The Time is NOW for NFV

• Bo BoZin

• Senior Solution Architect

• Vmware vExpert 2013-2015

2

Today’s Business Challenges

ARPU

Cost per

Subscriber

OTT

ServicesNetwork

Investment

Funded by

CSP

Customer

$

$

Vendors’ Roadmaps

Dictate Services

CSP B

CSP C CSP A

Margin ErosionRevenues Not Tracking Costs

2017

?

3

The Business Promise of NFV

Radically lowered

cost

Increased service

differentiation

Rapid Time to

Revenue

44

“If I could save $500m in 8 years,

when should I start?”

The journey starts with existing revenues

55

How applications are deployed is more important than what the

applications are

Avoid building New Legacy

6

VIRTUALIZATION

One platform, many Apps

HARDWARE

SERVICE and PLATFORM

ORCHESTRATION

SERVICE AGILITY

PEOPLE, PROCESS and

PROCEDURE

Service A Service B

VIRTUALIZATION VIRTUALIZATIONHARDWARE HARDWARE

SERVICE APPLICATION SERVICE APPLICATION SERVICE APPLICATION

Service n

PEOPLE, PROCESS and

PROCEDURE

PEOPLE, PROCESS and

PROCEDURE

SHARED COTS RESOURCES

Horizontal NFV Cloud Platform

PEOPLE, PROCESS and PROCEDURE

Tenant A Tenant B Tenant n

Management andOperational

Silo

Management andOperational

Silo

Management andOperational

Silo

$

$

7

• NFV ROI requires multi-vendor deployment across a single, horizontal platform

• Per-Tenant Resource Isolation is essential to maintain SLAs

• Deep Multi-Tenancy delivers resource isolation and management across vendor apps

• Enables NFV ROI

• Experience Suggest Savings from 3+

Service/VNF deployments

ROI Builds with One Cloud, Many Apps

Vendor C

Virtualized

Service

Infrastructure

and Ops

VENDOR A

FUNCTIONS

VENDOR B

FUNCTIONS

Incremental

VENDOR C

FUNCTIONS

Incremental

TOTALCOST

Fixed Cloud

Platform and

Operation

Cost

VENDOR A

FUNCTIONS

VENDOR B

FUNCTIONS

VENDOR A

FUNCTIONS

Incremental

OperationalSavings Buildwith Scale

x1

x2

x3

VIRTUALIZED CLOUD

Vendor B

Virtualized

Service

Infrastructure

and Ops

Vendor A

Virtualized

Service

Infrastructure

and Ops

Fixed Cloud

Platform and

Operation

Cost

Fixed Cloud

Platform and

Operation

Cost

88

Operations is where the rubber meets the road

Drives Cross-Service Operational EfficienciesDelivers Service Agility

9

Operational Transformation is a Critical Success Factor

9

FEATURE

RELEASE

TELCO

CLOUD

FEATURE

RELEASE

FEATURE

RELEASE

NFV

Management

and

Operations

VNF TENANT OPS

NFV INFRASTRUCTURE OPS

CLOUD CENTER OF EXCELLENCE

VNF

Operations

App

Vendors

Lines of

Business

Service

Desk &

NOC

Monitoring

Tools

New supply chains

New relationships

New Roles and Responsibilities

10

Traditional Architectures Cannot Deliver a Sustainable Business Model.

The Problem: Traditional Network Architectures

• Enable Vendor Lock-In.

• Inefficient Use of Resources / Capital.

• Increase Operational Costs.

• Increase Deployment Timelines.

• Slow Time to Revenue.

• Prohibit Cost/Revenue Matching.

11

Maximizing Total Return on Investment with A Common Platform Approach.

The New ROI for Network Function Vitualization

• Eliminate Siloed Architectures.

• Decreasing Vendor Leverage.

• Increasing Operations Efficiency.

• Match Supply with Demand

• Service Agility & Time to Market.

