evolution 2g

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7750 SR: YOUREDGE IN SERVICEEVOLUTIONHOW TO DELIVER COMPELLING NEW

SERVICES BY OVERCOMING CHALLENGESAT THE IP SERVICES EDGEAPPLICATION NOTE


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TABLE OF CONTENTS

1 ABSTRACT / 1

2 SERVICE EVOLUTION DRIVERS & OPPORTUNITIES / 2

2.1 External innovation driving service evolution / 2

2.2 Residential service trends & opportunities / 2

2.3 Business service trends & opportunities / 3

2.4 Mobile service trends & opportunities / 3

3.1 Scale & performance / 4

3.2 Differentiation & service richness / 5

3.3 Operational complexity / 5

4 7750 SR: THE EDGE IN SERVICE EVOLUTION / 6

4.1 Higher performance / 6

4.2 More services / 6

4.3 Integrated intelligence / 7

4.4 Greater operational efficiency / 7

5 7750 SR: IP EDGE EVOLUTION EXAMPLES / 9

5.1 Large Global Tier 1 Provider / 9

5.2 National Tier 1 Provider (EMEA) / 9

6 SUMMARY / 10


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7750 SR: YOUR EDGE IN SERVICE EVOLUTION

ALCATELLUCENTAPPLICATION NOTE

1

1 ABSTRACTDriven by the latest innovations in internet-based services and multi-media enabled

TVs, PDAs and smartphones, consumers are once again fueling change in the network

services industry. Whether its mobile subscribers consuming more applications and

video content while on the road, residential customers demanding more personalized,

on-demand video services, or enterprises looking to fully leverage the efficiencies of

cloud computing, service providers (SPs) are faced with both the challenge - and the

opportunity of evolving their services to meet the changing needs of their customers.

The opportunity is substantial. The market for public cloud-based services is expected

to reach $176.8 billion by 2015*. PayTV services have already reached $200 billion

annually and are experiencing healthy growth despite the recent economic downturn.

The extent to which SPs can transform these opportunities into new revenue streams will

often hinge on their ability to overcome the challenges at the IP edge of the networks

that stand in the way of service evolution. Maximum return mandates an IP edge with

the flexibility, scale and operational efficiency to capitalize on new service opportunities

while keeping rising bandwidth costs under control.

Many SPs have embarked on their service evolution journey and are driving new revenuein a profitable manner with the Alcatel-Lucent 7750 Service Router (SR) at the edge of

their IP network. The 7750 SR allows SPs to:

Diversify their network services portfolio with new or extended services

Deliver more bandwidth more efciently to meet growing demand

Distinguish their services from the competition

Drive operational efciency and OPEX reduction

Targeted to SP product marketing, network architecture and network operations execu-

tives, this document provides an overview of changing enterprise and consumer needs,

the new opportunities now open to SPs and the transformation challenges they face,and how these challenges and opportunities are best addressed with an IP services edge

based on the 7750 SR.

*Source: Gartner, June 2011


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2 SERVICE EVOLUTION DRIVERS &OPPORTUNITIES2.1 External innovation driving service evolution

When the first network services were introduced decades ago, the innovation cycle was

driven by the service providers themselves they defined connectivity services, brought

them to market and added incremental enhancements along the way. In the past decade,

technology innovations outside the domain of the service provider - in internet-basedservices and in personal computing devices have turned this model upside-down and

changed how subscribers view and consume connectivity services. To re-establish their

central role in the new network-based service value chain, SPs must evolve their services

to meet the changing needs of their customers as they embrace the best of what technol-

ogy innovation has to offer.

2.2 Residential service trends & opportunities

In the residential broadband services domain, the catalyst for service evolution is video,

which is set to permeate every aspect of a subscribers online experience. Driven by the

freedom and exibility of video on demand (VoD) services delivered over-the-top (OTT),

the high quality viewing experience delivered by managed IPTV services, and an explo-sion in consumer electronics devices (ie, tablets, internet-enabled TVs) that consume

content, subscribers are demanding a more flexible and personalized broadband experi-

ence, one in which they can consume any content on any device, anytime, anywhere.

