ACG Research Service Provider Market Analysis - · PDF fileInfinera Xceed Xceed Multi-layer...

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www.acgcc.com ACG RESEARCH Intelligent Networking Service Provider Transport/Multi-Layer SDN Q3-2016 Tim Doiron [email protected] www.acgcc.com Twitter: @doirontim

Transcript of ACG Research Service Provider Market Analysis - · PDF fileInfinera Xceed Xceed Multi-layer...

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ACG RESEARCHIntelligent Networking

Service Provider Transport/Multi-Layer SDN

Q3-2016Tim [email protected]: @doirontim

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Report Context

• Qualitative analysis and interpretation of developments in the market for SP Transport/Multi-Layer SDN solutions in 3Q-2016

• Slides complement the quantitative analysis of vendors’ results achieved in Q3 2016 and contained in the companion SP ML SDN WW Market Report for Q3 2016

• Observations and perspectives here highlight top factors influencing the adoption and deployment of SDN in transport networks

• To arrange discussion of any of the topics contained in the report with Tim Doiron (principal analyst for this research) contact him at [email protected] or via Karen Grenier, VP of operations for ACG, at [email protected]

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Agenda

• Segmentation & Performance

• Layer 123 SDN World Congress

• Trends

• Use-cases & Announcements

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Transport/ML-SDN Segmentation

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Companies by Segmentation

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-ADVA -Accedian -Cisco -Cisco -Ciena -Cisco

-BTI -ADVA -Contextream -Coriant -Coriant -Huawei

-Ciena -Ceragon -Coriant -Huawei -Ekinops -Juniper

-Cisco -Ciena -Ericsson -Juniper -Huawei -Nokia(ALU)

-Coriant -Cisco -HPE -Nokia(ALU) -Infinera -Sedona Systems

-Cyan -Coriant -Huawei -ZTE -NEC -ZTE

-ECI -Cyan -Juniper -Nokia(ALU)

-Ekinops -ECI -Nokia(ALU) -Sedona Systems

-Fujitsu -Fujitsu -Sedona Systems -ZTE

-Huawei -HPE

-Infinera -Huawei

-Juniper -Juniper

-MRV -NEC

-NEC -Nokia(ALU)

-Nokia(ALU) -Overture

-Sedona Systems -ZTE

-ZTE

SP Multilayer Software

Defined Network (SDN)

Core LH Core IP

Metro Multilayer

SDN Edge Multilayer SDN Core Multilayer SDN

Metro Optical Metro Ethernet Edge ESER Edge MSER

* Note that companies that have been acquired will continue to show up on the vendor list for the following three quarters post acquisition.

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Transport/ML-SDN Controllers

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Company Product Name Controller Software ONOS ODL Notes/Status

Adva Ensemble Suite Ensemble Controller X 20 active customer engagements

Ciena Blue Planet Multi-domain Service Orchestration (BP ONOS Controller)

X Windstream, CenturyLink, Orange

Cisco Open Network Architecture

Network Service Orchestrator (NSO) WAN Automation Engine (WAE)

X X Colt: IOS XR and WAE for 100G

Coriant Transcend Coriant Transcend SDN Transport Controller Coriant Transcend SDN Packet Controller

Ericsson Ericsson Ericsson SDN Controller X

Fujitsu Virtuora Virtuora SDN Controller X X SDN/NFV Pro Svcs.

