This document provides an overview of network function virtualization (NFV) from the perspective of an Indonesian telecommunications company, Telkomsel. It discusses the definition and benefits of NFV, including cost reductions, increased flexibility, and faster time to market for new services. It also outlines Telkomsel's insights into NFV and considers various deployment strategies and scenarios for migrating network functions to virtualized environments. Overall, the document examines how NFV can help Telkomsel and other telecom providers address rising data traffic and costs through the virtualization of network functions.

1. 1 CONFIDENTIAL –INTERNAL USE ONLY
NFV ITB Day
Bandung
March 21st, 2016
Network Function Virtualization(NFV)
Telco Perspective
C.G.Gustiana
GM Strategic Technology Planning, Telkomsel

2. |TELKOMSEL - Confidential
KeyMessages
NFV in a nutshell, trend in the industry
How the others are doing, describing various deployment
strategies, benchmark, case studies that possible to be done or
adopted by the CSP
1
3
Today’s Agenda
The Values that NFV bring, main drivers for CSP/Telcos to
adopt or acquired NFV technology
2
Telkomsel’s NFV insight, some introduction, overview, sneak
peak on how Telkomsel doing this NFV, future possibilities for local
industry or developer, etc
4

3. 3
Network Function Virtualization
(NFV) definition :
Leveraging standard IT virtualization
technology to consolidate many network
equipment types to reduce cost and
improve flexibility, operability, and
maintainability – ETSI NFV ISG
§ Vendor agnostic
§ CAPEX and OPEX optimization
§ Common hardware (COTS) support
§ New service creation capability increased
§ Multi tenancy support
§ Self provisioning and orchestration support
§ More flexible and simplify network
architecture
§ Fast time to market
§ Hypervisor needed and specific management
system
§ Resource pooling (compute,storage,
network) for any function
characteristics:
NFV Approach,from Legacy & Vendor Specific to Standardize &
Commodity Hardware
SOURCES: ETSI NFV ISG White Paper

4. 4
Main Difference betwween Legacy vs NFV Deployment
§ Procure New Hardware (Dedicated
/proprietary for specific network
function, usually take long time on
delivery, Hardware reuse is impossible,
especially for different vendor)
§ Finding Space and Power required
§ Install Hardware
§ Commissioning,Integrate,Operate
§ Redo the whole process for the other or
new network function
Serial & Iterative Process
§ One hardware (x86 COTS) can be
used by several network function
§ Hardware procurementand delivery is
faster, since the hardware is a
common commodity
§ Procure Hardware,Finding Space &
Power, Installation,Commissioning,
only needed to be done at the initial
deployment
§ All Network Function is only software
based and can be Install remotely and
parallely
§ Fail fast support to achieve faster
time-to-market
Parallel Process
Vs

5. 5
The main architecturalconstituents of the
NFV ArchitecturalFramework are :
§ The NFVI (Network Functions
Virtualization Infrastructure),which
provides the virtual resources required to
supportthe execution of the Virtualized
Network Functions. It includes Commercial-
Off-The-Shelf (COTS) hardware,accelerator
components where necessary,and a
software layer which virtualizes and
abstracts the underlying hardware
§ The VNF (Virtualized Network Function) is
the software implementation ofa network
function which is capable of running over the
NFVI. The VNF is the entity corresponding to
today’s network nodes, which are now
expected to be delivered as pure software
free from hardware dependency.
§ The NFV M&O (Management and Orchestration), which covers the orchestration and lifecycle managementofphysical
and/or software resources that supportthe infrastructure virtualization,and the lifecycle managementofVNFs. NFV
Managementand Orchestration focuses on the virtualization-specific managementtasks necessary in the NFV
framework.The NFV M&O also interacts with the (NFV external) OSS/BSS landscape,which allows NFV to be integrated
into an already existing network-wide managementlandscape
NFV ETSI ISG Architectural Framework
SOURCES: ETSI NFV ISG White Paper

6. 6
NFV ETSI ISG Use Cases Reference
§ Switching elements:BNG, CG-NAT, routers.
§ Mobile network nodes:HLR/HSS, MME,
SGSN, GGSN/PDN-GW, RNC,Node B,
eNode B.
§ Functions contained in home routers and set
top boxes to create virtualised home
environments.
§ Tunnelling gateway elements:IPSec/SSL
VPN gateways.
§ Traffic analysis:DPI, QoE measurement.
§ Service Assurance,SLA monitoring,Test
and Diagnostics.
§ NGN signalling:SBCs,IMS.
§ Converged and network-wide functions:AAA
servers, policy control and charging
platforms.
§ Application-level optimisation:CDNs,Cache
Servers, Load Balancers,Application
Accelerators.
§ Security functions:Firewalls,virus scanners,
intrusion detection systems, spam
protection..
Network Functions Virtualization is applicable to any
data plane packetprocessing and control plane
function in mobile and fixed networks. Potential
examples that can be listed include (not in any
particular order):
SOURCES: ETSI NFV ISG White Paper

