This document summarizes a presentation on messaging in an NFV (network functions virtualization) environment. It discusses: 1) Xura's virtualized messaging strategy and product portfolio, which includes solutions across network layers. 2) Survey results on CSP plans for virtualizing messaging services like SMS, MMS, and voice mail. Most plan to virtualize some or all services in the next 4 years. 3) Challenges of virtualizing messaging include product interworking, orchestration complexity, and cultural issues in defining business cases.

1. |
Messaging in an NFV Environment:
Service Success Strategies
Sponsored by:
May 19, 2016

2. Today’s Speakers
Jim Hodges
Senior Analyst
David Spann, VP Technology
& Architecture, Xura

3. Agenda
• Xura’s Virtualized Messaging Strategy and Product
Portfolio Overview
• Messaging in an NFV Environment: Survey Results
• Questions and Answers
3

4. ||
Market Leader in Voicemail,
Messaging, Monetization,
Enterprise
Top Tier Customer BaseExpansive Presence in over 350
Service Providers Worldwide
Headquartered in
Wakefield, MA,
USA
Ticker (NASDAQ):
MESG
Who is Xura ?
4 MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES

5. ||
350 Operators140 Countries6 Continents
Global Market Leader
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES5

6. |
|
Xura’s Product Strategy
OSS/BSS
Operator Core Network
(SS7 / IP)
Value
Added Services
Access
Messaging
Solutions
IMS Core
6
Xura provides
solutions across all
the layers of an
operator network
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES

7. ||7
Digital Communications Portfolio in the Operator Network
Communication Solutions
Network Modernization
Network Security & Mgt
OSS/BSS
Operator Core Network
(SS7 / IP)
Value
Added Services
Access
Messaging
Solutions
IMS Core
Access GN
(SMS/MMS)
VVM
Web RTC /
RCS API
IMS Enabler
Analytics
SpamShield
DiSC
XMS
Signalling
Fraud Mgmt
SMS MMS VM RCS/IP
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES

8. ||
XCS Platform Overview
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES8
XuraCommunicationsSuite
SMSC MMSC
Anti Spam & Fraud
Charging GW
Management
Analytics
OA&M
Provisioning
RCS API SMS/MMS API
IP Messaging
IP-SM GW
RCS Messaging
Presence
CAB
Common Message Store
Service Logic Bus
WebRTC GW Features
• Flexible Messaging Layer
• Layered Architecture
• Multi-VAS applications
• Enhanced Service Layer
• Common OAM&P
• Virtualized /Cloud Ready
• Converged Address book
• Common Message Store
• Common Profile
Voicemail

9. ||
Trend- Evolution of Network Infrastructure
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES9
There have never been so
many options to support
network operator growth
and evolution
Vision
Software only Private Cloud Cloud Service NFV

10. |
Orchestration&Management(MANO)
NFV Infrastructure
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES10

11. ||
Bare Metal Operator Services
NFV Environment
Steps to NFV Using VAS Services
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES11
NFV
Management
&
Orchestration
VNF Environment
RCS
Voicemail
WebRTC GW
IP-SM GW
MMS
SMS
Voice TAS
Anti-SPAM
PCRF
HLR
HSS
PCEF

12. ||
Where Should You Start? How Do You Move Them All?
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES12
NFV
Management
&
Orchestration
VNF Environment
NFV Environment
Bare Metal Operator Services
RCS
Voicemail
WebRTC GW
IP-SM GW
MMS
SMS
Voice TAS
Anti-SPAM
RCS
Voicemail
WebRTC GW
IP-SM GW
MMS
SMS
Voice TAS
Anti-SPAM
PCRF
HLR
HSS
PCEF
HLR/HSS
PCRF
PCEF

13. ||
Option - Staged Approach Starting with IP-SM Gateway
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES13
NFV
Management
&
Orchestration
VNF Environment
NFV Environment
Bare Metal Operator Services
IP-SM GW
RCS
Voicemail
WebRTC GW
IP-SM GW
MMS
SMS
Voice TAS
Anti-SPAM
PCRF
HLR
HSS
PCEF

14. ||
Option - Augment with SMS/MMS
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES14
NFV
Management
&
Orchestration
VNF Environment
NFV Environment
Bare Metal Operator Services
MMS
SMS
IP-SM GW
RCS
Voicemail
WebRTC GW
IP-SM GW
MMS
SMS
Voice TAS
Anti-SPAM
PCRF
HLR
HSS
PCEF