Strategy: A Common Platform Approach

12

Three Architecture Options for NFVI Today

Old School Old Turned New Game Changing

Appliance

X86 Server

Hypervisor

Dedicated VNF

Vendor-Optimized H/W

Vendor-Optimized NFVI

Vendor-Selected VNFs

Hypervisor

Cloud Manager

Operator-Selected H/W

Multi-Vendor Optimized NFVI

Operator-Selected VNFs

Hypervisor

Multiple Cloud Managers

Custom Stack Common Platform

Modular NFVI Platform

Multi-Cloud & Multi-Domain

VNF Vendor Independent

Limited VNF Selection

Integrated OEM Solution

Vendor Dependent

Single Application Solution

Low Scalability

Limited Flexibility

HighTotal Cost of Ownership

NO Service Flexibility

LowestTotal Cost of Ownership

MAXIMUM Service Flexibility

LowerTotal Cost of Ownership

LIMITED Service flexibility

13

Static Capacity Cost Across Architectural Approaches

Infrastructure Savings From NFV

Modeled Scenario: 25% CAGR of Control and Data Nodes over 5 Years of Deployment.

• Global Operator with 7M+ Mobile Subscribers, Common Platform, 13 VNFs.

• Americas Operator with $4M+ Subs on vEPC ($40M Forecasted by end of 2015).

• EMEA Operator with deployed vCPE Solution Delivering Enterprise Services.

Based on Real Customer Cost Experience

14

Common Platform Benefits Magnify Across Multiple Service Deployments

• Custom Stack TCO Tracks to Requirements Growth

• Common Platform TCO Increases at ½ the Rate of Requirements

• 62% Lower TCO vs. Traditional Appliance Approach

• 33% One-Year & >350% Five-Year ROI for Phased Deployment

• Capacity tracks Demand to maximize platform efficiency

• Common operational process and procedure maximizes resource productivity and agility

14

Efficiently Matching Demand with Supply

Breaks Linkage Between Cost & Requirements

15

Decreasing Vendor Leverage

A Common Vendor Neutral Platform Can Help Decrease CapEx.

• Separate NFVI & VNF Vendors

• VNF Vendors Build to the Platform

• Operator Has Total Control

• Encourages Competition

• Easy Portability and Swap-Out

• Build Best in Breed Services

161

6

Cloud Innovation

Empowering

Transformation.

Founded 1998

$5.21B Revenue

500,000+

Customers

55,000+ Partners

93,000 VMware

Certified

Professionals

128 Offices

Worldwide

16,500 EmployeesGartner “Magic Quadrant for x86 Server

Virtualization Infrastructure” 2014.

VMware

Microsoft

Oracle

Parallels

CitrixRed Hat

Huawei

The World’s Leading Virtualization and Cloud Infrastructure Company

17

ONE Cloud for SP Services & IT

1

7Source: VMware Journey Benchmark Survey, 4th Wave

37% more responsive to IT requests.

30% of operations and development staff’s time released for

service innovation vs routine tasks.

30% increase in company revenues attributable to a more agile IT.

66% more budget secured than their less mature counterparts.

Proven Results Powered by

18

Enabling Service Provider Transformation

Leveraging Our Virtualization Experience to Enable SP Transformation.

• Installed in 80%+ of SP IT Networks.

• Over 2500 SPs WW in VSPP Program.

• Deep In-House Service Provider DNA.

“All of our partnerships, whether financial,

operational or technological, have been

concluded with companies that not only share

our dynamism and innovative entrepreneurial

vision, but are also the undisputed experts

in their respective fields.

- Frank Fischer, JOIN Experience Co-founder.

Service Provider DNA

19

Introducing vCloud NFV

• Production proven

• Over 45 service deployments servicing over 30 million subscribers

• Widest array of 3rd Party Virtual Network Functions

• Multi-Domain

• Mobile core and fixed line services

• Networking and IT

• Radically reducing costs

• Enabling innovation at speed

19

20

NFV Platform Architecture

VNF (Virtual Network Function)

ETSI -European Telecommunications Standards Institute

EMS - element management system

SS/BSS(Operation Support System/Business Support System)

NFVO - NFV Orchestrator

NFVM - VNF Manager

VIM (Virtualized Infrastructure Manager)

21

vCloud NFV Platform

2

1

ETSI NFV Architecture Reference

modelService, VNF & Infrastructure Description

Sample textCompute Hardware Storage Hardware Network Hardware

vSphere NSX VSAN

Virtualization Layer

EMS1

VNF1

EMS2

VNF2 VNF3

NFVO

EMS3VNFM

NFVI

VNF

VIM

vCloud

Director

vROPs

vR Log Insight

Site

Recovery Mgr

FCAPS

OpenStack

A Modular ETSI Conforming Platform for Seamless Integration.

