This document discusses SDN/NFV and the progress that has been made over the past year. It outlines some of the key drivers for adopting SDN/NFV technologies, including automating service provisioning, launching new services faster, and scaling services faster. It also discusses some of the operational impacts and challenges of adopting these technologies, such as changes to organizational structures and processes. The document advocates that SDN/NFV implementations require clear use cases in order to be successful and not just science projects.

1. Orchestrating, operationalizing, monetizing
Bala Thekkedath
Director of Product Marketing, Cloud and IP
Ericsson
sdn/nfv enabled networks

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Bala Thekkedath
Balamurali.thekkedath@ericsson.com
@balathekkedath
Ericsson
THANK YOU