THE  PATH  TO  THINKING  NETWORKS  

Roderick K. Randall Executive Partner – Siris Capital

Board Member – Stratus Technologies

THE  CLOUDIFICATION  OF  TELCO  INFRASTRUCTURE  

Page 2  

Tech  Cycles  Tend  to  Last  Ten  Years  

2  

Mini  Compu+ng  

1970s  

Personal  Compu+ng  

1980s  

Desktop  Internet  

Compu+ng  1990s  

Mobile  Internet  

Compu+ng  2000s  

Mainframe  Compu+ng  

1960s  

Cloud  Compu+ng  Any  Client  2010s  

Cloud  CompuEng  is  the  Next  Major  CompuEng  Paradigm  

Page 3  

Enterprise  VirtualizaEon  Provided    Increased  Efficiencies  and  Lower  Costs  

Bare  Metal  Environment  Low  u&liza&on,  High  Costs  

Hardware  Capacity  

Average  U+liza+on  

Hardware  Capacity  

Average  U+liza+on  

Average  U+liza+on  

Hardware  Capacity  

Hardware  Capacity  

Average  U+liza+on  

Average  U+liza+on  

Average  U+liza+on  

Hardware  Capacity  

Virtualized  Environment  High  u&liza&on,  Lower  Costs  

Average  U+liza+on  

Hardware  Capacity  

Hardware  Capacity  

Page 4  

Cost  Savings  From  VirtualizaEon  has  been  Significant  in  Enterprise  Data  Centers  

-­‐74%  

-­‐82%  

-­‐65%  

Source:    VMware  White  Paper  -­‐  Reducing  Server  Total  Cost  of  Ownership  with  VMware  Virtualiza+on  SoUware  

AQ:  As  a  vendor  

whitepaper  the  figures  are  a  liXle  op+mis+c,  but  clearly  show  there  

are  significant  savings  

through  the  mature  

technology  of  server  

virtualiza+on  

!$#!!!!

!$50,000!!

!$100,000!!

!$150,000!!

!$200,000!!

!$250,000!!

2012! 2013! 2014! 2015! 2016! 2017! 2018! 2019!

Mobile!CAPEX!Spend!($M)!

Mobile CapEx Spend is Significant Much of which is IT Related

Source: Ovum Research 2011

What if only 30% Could Be Saved? $150B x 30% = $45B/yr In Savings

AQ:  Most  of  the  spend  is  RAN,  hence  the  

reduced  %,  but  savings  are  

possible  –  but  implementa+on  will  be  key.    

Some  of  Rod’s  following  slides  are  nice  graphics  on  the  topic.  

Page 6

RAN

Backhaul

GPRS/1X

MSC

HLR

SMSC

RAN

Backhaul

GPRS/1X

MSC

HLR

SMSC

RAN

Backhaul

GPRS/1X

MSC

HLR

SMSC

Vendor A

Vendor B

Vendor C

Monolithic Vertical Integration

Vendor A

Vendor B

Vendor C

Vendor D

Vendor E

Vendor A

Vendor F

Vendor B

Vendor A

Vendor D

RAN Backhaul

EPC PCEF

Diameter Core MME

OCS/OFCS HSS

PCRF IMS

Delamination

Virtualization

Orchestration

Linux

EP

C

Linux

PC

RF

Linux

HS

S

Linux

IMS

…

NFV

Commodity Hyper Scale COTS Computing

Network Functions Virtualization What Exactly Is It?

I  like  this  slide  as  it  highlights  virtualized  vendor  soUware  has  to  play  nice  together  –  which  history  shows  does  not  happen,  hence  the  big  SI  fees  and  lots  of  tes+ng.    Will  it  end  up  like  IMS  where  telcos  buy  from  one  vendor.  

