Telecom Service Evolution with Network Virtualization _

May 2015

Enrique Algaba – Network Innovation and Virtualization Director @ Telefónica I+D – Global CTO

REASONS FOR A TRANSFORMATION

Why evolution is not enough to stay in business …. …. choose between what is easy or what is right.

We are evolving towards a Hyper Connected and Intelligent Digital World*

The explosion of digital services makes connectivity services more needed than ever

Reduction of Time to Market

Radical increase of traffic in telco networks

New ways of communication and increasing number of “always-on” users

Smartphone is changing everything

(*) César Alierta, TEF CEO. TEF Digital Investor’s Day 2012

But the phone service continues to be the only universal service…

Impossibility of predicting the new Internet Killer Application and how it will impact in the network

New and legacy technologies are piling on top of each other

There is a significant shift in revenue streams (driven by the expansion of internet)

Uncertainty

This digital world is introducing relevant challenges for telecom operators

But it is highly probable that it is associated to new devices

Operation complexity grows consequently

Telco expenditures and investments grow higher than revenues

HW requires economies of scale

Telco environment has some peculiarities that have made it traditionally different from the Internet model

Upgrades are complex and expensive

Relaxed TTM & Innovation

No differentiation

Telco cycle is conditioned by HW: Long Innovation cycles

Telco Operators Equipment Vendors SDOs Time

Demand

Drive Standardise Implement

Sell

Deploy

Critical mass of supporters

AVAILABLE Idea !! 2-6 years

NETWORK FOCUS & HW-BASED FUNCTIONALITIES Geographical dispersion High number of nodes Interoperability

Fast TTM & Innovation

Differentiation strategies

Internet Service Providers cycle is based on SW running over COTS HW

Develop Deploy Publish Time Service Providers

AVAILABLE Idea !! 2-6 months

Upgrades are easier and cheaper

SW requires low scale requirements

OTT & SW-BASED FUNCTIONALITIES Edge deployments Global service from scratch No Interoperability

We need to adapt and define the change to lead in the Digital era

HARDWARE SOFTWARE + - +

-

x Internet players

• Very intensive in software • Can have global impact

with not too much capital • Hardware is a support, and

is located in the network periphery

• Very intensive in hardware

• Capital intensive • Software is not a

core

Telco players

NETWORK VIRTUALISATION?

An opportunity for more flexible networks

NFV promises to transform the Telco industry, being operation one of the key levers

• Making infrastructure uniform • Facilitating interoperability • Improving risk management in a

changing environment • Fostering competition & innovation • Minimizing entry barriers • Making capacity addition flexible and

easy • Simplifying network operation

What are we talking about?

separation of the FUNCTION from the CAPACITY

proper balance of NFV & SDN

The Linux Foundation found the Project OpenDaylight, an opensource frame work to accelerate SDN – NFV adoption

History of NFV and SDN

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Concept of SDN emerges from research on active and programable networks

First Open source code of OpenFlow protocol for Campus Networking announced

Significant venture capital funding begins

for companies SDN and Network

virtualization (e.g. Nicira Networks)

First Open source code for vSwitch announced

Deustche Telekom

Basic European Network

ONF founded by DT, Facebook, Google,

Microsoft, Verizon and Yahoo! to improve

networking through SDN and standardizing the

OpenFlow protocol

ETSI NFV white paper backed by

13 operators

ETSI.ONF collaboration formalized on SDN support of NFV

Google publicises use of Openflow

AT&T Domain 2.0

First release OpenDaylight code “Hydrogen”

Telefónica NFV Plans

Acquisition of nicira netwroks

by VMWare

History of NFV and SDN - Telefónica role

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Development of a low cost traffic probe based on x86 Intel

architecture

First Proof of Concept of a fully

virtualized Customer Premise Equipment (vCPE)

Deeper: first fully virtualized Deep Packet

Inspection probe processing over 80 Gbps

of traffic ETSI NFV white paper backed by

13 operators

Telefóncia NFV Reference Lab

Field trial vCPE in Vivo (Brazil)