15. ||
Option - Augment with IP Services
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES15
NFV
Management
&
Orchestration
VNF Environment
NFV Environment
Bare Metal Operator Services
IP-SM GW
RCS
WebRTC GW
RCS
Voicemail
WebRTC GW
IP-SM GW
MMS
SMS
Voice TAS
Anti-SPAM
PCRF
HLR
HSS
PCEF

16. ||
Bare Metal Operator Services
Option - Start with Legacy Voicemail
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES16
NFV
Management
&
Orchestration
VNF Environment
NFV Environment
Voicemail
RCS
Voicemail
WebRTC GW
IP-SM GW
MMS
SMS
Voice TAS
Anti-SPAM
PCRF
HLR
HSS
PCEF

17. ||
Logical Staged Results
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES17
NFV
Management
&
Orchestration
VNF Environment
NFV Environment
Bare Metal Operator Services
RCS
WebRTC GW
IP-SM GW
Voicemail
Voice TAS
MMS
SMS
Anti-SPAM
RCS
Voicemail
WebRTC GW
IP-SM GW
MMS
SMS
Voice TAS
Anti-SPAM
PCRF
HLR
HSS
PCEF

18. ||
We Wanted Answers to Your Questions
MESSAGING IN AN NFV ENVIRONMENT: SERVICE SUCCESS STRATEGIES18
Openstack,
Vmware or …. ?
Generic MANO
provider or not?
Deploy on
my own?
Use a managed
service provider?
Who’s
committed
to NFV?
Who leads NFV-
CIO, CTO?

19. Poll Question
Which of the following messaging services are you most likely to virtualize first?
• SMS
• MMS
• IP Messaging
• WebRTC
• RCS
• Voice Mail
• Spam/Fraud Messaging Control
• Control Plane Security

20. Virtualizing Messaging Services: A Heavy
Reading Custom Survey

21. Virtualizing Messaging Solutions
21
Question: When does your company plan to migrate the following messaging services to an NFV-based virtualized platform and/or launch new
virtualized services? (N=69-70).
Key Findings:
• CSPs are very committed to virtualizing their messaging platforms.
• Approximately 70% of respondents plan to virtualize some or all of their platforms within the next four years
• Virtualization platform priorities in the 2016 timeframe are SMS (27%), followed by Spam/Fraud messaging
control (22%), then IP Messaging (Unified Communication) 21%.
.
27%
14%
21%
17%
16%
20%
22%
17%
20%
34%
39%
29%
30%
33%
26%
36%
33%
20%
26%
29%
28%
30%
28%
27%
20%
31%
14%
26%
26%
17%
25%
20%
0% 20% 40% 60% 80% 100%
SMS
MMS
IP messaging
RCS
WebRTC
Voicemail systems
Spam/fraud messaging control
Control plane security
In 2016 In 2017-2018 In 2019-2020 No plans to do this

22. Virtualizing Messaging Services: Technical Drivers
22
Question: What is the most important technical reason for using NFV to virtualize these services? (N=68-69)
Key Findings:
• The most important technical drivers are Operational Efficiency Network Scale and Elasticity, Application
Consolidation and Enhanced Security.
34%
28%
30%
25%
28%
20%
17%
28%
46%
46%
40%
48%
43%
55%
32%
44%
3%
6%
13%
12%
12%
7%
38%
12%
18%
19%
16%
15%
16%
17%
13%
16%
0% 20% 40% 60% 80% 100%
SMS
MMS
IP messaging
RCS
WebRTC
Voicemail systems
Spam/fraud messaging control
Control plane security
Network scalability/elasticity Operational efficiency Security Application consolidation

23. Virtualizing Messaging Services: Business Drivers
23
What is the most important business reason for using NFV to virtualize these services? (N=66-69)
Key Findings:
• The lead driver remains Service Agility and Flexibility
• Other business drivers such as Hardware Related Opex Reduction and Capex Reduction also scored highly.
18%
6%
10%
11%
6%
12%
16%
18%
19%
27%
28%
24%
22%
21%
27%
29%
24%
30%
22%
20%
23%
21%
16%
21%
25%
22%
28%
35%
35%
32%
28%
24%
9%
10%
10%
8%
10%
12%
13%
7%
5%
5%
2%
3%
4%
3%
0%
2%
0% 20% 40% 60% 80% 100%
SMS
MMS
IP messaging
RCS
WebRTC
Voicemail systems
Spam/fraud messaging control
Control plane security
Opex reduction (software) Opex reduction (hardware) Capex reduction
Service agility & flexibility Enhanced CEM Competitive pressure

