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New Investments in the Carrier Data Center: Cloud and NFV Webinar
 

New Investments in the Carrier Data Center: Cloud and NFV Webinar

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    New Investments in the Carrier Data Center: Cloud and NFV Webinar New Investments in the Carrier Data Center: Cloud and NFV Webinar Presentation Transcript

    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Technology Business Research (TBR) Quarterly Webinar Series 11.19.13
    • Webinar Presenter Michael Sullivan-Trainor Networking & Mobility Practice Executive Analyst Email: michaels@tbri.com Twitter: @mikest 2 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Agenda • Transformation motivation • Cloud versus NFV • Carriers trailing • AT&T versus Verizon • NFV defined • Service provider initiatives • Supplier positions • Candidate functions • Service provider expectations • Spending shift • Brave new packaging world 3 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Carrier most wanted 4 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Carrier Cloud Providers Compete for XaaS with QoS and global scale NFV: Compete with service agility SOURCE: BRITISH TELECOM Critical values: •Save capex and opex •Increase agility to generate revenue SOURCE: NFV GROUP WHITE PAPER 5 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Carriers behind in the public cloud market CORPORATE REVENUE GROWTH VS. ESTIMATED IAAS REVENUE GROWTH Google (16%, 1,664%) Microsoft (10%, 144%) 135% 115% TCS 95% Oracle AWS Deloitte IBM 75% Savvis -t -y o e ) % ( h t w o G u n v R S I r a 55% Accenture Cognizant Dimension Data Citrix Capgemini r a e Y CSC Fujitsu Dell -25% SOURCE: TBR ESTIMATES, COMPANY DATA -15% 15% -5% -5% Joyent VMware 35% Orange Alibaba (71%, 106%) GoGrid Verizon AT&T Navisite Rackspace EMC Wipro Cisco 5% HP (-8%, N/A %) 15% 25% 35% 45% 55% Year-to-year Corporate Revenue Growth (%) NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE. GRAPHIC FROM TBR 2Q13 PUBLIC CLOUD MARKET LANDSCAPE 6 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Verizon vs. AT&T — near parity in two cloud wars and enterprise • Verizon is behind AT&T and others in public cloud IaaS. • Verizon and AT&T are leaders in enterprise private/hybrid cloud and are expected to be among the leading cloud brokers. • Both have strong internal development plans and expectations that any vendor offer will be designed for them, i.e., implementing open standards their way. PUBLIC CLOUD REVENUE $100 $80 $68 $75 $63 $79 $68 $82 $72 $87 $77 $81 $60 ) s o l i M $ I ( u n v e R $40 $20 $0 2Q12 3Q12 AT&T SOURCE: TBR AND COMPANY INFORMATION 7 4Q12 Verizon 1Q13 2Q13 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Verizon/Terremark: Investing in Cloud broker and SDN models • Expanding: 2013 New E-Cloud Data Centers in London and Dallas • Competing: IaaS make over shifted from monthly resource pools to instances as needed to better compete with Amazon, etc. • Security: Security enhancements — role-based access control, certificate- based multifactor authentication • Cloud Broker: John Considine, Terremark CTO — cloud brokerage (managing workloads across multiple sites and providers) coming late 2013 and early 2014 • Do It Yourself: Building own controller for SDN for specific workload orchestration in the cloud 8 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Network function virtualization defined Category Definition Key Concept Transforming the network from a large number of different elements with separate functionality to a collection of high-volume servers, storage elements, Ethernet switches and IT systems able to run applications from independent developers. Requirements Carrier-grade reliability, scalability and security and the ability to automate operations across hundreds of virtual machines Expectation Reduce capex while increasing operational efficiency and application and services agility Standards Groups • • 9 ETSI sponsored NFV Industry Specification Group (Members: AT&T, BT, CenturyLink, China Mobile, Colt, Deutsche Telekom, Orange, KDDI, NTT, Telecom Italia, Telefonica, Telstra, Verizon); now 100+ members http://portal.etsi.org/NFV/NFV_List_members.asp Carrier Ethernet Forum (SDN aspects) “As an industry, we need to accelerate the journey toward NFV. §Wide array of best-ofbreed ‘virtual network functions’ that run on purpose-built HW. §An NFV cloud Platform that’s optimized to run these functions at scale,” Axel Clauberg, Vice President of Architecture, Group CTO team, Deutsche Telekom AG TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar NFV initiative examples AT&T Verizon Vodafone NFV Initiative Domain 2.0 Supplier Program; NFV ETSI ISG Founder NFV ETSI ISG Founder NFV ISG Participant Current Status NFV POC NFV POC NFV interest Purchase bias Looking for industry-standard solution Looking