© 2014, CYAN, INC.11 © 2014, CYAN, INC.

New Technology, New Services & New Business Models

SDN, NFV and the Telco Cloud

Dr. Recep OzdagDirector of Marketing

© 2014, CYAN, INC.22

The Rise of the OTTs

OTTs build services on top of commoditized technologies:

Scale Out Compute and Storage Broadcom COTS switches Open Source Software

Scale Up Virtualization Multi-Technology Compute, Storage,

IP, MPLS, Packet-Optical Networks

OTTs are early adopters of SDN and NFV

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Service Provider Business Models Under Pressure

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Commoditization

Custom -> Standard -> White-box -> Bare Metal

Proprietary -> Standard -> Open source -> ‘Free’

OTT Business Models exploit Commoditization

BRAS

FirewallDPI

CDN

Tester/QoEmonitor

WANAccelerationMessage

Router

Radio NetworkController

CarrierGrade NAT

Session BorderController

Classical Network ApplianceApproach

PE RouterSGSN/GGSN

Fragmented non-commodity hardware.Physical install per appliance per site.Hardware development large barrier to entry for new vendors constraining innovation & competition. Network functions Virtualisation

Approach

IndependentSoftwareVendors

Standard High Volume Switches

Standard High Volume Servers

Standard High Volume Storage

Orchestrated,automatic &remote install.

What is Network functions Virtualisation?

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Net Apps Store

Bronze NfVGold NfV

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Impact on Telcos?SDN and NFV

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Opportunity for Carriers:Both above and below the Line:

Integration Optical + Packet + Storage + Compute + Software + …

Agility Planning, Operations, PM and Analytics DIY Programmability Integration with Information Technology systems

Virtualization and Delegation of Control Network and VNF as a Service End-User empowerment via APIs

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Adaptability and Flexibility Software Defined Business

CYAN CONFIDENTIAL

Today’s Assets = Tomorrow’s liabilities Obsolescence and cost of maintenance Commoditization and revenue erosion Opportunity cost

Adaptability requires Modularity: New Applications New Technologies

Modularity is more of a challenge higher up the stack Paradox: Hardware is more modular than software

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Cost

CYAN CONFIDENTIAL

• Software Reuse

• Hardware Virtualization Savings

• Reduction in Design Costs

• Hardware Import Duty (multinational carriers)

• Installation Costs

• Equipment Recovery

• Simplified Project management

• Elimination of site surveys, cabling, etc

• Shipping Costs

• Reduced time to revenue

• Quicker physical deployment

• Quicker service turn-up and change orders

• Elastic services as a Utility

• NFVaaS (firewall, load balancing, encryption..)

• Consistency through automation

• End User configuration

• ICT integration

• Short term, service contracts

• NaaS

• Isolation based security improvements

Revenue

Compelling Advantages:

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Service Orchestration

Network OrchestrationCloudOrchestration

APIsAPIs

NFVOrchestration

Controller

Access Metro Core

Blue Planet Service Orchestration

VNF Services

Controller

Cloud Services Multi-Layer, Multi-Vendor NaaS

Controller

CYAN CONFIDENTIAL

© 2014, CYAN, INC.1111

A Generic SDN+NFV Architecture

POTNNetwork

IP/MPLSNetwork

Data CenterTelco Cloud

NFV

Multi-Domain Orchestrator

OSS / BSS

Multi-Domain OrchestratorMulti-Domain Orchestrator

OpenFlowEnabledNetwork

SDN Controller SDN Controller

SDN Controller SDN Controller

Cloud Management System

NFV Management & Orchestration

Cloud Management System

CloudOrchestration

SDN Controller

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Standards and Open Source

Network HardwareLAN Hardware

WAN NaaS

Datacenter Networks

Cloud

Compute Servers

Compute Virtualization

WAN Networks

DC Protocols Transport Protocols

XaaS

Network Appliances

Network Functions

Cloud Applications

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NFV Driving Network Transformation DC technology is Commoditizing

Application and Content Networks VM and Content Placement

More Data Centers Power Law Size Distribution

Few Hyper Scale DCs Long Tail of Small DCs provide proximity, resilience, low latency,

partition tolerance

NFV and the confluence of WANs/MANs + DCs Multi-layer, multi-vendor WAN/MAN Flexible placement of content, functions and applications

Telco-Cloud orchestration ≡ Integration

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ETSI NFV End-to-End Reference Architecture

14

Complies with ETSI’s NFV ISG Management and Orchestration (MANO) framework

Planet Orchestrate serves as the orchestrator and VNF manager, where needed

Supports centralized and distributed NFV deployments

NFVO can stand alone or work in concert with other Planet Orchestrate capabilities

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Example Use CasesSDN and NFV

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Virtualized CPE Provision business Ethernet services

Run network functions as VMs in central or customer premise servers

vEPC

NIDFirewallappliance

NID Firewallappliance

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Virtualized CPE

vEPC

NIDCOTS server NID Firewall

appliance

vFW

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Virtualized CPE

vEPC

Virtualized CPE running virtual network functions over