Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

08 (IDNOG02) SP Transition to NG Infrastructure based on NFV Service Offering by Jason Kalai

1,007 views

Published on

SP Transition to NG Infrastructure based on NFV Service Offering

Published in: Internet
  • Be the first to comment

08 (IDNOG02) SP Transition to NG Infrastructure based on NFV Service Offering by Jason Kalai

  1. 1. SP Transition to NG Infrastructure based on NFV Service Offering Jason Kalai Product Sales Specialist, Data Center Global Service Provider
  2. 2. Cisco Confidential 2© 2013-2014 Cisco and/or its affiliates. All rights reserved. Open Source SDN OpenFlow Open Compute APIs Virtualization abstraction HYPERVISOR Data Centers OPNFV X86 AUTOMATION 3GPP Policy An Emerging Conversation Map Opportunity Over-the-top players Content New Business Models BANDWIDTH Total Cost of Ownership Intelligent Network OPEX Revenue Agility SPEED Over-the-top applications Consumer Expectations NEED FORSPEED Open High-Value OTT Applications Low-Value SPPipes Optimize Elastic Accelerate Cloud-Driven Economics BUSINESS AGILITY Business Transformation Monetize Busines Transformation CHANGING BUSINESS MODELS Operational Agility Vanishing SP Business
  3. 3. Cisco Confidential 3© 2013-2014 Cisco and/or its affiliates. All rights reserved. Industry Trends Agility New Revenue Streams CAPEX/OPEX Impermanent Faster Time to Market Scalable Capacity
  4. 4. Cisco Confidential 4© 2013-2014 Cisco and/or its affiliates. All rights reserved. Industry’s Mission : Business Transformation Automation is Not New – But Drives Business Success Virtualized Resource Pools (network ready compute/storage) Virtualized Network Functions Dynamic Set-Up, Tear Down and Provisioning On-Demand Workload Movement with Service Profiles Data Center NetworkWorkload Portability Orchestration Full Access to Resource Pools Anywhere in the Cloud Cloud Services Cost reduction and agility leads to success for all
  5. 5. Cisco Confidential 5© 2013-2014 Cisco and/or its affiliates. All rights reserved. Several Industry Trends Pace of Change is Accelerating – Simplification is Imperative Open Source, Open APIs Enabling Faster Innovation and Wide ParticipationOpen Source NFVSDN Network Functions Virtualization, NFV Transforming Network Architectures & Operations Software Defined Networking, SDN Abstracting to Better Application & Network Interaction EachAddressing anAspect of the Challenges and Opportunities
  6. 6. Cisco Confidential 6© 2013-2014 Cisco and/or its affiliates. All rights reserved. Make My Business Better Key Benefits of SDN/NFV Programmability Source: Heavy Reading ~ 80 Respondents Q3/2014 Great insourcing of software development Greater outsourcing of network operations Greater participation in applications/services Increased network supplier choice Development of new business models Faster innovation Greater agility in adapting to services demand 0 10 20 30 40 50 60 70 80 90 100 Percent of Respondents
  7. 7. Cisco Confidential 7© 2013-2014 Cisco and/or its affiliates. All rights reserved. Most Important NFV Requirements Elasticity, Performance, Security Source: Heavy Reading ~ 80 Respondents Q3/2014 7 19 22 22 26 40 42 44 49 51 60 0 10 20 30 40 50 60 70 Energy efficiency Migration & coexistence with existing platforms Service continuity Resilience Network stability Ease of operations (automation of functions) Portability (of functions across data centers) Management & orchestration Security High performance Elasticity (scale hardware resources as needed) Weighted Score
  8. 8. Cisco Confidential 8© 2013-2014 Cisco and/or its affiliates. All rights reserved. SDN/NFV Market Potential Rapid Deployment Growth Through 2018 0 500 1000 1500 2000 2500 3000 3500 2014 2015 2016 2017 2018 HW SW Services Annual SDN Market Sources: ACG, ABI, Analysis Mason, Doyle, Heavy Reading 2014 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2014 2015 2016 2017 2018 NFV Market
