This document discusses challenges faced by service providers and proposes an evolved programmable network architecture to address them. It summarizes that service providers face a degraded business climate, diminished relevance as services are commoditized, and strained legacy infrastructure. A new architecture is proposed using virtualization, automation, and programming to simplify processes, optimize service delivery, and leverage secure hybrid clouds. This evolved approach aims to streamline costs, increase innovation rates, provide elastic scalable services, and optimize network delivery through automation.

1. Cisco Confidential 1© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Khay Kid CHOW, CSA, Cisco Systems
MYNOG-4, August 2014
Service Provider
Architectures for
Tomorrow

2. Challenges faced by Operators
Degraded
Business Climate
Shrinking value in core
telecommunication services
in favor for Internet services
Diminishing Service
Provider Relevance
SP services being
commoditized in favor for
OTT and content providers
Stretched Legacy
Infrastructure
Legacy physical
infrastructure based on
vertical scale challenged by
recent market changes

3. Operator Revenues
Value Migration and Threat to Operators
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2010 2011 2012 2013 2014 2015 2016
Loss of operator SMS revenues to OTT messaging
Source: Ovum Research 2013
millions
On-Line Video
$10B, +49%
Cloud Services
$43B, +27%
Location
$15B, +24%
Sources: ABI, IDC, In-Stat, Insight, Ovum,
Parks, Screen Digest, Strategy Analytics

4. Operator Expenses
Inefficiencies Bloating Operating Costs
§ Overall spending growing YoY
§ Current inefficiencies contributing
to OPEX growth
§ Limited software orientation in
network driving provisioning and
management costs
§ Operators are looking to reduce
overall expenditure, especially
OPEX
CAPEX and OPEX for Asian SPs
as % of Revenue
Source: GSMA Intelligence
0%
20%
40%
60%
80%
100%
Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013
CAPEX
OPEX

5. Today’s Agenda
1. Simplifying Processes
2. Smarter Infrastructure
3. Optimizing Delivery

6. Addressing New Service Economics
Service
Dimensioning
New ways to add
elastic capacity
dynamically and
reduce overhangs
Service
Resiliency
New ways to deliver
resiliency and scale
linearly with orders
coming in
Service
Provisioning
Automate processes to
cut OPEX sprawl, reduce
time to market, change the
competitive landscape
Transform SP Networks to Address New Service Economics

7. Key Business Outcomes
1. Efficiency - Cut down on OPEX for complex service provisioning by
automating tasks, enabling self-care and making the network programmable
2. Innovation - Increase rate of innovation to more than 20-30 new services
per year compared to current level of 2-3 per year
3. Elasticity - Capacity grows on demand to match business growth and
eliminates stranded and underutilized assets
4. Optimized – Automatically optimize service delivery across both Datacenter
and SP Network

8. Evolved Programmable Network
Video
Business
Cloud
Mobility
Modern Service Provider Architecture
NCS NCS
APIs
APIs
EDGE
CORE
Access
VM VM
Edge
Core
VM
Agility
Optimized
Revenue ¥£€$
Always “ON”
On-Demand
Services
Anywhere
Dynamic Scale
Application
Interaction
Seamless
Experience
Policy
Real-Time Analytics
Fully
Virtualized
Intelligent
Convergence
Automated
Open and
Programmable
Access
Evolved Services Platform
VM / Storage
Control
Service CatalogService
Orchestration Apps
VM
Applications and Services
CDN

9. 1. Virtualize Network Functions
Static => Dynamic Elastic Programmable
Existing Hardware / Appliance
based Network Functions (NFs)
Decouple software from underlying
hardware and port it as a VM on x86
platform running as a Network Function
NAT
VM
Firewall
VM
SBC
VM
dDOS
VM
Virus
Scan
VM
IPS
VM
DPI
VM
CGN
VM
Portal
VM
PCRF
VM
DNS
VM
DHCP
VM
BRAS
VM
SDN
Control
VM
RaaS
VM
WLC
VM
WAAS
VM
CDN
VM
Caching
VM
NMS
VM
NFs running as VM on x86 Platform
• Decouple from Physical Appliances that are inefficient to scale with SP’s business
• Do More with Less Infrastructure
• Elastic use of Pooled Resources
• Enables Automation and Programming of Resources