7. 7 SOURCES: Infonetics Service Provider NFV Survey, 2015
§ There is no
clear correlation
between
criticality of
Network
Function with
operator
decision on
which NF going
to be
transformed into
NFV first
Mobile Core, vEPC
compared with vIMS
Core, .. Which one is
the most critical NF ?
Based on Infonetics Survey
Operators Adoption on NFV Use Cases

8. 8
Main Driver for Telco operators going into NFV
What happen onlinein 60 seconds?
Smart phones drive the massive
traffic of data, putting huge strain to
the CSP’s network infrastructures
SOURCES: Cisco VNI Mobile 2014,Internal Analysis
Costs for addressing data traffic
growth is getting higher, while the
data revenues declines
§ Cost dominated by Data usage
§ New services demand increase

9. 9
Values and Benefits that NFV Bring to the Industry
Reduce Capital Expenditures (CAPEX)
§ Reduce hardware costusing COTS / commodity servers
§ Service delivered in software, no dependency on vendor hardware
(price will be decreased)
Reduce Operational Expenditures (OPEX)
§ Quick and easy to move and scale the functionality,eliminate to deploy
and maintain specialized hardware for specialized functions.
§ Reduce space,power and cooling costs
§ Automation can be used to simplify roll out and ongoing management.
Accelerate Time-to-Market
Deliver Agility and Flexibility
§ Able to easily move, scale,and configure services as the demands of
customers or the business changes.
§ Operator doesn’thave to buy a new server / hardware system every new
service with small scale needed.
§ Simple installation and provisioning to quickly deploy services
§ Virtualized function enable easiness ofconducting trial,segregation with
production can minimize the potential of risk.
Technology Trends
§ Legacy vendors are starting to look into NFV technology.
§ Several operators in the world already conducted trial and RFP.
§ The rise of software-based company thatdevelop NFV enrich the NFV
vendor options.
§ Based on research done by Infonetics NFV widespread commercial
deployments will start from Y2016
SOURCES: ETSI, sdxcentral,Internal Analysis

10. 10
IT Cloud vs Network Cloud NFV Requirements
Enterprise (IT) Carrier (Network)
Virtualization Layer
Oracle, CRM,
Exchange
SAP, CRM,
HRIS
COTS Hardware
Virtualization Layer
GGSN, SGSN EPC, IMS
COTS Hardware
§ SLA 99.95% – 99.99 %
§ Focus on the compute
and storage capacity
§ Most application running
in lightload
§ Simple network
connection (internetand
intranet)
§ No large flow between
VMs
§ No strict requirementon
the network latency and
QoS
§ SLA 99.999%
§ Focus on the compute
and networking capacity
§ Most application running
in heavy load
§ Complex network
connection (signaling,
Media,OM)
§ Large flow between
VMs
§ Strict requirementon the
network latency and
QoS
vs
SOURCES: ETSI, sdxcentral,Cisco,Internal Analysis
Operators General NFV Requirements

11. 11
Posible NFV Implementation or Deployment Scenarios
SOURCES: ETSI, Cisco,Internal Analysis
VNF Case Specific,
e.g.
vMS, VPC
Orchestration Led
Infrastructure Led
VNF Led
• Cloudify & Automate DC Infra
• Leverage Opensource
• Virtualize, Programmable & Provisionable
• Service Elasticity
• Ease of Provisioning;
Time to market
• Service driven approach
• Service Agility
• Business outcome desired
Includes VNF-
M and NFV
Orchestrator
Compute, Network & SDN Controller, Storage, VIM
(OpenStack) & Automation
Orchestration Led
Infrastructure led approach
aka NFVI is gaining
prominence!
Integrating multiple virtual appliances from different vendors. Network operators need to be able to
“mix & match” hardware from different vendors, hypervisors from different vendors and virtual
appliances from different vendors without incurring significant integration costs and avoiding lock-in.
Challenges that needs to be answered by the SPs

12. 12
Posible NFV Migration Scenarios
SOURCES: Ericsson, NFV Strategy Rec. for Tsel
Scrap & Grow, retire legacy network and
start fresh with NFV
Grow & Grow, co-exist between legacy
and NFV, decision based on cost-based
analysis to find best match between
technology availability, performance
and operation cost
Cap & Grow, limit legacy network
until hardware retired, grow with NFV
and slowly transform legacy network
to NFV on new capacity expansion.
Slice & Grow, start NFV with
network slicing for specific need and
slowly migrating legacy slice to new
NFV slice
Cost
Efficient
Less
Complex Operation
Time to
New
Revenue

13. 13
Operators Adoption Positioning and Time Line
SOURCES: NFV/SDN Telecom Market Landscape, Technical Business Research, Oct. 2015
Rate of Adoption
Strategic
Importance
Low
High
High
Telefonica
SK Telecom
BT
KPN
KT
Vodafone
Telenor
DT
NTT
AT&T
CenturyLink
Verizon
KDDI
Orange
China Telecom
China Mobile
Etisalat
China Unicom
Bharti
Tier-2
Operators
Singtel Telstra
SoftBank
Planning
Stage
Mainstream
Early Adapter
Source: SDN and NFV Vendor
Leadership/Global Service Provider Survey,
Infonetics, Aug. 2015
NFV/SDN Telecom Market Landscape,
Technical Business Research, Oct. 2015
Cisco Service Providers Survey, Nov 2015
2014 20202013 2015 ～ 2016
POCs
• Operators,
vendors learn in
lab
• Few field trials
Field Trials
• Vendors productize NFV/SDN software in operator lab trials
• A few more field trials
• ～ 10 Commercial deployments
Early Commercial
Deployments
• Many operators deploy 1 or 2
use cases
• ～ 15 more commercial
deployments
Wider-spread Commercial
Deployments
• Mainstream Adoption
• Operators deploy several NFV/SDN use
cases, then more each year
2022
Late Majority

