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The Future X Network and the New Technological Revolution

Marcus Weldon

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Perspective

Technological Revolution

=

Interconnectedness and Interdependence of

participating systems and technologies

+

The capacity to profoundly transform the

economy and eventually society

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Tech. Revolution Enabling Technology Connectivity

Financial (1600 − 1740) Stocks & Bonds Banking & Stock Market Infrastructure

1st Industrial (1780 − 1840) Steam Engine & Iron Production Rail and Shipping Networks

2nd Industrial (1880 − 1920) Steel & Chemicals Extended transportation Networks

Electricity & Telecom Networks

Scientific-Technical (1940 − 1970) Analog & digital signal processing Digital communications networks

Information (1985 − 2015) The Web, Cloud computing & Mobile

devices Internet & Broadband Access

Automation of Everything (2015 −) Digital interfaces & Data analysis Cloud Integrated Network

Future X Network: The Past, Present & Future

40

40

20

15

0

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Future X Network: A New Networking & Connectivity Era

Source: The Future X Network

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Source: The Future X Network

“The Future of the Cloud”

Future X Network: Peak Demand Matters …

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Future X Network: Latency Matters …

Source: The Future X Network

“The Future of the Cloud”

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TCP window size (bits)

Round-trip latency (seconds)

Maximum TCP Throughput

(bits/second) =

Future X Network: Latency and Throughput Matters ….

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Analog Needs

…with Trust (in Privacy &

Security)

Create Time (by Prediction &

Automation)

Future X Network: New Digital Currencies

Free Wifi

Digital Needs

Future X Network: Driven by an Enterprise Revolution

After Mary Meeker, Internet Trends 2015

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The digitization of everything… … to achieve perfect knowledge

…and enable ‘life automation’ … to deliver contextualized content

Future X Network: A New Human Era

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Future X Network: Global-Local is the New Normal

Global Forces Local Forces

Ubiquitous Access to

Digital Content

Brand Power

Omniscient Perspective &

Analytics

Economies of Scale

Low Latency & High

Bandwidth

Brand Relationship

Personalization &

Contextualization

Economies of Delivery

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Mobile Network

Operator

Consolidation /

Convergence

O2 Telefónica

(Germany)

E-Plus

VF (Germany) KDG

VF (Spain) Ono

EE (UK) BT

3 (UK) O2 UK

Orange (Spain) Jazztel

Liberty Global Base

Charter Time Warner

Altice Suddenlink

Altice Cablevision

T-Mobile ?

Recent M&A Activity

Future X Network: Convergence and Consolidation Drives Local

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Subscribers [Million]

Top 5

Largest

MNOs

Next 5

Largest

MNOs

Country

Presence

Country

Presence

*Average properties per group: 11 (2004) 18 (2014)

Country

Presence

Subscribers [Million]

Future X Network: The Service Scale Challenge Drives Global

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Future X Network: The Network Constraints

Network Constraints

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THE FUTURE X

NETWORK: DEFINING FABRIC OF THE

DIGITAL WORLD

MASSIVE

DEVICE

SCALING IN

THE CLOUD

PEOPLE

&

THINGS

CLOUD MOVES

INTO THE

NETWORK

ENTERPRISE

&

CONSUMER

@ ANALYSIS

@ CONTENT

@ SERVICES

HIGHEST PERFORMANCE

LOWEST COST PER BIT

MOST PERSONALIZED

Future X Network: A New Value Paradigm

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NFV

HIGHEST PERFORMANCE

LOWEST COST PER BIT

MOST PERSONALIZED

SDN

Edge Cloud/Access NFV

Future X Network: Virtualizing the Network

~40 % CapEx & OpEx

Savings

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HIGHEST PERFORMANCE

LOWEST COST PER BIT

MOST PERSONALIZED

NFV

SDN

Edge Cloud/Access

40 % IP + Optical

CapEx Savings

Type 1: Software-define a Service Type 2: Software-define a Network Path

Future X Network: Software-Defining the Network

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HIGHEST PERFORMANCE

LOWEST COST PER BIT

MOST PERSONALIZED

SDN Edge Cloud

NFV

Future X Network: Distributing the Cloud…in the Network

~40 % CapEx & OpEx

Savings

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HIGHEST PERFORMANCE

LOWEST COST PER BIT

MOST PERSONALIZED

SDN

Edge Access NFV

90 % CapEx savings by Small Cells

& vRAN

Future X Network: Distributing the Network

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Future X Network: Converging the Distributed Access Network

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Future X Network: Scaling the Metro & Core Network

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Future X Network: Scaling the Metro & Core Network: IP

Future X Network: Automating Knowledge Creation

Artificial Intelligence Augmented Intelligence

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GLOBAL

LOCAL

ENTERPRISE

CONSUMER

CONTENT

CONTROL

CLOUD

CONNECTIVITY

Future X Network: The Competitive Dimensions

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Future X Network: The Target Architecture and Value Vectors

CONTENT

CONTROL

CLOUD

CONNECTIVITY

NATIONAL CLOUD GLOBAL CLOUD

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Future X Network: The New Global Local Market Reality

Global Goes Local

SP App

SP App

GSP App

GSP App

SP App

GSP App

SP App

SP App

Cntl SP

SaaS SP App

SP App

SP App

Cntl

Local SP X

Model 1: SP IaaS

Local SP Z

Model 2: SP SaaS

Local SP Y

Model 3: Grow Your Own

Cntl

SP App

SP App

GSP App

Global Service Provider

Resource Opt.

Service Opt.

Svc

Opt.Res

Opt.

GSP App

GSP App

Cntl

Res

Opt.

Local Goes Global

Local SP X-Y

Model 4: SP Global From Local

Local SP Z

Model 2: SP SaaS

Global-Local Service Provider X-Y

Local SP X-Y

Model 4: SP Global From Local

GSP App

SP App

GSP App

SP App

SP App

Cntl

Resource Opt.

GSP App

SP App

GSP App

SP App

SP App

Cntl

Resource Opt.

SP App

SP App

GSP App

Cntl

SP App

SP App

GSP App

Service Opt.

SP

SaaS SP App

SP App

SP App

Cntl

Svc

Opt.Res

Opt.

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Future X Network: The Current Global Local Market Reality

$22B $13B $27.4B $46B

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Future X Network: The New Global Local Manufacturing

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Future X Network: A New Business Era

LSP

GSP

DCEP

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For the book: http://bit.ly/blbook-order or visit www.bell-labs.com

For the interactive infographic:

http://bit.ly/FutureXguide

Future X Network: The Guidebook