10. Virtualized Services Architecture
Current Model
App
SW
HW
App
SW
HW
App
SW
HW
HW
New Model
App
SW
HW
App
SW
App
SW
Waste Savings

11. Virtualized Services Architecture
App
SW
HW
App
SW
App
SW
App
SW
App
SW
App
SW
Load
Balancer
New Model Current Model
App
SW
HW
App
SW
HW
Active Standby
Upgrade
App
SW
HW
App
SW
HW
Active Standby

12. 2. Automate Processes With Unified Platform
Manual => Automations, Optimizations, Open Interfaces
Open Programmable API
ComputeCompute Storage Storage Services Services
Programmable Provisionable
CoreAccess/Aggregation
DatacenterService Provider Network
Service Request
InterCloud
Private Public
Evolved Services Platform

13. 2. Automate Processes With Unified Platform
Manual => Automations, Optimizations, Open Interfaces
Open Programmable API
ComputeCompute Storage Storage Services Services
Programmable Provisionable
CoreAccess/Aggregation
DatacenterService Provider Network
InterCloud
Private Public
Check Network conditions to
determine optimum DC
Evolved Services Platform

14. 2. Automate Processes With Unified Platform
Manual => Automations, Optimizations, Open Interfaces
Open Programmable API
ComputeCompute Storage Storage Services Services
Programmable Provisionable
CoreAccess/Aggregation
DatacenterService Provider Network
InterCloud
Private Public
Dynamically Create and
Configure Virtual Appliances
in SP Cloud
Evolved Services Platform

15. 2. Automate Processes With Unified Platform
Manual => Automations, Optimizations, Open Interfaces
Open Programmable API
ComputeCompute Storage Storage Services Services
Programmable Provisionable
CoreAccess/Aggregation
DatacenterService Provider Network
InterCloud
Private Public
Automatically Connect Users
to Services and Optimize the
Performance on the Network
FW
VM
DPI
VM
WAAS
VM
Evolved Services Platform

16. 2. Automate Processes With Unified Platform
Manual => Automations, Optimizations, Open Interfaces
Open Programmable API
ComputeCompute Storage Storage Services Services
Programmable Provisionable
CoreAccess/Aggregation
DatacenterService Provider Network
InterCloud
Private Public
FW
VM
DPI
VM
WAAS
VM
Connect appropriate Virtual
Appliances into Service
Chains and Optimize DC
fabric
Evolved Services Platform

17. 2. Automate Processes With Unified Platform
Manual => Automations, Optimizations, Open Interfaces
Open Programmable API
ComputeCompute Storage Storage Services Services
Programmable Provisionable
CoreAccess/Aggregation
DatacenterService Provider Network
InterCloud
Private Public
FW
VM
DPI
VM
WAAS
VM
Continuously monitor health
of virtual functions. Grow/
shrink them according to
changing demands
Evolved Services Platform

18. 3. Leverage Programming, Self Service and Automation
Cut Time, Effort, Costs for Service Creation up to 75%
Open Programmable API
ComputeCompute Storage Storage Services Services
Programmable Provisionable
CoreAccess/Aggregation
DatacenterService Provider Network
InterCloud
Private Public
FW
VM
DPI
VM
WAAS
VM
Evolved Services Platform
Service
Catalog
Programmable
Interface
Users External Systems

19. Evolved Programmable Network
Open Programmable API
ComputeCompute Storage Storage Services Services
InterCloud
Private Public
Service Provider Programmable Infrastructure
Applications and Services
Business VPN Mobile Internet Cloud Services Videoscape
PROGRAMMABILITY
VIRTUALIZATION
Evolved Services Platform
Service
Profile
Orchestration
Engine
Virtual
Functions
Service Catalog
Service Broker

20. Summary and Benefits
1. Simplify SP processes to streamline OPEX and enable service innovation by
removing constraints of legacy approaches
2. Automation increase SP addressable share of value chain
3. Optimize delivery of non-conventional services as they are added to the
network to keep network in balance and remediate congestion
4. Leverage secure hybrid cloud to keep cost optimized based on service needs
5. Self-service and orchestration removes cost barriers to service provisioning

21. Thank you.