OpenMANO NFV orchestration stack

Telefónica NFV Plans

ETSI NFV ISG

The target: to define a future proof network architecture…

There will be two kinds of Virtualized Network Infrastructure: local PoPs and regional Data Centers

v v

COTS HW

LOCAL PoPs REGIONAL DATA CENTRES

Control Plane can be Centralised

Data Plane must be Distributed

OS + Hypervisor

MPLS/SDN/Optical

Infrastructure

Service Domain

Network Domain

CDN Video

P-CSCF

EPC BRAS

CG-NAT DPI

SDP CSFB

IMS

DHCP PCRF

DNS UDB

COTS HW

OS + Hypervisor

MPLS/SDN/Optical

SRVCC

HW and SW decoupling

HW and SW decoupling

GGSN

PE

Security

NGIN

M/SMSC

… since data plane virtualization has a potential higher economic impact than just control plane virtualization

Source:Technology Strategy estimates based on Infonetics “Cpx Rev and Cpx by Eqpmt Analysis 2ndEd.”, Ovum (“Telecom Equipment Capex and Revenue Highlights 4Q13”, “Wireless Backhaul Forecast Spreadsheet- 2013-18”).

c

Mobile Fixed

Backhaul

Optical Networking

IP Switching & Routing

4%

60%

9%

14%

9%

by Network Layer

$64bn

$4bn

$10bn

$15bn

$10bn

Main Network Equipment Global Capex Breakdown (2012, $bn)

Platforms 3% $3bn

Data plane

Control plane

N/A

Expected benefits go beyond just CAPEX and OPEX

Source: Deloitte survey published in Feb 2015 Over 300 answers have been analyzed from 8 operators, with a presence in several countries, which totalize over 900 million fixed/mobile subscribers worldwide

CAPEX/OPEX savings due to SDN/NFV implementation according survey among 8 global operators

Impact on the main aspect of SDN/NFV

Although there are relevant facts to take into account for significant business impact

Source: Deloitte survey published in Feb 2015 Over 300 answers have been analyzed from 8 operators, with a presence in several countries, which totalize over 900 million fixed/mobile subscribers worldwide

Main barriers to use SDN/NFV

“Si deseas que tus sueños se hagan realidad ……………….. ¡Despierta! Ambrose Bierce (1842-1914), Escritor y periodista estadounidense

WHAT IS NFV

… a reference architecture for ensuring interoperability and carrier grade performance

ETSI NFV ISG has generated a reference architecture for ensuring interoperability and carrier grade performance

Management environment

Execution environment

Virtual Machines

Network Functions

Network Scenarios

Commodity HW

OS + Hypervisor

Commodity Switching infrastructure

Virtualised Infrastructure

Manager

VNF Manager Virtual

Network Functions

Orchestrator Legacy

OSS/BSS

ETSI NFV ISG has generated a reference architecture for ensuring interoperability and carrier grade performance

Management environment

Execution environment

Virtual Machines

Network Functions

Network Scenarios

Commodity HW

OS + Hypervisor

Commodity Switching infrastructure

Virtualised Infrastructure

Manager

VNF Manager Virtual

Network Functions

Orchestrator Legacy

OSS/BSS

WHAT IS NOT NFV

Reviewing some of our vendors’ offers…

Network Virtualisation is not Cloud Computing

The network differs from the computing environment in 2 key factors:

…which are big challenges for vanilla cloud computing …and most of industry is offering to Telcos just IT based cloud

products as network virtualization environments

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Data plane workloads (which are huge!)

Network requires shape (+ E2E interconnection)

NEED OF HIGH AND PREDICTABLE PERFORMANCE

(as with current equipment)

GLOBAL NETWORK VIEW IS REQUIRED FOR MANAGEMENT

1

2

NFVO

NFVI

Hypervisor Switches Servers

VIM

VNFs

What are the main differences between NFV and Cloud Computing?

Goal

Design requirements

Workloads

Infrastructure usage

Infrastructure selection

Physical deployment

Virtualized infrastructure management

Orchestration

NFV vs Cloud Computing in a nutshell

NFV Cloud Computing

Main goal Deployment of e2e network services by composing network functions over a versatile infrastructure

Offering commodity computing through different service models (IaaS, PaaS, SaaS)

Main design requirement

Effective decoupling while ensuring carrier grade performance Efficiency by maximizing usage of resources

Workloads Distributed (>100 pops) high bandwidth (>10Gbps) per NIC Low delay (<us)

Centralised (<10 pops) medium bandwidth (<1Gbps) per NIC Medium delay (>ms)

Infrastructure usage Deterministic allocation of resources for ensuring carrier grade performance (high throughput with low latency)

Consolidating workloads over shared infrastructure for maximizing infrastructure utilization

Infrastructure selection

Requires proper component selection: Latest generation of processors (Ivy Bridge or newer) with HW assist for all I/O and memory operations (IOTLB, DDIO, etc.) and DPDK-compatible NICs