HPE ContexNet ContexNet Software X

Huawei SoftComAgile 3.0

SoftCom SDN ControllerAgile Controller 3.0 (controller hierarchy)

X X Baidu deploy China’s 1st

DCI SDN

Infinera Xceed Xceed Multi-layer SDN Controller X Windstream use

Juniper NorthStar NorthStar Controller

NEC NEC/Netcracker Netcracker SDN controller X X

Nokia (ALU) NSP Network Services Platform (NSP) X Globe, China Telecom

Sedona Systems MCS Multilayer Control System (MCS) OIF T-API SDN Participant

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Q3 2016 Transport/ML-SDN Observations

• Transport/ML-SDN up 15% q-q, driven by increasing SDN enabled equipment shipmentso Cisco #1 across the board, Nokia overall #2 and Juniper back into overall #3

o Huawei returning to #4 after coming off blistering optical sales in 2Q

o Ciena retains #3 Metro segment and overall #5

• SDN Control and Application software revenue remains modesto < 6% of SDN enabled elements

o Ciena BP: 2016 is engagement year with revenue ramp in 2017: 13 customers including Windstream, CenturyLink and Orange

o Adva Ensemble: 2016 actively engaged with 20 customers

• Transport/ML-SDN deployments in early stageso Cisco IOS XR/WAE and Colt w. 100G upgrade for cloud-scale digital services

o Nokia & Globe (Philippines) with Carrier SDN, IP & Optical

o Ciena BP & Windstream multi-vendor wavelength service automation

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Transport ML-SDN

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SDN Metro SDN Edge SDN Core SDNSDN Control

Software

Cisco Cisco Cisco Cisco Cisco

33.5% 23.6% 52.9% 17.5% 37.6%Q-Q ($) Point+/- 0.5 1.0 -1.0 -0.1 0.0Y-Y ($) Point+/- -2.4 -1.1 -0.8 -6.4 -1.7

Nokia(ALU) Huawei Nokia(ALU) Huawei Nokia(ALU)

16.4% 15.1% 24.9% 15.9% 23.4%Q-Q ($) Point+/- -0.1 -1.9 1.0 -1.2 -0.4Y-Y ($) Point+/- -0.6 5.2 1.5 6.4 0.2

Juniper Ciena Juniper Juniper Juniper

11.2% 14.9% 16.3% 14.1% 9.4%Q-Q ($) Point+/- 0.4 1.8 0.0 2.2 0.3Y-Y ($) Point+/- 0.8 4.4 0.0 0.6 0.3

#3

#1

#2

Market Shares of Leading Vendors

3Q 2016 Worldwide

Source: 2016 ACG Research

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Agenda

• Segmentation & performance

• Layer 123 SDN World Congress

• Trends

• Use-cases & Announcements

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Top 2016 SDN World Congress ObservationsThe Hague, Netherlands Oct. 9–14, 2016

• All CSPs have uCPE/vCPE/SD-WAN deployments (other SDN/NFV as well): China Unicom, BT, Colt, DT, KPN, NTT, Orange, Telefonica, VZ, Vodafone

• Common data modeling for all (including IP/Optical): TOSCA templates, YANG modeling, unified networking topology

• Service assurance increasing in importance: Nokia NSP SA announcement, Netrounds partners w. NEC/Netcracker

• Automation is at the fore of next-generation networks: Shawn Hakl, VZ, the network cannot take 120 days to deliver when the cloud service is self-provisioned in 15 minutes; the network has to get out of the way

• Moving beyond technology to organizational transformations: KPN presentation on people/process evolution in SDN/NFV world

• Inter-SP and inter-network coordination and collaboration increasing: MEF LSO with Colt & AT&T SDN E-NNI, AT&T & Orange E-COMP testing

• Moving from Cloud ready to Cloud Native (containers, micro-services, etc.)

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Agenda

• Segmentation & performance

• Layer 123 SDN World Congress

• Trends

• Use-cases & Announcements

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Service Orchestration, NFV and SDNA Collaborative Relationship

Service Orchestration

NFVSDN

Service orchestration identifies end-to-end physical and virtual resource needs, NFV instantiates the virtual elements,

SDN controls them

Service Definitions

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Transport ML-SDN Trends

• Mergers, acquisitions and partnerships (and IPOs): Filling SDN and NFV portfolio gaps including control/orchestration

• Coherent DWDM and SDN enable programmable underlay: 100 G, 200 G and beyond

• The rise of the white box: Not just switches, but optical too

• Even more open-source collaboration: ONOS, ODL, Open Contrailall part of OPNFV Colorado release

• Standards closing the gaps: OIF, IETF, etc.

