Presentación de Enrique Algaba realizada en el evento de NFV movilforum. En la que detalla cómo se creo NFV, qué es y qué no es NFV, etc.

1. Telecom Service
Evolution with Network
Virtualization _
May 2015
Enrique Algaba –
Network Innovation and Virtualization Director
@ Telefónica I+D – Global CTO

2. REASONS FOR A TRANSFORMATION
Why evolution is not enough to stay in business ….
…. choose between what is easy or what is right.

3. We are evolving towards a Hyper Connected and Intelligent Digital World*
The explosion of digital
services makes connectivity
services more needed than ever
Reduction of Time to Market
Radical increase of traffic in telco networks
New ways of communication and increasing number of
“always-on” users
Smartphone is changing everything
(*) César Alierta, TEF CEO.
TEF Digital Investor’s Day 2012
But the phone service continues to be the only
universal service…

4. Impossibility of predicting the new
Internet Killer Application and how it
will impact in the network
New and legacy technologies are
piling on top of each other
There is a significant shift in
revenue streams (driven by
the expansion of internet)
Uncertainty
This digital world is introducing relevant challenges for telecom operators
But it is highly probable that it is
associated to new devices
Operation complexity grows
consequently
Telco expenditures and
investments grow higher than
revenues

5. HW requires economies
of scale
Telco environment has some peculiarities that have made it traditionally
different from the Internet model
Upgrades are complex
and expensive
Relaxed TTM &
Innovation
No differentiation
Telco cycle is conditioned by HW: Long
Innovation cycles
Telco
Operators
Equipment
Vendors
SDOs Time
Demand
Drive
Standardise Implement
Sell
Deploy
Critical mass of
supporters
AVAILABLEIdea !! 2-6 years
NETWORK FOCUS & HW-BASED FUNCTIONALITIES
 Geographical dispersion
 High number of nodes
 Interoperability
Fast TTM &
Innovation
Differentiation
strategies
Internet Service Providers cycle is based
on SW running over COTS HW
Develop Deploy Publish
TimeService Providers
AVAILABLEIdea !!
2-6 months
Upgrades are easier and
cheaper
SW requires low scale
requirements
OTT & SW-BASED FUNCTIONALITIES
 Edge deployments
 Global service from scratch
 No Interoperability

6. We need to adapt and define the change to lead in the Digital era
HARDWARE
SOFTWARE
+
- +
-
x
Internet players
• Very intensive in software
• Can have global impact
with not too much capital
• Hardware is a support, and
is located in the network
periphery
• Very intensive in
hardware
• Capital intensive
• Software is not a
core
Telco players

7. NETWORK VIRTUALISATION?
An opportunity for more flexible networks

8. NFV promises to transform the Telco industry, being operation one of
the key levers
• Making infrastructure uniform
• Facilitating interoperability
• Improving risk management in a
changing environment
• Fostering competition & innovation
• Minimizing entry barriers
• Making capacity addition flexible and
easy
• Simplifying network operation

9. What are we talking about?
separation of the
FUNCTION from the
CAPACITY
proper balance of
NFV & SDN

10. The Linux
Foundation found
the Project
OpenDaylight, an
opensource frame
work to accelerate
SDN – NFV
adoption
History of NFV and SDN
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Concept of
SDN emerges
from research
on active and
programable
networks
First Open
source code of
OpenFlow
protocol for
Campus
Networking
announced
Significant venture
capital funding begins
for companies SDN
and Network
virtualization (e.g.
Nicira Networks)
First Open
source code
for vSwitch
announced
Deustche
Telekom
Basic European
Network
ONF founded by DT,
Facebook, Google,
Microsoft, Verizon and
Yahoo! to improve
networking through SDN
and standardizing the
OpenFlow protocol
ETSI NFV white
paper backed by
13 operators
ETSI.ONF
collaboration
formalized on SDN
support of NFV
Google
publicises use
of Openflow
AT&T Domain 2.0
First release
OpenDaylight
code
“Hydrogen”
Telefónica
NFV Plans
Acquisition of
nicira netwroks
by VMWare

11. History of NFV and SDN - Telefónica role
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Development of a low
cost traffic probe
based on x86 Intel
architecture
First Proof of
Concept of a fully
virtualized
Customer Premise
Equipment (vCPE)
Deeper: first fully
virtualized Deep Packet
Inspection probe
processing over 80 Gbps
of traffic ETSI NFV white
paper backed by
13 operators
Telefóncia NFV
Reference Lab
Field trial vCPE in
Vivo (Brazil)
OpenMANO NFV
orchestration stack
Telefónica
NFV Plans
ETSI NFV ISG

