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Orchestrating, operationalizing, monetizing SDN/NFV enabled networks

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This presentation highlights the progress made in SDN/NFV in the past year. In terms of technology we have started to talk about use cases that require much deeper integration with existing network infrastructure. New revenues are increasingly becoming the dominant business rationale for adopting SDN and NFV – a shift from a CAPEX/OPEX driven focus last year. More importantly, we are evaluating the operational impacts of the migration and this is widely expected to be the long tail of this network evolution journey.

Published in: Technology

Orchestrating, operationalizing, monetizing SDN/NFV enabled networks

  1. 1. Orchestrating, operationalizing, monetizing Bala Thekkedath Director of Product Marketing, Cloud and IP Ericsson sdn/nfv enabled networks
  2. 2. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 SDN/NFV progress report Time We are probably somewhere here Contribution to sleepless nights SDN/NFV @ BBWF 2013 Uses cases that involve deeper integration with existing infrastructure Revenue driven business rationales Operational Impact Assessments In the past one year …
  3. 3. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 Service Provider SDN a catalyst for network transformation Transport Network Virtual Network Ericsson SDN Controller Service Chaining Broadband Services IP & Opto transport Connectivity & Virtualization Service Personalization Policy Aware Traffic Steering VAS Optimization Converged Multilayer Operations Optimal Path Computation Application Aware Dynamic Traffic Engineering NFV Operations Cloud Connectivity Interworking with IP Networks From Contained Domains To Integral part of the network
  4. 4. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 VNF (VM) Mobility L3 / L3VPN / Interworking with IP Networks Reliable Failure Detection Scalable load balancing end to end use cases need deeper integration to existing infrastructure Agility for new revenue generating service offers Enforcement of QoS across network domains Abstracted view of capacity at all layers - optical & packet Scale for application driven bandwidth demands
  5. 5. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 Orchestration creates consumable services Single source inventory for physical and virtual assets, networks and services Rapid service composition, exposure and partner management Service Management Service Exposure & Interaction M2M Device & Data Management Enterprise Catalog User Experience & Interaction Ecosystem Management Cross Domain Service & Resource Orchestration SERVICE INNOVATION FRAMEWORK Inventory Multivendor Multi-domain Activation Virtualization & Abstraction Virtual Network Functions Integrated Network Control } SDN/NFV Implementation
  6. 6. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 Where do we focus in the long run Target Areas for VHG $41 Billion Operations & Support 68% $12 Billion Depreciation & Amortization 20% $53 Billion Expenses 88% Repair Call Center Network Install/Repair Sales, Non-NW Support Process, etc. Network Operations CPE Lifecycle Costs Operating Profit ~$7 Billion 12% ~$2.4 Billion Revenues $60 Billion New subscribers – from acquisition, retention based on user experience New Differentiated Services, new business relationships New Addressable Verticals Faster TTM as a revenue opportunity Rather than a 7% decrease here Talk about a 2% increase here
  7. 7. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 Drivers for sdn and nfv are revenue driven SDN Drivers 68% Automate Service Provisioning 68% Launch New Services Faster 61% Automated Network Provisioning & e2e Control Source: Infonetics Worldwide Survey of Operators, representing 50 percent of telecom capex and revenue NFV Drivers 86% Scale Services Faster 69% New Revenues from Software Services 62% Use Commercial Hardware TTM == Revenue TTM == Revenue TTM == Revenue Revenue TTM == Revenue
  8. 8. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 Operational impact assessments Governance / Security Systems / Technology Processes People / Organization Target Operating Model
  9. 9. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 blurring the it / Telco divide Functional Architecture Vs Organizational Chart When Network Functions reside in a Data Center IT Expertise Network Expertise
  10. 10. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 verified functionality Vs guaranteed performance Verification Processes for VNFs as opposed to traditional PNFs differ vastly based on implementation Native Solution Certified Solution Validated Solution Acceptance criteria differs based on solution packaging - Open Vs Interchangeable Application Virtualization Environment Hardware Integration
  11. 11. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 1. If you don’t have a use case, it is a science project 2. You can’t save your way to growth 3. Nothing kills a technology faster than an organization chart Technology, business and operations
  12. 12. EAB-14:060658 Uen | Broadband World Forum | Amsterdam | Oct 2014 | Commercial in confidence | © Ericsson AB 2014 As an industry, we have moved the bar Time We are probably somewhere here Contribution to sleepless nights SDN/NFV @ BBWF 2013 Time We are probably somewhere here Contribution to sleepless nights SDN/NFV @ BBWF 2014 Where do you stand ?
  13. 13. Bala Thekkedath Balamurali.thekkedath@ericsson.com @balathekkedath Ericsson THANK YOU

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