• Segment routing momentum is a leading indicator for SDN:Simplify the network, reduce protocols, enable centralized control

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Trends: M&A & IPO Activity (1/3)

• Broadcom November 2016: Intent to acquire Brocade for $5.9 billion

o Key Driver: Broadcom to keep SAN storage business (storage market consolidation)

o Key Driver: Selling IP Networking to avoid competition with switch vendors

• Inphi November 2016: Intent to acquire ClariPhy Communications for $275 million

o Key Driver: Add Coherent DSP technology to Inphi’s optical/driver/TIA portfolio

o Key Driver: Broaden Inphi’s coherent portfolio (potentially broader than Acacia)

• Windstream November 2016: Intent for Windstream and Earthlink merger for $1.1 billion

o Key Driver: Expanded USA footprint including 145,000 fiber route miles

o Key Driver: Expanded Enterprise service offerings including Earthlink’s SD-WAN solution from VeloCloud

• AT&T October 2016: Intent to acquire Time Warner for $85 billion + $23 billion in debt: Key Driver: AT&T own content (beyond connections) for broad/mobile distribution

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2016 M&A ActivityCSPs: seek global/expanded reach and targeted vertical integration

SDN/NFV: customer breadth, SDN/NFV software control and expansionOptical: combine optics and DSP, key technologies such as SiPH

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Trends: M&A & IPO Activity (2/3)

• CenturyLink October 2016: Intent to acquire Level 3 for $35 billion

o Key Driver: A fiber-rich, global expansion to better serve enterprise customers

o Key Driver: Expand broadband/fiber reach and speed for consumer & SMB markets

• Verizon August 2016: Acquiring (deal now closed) Fleetmatics for $2.4 billion cash

o Key Driver: VZ owning vertical services in Industrial IoT market (beyond connections)

o Telematics division also purchased Telogis earlier in the year (IoT vehicles/enterprise)

• Juniper August 2016: Acquisition of Aurrion Networks Silicon Photonics (SiPh)

o Key Technology: Bonding InPh (e.g. optical lasers) onto SiPh for integrated solution

o Juniper quotation: “fundamental and permanent improvements in cost per bit-per-second, power per bit-per-second, bandwidth density, and flexibility....”

• Acacia IPO May 2016: Market CAP $2.9B on Nov 22, 2016 (up from $1 billion in Q1 report)

o A positive sign and valuation for optical industry as a whole

o Note: Some healthy cooling as Market CAP was $4 billion on Aug 22, 2016

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Trends: M&A & IPO Activity (3/3)

• Juniper 1Q/16: BTI deal closed on April 1, 2016: BTI revenue nowreported as Juniper beginning Q2-2016

• Adva 1Q/16: Acquires Overture: Ensemble software divisionannounced: SDN & NFV

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Trends: Advanced Coherent TechnologyEnabling Programmable Optical Underlay

• Ciena Wavelogic Ai Programmable Coherent Modem: Oct. 2016 (2Q-2017 available)

o Capable of supporting 400G single carrier (100G to 400G in 50G increments)

o Up to 14,000km (200G) reach for submarine applications

• AT&T to Perform 3-Phased 400 Gb/s Trial starting in early 2017: Oct. 2016

o Phase 1: Coriant testing with 2x200G tightly spaced wavelengths (Long Haul)

o Phase 2: Using Ciena 1x400G single wavelength (Metro)

• Nokia Bell Labs, DT and Technical University of Munich Achieve 1 Tb/s rate: Sept 2016

o Approaching the Shannon Limit for the fiber link

o Advanced Probabilistic Constellation Shaping (PCS) with QAM modulation

• Nokia and Orange Poland 1.5 Tb/s Super Channel over 870 km: July 2016: 6 x 250 Gb/scarriers with 16 QAM modulation and 50GHz ITU-T grid channels