Component selection is just focused on the aggregated computing power, memory and hard disk

Physical deployment

A transit point with huge traffic, limited resources, very distributed and cost limited

An end point with high traffic, lot of resources, highly centralized and with a massive cost

Virtualized infrastructure management

NUMA view is needed to get proper and predictable performance for NFV. Avoiding bottlenecks in the hypervisor and OS is critical, which implies avoiding the usage of virtual switching and relying on physical switching

Hardware infrastructure is managed just as an aggregated view of resources (CPU, memory, etc.) Virtual Switching is used to simplify connectivity management

Orchestration NFV-O is required to compose network scenarios (orchestrate coherent capacity allocation - VNFs and their physical connectivity needs) and to manage the network scenarios lifecycle

Focus on VMs lifecycle management. No notion of neither VNF nor network scenario

BRIDGING THE GAP

Strategy for NFV technology readiness

NFV technology is almost there, but focus is needed to ensure readiness…

Commodity HW

OS + Hypervisor

Commodity Switching

infrastructure

Virtualised Infrastructure

Manager

VNF Manager Virtual Network

Functions

Orchestrator

Legacy OSS/BSS

Current State of the Art is

good enough (if properly arranged)

Industry should focus on providing

DIFFERENTIAL NETWORK

ORCHESTRATOR

Industry should focus on providing

DIFFERENTIAL VNFs

Network Virtualisation Infrastructure and its Management should become COMMODITY

Network Virtualisation Infrastructure and its Management should become COMMODITY

FOCUS IS NEEDED TO

AVOID proliferation of

VERTICAL SOLUTIONS

… good progress on technology readiness has been achieved so far but more focus is needed to provide real value

Management environment

Execution environment

Commodity Servers & Switches

OS + Hypervisor Virtualised Infrastructure

Manager

Virtual Network Functions

VNF Manager

NFVO

2013

2014

2010 (Bare metal)

? (OpenStack)

(OpenVIM)

27

Our vision about NFV orchestration

NFVO

Commodity HW

OS + Hypervisor

Commodity Switching

infrastructure

Generic VNF

Manager

Legacy OSS/BSS

Element Management

Network

Orchestrator

NFVO composed by the

orchestrator and a generic VNF

manager integrated

VIM

SDN Controller

Open Stack VIM composed by OpenStack

and SDN Controller

Virtual Network Functions

VNF and EMS VNF Descriptors include lifecycle description

However, big vendors are offering us closed and vertical platforms with their own closed VNF ecosystem

Commodity HW

OS + Hypervisor

Commodity Switching

infrastructure

Virtualised Infrastructure

Manager

VNF Manager Virtual Network

Functions

Orchestrator

Legacy OSS/BSS

The objective is not using white boxes for constructing YET ANOTHER SILOED SOLUTION (at square one again!!!)

Closed VNF market

place from “Vendor A”

“Vendor A”’s vertical platform

Indeed there are similar examples in the industry…

Indeed there are similar examples in the industry…

31

Open source plays a key role to unleash NFV

• CLOSING THE TECHNICAL GAPS ON KEY OPEN SOURCE PROJECTS (KVM & OpenStack)

• BEST STARTING POINT: less gaps to be addressed • WIDELY SUPPORTED in commercial deployments • USED BY ALL TRADITIONAL NETWORK VENDORS as base to add their proprietary extensions

• CONTRIBUTING TO “UPSTREAM” HAND-TO-HAND

WITH WELL-RESPECTED CONTRIBUTORS • Efficient manner to INFLUENCE OPEN SOURCE COMMUNITIES • ADVANCED NFV TEST ENVIRONMENT ready

• Providing us a DEEP HANDS-ON EXPERIENCE for first deployments

• RELEASING OPENMANO NFV ORCHESTRATION STACK • Provides a highly functional framework pioneering the FIRST OPEN SOURCE NFV Orchestration

and Management stack • It is a KEY COMPONENT OF TELEFÓNICA NFV REFERENCE LAB • Its aim is to PROMOTE INTEROPERABILITY and foster a MORE OPEN ECOSYSTEM

Our objective

Build an open ecosystem helpful for all

32

Share Best Practices and disseminate our Knowledge based on experience

Break barriers to accelerate changes

NFV Reference Lab

In fact, we are already beyond the theory…

Flagship trial: Residential vCPE

>45 VNFs >25 Vendors

Massive pre-commercial trial Q1