for point Looking for solution to enhance industry-standard internal work point solutions Lead suppliers ALU, Ericsson, IBM, HP, Cisco ALU, Ericsson, IBM, HP, Cisco 10 ALU, Ericsson, NSN, IBM, Cisco TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Network function virtualization supplier positions Category Solutions Partners AlcatelLucent • CloudBand provides a management platform for orchestrating and automating NFV platforms • Opened NFV/Cloud research facility in Kfar Saba, Israel CloudBand Ecosystem Program — community of SPs, developers and suppliers to accelerate NFV (13 members: Deutsche Telekom, Telefonica, Citrix, Intel, Vyatta, Radware, Red Hat, HP, Nuage Networks, Gigaspaces, StackIQ, Inktank and Nominum) Cisco Open Network Environment, Quantum HCL Technologies, Leap Wireless Ericsson Cloud System, Virtual Network System moving toward NFV platform Joined OpenStack to contribute to development of solutions HP Cloud Service Automation, Matrix, Aggregation Platform Intel IBM PureFlex, Virtual Core Mobile, Service Activator Optus, Connectem NSN • Liquid Net includes virtualized elements for radio networks, applications and management. • Liquid Applications are being trialed for base station functions, IMS and TAS. IBM, Intel, CD Networks India-based Service Providers SK Telecom 11 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Candidates for network function virtualization Solutions Mobile Core Networks (EPC) Radio Access Network Elements IMS Elements OSS/BSS Platforms Policy Control Deep Packet Inspection Session Border Controllers Security appliances (firewalls, IDS/IPS, SSL VPNs) Server load balancers WAN acceleration 12 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar AT&T’s expectations of suppliers Margaret Chiosi, executive director of Optics and Ethernet development, representing AT&T’s founding membership in the network function virtualization (NFV) organization • • • • Deliver more than marketing hype Conform to OpenFlow as protocol for the interface between the data and control plane Deliver OpenFlow-compliant APIs Deliver hardware commoditization across applications “We want our vendors to focus on software and be more innovative, enable us to shrink and grow our network requirements as we need them.” — Chiosi 13 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Verizon’s expectations of suppliers Prodip Sen, director of Network Architecture, representing Verizon’s founding membership in the network function virtualization (NFV) organization • • • Verizon has been engaged in NFV POCs since 2011, covering consumer and enterprise services. Suppliers can help solve fundamental problems of lowering cost, increasing service agility and making the network flexible to adapt to shifting user behavior and traffic patterns. Lacking tools and operational environment to make NFV operational in the network “We are exploring NFV through POC and trials in limited ways. What we really need is a lot of help in the management and orchestration layers, which go above the functions.” — Sen 14 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Spending shift to NFV/SDN comprise large share of smaller pie Tier 1 Service Provider NFV/SDN Share of Spend 2013-2014 Tier 1 Service Provider NFV/SDN Share of Spend 2015-2018 NFV 20% NFV 1% Traditional 99% SOURCE: TBR ESTIMATES Traditional 80% SOURCE: TBR ESTIMATES Shift to NFV/SDN opens up platform spending to IT suppliers, threatens network suppliers 15 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • New Investments in the Carrier Data Center: Cloud and NFV Webinar Brave new world of solution packaging Session-based licensing and third-party certification Services Supplier — Consulting, Integration, Manage/Operate, Maintain Systems Supplier Software Supplier ISV Virtual Own Function Own Function Own Function Abstraction Own Platform Own Platform Third-party Platform Server Own Hardware Third-party Hardware Third-party Hardware Service Provider direction — Lower cost via standards What’s your charging model for virtual instances of network functions? 16 TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • Q&A Questions? Michael Sullivan-Trainor Networking & Mobility Practice Executive Analyst Email: michaels@tbri.com Twitter: @mikest @TBRinc www.slideshare.net/TBR_Market_Insight www.youtube.com/user/TBRIChannel For further information, please contact: Kate Price Practice Manager, Networking & Mobility kate.price@tbri.com 17 James McIlroy Vice President of Sales mcilroy@tbri.com TBR Quarterly Webinar Series | 11.19.13 | www.tbri.com | ©2013 Technology Business Research Inc.
    • About TBR Contact Us Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. 1.603.929.1166 info@tbri.com www.tbri.com 11 Merrill Drive Hampton, NH 03842 USA Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today. This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.