  9. 9. Cisco Confidential 9© 2013-2014 Cisco and/or its affiliates. All rights reserved. Service Provider Virtualization Priorities Sources: ACG, ABI, Analysis Mason, Doyle, Heavy Reading 2014 Technology Segments 8 17 23 23 31 32 36 45 51 54 59 0 10 20 30 40 50 60 70 Weighted Score DPI, Load Balancing Policy, Signaling OSS/BSS, Analytics VoLTE, SIP Trunking Mobile Packet Core (EPC) Voice Core (IMS) Business CPE Content Delivery Home Gateway / Set Top Edge (Session Border Control) Radio Access Network 0 500 1000 1500 2000 $ Millions Business Cloud Machine to Machine Video Consumer Service Segments Mobile
  10. 10. Cisco Confidential 10© 2013-2014 Cisco and/or its affiliates. All rights reserved. Our Industry’s Mission : Business Transformation Automation is Not New – But Drives Business Success Virtualized Resource Pools (network ready compute/storage) Virtualized Network Functions Dynamic Set-Up, Tear Down and Provisioning On-Demand Workload Movement with Service Profiles Data Center NetworkWorkload Portability Orchestration Full Access to Resource Pools Anywhere in the Cloud Cloud Services Cost reduction and agility leads to success for all
  11. 11. Cisco Confidential 11© 2013-2014 Cisco and/or its affiliates. All rights reserved. Network Function Virtualization in SP Segment Video Headend Mobile Gateways PE / Service Edge Mobile & Tablet STB & TV CE Router / Broadband Today Mobile & Tablet STB & TV CE Router / Broadband Service 1 Service 2 Content 2 Desired End State On-Net / Off-Net On-Net / Off-Net On-Net / Off-Net Content 1 SP’s Cloud Partner Cloud Today’s Service Delivery In “Connected” Model Any Device, Any Service, Any Content, Any Where, Any Time Target is to Achieve Optimized TCO, Agility, Cloud Consumption & economics. SP’s now “can afford to go wrong” Transition NFV = Networking + Cloud ! A Key Enabler of this Evolution Top of the Mind for All SP’s
  12. 12. Cisco Confidential 12© 2013-2014 Cisco and/or its affiliates. All rights reserved. NSO (Powered by tail-f NCS) VNF-M OpenStack/ VCenter ODL/ Controller SP’s OSS/BSS or Prime Order Fulfillment KVM (or ESXi) Ceph (or Cinder/Swift) VTF / OVS SP’s Portal / Prime Service Catalog VNF 1 (Cisco or 3rd Party) NSO VNF 2 (Cisco or 3rd Party) NSO VNF 3 (Cisco or 3rd Party) NSO X86 Server X86 / SAN Network Switch NFV Reference Architecture from ETSI Service Assurance Animated Wikipedia definition of NFVI – Set of resources that are used to host and connect virtual functions
  13. 13. Cisco Confidential 13© 2013-2014 Cisco and/or its affiliates. All rights reserved. Cloud & NFV is Set to Change the Server Market Adoption Workloads & Network Functions are getting Cloudified Source: Dell’Oro
  14. 14. Cisco Confidential 14© 2013-2014 Cisco and/or its affiliates. All rights reserved. Analysis Mason View NFV Software Revenue Growth May take 5 years, till then investment in Hardware (Infra) & Services will be the driver
  15. 15. Cisco Confidential 15© 2013-2014 Cisco and/or its affiliates. All rights reserved. Motivations Behind the NFV Led Approach Unified NFV Infrastructure (Telco Grade DC) vMS (As a tenant for NFVI) Virtual Packet Core (As a tenant for NFVI) IT/VPC (As a tenant for NFVI) Virtualized Infrastructure Manager TenantsTenantsTenants Converge Infrastructure, Get it right once, achieve higher agility Animated
  16. 16. vMS  (Virtual  Managed  Service)    
  17. 17. Cisco Confidential 17© 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Evolved Services Platform Service Provider DC StorageNetwork Compute Open APIs Customers Secure Broadband Internet Service Catalog Orchestration Engine Flexible CPE Cisco ISR Meraki MX Ethernet NID CSR1Kv ASAv vIPSWSAv Cisco Virtual Managed Services ( vCPE + Security) Self-Service Portal Sources: ACG Research, Cisco BTA, Cisco SPTG Operations Savings New revenue Stream from Enterprise customer
  18. 18. Cisco Confidential 18© 2013-2014 Cisco and/or its affiliates. All rights reserved. Customer Requests Service Cisco NFV Solution for Virtualized Managed Services Enterprise Customer Internet / Cloud / VPN Service Orchestrator VNF Manager Virtual Topology Manager System Management and High Availability Internet/VPN (Managed CPE) SP Managed Service POD Compute Compute Compute Compute TOR Switch Compute Compute Compute Compute Compute Compute TOR Switch Compute Compute Security (Managed FW) NAT WAAS Managed Services Customer request is delivered from the SP Managed Service POD. The managed service is orchestrated by Portal