• Ciena 300G w. Waveserver Wavelogic 3 Extreme Chipset: Q2-2016

o 8QAM modulation used to deliver 150 Gb/s over 1,440 km

o QPSK, 8QAM, 16QAM all available on Waveserver mid-2016

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Programmable 200G+ optics with higher modulation, advanced coherent toolkits and SDN control

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Trends: Emergence of White Box

• TIP announces Voyager white-box optical solution in Nov. 2016o Converged optical transponder and IP/MPLS layered product

o Adva and Coriant announce public support

o Open Question: what is software source and distribution model?

• CORD becomes an open source Linux Foundation project in August 2016o Google, Samsung and others joining (expanding beyond traditional Telecom SPs)

o First CORD Summit July 29 at Google Sunnyvale, CA campus

• Lumentum & Infinera Interoperability/Integration August 2016 Press Releaseo Interop: Infinera Coherent DWDM over Lumentum ROADM Open Line System

Included: QPSK, 8QAM, 16QAM, & Infinera’s Infinite Capacity Engine

o Lumentum White Boxes: ROADM, Mux, Demux, terminal/line amplifiers

• Telecom Infra project (TIP) announced: Access, backhaul, core & management (DWDM/Optical in backhaul (Facebook/Equinix chair)

• Open ROADM announced at OFC: Ciena, Fujitsu, Nokia, AT&T, SK Telecom, Orange

White box solutions tied with SDN enablement/control

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Trends: Even More Open Source (1/2)

• ONF and ON.Lab Merging (New name is ONF )o Guru Parulkar, Executive Director ON.Lab, new leader

o ONF legacy part continues to curate OpenFlow specifications Also “could look” at alternatives like P4 for programming the forwarding plane

• ONOS and CORD open-source software projects continue o ONOS partnered Linux Foundation collaborative project 4Q-2015

o CORD partnered Linux Foundation collaborative project in mid 2016

• Note: Merger not complete until August 2017

• OPNFV Colorado 3.0 released in December (1.0 in Sept.)o OpenDaylight, ONOS and OpenContrail

o Security enhanced with Core Infrastructure Initiative (CII) Badge

o Enhanced IPv6 for IPv6-only deployments and full underlay/overlay

o Service-function chaining (SFC) across nodes & VNFM installation

o Multiple target hardware with X.86 and ARM support

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Trends: Even More Open Source (2/2)

• ODL Boron (5th release) Septembero YangIDE to view/edit Yang models

o Cardinal–ODL Monitoring as a Service (for remote NMS)

• ONOS Hummingbird (8th release) September / Decembero Comcast Cable joins ONOS and CORD - December

o Huawei commits Yang modeling / launches Agile Controller 3.0

• Multi-SBI support increasing across all controllerso NetConf/Yang, BGP-LS, TL1, OpenFlow, PCEP, SNMP

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Trends: Standards Closing the Gaps (1/2)

• IETF Service Function Chaining and Data Modeling Areas Highly Active

o Working Group (WG): Service Function Chaining (sfc)

o WG: Netconf Data Modeling Language (netmod)

o WG: Network Configuration (netconf)

• MEF Life-cycle Orchestration (LSO)/end-to-end automation of 3rd network serviceso An Industry Initiative for Third Generation Network and Services (Nov. 2016 at MEF 16)

Collaborative report: MEF, ON.Lab, ONOS, Open-O, ODL, ONF, OPNFV, TM Forum

o LSO Reference Architecture & Framework (MEF 55) (Mar. 2016)

• OIF SDN Demo, Flexible Ethernet & Coherent Optics Framework

o SDN Transport API Interoperability Demonstration Builds upon testing done in 2014 demonstration process

SPs: China Telcom, China Unicom, SK Telecom, Telefonica, Verizon

Vendors: Adva, Ciena, Coriant, FiberHome, Huawei, Infinera, Juniper, NEC, Sedona Systems, ZTE