12. The target: to define a future proof network architecture…
There will be two kinds of Virtualized Network
Infrastructure: local PoPs and regional Data Centers
vv
COTS HW
LOCAL PoPs REGIONAL DATA CENTRES
Control Plane can be
Centralised
Data Plane must be
Distributed
OS + Hypervisor
MPLS/SDN/Optical
Infrastructure
Service Domain
Network Domain
CDN Video
P-CSCF
EPC BRAS
CG-NATDPI
SDP CSFB
IMS
DHCP PCRF
DNS UDB
COTS HW
OS + Hypervisor
MPLS/SDN/Optical
SRVCC
HW and SW
decoupling
HW and SW
decoupling
GGSN
PE
Security
NGIN
M/SMSC

13. … since data plane virtualization has a potential higher economic
impact than just control plane virtualization
Source:Technology Strategy estimates based on Infonetics “Cpx Rev and Cpx by Eqpmt Analysis 2ndEd.”, Ovum
(“Telecom Equipment Capex and Revenue Highlights 4Q13”, “Wireless Backhaul Forecast Spreadsheet- 2013-18”).
c
Mobile
Fixed
Backhaul
Optical
Networking
IP Switching &
Routing
4%
60%
9%
14%
9%
by Network Layer
$64bn
$4bn
$10bn
$15bn
$10bn
Main Network Equipment Global Capex
Breakdown (2012, $bn)
Platforms
3%$3bn
Data plane
Control plane
N/A

14. Expected benefits go beyond just CAPEX and OPEX
Source: Deloitte survey published in Feb 2015
Over 300 answers have been analyzed from 8 operators, with a presence
in several countries, which totalize over 900 million fixed/mobile
subscribers worldwide
CAPEX/OPEX savings due to SDN/NFV implementation according
survey among 8 global operators
Impact on the main aspect of SDN/NFV

15. Although there are relevant facts to take into account for significant
business impact
Source: Deloitte survey published in Feb 2015
Over 300 answers have been analyzed from 8 operators, with a presence
in several countries, which totalize over 900 million fixed/mobile
subscribers worldwide
Main barriers to use SDN/NFV

16. “Si deseas que tus sueños se hagan
realidad ……………….. ¡Despierta!
Ambrose Bierce (1842-1914), Escritor y
periodista estadounidense

17. WHAT IS NFV
… a reference architecture for ensuring
interoperability and carrier grade performance

18. ETSI NFV ISG has generated a reference architecture for
ensuring interoperability and carrier grade performance
Management environment
Execution environment
Virtual
Machines
Network
Functions
Network
Scenarios
Commodity HW
OS + Hypervisor
Commodity Switching
infrastructure
Virtualised
Infrastructure
Manager
VNF Manager
Virtual
Network
Functions
Orchestrator
Legacy
OSS/BSS

19. ETSI NFV ISG has generated a reference architecture for
ensuring interoperability and carrier grade performance
Management environment
Execution environment
Virtual
Machines
Network
Functions
Network
Scenarios
Commodity HW
OS + Hypervisor
Commodity Switching
infrastructure
Virtualised
Infrastructure
Manager
VNF Manager
Virtual
Network
Functions
Orchestrator
Legacy
OSS/BSS

20. WHAT IS NOT NFV
Reviewing some of our vendors’ offers…

21. Network Virtualisation is not Cloud Computing
The network differs from the computing environment in 2 key factors:
…which are big challenges for vanilla cloud computing
…and most of industry is offering to Telcos just IT based cloud
products as network virtualization environments
21
Data plane workloads
(which are huge!)
Network requires shape
(+ E2E interconnection)
NEED OF HIGH AND
PREDICTABLE PERFORMANCE
(as with current equipment)
GLOBAL NETWORK VIEW IS
REQUIRED FOR MANAGEMENT
1
2

22. NFVO
NFVI
Hypervisor SwitchesServers
VIM
VNFs
What are the main differences between NFV and Cloud Computing?
Goal
Design requirements
Workloads
Infrastructure usage
Infrastructure selection
Physical deployment
Virtualized
infrastructure
management
Orchestration