  19. 19. Cisco Confidential 19© 2013-2014 Cisco and/or its affiliates. All rights reserved. Customer 1 Wants FW, NAT Internet / Cloud / VPN SP Managed Service POD SP Datacenter Customer 2 Wants vCPE, vFW, vWAAS vFW NAT vCPE vFW vWAAS Customer service is instantiated as a virtual service in the managed service POD. Multiple services combined into a service chain Multi-tenanted service chains Service Orchestrator VNF Manager Virtual Topology Manager System Management and High Availability Internet/VPN (Managed CPE) Security (Managed FW) NAT WAAS Managed Services Customer Requests Service Multi-Tenanted Service Instantiation & Service Chaining
  20. 20. Cisco Confidential 20© 2013-2014 Cisco and/or its affiliates. All rights reserved. 6%   1%   10%   6%   4%   4%   12%   4%   24%   1%   3%   2%   4%   3%   3%   6%   8%   1%   0.5%   Cisco Virtual Network Functions CPE HW + Support SP OPEX SP DC Compute + Network Cisco Orchestration 16% 15% 16% 24% 28% Cisco Virtual Managed Services Enabling Significant Business Advantages •  ~ 65 % Reduced OPEX (Up to 78%) •  ~ 200% Return On Investment •  ~ $200 Million Increased Revenues 5 Year Business Analysis Sources: ACG Research, Cisco BTA, Cisco SPTG 2014
  21. 21. Cisco Confidential 21© 2013-2014 Cisco and/or its affiliates. All rights reserved. Customer Reference - DT •  Telco VPN Services •  Remote VPN, Basic, Full, and Premium •  Self-Service Telco Cloud Portal •  Converged IP/Optical - Native IPv6 •  All Network Elements Virtualized •  Improved Customer Experience Up to 65% Reduced OPEX •  Global Managed Network Services Market by 2018 •  $62B Total >> 13% CAGR Sources: MarketsandMarkets, Cisco BTA 2014 Telco Portal Cisco Evolved Programmable Network CSR1Kv ASAv WSAvESAv Cisco Evolved Services Platform Service Catalog Orchestration Engine DT Data Center
  22. 22. Virtual  Packet  Core/Mobility  
  23. 23. Cisco Confidential 23© 2013-2014 Cisco and/or its affiliates. All rights reserved. Mobile Broadband / Location Venues Self-Service Portal Service Provider DC Services Platform Virtual EPC Virtual SON Virtual Policy vISE Services Bus Network Storage Compute Operations Savings New revenue Orchestration Platform Open APIs Service Catalog Orchestration Engine
  24. 24. Cisco Confidential 24© 2013-2014 Cisco and/or its affiliates. All rights reserved. Service Provider Monetization Use Case Framework Make Money Save Money Subscriber- Centric §  Congestion-aware content §  Application-based plans §  Sponsored data offers §  Mobile targeted advertising §  Location/venue analytics §  Location-based ads / services §  Service bundling §  Customer loyalty program Network- Centric §  Tiered pricing plans §  Shared data plans §  Multi-device plans §  Dual persona plans §  Freemium §  Happy hour plans §  Video optimization §  Network expansion with Small Cells ¥ € £ $
  25. 25. Cisco Confidential 25© 2013-2014 Cisco and/or its affiliates. All rights reserved. Congestion-Aware Content Delivery Challenge: Unpredictable network congestion deters premium and on-demand quality of service (QoS) offers for high-bandwidth apps (such as gaming, video, enterprise apps) Ensure that the subscriber experience meets service expectations and entitlements Truly monetize QoS (for example, turbo boost, bandwidth on demand) Monetize exclusive and premium content (for example, NFL, Champions League, etc.) ¥ € £ $
  26. 26. Cisco Confidential 26© 2013-2014 Cisco and/or its affiliates. All rights reserved. Application-based Plans Challenge: Provide incentives for increased mobile data usage by price-sensitive subscribers, and/or to justify upgrade from 3G to LTE Including a "comes with data" option for popular apps like Spotify, Twitter, Facebook, etc. gives greater certainty Fee-based apps (such as Spotify) create opportunities for mobile network operator (MNO) revenue share Cross-marketing with App Provider drives new customer conversions ¥ € £ $