While at rate usage caps can be effective in minimizing the impact of surging OTT VoD

bandwidth on the network, SPs can thrive in the video-dominated era of high bandwidth

services by enriching their current lineup of voice, High-speed Internet (HSI) and linear

IPTV services with (see Figure 1):

VoD services with guaranteed QoS levels

Enhanced linear TV services with high video quality and fast channel change capability

HSI plans with application-aware metering capability to personalize the service

experience, Application-aware zero rating and usage based billing to monetize OTT trafc and

ensure fair share use

Wi-Fi access that seamlessly extends the home connectivity experience out into the

community and beyond

Figure 1: Residential service opportunities

ENHANCED VIDEO SERVICES Highestquality IPTV Distributed content caching forhighestVoD quality and scale

NEW APPLICATION SERVICES High performance gaming, personal video conferencing, many more

LOCATION FREEDOM (Wi-Fi) Home experienceat Wi-Fi hot spot Wholesale excess capacity to mobile networks

METERING AND FAIR SHARE USE Business intelligence gathering Application-aware metering Personalized plans

OTT MONETIZATION OTT application zerorating

Residentialbroadbandnetwork

SUBSCRIBERS


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2.3 BUSINESS SERVICE TRENDS &OPPORTUNITIESIn business services, the catalyst is cloud computing, storage and applications. Enterprise

demands for increased flexibility and operational efficiency have spawned whole

new industries around areas including application hosting and software-as-a-service.

However, issues such as loss of visibility and control, and lingering concerns over the

security and performance of cloud-based applications are dampening enterprise adoptionof these services. At the same time, margins in traditional connectivity services such as

VPNs and business internet are shrinking as universal availability transforms them into

a commodity.

SPs can thrive in this new cloud-dominated era of business services by leveraging their

strengths in building highly reliable networks to become the go-to-choice for enterprises

headed to the cloud. They can evolve their business service portfolios to include (see

figure 2):

Cloud Access VPNs and Business Internet services that restore application visibility

and control to enterprise IT managers

Network-based Distributed Denial of Service (DDoS) mitigation services that eliminatepotential threats before they can impact enterprise customers and the cloud data

centers they rely on

End to-end SLAs that guarantee performance for applications hosted in the SP data

center and delivered by the SP network

Rapid service provisioning for cloud VPN access

Figure 2: Business service opportunities

2.4 Mobile service trends & opportunities

In mobile, a new generation of smartphones and portable computing devices is rapidly

changing the previously predictable networks of mobile providers. As bandwidth utiliza-

tion and related signalization surges, wider spectral bands used in LTE are bringing

bandwidth efficiencies, but they do not replace lost voice and SMS revenues, or provide

Enterprisedata center

Clouddata center

End-to-end hostedapplication SLAs

External threatmitigation services

VPN and cloudapplication monitoringand control services

Enterprise

SOHO

Enterprise

branch

Internet

DDoSCloud optimizedbusiness Internet

Cloud optimizedIP VPN

Cloud optimizedEthernet VPN

Data center


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a way to monetize the ever increasing flow of traffic. SPs can increase ARPU and service

profitability through (see figure 3):

Personalized, application-aware service plans that allow subscribers to make the best

of available bandwidth while monetizing OTT trafc

Value-added video distribution capabilities such as adaptive, high-quality streaming

enabled by integrated service intelligence

Higher capacity mobile packet core that can accommodate more subscribers and

bandwidth more efficiently Wi-Fi access networks that move trafc off the radio network to provide a seamless

higher-bandwidth connectivity experience

Figure 3: Mobile service opportunities

3 SERVICE EVOLUTION CHALLENGESMany of the challenges SPs must overcome to ensure successful service evolution are

centered at the point in the network where service policies are implemented at the IP

edge. Chief among these are scale and performance, enabling differentiation and servicerichness, and reducing high operational complexity

and cost.

3.1 Scale & performance

The surging tide of bandwidth has surpassed the performance capabilities of legacy edge

routers. Centralized packet processing architectures are buckling under the load, and

technology limitations in commercial or off-the-shelf routing silicon are forcing provid-

ers to trade off raw capacity for feature processing. Surging bandwidth is also creating

bottlenecks at centralized IP edge routers, limiting service availability and scale.

In residential, video transport costs are escalating with the proliferation of per-subscribervideo on demand sessions. Each session must traverse the entire network to reach the

initiating subscriber, consuming bandwidth along the way, and creating congestion at

performance-limited IP edge routers. Centralized content injection and edge routers

designed for yesterdays internet speeds no longer make economic sense.

Business networks have similar issues as enterprise adoption of video communications

and cloud-based client/server applications are taxing PE routers and limiting the cycles

available for new services.

In mobile, the introduction of LTE and small cell radio infrastructure and Wi-Fi ofoad

NEW REVENUES

Personalized service packaging Next-generation digital media distribution

MONETIZATION

Application/user aware metering and charging Per event/session/ application charging

Wi-Fi AND CELLULAR

Secure and trusted connectivity across Wi-Fi and cellular with seamless broadband experience

LTE AND SMALL CELL

Increased bandwidth capacity and coverage to satisfy subscribers

Internet and

other networks

Mobile service

packet core

Wi-Fi 4G/LTE

small cell


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techniques are resulting in higher bandwidth utilization, and a much higher traffic

burden at the mobile packet core (MPC). Performance is also an issue: as more

internet-capable devices, from tables to smart-phones, tap into the mobile network, the

performance burden on the MPC which is responsible for processing their mobile IP

connections also increases.

