Razónsocial00.00.2015

ProductInnovationCustomer Centric NetworksSeptember 2017

Deploying CDN at the Edge of theNetwork

Proprietyandconfidential

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Agenda

• What the future might look like?

• TEF experience delivering CDN @ the edge

• Understanding the challenges associated with working with large content providers

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Whatthefuturemightlooklike?

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Evolutionoftraffic

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

EvolutionofVideotraffic(Global)

Peak Internet traffic will grow at a compound annual growth rate of 35% from 2016 to 2021, compared to 26% for average Internet traffic.

+20pp

CDNized contentwillgrowto70%globally

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

EvolutionofVideotraffic(Europe)

Peak Internet traffic will grow at a compound annual growth rate of 34% from 2016 to 2021, compared to 24% for average Internet traffic.

+20pp

CDNized contentwillgrowto84%inWesternEurope

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

NetworkCapacityDeploymentisnotsustainableOurcustomersaredemandingmoreandmoretraffic

0

20

40

60

80

2013 2014 2015 2016

AveragetrafficperfixedaccesslineatTelefónica España(GB/month)1

1- Source:TelefónicaWTACGlobalTraffic Report2- Source:TelefónicaGCTO

Thissituationwillaccelerate…

5G

Achangeisneededinhow…

PushingServiceOperatorstoadoptnewtechnologies

Cooper GPON XGSPON NGPON2

x1,9

50%YoY2

BuildNetworks

DeployServices

DeliverContent

Industryismovinginthatdirection…

VideoUnicastOTT

2G 3G 4G 5G

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

TEFexperiencedeliveringCDN@theedge

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

ExplainingOnLife NetworksConnectivitySoftwarisation EdgeComputing

Proprietaryappliance OCPequipment

• Creatingmorecontrollableandprogrammableconnectivity

• Sharinghardwareresources,lessobsolesces• Technologyupgradeisquicker,easier.

• Lowlatencyservicesunlocked• Serverless offpremiseservicesnowpossible• Reductionintransferandtransporttraffic

OnLife Networks transforms Telefonica central office infrastructure into software defined data centres using virtualization and SDN (CORD)

Programmable networks improve the customer experience and provide a programmable platform at the edge, for 3rd party services and content

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Why?the EDGE

Personalization

5Gready

TrueFusion

Edgeexperience

Anycloudservicedeployedattheedgecanbecustomizedgranularlyforlocation,enterprise…

Many5Gservicesrequirelow/guaranteedlatency,whichcanonlybeachieveddeplopying infrastructureattheedge

Wecandeployauniquenetworkforcellularandfixed,enablingacoherentandintegratedserviceexperience.

Edgecapabilities(Latency,compute,storage,Bandwidth)willimprovecustomerexperienceandwillenableTEFtoextractvaluefromOTTservices.

OnLife PlatformaimstobeanOpenPlatformforNetworkServicesenablingTEFtocapturenewrevenuestreamsthatareoutofreachtoday

TrulyOpen

Developingservicesandarchitecturefortheedgeofthenetwork

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

CentralOffice(R-CORD):OCP+Open SourceSWMadridPeñuelas

OpenRack2.0

Whiteboxes Switches inCLOSFabric

OCPGPONvOLT 48Opticalports

-48DCConverter

OCPServers(2x28Cores)

JBOD3x3x2TB

ManagementSwitch

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Voice

Data

Vídeo

vCDN@EDGE

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

…TVContentisjustthebeginning

+80%TrafficOTT

WearetargetingtodayonlytheTelefonicaOTTTVcontent(Unicast),butitisonlythetipoftheiceberg

1,7TbpsUnicast

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Understandingthechallengesassociatedwithworkingwithlargecontentproviders

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Access Aggregation Core Peering

Access

AccessAggregation

Aggregation

Aggregation

X.000.000 X00 X0 2-4>10

CDNsToday…

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Access Aggregation Core Peering

Access

AccessAggregation

Aggregation

Aggregation

X.000.000 X00 X0 2-4>10

CDNsZootomorrow…

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Is there room for NeutralCDN@Edge?

Source: https://qwilt.com/products/edge-cloud-architecture/

Massively Distributed Single Integration – Many ISPs

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ProprietyandConfidentialProductInnovation.Customer Centric Networks

Challengesdeploying3rd PartyCDNs

Security

SmarterEdge

Softwarization

DefinitionofboundariesbetweenCloudplatformsandCDNsolutions.Securityisabigconcern!

EdgeComputing+AI/MLisrequiredtoprovideintelligencetoCDNsandoptimizeresourceconsumption

SWbasedsolutionsareneededforAutomationandtoproviderequiredelasticitytoabsorbpeaksefficiently

CDNproviderswantstodeploysolutionsonceformultipleServiceProvidersMultiTenancy