14. 14
Global NFV Implementation Use Cases
Virtual EPC Deployment
§ NTT Do Como Inc. first announced for a commercial launch ofNFV back in May
2014
§ 70% of the whole network will be virtualized by 2018
§ The solution is provided by Vmware,Fujitsu and NEC
Deployed program called “UNICA” for IoT and M2M Project
Core Network Modernization based on NFV
§ By August20th
, 2014,Vodafone VHA has chosen Ericsson to replace and
upgrade complete national core network
§ The upgrade include such as EPC, IMS, policy control and MSS circuit core
Network (2016)
§ 30% of the infrastructure has been virtualized and continue until 2023
§ Some vendors like Huawei,ALU,Ericsson,NSN, NEC, Vmware and Red Hat
KVM are collaborating in this initiative
§ Optimize its network to build services around IoTand M2M
Signaling based on NFV
§ Vodafone Germany has implemented signaling control including SS7 and
Diameter into single platform based on NFV, in early January 2015
§ the solution is provided by Netnumber and VMWare
§ Source : http://www.lightreading.com/spit-(service-provider-it)/diameter-routing-
signaling/netnumber-decrees-the-end-of-signaling-silos/d/d-id/712972
SOURCES: various vendors and public analysis
Deployed program called “Domain 2.0”
§ calls for the company to virtualize more than 75 percent of its network using
software-driven architecture by 2020

15. 15
Typical or Generic SPs Adoption Scenario on NFV are Aligned with
Future Network Architecture Requirements for 5G
SOURCES: ETSI, sdxcentral,Internal Analysis
Legacy EPC
Legacy Signaling
MME SPGW
DRA STP
Legacy CS Core
MSS MGW
Virtualized STP,IMS,EPC
XXXIMS EPC
Virtualization Platform
(NFV)
Generic Platform (COTS)
Scalability & Flexibility
Network Extension
STP IMS MSS MME
SPGWDRA HSS GiLAN
NFV Orchestrator
Dynamic resource control
Automation
NFV Enhancement
SDN across DC Cloud Telco SDN
Business Extension
NFV Evolved
Distributed
Service optimized
Core Network
Radio Access Network
3G
4G
5G
Today Future
Future services and business require network to have scalability, agility, flexibility and faster time deployment. Core
network evolution is needed to meet the services and business requirement.

16. 16
Telkomsel Insight, Virtualization Experience ...
A Miles away toward NFV
IT Virtualization Architecture
Telkomsel IT Group has been using virtualization
technology since Y2008, started from VMware 4.1. The
basic reasons of virtualization implementation are:
§ The operational easiness (install new server and
service) which resulting faster time-to-market.
§ Cost efficiency, since several small applications can be
installed in the same physical hardware, separated by
different virtual machines. Space, power, cooling usage
also reduced.
Hardware
Using Intel Architecture x86 COTS server.
Brand usage are : Dell,Fujitsu, HP, IBM
Hypervisor
Using only VMware ESXi as the hypervisor / virtual
infrastructure.
Operating System
Various operating system used as the foundation of
an application.e.g : Windows,Linux, FreeBSD
Applications
Application type are from the small scale to the
enterprise level.e.g : web server, tcash, smsbulk,
microsoft exchange,active directory.
except/exclude : OCS, CRM, OSDSS, Oracle

17. 17
Telkomsel Encourage Openness, Welcoming wide variety of
eco-system and playersincluding Academia ..
Virtual compute
Industry group of
Communication Service Providers
(CSPs) and Network Equipment
Providers (NEPs) to specify NFV
business / functional
requirements and the interfaces
necessary to support them
Open source software suite
for cloud computing
Integration project under the
Linux Foundation to create a
carrier-ready NFV Reference
Platform (an IaaS platform)
out of open-source
components.
Open platform for network
programmability for SDN
User-driven organization
dedicated to the promotion
and adoption of SDN
through open standards
development
§ Reducing vendor lock-in
§ Community developmentbrings a higher feature
velocity
§ Cost efficientleads to TCO savings
§ Flexibility and freedom
§ Interoperability
Opensource NFV Platform
Enables a wide variety of eco-systems and
encourages openness. It opens the virtual
appliance market to pure software entrants,
small players and academia, encouraging more
innovation to bring new services and new
revenue streams quickly at much lower risk
Benefits that can be achieved by the industry
Virtual storage
Virtual network
Virtual
Infrastructure
Manager (VIM)
DPDK

18. 18