3.2 Differentiation & service richness

The most effective way for SPs to achieve sustainable differentiation for their services whether its enhancing VPNs to resolve cloud migration issues, or providing a higher

quality video experience is to add high touch packet processing capability in the data

path. Traditional edge routers often lack this capability outright, or they lack the perfor-

mance and scale to support large-scale or high bandwidth deployments. To compensate,

some SPs have deployed specialized appliances at the edge of their network and in CPE

locations. While this approach allows for some differentiation, it requires SPs to deploy

and maintain multiple platforms and hundreds of additional nodes and linkages. This

greatly increases operational complexity while reducing service scale and reliability.

Feature consistency across a diverse set of platforms is difficult to achieve, limiting an

SPs ability to differentiate where it matters most in providing a consistent quality of

experience to customers that consume multiple services.

3.3 Operational complexity

Traditional IP edge routers were single-purpose devices targeted for specific mobile,

residential or business services. This fragmented approach to product development has

resulted in a similarly fragmented IP edge infrastructure. It is not uncommon to have

separate edge routers for IPTV services, HSI services, Ethernet VPNs, IP VPNs and busi-

ness internet services - all configured as overlays over the same aggregation and access

networks. Mobile networks are also commonly fragmented, with a separate mobile

packet cores to aggregate 2G, 3G, LTE and Wi-Fi access networks and to offer IP-based

services.

The operational impact of this siloed approach to service deployment is massive. SPs

must deal with the operational complexity of maintaining multiple service networks,

certifying and maintaining multiple router operating systems, and providing their custom-

ers with a consistent experience across all their disparate service offerings. Delivery of

new services and enhancements to existing services, is a slow, complex affair. Service

integration and blending such as providing IPTV content through an HSI service is

difficult to achieve as, as is network capacity planning across services based on sub-

scriber requirements.

The rapid growth of internet-ready personal computing and M2M devices has trans-

formed IPv6 migration from a future consideration to a pressing reality for both business

and consumer networks. SPs must grapple with the operational complexity of how togrow the network when there are no new public IPv4 addresses available, and how

to transition to IPv6 while maintaining IPv4 continuity for applications, networks and

services that may not be ready to make the change. IPv6 migration is also compounding

scale and performance issues by adding yet another processing hurdle for legacy edge

routers already straining under the load.


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4.3 Integrated intelligence

Service providers looking for a future-proof approach to differentiate their services can

leverage the 7705 SRs multi-service integrated service adapter (MS-ISA) to introduce

high touch processing to the common edge platform (see figure 5). MS-ISA application

and subscriber aware monitoring and control capabilities allow residential and mobile

providers to create personalized service plans that are optimized for individual consumer

needs. IPTV services can be revitalized to stand apart from the competition via fast chan-

nel change, or higher quality video delivery. Mobile video sessions can be intercepted tosupport automatic transcoding via specialized appliances, or to provide upgraded quality

of service. For differentiated business services, MS-ISA allows enterprise customers to

monitor and control their cloud and enterprise applications, without the expense of a

large-scale appliance rollout. New revenue streams in secure network and cloud services

are enabled by adding DDoS protection capability to any service, at any point in the IP

network.

Figure 5: Service differentiation with the MS-ISA

4.4 Greater operational efficiency

The ability to drive operational savings is built into all aspects of the 7750 SR network.A common management platform for services, network elements and applications

allows SPs to reduce service provisioning times by up to 97% and virtually eliminates

provisioning errors during reconguration. Integration of new services into IT and OSS/

BSS systems is greatly simplied, accelerating time-to-market for new services. Integrated

service intelligence enables additional operational savings by allowing SPs to optimize

their networks through application-level trend analysis, or by extending IPv4 address

continuity through carrier-grade NAT translation. A recent study by Bell Labs identied

multiple operational benefits obtainable via the convergence capabilities of 7750 SR,

including streamlined sparing, training, repairs, and OSS integration. Integration of

business and residential services on a common IP services edge resulted in 60% OPEX

savings (see figure 6).

Industrys fastest channel change

Retransmit on error for high QoE PerfectStream video conditioning Video quality monitoring Content caching/delivery*

VIDEO

Application-to-subscriber monitoring

and control Metering and fair share usage Service personalization and consistency Application-aware business services

APPLICATION ASSURANCE

Carrier grade NAT Multiple tunneling and IPv6 migration capabilities

*Future capability

IPv6 MIGRATION

Distributed Denial of Service (DDoS) attack mitigation IP Sec

SECURITY SERVICES


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Figure 6: OPEX savings via residential and business service convergence on the 7750 SR

(Source: Alcatel-Lucent)

The ability to distribute service intelligence - such as application monitoring, policy

enforcement, and caching right to the edge of the network provides the highest quality

of service for customers, and the greatest operational savings for carriers. In a distrib-

uted architecture, subscriber management, content caches and high touch processing

capabilities move to the edge of the network, closer to the customer. By distributing

service intelligence to the edge, SPs can provision more bandwidth and fewer subscribers

per GE port to accommodate the growth of video and other high bandwidth services.