Carrier-hosted lab testing: Q4-2016

Target Readouts: Q1-2017, public results presentation at OFC 2017 in March

o In Process: Transport API Implementation Agreements

o In Process: Virtual Transport Network Service Definition

o In Process: Transport SDN Toolkit

o FlexE implementation agreement (Mar. 2016)

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Trends: Standards Closing the Gaps (2/2)

• ONF–Transport SDN APIs, Mobile PoCs and Open-Source SW Distributiono Project Boulder Launched: Intent-based NBIs for SDN Controllers

Launched in ONF using Yang model as desire to be agnostic to controller type

o Three Mobile Transport SDN PoCs completed in 2016 (November)

o Project SNOWMASS: OpenSource SDN Repository for TAPI Functional Requirements for Transport API (TAPI)

UML/YANG/JSON models in draft

• Atrium 2016/A–2nd release, OpenDaylight integration

o OpenFlow, ODL, ONOS bundle

• TM Forum–Open APIs and Best Practiceso TM Forum launches ZOOM–Zero-Touch Orchestration, Operations & Management

(SDN/NFV best practices as blueprint) (July 2016)

o Open API Map with Vodafone and Huawei (May 2016)

o Framework suite of TM Forum best practices

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Significant focus on common data models, common APIs and operationalization

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Trends: Segment Routing MomentumSetting the Stage for SDN Deployments (1/3)

• Segment Routing designed for SDNo Span the service provider, data center, enterprise, WEB

o State is pushed at the source, not the infrastructure

o Operational simplicity vs. MPLS control plane/eliminate LDP, RSVP

• Cisco Announces Cloud Scale Networking Innovations for SPs (Dec.)o Target is assisting SPs in transformation of COs (think CORD) to Data Centers

o Three enabling and unifying technologies

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Segment Routing

EVPN (BGP)

Open Model

Telemetry

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Trends: Segment Routing MomentumSetting the Stage for SDN Deployments (2/3)

• Nokia SR OS Segment Routing Supporto Availability: Since SR OS Release 13, over 12 months

o Product Support: vSR, 7450, 7750, 7950

o IGPs: ISIS and OSPF

• Juniper Junos Segment Routing Supporto Availability: Since JUNOS 15.1F5 / 16.2R1, under 12 months

o Product Support: vMX, MX, PTX, QFX

o IGPs: ISIS and OSPF

• Cisco IOS XR Segment Routing Supporto Availability: Since IOS XR 5.2, over 24 months

o Product Support: ASR9K, NCS 5500

o IGPs: ISIS and OSPF

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Trends: Segment Routing MomentumSetting the Stage for SDN Deployments (3/3)

• Cisco Tech Field Day / Segment Routing (June 2016)o Walmart Global WAN deployment

Reduced complexity and # protocols (no LDP, no RSVP)

Consistent with mature MPLS forwarding/data plane

o Microsoft in Hyperscale Environment Large elephant flows (long-lived streams)/variable latency

Software-Driven WAN (SWAN) introduces SR as project Phase 2

SR over IGP (ISIS) for topology/signal only input/little state info

o Comcast Keep flow state out of the network/applications controlling the network (CDN)

Interesting SR use: Unicast/Multicast/Anycast layering for content distribution

Interesting SR use: send video packets to manipulation functions (SRH) like service chains

• Learn more segment routingo https://xrdocs.github.io/segment-routing/

o https://www.youtube.com/watch?v=ZpUnsYjMBEA/

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Agenda

• Segmentation & Performance

• Layer 123 SDN World Congress

• Trends

• Use-Cases & Announcements

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Transport/ML-SDN Top 6 Use-Cases

1. Multi-layer L0-L3 (Optical/IP) transport w. centralized network control & agility

2. Multi-domain, multi-vendor transport w. centralized network control & agility

3. Service chaining and automated service creation/modification (SDN+NFV) for NaaS/IaaS

4. Wireless transport for MBH and MFH

5. Automated and/or application-driven VPN and SD-WAN Services

6. Create SDN-based open-source, whitebox network elements

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Transport/ML-SDN Use-CasesExamples & Announcements (1/3)

