nfv orchestration - digital transformation world · nfv innovation around customers’ experience...
TRANSCRIPT
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NFV OrchestrationFueling innovation in operator networks
Federico DescalzoChief Marketing & Technology Officer – ITALTEL
@Fede_Descalzo
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Business = Marketing X Ideas X ExecutionBusiness = Marketing X Ideas X Execution
Innovating for Business performance
Business = Marketing X Innovation Innovation = Ideas X Execution
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Marketing…Select customersto serve
Decide on a valueproposition
SegmentationDivide the total market into
smaller segments
TargetingSelect the segment or
segments to enter
DifferentiationDifferentiate the market offering
to create superior customer value
PositioningPosition the market offering inThe minds of target customers
Create value fortargeted customers
Marketing…
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…Technologies!
…& Technology Innovation!
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The making of NFV
DarmstadtWhite paperOct 12
Phase 3start
?
ETSI NFVISG startJan 13
Output fromNFV Phase 2May 16
Output fromNFV Phase 1Dec 14
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NFV work so far…
28 specs approved 31 drafts in development New WIs Stage 3 specs not available Interoperability issues within MANO framework
Generic VNFM and VNFs
OSS and MANO framework
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Telcos and NFV Expectations: Reduce costs Open and interoperable solutions New revenue-generating services, flexibility, agility, reduced TTM Achievements: Lots of PoCs Lab Trials Few early-NFV deployments Areas of Concern: Ecosystem generally perceived as immature Evaluate ROI for NFV and redefine objectives: 75% of the network in 2020 Complexity for implementing organizational changes
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Top-down vs Bottom-up approach
Self Service portal B2B Gateway
OSS
ServiceManagement
ResourceManagement
NetworkManagement
NFVOrchestration
Element Manager Layer VNFM
E2E Service OrchestrationService
Catalogue
Assurance Fulfillment Lifecycle mgmtInventory
VNFVNF
VM VM VM
Virtualization LayerVirtualization LayerNFV Infrastructure
WIMVIMPNFs
SDN Ctrl
PolicyManagement
Chargingand Billing
ProductCatalogue
CustomerOrder Mgmt.
CustomerInfo Mgmt
PartnerManagement
Assurance Fulfillment LifecycleManagementInventory
ETSI NFV ISG isstill seen as theprimary source ofstandards.
OSS/BSS systems built for Physical Network Functions (PNF) need to evolve for achievingautomation, orchestration and management of the entire lifecycle of services.
ETSI NFV scope
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VNF typologies
Initial scope for Telcos and incumbent vendors: L4-L7 services (firewalls, IDS/IPS),
L2-L3 services (routing and WAN connectivity),
vCPE,
vEPC, vIMS.
The scope will broaden including: New market segments and verticals,
New VNFs providers.
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NFV Evolution: New market segments and verticals
New architectures: Centralized Large DCs, mini/micro DCs located at the edge. New typologies of VNFs and VNF vendors: traditional vendors (incumbents);
new entrants; open source; VNF Marketplace. Enable new market segments: IoT; Contextual communication; New verticals
(e.g. e-Health).
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Different grades of Innovation (it used to be simple…)
Technologies, Architectures and relevant Market Impact
11
IMSVoIPSBC
SG/MGGSMEPC
VoLTE
IMSVoIPSBC
SG/MGGSMEPC
VoLTE
NFV, SDN, CloudNFV, SDN, Cloud
WebRTC
IoT
Big Data
WebRTC
IoT
Big Data
Definitions by Anand Subramaniam - http://goo.gl/pcTeWJ
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Huge Transformation of Communications• From «main service» to integrated in services• From walled garden to competition• From standardized to differentiated• Time to market from years to months• Restless change in technologies and tools• Variety of business models and purpose of
communication• No way to control all variables but need to
recognize and value them as they emerge
The Agreement and Certainty Matrix (Stacey’s Matrix)Ralph Douglas Stacey - Professor of Management at Hertfordshire Business School, University of Hertfordshire
Stay Relevant in a VUCA World (Volatile, Uncertain, Complex, Ambiguous)
The Challenge for our Industry today
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By Olivier Régis
A big mindset shift
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Innovation? Best served with Agile/DevOps mindset
Satisfy the customer through early and continuous deliveryof valuable software (1st agile principle) So, Agile is all about: Lowering the cost of the change «waste» reduction feedback loops Build quality in («shift left») Faster Time to Market www.agilemanifesto.org
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«Traditional» Representation of US Telecom Industry, dated Jan 2015,
Back to the basics: The Telecom Market Dynamics
TODAY
• Customers enjoy services by many
heterogeneous Providers
• Other Players seen mainly as “competitors”
• Infrastructure-centric offer
TODAY
• Customers enjoy services by many
heterogeneous Providers
• Other Players seen mainly as “competitors”
• Infrastructure-centric offer
TOMORROW
• Coopetition (If you can’t beat ’em, join ’em!)
• Customer-centric Offer
• IoT & Contextual Communications will
feature a scattered demand of more specific
services, for which Ecosystems are essential
TOMORROW
• Coopetition (If you can’t beat ’em, join ’em!)