Video on demand sessions are initiated closer to the subscriber and no longer traverse

the entire IP network (see figure 7). This has the dual benefit of enabling long term scale

and lower cost per bit for video transport. Since VoD content delivered by the SP has a

much shorter distance to travel vs content from internet-based OTT vendors, SPs can alsooffer signicantly higher service quality and performance vs OTT offerings.

Figure 7: Long term scale & lower bandwidth costs with a distributed eBNG architecture and on-net CDN

New NMS/CLI intro/integration

Fault and performance management

NMS

Total operational expenses

OPEX SAVINGS

CUMULATIVE - 5 YEAR CONVERGED RESIDENTIAL, BUSINESS, MBH EDGE

Router SW upgrades

NMS/CLI recertification

Power

Training

Router installation and configuration

Space lease

Separate edge NWs

New router introduction

7750 SR fully converged edge

ExternalCDN or

transparentcache

Internet

Videoservers

SUBSCRIBER IP SERVICES EDGE

Content partnerorigin servers

Wi-Fiaccess

Fixedaccess

eBNG

Peercaches


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5 7750 SR: IP EDGE EVOLUTION EXAMPLES5.1 Large Global Tier 1 Provider

A large global tier 1 provider selected the 7750 SR to provide the flexibility, scale and

operational efficiency they required to remain at the cutting edge of service innovation as

they converged multiple networks into one (see gure 8). The 7750 SR supports Ethernet

VPN, IP VPN and residential services on a common platform to maximize operational

savings and enable a consistent customer experience across services. Distribution of thesubscriber management and business VPN functions closer to their customers allows the

provider to increase operational savings while enabling even greater flexibility and scale.

Figure 8: Enabling service innovation flexibility via the convergence of multiple ser vice networks into one.

5.2 National Tier 1 Provider (EMEA)

A national tier 1 provider selected the 7750 SR to drive the strategic transformation of

their network to support concurrent delivery of multiple IP-based services, including

new HD video services, to mobile and residential customers (see figure 9). Key require-

ments included line rate IPV6 support to 100Gb/s, and high availability service deliveryplatform that would allow them to offer always-on services. The ability to integrate

mobile backhaul of cell site routers de-risked the service transformation process as

mobile backhaul became just another IP service on a common IP service platform.

Figure 9: Concurrent delivery of new bandwidth-intensive service to mobile and residential customers

Retail

Residentialand business

Wholesale

7750 SR7750 SR7750 SR

Corenodes

Metronodes

Tier 1exchange nodes

5620 SAM

IP services

CompetitorsIP services

Business

Residential

Access

Access

7750 SR

MSEand BNG

Aggregation

Core

7750 SR

Cell siterouter

Mobile switchingcenter

Video officeand data center

RNC


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www.alcatel-lucent.com Alcatel, Lucent, Alcatel-Lucent and the Alcatel-Lucent logo are trademarks ofAlcatel-Lucent. All other trademarks are the property of their respective owners. The information presented

is subject to change without notice. Alcatel-Lucent assumes no responsibility for inaccuracies contained herein.

Copyright 2012 Alcatel-Lucent. All rights reserved. XXXXXXXXXXXXXX (February)

7750 SR

DIVERSIFY AND DISTINGUISH SERVICES WITHOUT ADDING A NEW OVERLAY NETWORK

DELIVER BANDWIDTH EFFICIENTLY AND DRIVE OPERATIONAL SAVINGS

RESIDENTIAL

ENTE

RPRIS

E

MOBILEPERFORMANCE

SERVICES

INTELLIGENCE

EFFICIENCY

6 SUMMARYWhether its video consumption from any device anywhere, or the operational flexibility

of cloud computing, subscribers want to benefit from the latest innovations in network

and computing technology. Satisfying their needs means making changes at the IP

services edge to reduce the operational complexity that slows service introduction and

increases OPEX, and to eliminate issues of scale and limited performance. The 7750 SR is

uniquely qualified enable this transformation by providing (see figure 10):

The industrys fastest network silicon the FP3 400Gb/s network processor to

deliver more performance and more bandwidth, to more subscribers, more efficiently

The industrys most comprehensive set of IP-based services - across residential,

business and mobile domains - to diversify SP service portfolios

The integrated intelligence to distinguish services from the competition

Operational efciencies at every level including integrated service/element/

application management and a common service platform to drive OPEX reduction

Figure 10: The 7750 SR is uniquely qualified to evolve residential, business and mobile services.

evolution 2g

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