  27. 27. Cisco Confidential 27© 2013-2014 Cisco and/or its affiliates. All rights reserved. Sponsored Data Offers Challenge: Data Quota-conscious users who ration consumption of rich-media content are using less mobile data and not upgrading to higher data plans Gain additional revenues from data quota savvy subscribers Increase non-access revenue sources (advertisers, sponsors) Create business partnerships with content providers to increase usage ¥ € £ $
  28. 28. Cisco Confidential 28© 2013-2014 Cisco and/or its affiliates. All rights reserved. Mobile Targeted Advertising Challenge: Mobile Ads not effectively targeted and personalized, leading to poor CPM rates; Operators not getting revenues from OTT mobile advertising. Monetize operators’ real-time network analytics (such as network conditions, subscriber profiles, mobile content usage, etc.) to anonymously target mobile ads Create new partnerships in Ad ecosystem of content providers, ad networks, advertisers ¥ € £ $
  29. 29. Cisco Confidential 29© 2013-2014 Cisco and/or its affiliates. All rights reserved. Location-Based Analytics Challenge: Enterprises and venues want to use the “gold mine” of Wi-Fi location-based information Service Providers increase revenues through sales of reports to enterprises and venues (e.g., $5,000/report) Analytics can align with service providers’ “big data” strategy Venues can use reports for data-driven decisions ¥ € £ $
  30. 30. XaaS  (IaaS,  SaaS,  PaaS,  UCaaS,   BigData)  
  31. 31. Cisco Confidential 31© 2013-2014 Cisco and/or its affiliates. All rights reserved. Revenue & Revenue/ Sq. Ft. Hosting PaaS SaaS Internal CRM, BSS, OSS Virtual Desktop Disaster Recovery Cloud Burst Service Providers are Expanding Services SP Services (Internal & External ) IaaS UC aaS Video aaS “X” aaS
  32. 32. Cisco Confidential 32© 2013-2014 Cisco and/or its affiliates. All rights reserved. Infrastructure as a Service Example: Compute as a Service CRM BSS ServicesServices SP Web service Internal Mail System Email SP Cloud App OS App OS App OS App OS App OS App OS Light VMs App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS Average VMs App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS Power VMs
  33. 33. Cisco Confidential 33© 2013-2014 Cisco and/or its affiliates. All rights reserved. Compute as a Service Implementation Example CRM BSS ServicesServices SP Web service Web Hostng Internal Mail System Email SP Cloud App OS App OS App OS App OS App OS App OS Light VMs App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS Average VMs App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS App OS Power VMs § DC size: 5,000 sq. ft. § # of VMs : 16,000 § Annual saving: $10M+ § Gross margin: 80% § Net margin: 60% § Annual growth (revenue): 10% § NPV of cash flow: $40M+ 7,000
  34. 34. UCaaS  
  35. 35. Cisco Confidential 35© 2013-2014 Cisco and/or its affiliates. All rights reserved. UCaaS Enterprise Business •  Grow revenue •  Lower overall operating costs •  Acquire/retain customers •  Drive new market offering or business practices •  Improve workforce productivity Enterprise IT Initiatives(3) •  Improve IT efficiency •  Streamline/improve business processes •  Increase IT resources to drive business innovation •  Improve customer management capabilities Medium and large businesses will appreciate the economies provided by hosted IP telephony, but will seek such solutions mostly so they can focus on core businesses processes and gain access to applications and capabilities that they can test without making a capital investment. Elka Popova, Global Program Director, Frost & Sullivan 7 out of 10 Enterprises are investing in Collaboration solutions 30% will be Hosted