24. Technical Implementation Challenges
24
What is the biggest technical challenge in migrating the following messaging services to NFV? (N=65-68).
Key Findings:
• Product Interworking, Orchestration and Migration Complexity are the most formidable technical virtualization implementation
challenges
36%
24%
24%
24%
24%
22%
18%
17%
14%
23%
21%
16%
16%
27%
22%
20%
9%
15%
12%
13%
16%
12%
6%
8%
12%
11%
10%
10%
12%
7%
6%
9%
2%
2%
6%
6%
2%
4%
21%
17%
11%
11%
13%
16%
18%
16%
12%
12%
17%
15%
13%
13%
13%
12%
16%
17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
SMS
MMS
IP messaging
RCS
WebRTC
Voicemail systems
Spam/fraud messaging control
Control plane security
Product interworking/maturity Orchestration Survivability & failover Scale
Security OSS/BSS integration Migration complexity

25. Orchestration Framework Support
25
Which cloud orchestration frameworks does your company want NFV virtualized messaging applications to support? (choose all that apply)
(N=65-68)
Key Findings:
There are a number of views on how to best implement an orchestration framework.
44%
41%
49%
42%
10%
4%
0% 10% 20% 30% 40% 50% 60%
OpenStack – integrated in-house
with contractors (e.g., RedHat)
OpenStack – from an integrator
(e.g., IBM, HPE, Oracle)
OpenStack – from a vendor
(e.g., Nokia, Cisco, Ericsson)
VMware
Microsoft Azure
Not sure / Undecided

26. MANO Strategies
26
Which of the following best matches your company's MANO (management & orchestration) strategy for virtualized messaging solutions? (N=65-68)
Key Findings:
Even though there is considerable support for leveraging a generic MANO orchestrator for virtualized messaging
VNF, the predominant view of the respondents (55%) is that it likely be difficult to implement this approach.
7%
55%
24%
14%
0% 20% 40% 60%
Will use a single generic MANO orchestrator
Ideally would use one MANO orchestrator, but
in practice that will be difficult
Will use multiple MANO orchestrators, as
supplied by VNF vendors
We do not yet have a MANO strategy

27. Support and Deployment Model
27
Which of the following best matches your company's preferred NFV messaging support and deployment model? (N=68)
Key Findings:
Half of the respondents (50%) are willing to rely on a third party to manage data center resources while 47% prefer
to keep these functions in house.
47%
50%
3%
0% 10% 20% 30% 40% 50% 60%
Will use in-house resources for managing the NFV
environment and refer support issues to individual VNF
vendors
Will use a third-party supplier to manage the NFV
environment within our data centers (managed hosted)
and refer support issues to individual VNF vendors
Will use a third-party supplier to manage the NFV
environment outside of our data centers (cloud or
hosted) and support the full solution as a managed
service

28. Business Challenges
28
What is the biggest business challenge in migrating the following messaging services to NFV? (N=67-69)
Key Findings:
• Cultural Challenges and Business Case definition are the top two business implementation challenges. We view
business case definition challenges as directly related to the opex and capex reduction business drivers.
46%
33%
31%
39%
34%
38%
39%
27%
37%
49%
51%
39%
45%
36%
35%
54%
12%
13%
15%
19%
15%
20%
19%
12%
5%
5%
3%
3%
6%
6%
7%
7%
0% 20% 40% 60% 80% 100%
SMS
MMS
IP messaging
RCS
WebRTC
Voicemail systems
Spam/fraud messaging control
Control plane security
Defining the business case Cultural challenge
General company management Regulatory compliance

29. Conclusion
• Virtualizing messaging solutions is a clear priority and already moving ahead.
• CSP top immediate virtualization platform priorities are SMS, Spam/Fraud messaging
control, IP Messaging (Unified Communication).
• The lead technical drivers are Operational Efficiency, Network Scale and Elasticity.
Application Consolidation and Enhanced Security.
• On the business side the lead driver remains Service Agility, but Capex and Opex reduction
are now also important considerations.

30. Poll Question
Which challenge do you feel is the most difficult to move to an NFV
environment for your organization?
• Technical issues (Migration, implementation of new platform),
• Cultural issues (which team runs the project? How to keep staff on
existing platform motivated),
• Commercial issues (i.e. business case, financial costs of new platform)

31. ||
Our Commitment to Network Function Virtualization (NFV)
31
We are …
• Committed to NFV solution development in
portfolio
• Actively engaged in designing products to
comply with NFV concepts and specifications
• Committed to integration with NFV relevant
products (e.g. KVM, OpenStack, VNF
Manager partners)
• Actively engaged to ensure that our solutions
support proper cloud virtualization,
management and elasticity
• Committed to integrating products with
customer’s chosen MANO solution and
reference architectures
CUSTOMER FORUM – DAY ONE

32. Thank-you
www.heavyreading.com
hodges@heavyreading.com