• Customer-centric Offer
• IoT & Contextual Communications will
feature a scattered demand of more specific
services, for which Ecosystems are essentialSource: http://marketrealist.com/2015/01/overview-us-telecom-industry/
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Where is (going to be) the Money?
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Wireless ConsumersTelecommunications Market Current Characteristics
Customers are mainly Consumers and primarily subscribe to“voice+data+SMS” bundles. 80% pre-paid vs 20% post-paid.
Wireline Business Enterprises are the significant customers in the wireline segment. Telecom
services’ pricing for enterprises typically has a high fixed cost component.They also have a longer-term contract.
Medium and large enterprises have a multinational presence and require amore sophisticated offer than consumers’ needs.
They require geographic coverage, reliability, and customized services.
They also need a fixed-line infrastructure for their dedicated lines. They neednetworking solutions along with advanced video and voice communications.
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NFV innovation: «low-profile» approach
Use cases targeting the optimization of “network functions”: SP and vendors have concentrated initiatives and efforts considering
existing applications, with the aim of achieving “cost reductions”; Many functions are characterized by a very low degree of dynamism
and once instantiated they remain in operation for years; The elasticity concept may be not urgent when resources are shared
among VNFs with the same traffic models; Tuning the scalability requires the implementation of the correct
mechanisms for the proper application in a real network solution; Many issues remain related to current siloes-based organizations that
hinder the possibility of centralized management of the network.
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NFV innovation around Customers’ Experience and Benefit
• “on demand”• “self-service”• Fixed costs reduction• New business models• Faster Service activation• Faster delivery
• Focus on a renewedresponsiveness to themarket needs
• Redefine Servicecatalogues according tocustomers’ use cases,leveraging on NFV’sflexible Orchestration.
• Value customer feedbacksand known “pain” from withinthe organization
• prioritise innovative usecases that can be immediatelyimplemented;
Enable high degreeof dynamicity whenthis is required in thelifecycle of networkfunctions
Take advantage of distributed NFV (mini/micro DC);Integration of physical network functions thatremains physical;Avoid waiting for the ideal network architectureunder a standard and comprehensive MANOframework.
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Examples
Advantages that NFV and SDN can provide in terms of flexibility, agilityand capacity to innovate: IoT platforms (e.g. AWS IoT, Salesforce Thunder, DT Cloud of Things)
Communication Solutions as a Service (UC&C aaS; SBC aaS)
Contextual Communication Solutions.
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Italtel platform: IoT and contextual communications
THINGS
SENSORS
NETWORKS
COREPLATFORM
APPLICATIONS
EnergyMonitoring
InfrastructuralMonitoring Smart Metering Healthcare Smart
ManufacturingSmart
Transportation Smart Grid
CONTEXTUALCOMMUNICATION
Things Context
Virtual Context
Real-TimeCommunication
Data ContextIoTIoT Real timecomms
Real timecomms
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Open Platform
Finished Product
Use Casedriven
Standard-based
Cloud-based(As A Service)
On premises(licensed-based)
Product Strategy for IoT & Contextual Communications
Newapproach
Oldapproach
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Examples of Italtel implementations
Business Cloud Communication:enables SP to offer from a self-serve portala complete advanced cloud UC&C serviceto small business customers.
DoctorLink:Open HealthCare Platform enabling continuityof care at home with a constant, reliable andsecure dialogue with the hospital.
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A pragmatic approach to NFV
Under the NFV umbrella and responding to the general principles differentmechanisms can be adopted, differentiating the needs of different: customers segments (top, enterprises, residential) Access network types (fiber, copper, mobile).
Create new business models.
Service provider working as virtual operator not owing a network infrastructurebut capable to provide services with an own orchestration platform that accessto a NFV infrastructure owned by a partner for instantiating network services forits customers.
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From consolidated Services for the Mass Market
to «Fast Innovation Track» for Top-spending Businesses
From consolidated Services for the Mass Market
to «Fast Innovation Track» for Top-spending Businesses
Orchestrating for Performance
EndUsersEnd
Users
VNF2
VNF2
PNF3
ResidentialResidential
SoHoSoHo
SMBSMB
Large BusinessLarge Business
Top/GlobalBusiness
Top/GlobalBusiness
VNF1VNF1
VNF2
VNF2
PNF3
VNF1VNF1 VNF4
VNF2
VNF2VNF1VNF1 VNF
4
VNF2
VNF2VNF1VNF1 VNF
4
VNF5
VNF6
VNF1VNF1 VNF4
VNF5
VNF6
VNF2
VNF2
Valu
e
OSS
/ BS
S
Nee
dfo
rAgi
lity
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Summary of ideas/hints
Fuelling the innovation on service providers’ networks: Implement a fast track for an efficient and effective application of NFV
orchestration, prioritizing service innovation with an Agile mindset; Customize service orchestration with a differentiated approach,
fulfilling specific selected customers’ needs (Customer Value First); Provide end users and Partners with innovative services with on-
demand and self-service approach; Experiment a marketplaces of VNFs (Communication and
Collaboration solutions as a Service; IoT platform); Enable the “Virtual Service Provider” model, accessing to NFV with a
NFVIaaS mechanism.