  36. 36. Cisco Confidential 36© 2013-2014 Cisco and/or its affiliates. All rights reserved. Cloud Collaboration Services leverage business transformation to create SP value New Revenue opportunities for MSP •  Mitigate exposure of traditional business offers to price erosion and costly churn, offset decline in traditional voice revenues •  Monetize network capacity and IP services MSP competing to win end-customer •  Create differentiated UC proposal to compete with OTT and SI •  New UC consumption model Offer premium customer experience to Enterprises in cost-effective way •  SP is taking care of complexity of enterprise collaboration across networks, devices, places and experiences •  Cost effective solution for provisioning, operations, management and billing $105 M/ 5yr Hosted Collaboration incremental opportunity (1) $2 M/yr Recovered voice revenue if reducing churn by 1% (1) 41% Lower Ent TCO )
  37. 37. Cisco Confidential 37© 2013-2014 Cisco and/or its affiliates. All rights reserved. Hosted Collaboration Solution architecture transforms SP services delivery End Customer Experiences Network Transformation Service Transformation Operations Transformation Improve operational efficiencies, optimize resources, assure the services and end-user experience Smoothly transition to Cloud infrastructure to optimize and scale capacity Accelerate Time to Market, introduce new services & monetize IP infrastructure Voice & Video Voicemail & Integrated Messaging Mobility Scalable System Architecture Unified Communication System 8.0 Optimized Virtualization Platform Presence & Instant Messaging Conferencing Web 2.0Web 2.0 CollaborationCollaboration
  38. 38. Cisco Confidential 38© 2013-2014 Cisco and/or its affiliates. All rights reserved. Summary: Hosted Collaboration Solution change business dynamics with cloud service Business Models Own HCS Buy HCS as a Service from whitelabel partner Provide HCS as a service to other MSPs Faster to sell Short sales and delivery cycle Defined service, price, delivery models Increased customer loyalty OPEX market trend Rich functionality Upsell strategy Simpler to operate No onsite equipment to manage Virtualization in Data Center Shorter service delivery Service Provisioning and Assurance Tools Cisco Services support Joint Go To Market Joint Beachhead accounts approach Joint Funnel review Marketing Support Sales Trainings Joint demand creation activities
  39. 39. Big  Data  
  40. 40. Cisco Confidential 40© 2013-2014 Cisco and/or its affiliates. All rights reserved. Manual  systems/processes   basic  reporMng  tools  for  high  -­‐gained  customer  segmentaMon   Marketing / Customer Lifecycle Management– SP Allows SPs to profile, target and monetize high-value customers through targeted BTL campaigns Today (Manual, siloed systems and processes) Data Infomediary (Integrated internal and external systems and processes) SP Benefit •  Rapid  (2-­‐4)  campaigns/day   •  Churn  reducMon  by  4-­‐8%   •  Higher  offer  take  up  rate   •  New  service  innovaMon,  based  on   emerging  consumpMon  paVers   •  Service  Mering  and  value  based   charging   End User Benefit •  More  relevant  /  targeted   offers   •  InnovaMve  services   •  Pricing  and  placement  based   on  specific  consumer  needs   Current Situation •  Few  ~2-­‐4  campaigns/month   •  High  churn  –  ineffecMve    broad   segments  (Mn  subs)  based  on   standard  KPIs  like  ARPU  and  LoS   •  Incomplete  customer  view     •  Slow,  batch,  manual    data   extracMon  and  reporMng   Scope of Impact Billing  IN/  CDR   Charging   VAS   IVR  OBD  CRM  SMS   Customer  side   Network  side   CLM  data  mart   IN/CDR   Billing   Charging   VAS   SMS   Call   center   OBD   IVR   External  systems   Internal  customer  side  systems   Internal  systems   Fine  grained  micro-­‐segmentaMon  engine,     campaign  management  and  predicMve  analyMcs   •  Routers  /   switches   •  Towers   •  Media  gateways   •  Social  media   •  Market  research   •  Credit  agencies   •  Retailers,  Banks,   etc.   Virtualized  Data  services  /   federaMon  layer   Batch   Real-­‐ ;me   Metrics that show marketing efficiency – tied to pain point – how much being spent for example
  41. 41. Thank  You        

×