Network Functions Virtualization

Page 7

Virtualization

Orchestration

Linux Linux Linux Linux

EP

C

PC

RF

HS

S

IMS

…

NFV

Commodity Hyper Scale COTS Computing

RAN

Backhaul

GPRS/1X

MSC

HLR

SMSC

RAN

Backhaul

GPRS/1X

MSC

HLR

SMSC

RAN

Backhaul

GPRS/1X

MSC

HLR

SMSC

Vendor A

Vendor B

Vendor C

Monolithic Vertical Integration

Vendor A

Vendor B

Vendor C

Vendor D

Vendor E

Vendor A

Vendor F

Vendor B

Vendor A

Vendor D

RAN Backhaul

EPC PCEF

Diameter Core MME

OCS/OFCS HSS

PCRF IMS

Delamination

Liquid Pool of Dynamically Allocated Resources

Automation

Page 8

Network Functions Virtualization

Virtualization

Orchestration

Linux

EP

C

Linux

PC

RF

Linux

HS

S

Linux

IMS

…

NFV

Virtualization

Orchestration

Linux E

PC

Linux

PC

RF

Linux

HS

S

Linux

IMS

…

NFV

Commodity High Volume Networking

Virtualization

Orchestration

Linux E

PC

Linux

PC

RF

Linux

HS

S

Linux

IMS

…

NFV

Page 9

Network Functions Virtualization

L3 Routing L2 Switching

Optical Transport

Control Control

Control

Linux

Opt

ical

Tra

nspo

rt C

ontro

l Pla

ne

Linux

L3 R

outin

g C

ontro

l Pla

ne

Linux

Bill

ing

Linux

Cus

tom

er C

are

Linux

NO

C

Linux

L2 S

witc

hing

C

ontro

l Pla

ne

Virtualized OSS/BSS

Commodity Hyper Scale COTS Computing

Commodity High Volume

Storage

Virtualized SDN

SDN Separates

Control From

Forwarding

With Software Defined Networks

But, until Now, Large Scale Low Cost Clouds Lacked Stateful Reliability

§  The only application workloads that could utilize virtualization were those which could tolerate infrastructure failure §  Cloud Native Apps designed from scratch §  Non-Critical Apps which have minimal

consequence §  This is more akin to Nine 5’s of Reliability

rather than the Five 9’s of Telco Infrastructure

AQ:  So  this  is  why  SIRIS  bought  Stratus,  given  their  well-­‐+med  purchase  and  sale  of  Tekelec  (+ming  of  both  was  smart),  its  one  to  watch  as  telcos  

networks  move  into  their  private  /  hybrid  clouds  

Immense Pain Lose Consciousness Lose Bodily Control Lose Brain Function Vegetable

Lose Transactions Lose Reputation Lose Revenue Lose Customers You’re Fired

Lose Stock Price

Fault Tolerant Systems Never Stop

Failure

For Telcos, Reliability is Mission Critical When Seconds Count… Loss of Revenue, Reputation, Safety, Life

Generic Server Infrastructure

Fault Tolerant Infrastructure

New Developments have Now Enabled Transparent Fault Tolerance for Virtualized

Cloud Computing Environments

•  StatePoint™ Software Fault Tolerance •  Pioneered by Stratus Technologies,

from their 30 year legacy of Fault Tolerant Systems and Service

•  Unlocks the Power of NFV and SDN with the Trusted Reliability of an Operator

AQ:  It  would  be  interes+ng  to  compare  this  fault  tolerant  hypervisor  approach  versus  building  soUware  /  architecture  that  is  fault  tolerant  given  the  real-­‐world  disfun+onali+es  of  telco/vendor  implementa+ons  

13 Stratus Technologies Confidential

StatePoint ™ Software FT provides True Lockstep Transparently to the Apps

StatePointing™ and Hold I/O Maintain State even during failures

Send State

1 Acknowledge

2

3

Release IO

VM Running

App

OS

VM Running

Active Server

Standby Server

Time

Time

App

OS

Hold IO

Receive Statepoint

Statepoint

Send State

1 Acknowledge

2

3

Release IO

Receive Statepoint

Statepoint VM Running

Hold IO

14 Stratus Technologies Confidential

StatePoint ™ Software FT: HW Failure Example

StatePointing™ and Hold I/O Maintain State even during failures

Send State

1 Acknowledge

2

3

Release IO

VM Running

App

OS

VM Running

Active Server

Standby Server

Time

Time

App

OS

Hold IO

Receive Statepoint

Statepoint

Hold IO

Failure

Discard IO

VM resumes operation from last received

Statepoint

VM Running

Time

State Is Maintained

Commodity High Volume Networking

Virtualization

Orchestration

Linux E

PC

Linux

PC

RF

Linux

HS

S

Linux

IMS

…

NFV

Page 15

Network Functions Virtualization

L3 Routing L2 Switching

Optical Transport

Control Control

Control

Linux

Opt

ical

Tra

nspo

rt C

ontro

l Pla

ne

Linux

L3 R

outin

g C

ontro

l Pla

ne

Linux

Bill

ing

Linux

Cus

tom

er C

are

Linux

NO

C

Linux

L2 S

witc

hing

C

ontro

l Pla

ne

Virtualized OSS/BSS

Commodity Hyper Scale COTS Computing

Commodity High Volume

Storage

Virtualized SDN

SDN Separates

Control From

Forwarding

With A Fully Fault Tolerant Hypervisor

VMware   Hyper-­‐V  KVM-­‐FT  

AQ:  So  only  those  

func+ons  which  need  

fault  tolerance  need  use  it.