
their way is in the hardware
How SDN is Disrupting the Market
Services
Services Apps
Apps
Hardware
Hardware
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• SDN will bring a shift away from hardware towards software and services
• The “ITfication” of the Telecom industry: SDN is just another instance of that phenomenon
• Vendors will have to focus on their core competencies and know who to partner with
• Services can be a backdoor to winning future business
2013 2017Note: Pie charts are only for illustrative purposes
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SDN: Hot Investment Opportunity
• Despite long sales cycles, strong incumbent competitors and the high capital intensity that’s required, investors are remaining bullish on SDN, as they regard it as a long-term investment opportunity. As a result, venture capital funding in SDN startups has gone up from <$10m in 2009 to ~$500m in 2013 (a 50x increase in 5 years).
• Also popular is the large NEV “spin-in” concept, with examples such as Nuage (Alcatel-Lucent) and Insieme (Cisco).
VC Investment in SDN Technology
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$0
$100
$200
$300
$400
$500
2007 2008 2009 2010 2011 2012
$10 $12 $25$49
$202
$454
$m
illi
on
VC Investment in SDN Technology
Source: Lightspeed Venture Partners
Conclusions
• SDN is real, offering tangible CAPEX and OPEX savings.
• Key drivers: improved efficiency, enhanced network utilization, richer configurations, reduced OPEX, new revenue generation (via service exposure / APIs), better third party service integration.
• The SDN market is in its infancy, with a more widespread adoption still remaining 2-3 years away. Many vendors have product SKUs in the market today, and have started proof-of-concept trials but a more accelerated
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uptake will take time as standards mature. In the interim, we anticipate hybrid SDN implementations.
• Venture capital investment expected to remain strong as more SDN use cases get developed and larger vendors need a quicker answer to some customer pain points (i.e., M&A versus organic growth).
• Hardware commoditization not likely to happen in the short run. While some control plane functions in existing switches will move to the controller, the switch will still remain an important component in terms of empowering SDN scalability and enabling programmability.
Q & A Session
Frost & Sullivan recently issued a global multi-
client SDN study packed with forecasts, and
enterprise CIO/carrier CTO opinions based on
global interviews conducted with 35 execs from
4 regions. For more info, please contact me.
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Ronald F. Gruia
Director, Emerging Telecoms
�[email protected] � +1-416-490-0493
About me: about.me/rgruia
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Director
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(416) 490-0493
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