23. NFV vs Cloud Computing in a nutshell
NFV Cloud Computing
Main goal
Deployment of e2e network services by composing network
functions over a versatile infrastructure
Offering commodity computing through different service models
(IaaS, PaaS, SaaS)
Main design
requirement
Effective decoupling while ensuring carrier grade performance Efficiency by maximizing usage of resources
Workloads
Distributed (>100 pops)
high bandwidth (>10Gbps) per NIC
Low delay (<us)
Centralised (<10 pops)
medium bandwidth (<1Gbps) per NIC
Medium delay (>ms)
Infrastructure usage
Deterministic allocation of resources for ensuring carrier grade
performance (high throughput with low latency)
Consolidating workloads over shared infrastructure for maximizing
infrastructure utilization
Infrastructure
selection
Requires proper component selection:
Latest generation of processors (Ivy Bridge or newer) with HW assist
for all I/O and memory operations (IOTLB, DDIO, etc.) and DPDK-
compatible NICs
Component selection is just focused on the aggregated computing
power, memory and hard disk
Physical
deployment
A transit point with huge traffic, limited resources, very distributed
and cost limited
An end point with high traffic, lot of resources, highly centralized
and with a massive cost
Virtualized
infrastructure
management
NUMA view is needed to get proper and predictable performance
for NFV.
Avoiding bottlenecks in the hypervisor and OS is critical, which
implies avoiding the usage of virtual switching and relying on
physical switching
Hardware infrastructure is managed just as an aggregated view of
resources (CPU, memory, etc.)
Virtual Switching is used to simplify connectivity management
Orchestration NFV-O is required to compose network scenarios (orchestrate
coherent capacity allocation - VNFs and their physical connectivity
needs) and to manage the network scenarios lifecycle
Focus on VMs lifecycle management. No notion of neither VNF nor
network scenario

24. BRIDGING THE GAP
Strategy for NFV technology readiness

25. NFV technology is almost there, but focus is needed to
ensure readiness…
Commodity HW
OS + Hypervisor
Commodity
Switching
infrastructure
Virtualised
Infrastructure
Manager
VNF Manager
Virtual Network
Functions
Orchestrator
Legacy OSS/BSS
Current State
of the Art is
good enough (if
properly
arranged)
Industry should
focus on
providing
DIFFERENTIAL
NETWORK
ORCHESTRATOR
Industry should focus
on providing
DIFFERENTIAL VNFs
Network Virtualisation Infrastructure and its Management should
become COMMODITY
Network Virtualisation Infrastructure and its Management should
become COMMODITY
FOCUS IS
NEEDED TO
AVOID
proliferation of
VERTICAL
SOLUTIONS

26. … good progress on technology readiness has been achieved so far but
more focus is needed to provide real value
Management environment
Execution environment
Commodity Servers
& Switches
OS + Hypervisor
Virtualised
Infrastructure
Manager
Virtual Network
Functions
VNF Manager
NFVO
2013
2014
2010
(Bare
metal)
?
(OpenStack
)
(OpenVIM)

27. 27
Our vision about NFV orchestration
NFVO
Commodity HW
OS + Hypervisor
Commodity
Switching
infrastructure
Generic
VNF
Manager
Legacy OSS/BSS
Element
Management
Network
Orchestrator
NFVO composed
by the
orchestrator and
a generic VNF
manager
integrated
VIM
SDN
Controller
Open Stack
VIM composed
by OpenStack
and SDN
Controller
Virtual Network
Functions
VNF and EMS
VNF
Descriptors
include
lifecycle
description

28. However, big vendors are offering us closed and vertical platforms
with their own closed VNF ecosystem
Commodity HW
OS + Hypervisor
Commodity
Switching
infrastructure
Virtualised
Infrastructure
Manager
VNF Manager
Virtual Network
Functions
Orchestrator
Legacy OSS/BSS
The objective is not using white boxes for constructing
YET ANOTHER SILOED SOLUTION (at square one again!!!)
Closed VNF
market
place from
“Vendor A”
“Vendor A”’s
vertical
platform

29. Indeed there are similar examples in the industry…

30. Indeed there are similar examples in the industry…

31. 31
Open source plays a key role to unleash NFV
• CLOSING THE TECHNICAL GAPS ON KEY OPEN SOURCE PROJECTS
(KVM & OpenStack)
• BEST STARTING POINT: less gaps to be addressed
• WIDELY SUPPORTED in commercial deployments
• USED BY ALL TRADITIONAL NETWORK VENDORS as base to add their proprietary extensions
• CONTRIBUTING TO “UPSTREAM” HAND-TO-HAND
WITH WELL-RESPECTED CONTRIBUTORS
• Efficient manner to INFLUENCE OPEN SOURCE COMMUNITIES
• ADVANCED NFV TEST ENVIRONMENT ready
• Providing us a DEEP HANDS-ON EXPERIENCE for first deployments
• RELEASING OPENMANO NFV ORCHESTRATION STACK
• Provides a highly functional framework pioneering the FIRST OPEN SOURCE NFV Orchestration
and Management stack
• It is a KEY COMPONENT OF TELEFÓNICA NFV REFERENCE LAB
• Its aim is to PROMOTE INTEROPERABILITY and foster a MORE OPEN ECOSYSTEM

32. Our objective
Build an open ecosystem helpful for all
32
Share Best Practices and
disseminate our Knowledge
based on experience
Break barriers to accelerate changes

33. NFV Reference Lab
In fact, we are already beyond the theory…
Flagship trial: Residential vCPE
>45 VNFs >25 VendorsMassive pre-commercial trial Q1