• Use Case #1-#5: AT&T ECOMP as Open Source (June 2016)o ECOMP open-sourced with Linux Foundation

o AMDOCS selected as System Integration Partner

o Orange commits to testing ECOMP (September 2016)

• Use-Case #6: Open-source, white box router (Apr. 2016)o CENGN, Telus & NoviFlow

o Integration of Open-Source Software-Defined Router in the Cloud

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Transport/ML-SDN Use-CasesExamples & Announcements (2/3)

• Colt Selects Cisco for 100Gbps Packet Network Upgrade to Deliver Cloud-Scale DigitalServices: Dec. 2016: Cisco NCS 5500, ASR9k (IOS-XR) and Cisco WAE for SDN control

• Nokia enables Globe Telecom's move to Cloud and IoT-ready networks using 4.5GPro, Carrier SDN, IP and Optical technologies: Oct. 2016: NSP, 7750, 7950, 1830optical SDN-enabled networking

• Windstream Automates Provisioning of Wavelength Services Across Nationwide,Multi-Vendor Network Using Ciena Blue Planet: Oct. 2016

• Infinera launches Xceed SDN Software Suite: Oct. 2016

o ACG Research’s Xceed SDN Market Impact Report

o Initial release with Xceed SDN controller and two applications

o Windstream intent to deploy

• Google SDN Presentation at Layer 123 SDN World Congress: Oct. 2016: 5 SDNControllers used on the current network

• Nokia and Jiangsu Telecom (China Telecom) to deploy Carrier WAN-SDN: Sept. 2016:Nokia NSP network optimization with 7950 XRS Data Center Interconnect corenetwork

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Transport/ML-SDN Use-CasesExamples & Announcements (3/3)

• ECI INTRODUCES NEW LAMBDA ON DEMAND CAPABILITIES TO ITS LIGHTAPPS™FAMILY OF SDN APPLICATIONS: Jun-2016, Reduce service delivery times for packetand optical networks

• Ciena Blue Planet Launches DevOps Toolkit: May 2016, Enable 3rd partydevelopment of adapters and VNF onboarding

• Huawei and Baidu Deploy China’s First Transport SDN DCI Optical Network: April2016, Huawei claims 162 SDN projects worldwide spanning multiple applicationscenarios

• Verizon Shawn Hakl NFV World Congress: Apr-2016, Update on SDN enabledManaged Services: Managed SD-WAN

• Vodafone SDN enabled VPN Demo MWC: Mar-2016, Demonstration of SDN and NFVenabled VPN functionality

• Huawei/Telefonica Press Release: Feb-2016, Telefonica, Huawei complete SDN IPtrial with real traffic

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SDN 2016: Dynamic, programmable optical and IP layers with software control and orchestration to deliver networking efficiency and service agility for increased revenue

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Q3-2016 Summary

• The network is increasingly ready for SDN deployments w. SDN-enabled equipmento Programmable optical underlay with advanced coherent technology is ramping

o IP/MPLS evolution with PCE and Segment Routing exists across vendors

o Uniform data modeling (YANG) and configuration (NETCONF) being embraced

o Open APIs for programmability and “layered” approach to software

• Open source collaborations AND standards are maturing o Open source creates “shared” R&D investment and faster time to market

o Standards add structure and define behaviors

o It’s the combination that is really powerful, fast and structured

• SDN control and application software revenues remain modest and taking time; Most vendors identifying 2016 as year of engagements with 2017 revenue ramp

• Transport SDN deployments are slowly moving from POC to deploymento Cisco IOS XR/WAE & Colt w. 100G upgrade for cloud-scale digital services

o Nokia & Globe (Philippines) with Carrier SDN, IP & Optical

o Ciena BP & Windstream multi-vendor wavelength service automation

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