Operations and Business Support Systems

(OSS / BSS)

22

VMware vCloud NFV™ Platform and vCloud NFVTM Bundle

22

COMPUTE NETWORK & SECURITY STORAGE AND AVAILABILITY

vCloud NFV Platform

Add-ons to vCloud NFV Bundle

vSphere NSX

Site Recovery

Manager

vSAN

vCloud Director for Service providers VMware Integrated OpenStack

vRealize Operations Insight

Cloud Management and Orchestration

Build and Manage a vSphere-based Private Telco Cloud

23

vCloud NFV Multi-Domain Support

PUBLICPRIVATE

ONE Cloud

Multi Domain

Virtual Elastic

Mobile Services (vEMS)Virtual Wireline Managed

Services (vWMS)

VoLTE vEPC vCPE

IMS PCRF vMME v/PGW NGFFW

vCloud

Connect

NAT DPI vRouter

Multi Vendor

Hybrid Optimized

Service Provider Class Converged Cloud Solutions

24

Common NFVI Platform Business Value

vCloud NFV Drives Measurable Business Outcomes TODAY

Dramatically Lower Overall

Operations Cost.

Operationalize

Incrementally

Optimize CapEx &

Ensure Operational

Success.

Lower TCO vs.

Siloed Virtualization

Platforms.

Horizontally

Integrated

Increase VNF

Vendor Leverage

and Lower Cost.

vCloud NFV Common Platform

One Cloud SP

Services & IT

B CA

VNF

MultiVendor

Optimized

vCloud NFV

• Lower OpEx Costs

• Optimize CapEx Costs

• Increase Service Agility

• Decrease Time to Service Revenue $$$$$

25

Building NFV – Sample Ecosystem Partners

Service Orchestration (NFVO)

vRealize Operations & Log Insight

CLI/AP

IHorizon Heat

Neutron CinderNova

Integrated OpenStack

Glance

Virtual Network Functions (VNF)

Virtual Network Function Manager (VNFM)

vCloud NFV Platform

vCloud Director

vROps API

NSX Network Virtualization & Security Platform

vCenter APIvSphere & vSAN Platform

CLI/AP

IHorizon Heat

Neutron CinderNova

OpenStack Distribution

Glance

OpenStack NSX PlugIn

Network Function Virtualization Orchestration (NFVO)

Service Assurance

OpenStack Nova Driver

OpenStack for KVM

Management Pack

26

A World Class SP Partner Ecosystem Empowers Service Providers to Roll their Own Best in Breed Custom Stack!

2

6

27

Service Provider MomentumvCloud NFV Meets the Needs of Global Service Providers.

• Common Multi-Vendor NFV Platform.

• Modular & Open.

• ONE Cloud Convergence.

• Can be Operationalized Incrementally.

• Carrier Grade.

• Proven Platform that Works!

Why SPs Prefer vCloudNFV:

28

Vodafone has been able to combine the best

Virtual Network Functions (VNFs) from different

vendors on a single platform, and to bring high-

value services to market more quickly."

Rui Frazao, Director Network Engineering,

Vodafone Germany

Service Provider Validation

Mijbil Al-Ayoub, Director, Corporate Comms.

Ooredoo Kuwait

Success Across a Broad Range of Service Providers Architecture & Requirements.

• Fast Deployment

• Service Innovation

• Common Multi-Vendor Platform

• Service Agility

• Common Multi-Vendor Platform

"The speed at which we have been able to

trial our unified cloud and onboard the VoLTE

service functions into our IT network has

exceeded our expectations. We did a joint

R&D project that took only two months to

complete, and we finalized the

development of our vIMS product that can

be deployed in a production, commodity

infrastructure, automatically in only 3.5

hours."

29

New VMware Ready for NFV Certification Program

Instantly Recognizable accreditation program extended to the NFV use case

Builds customer confidence and accelerates opportunity

Maintains technical leadership and differentiation

Leverages VMware brand and market presence

Launched with the support of the above partners

30

New Carrier-Grade Services and Support

Carrier-grade support both direct from VMware and through key partners Reduces the risk of performance

degradations and outages

VMware Services Enhanced SLAs

NOKIA TotalCare for VMware Supports VMware deployments with an

extended SLA covered by Nokia directly

30

31

VMware Integrated OpenStack

VMware Integrated OpenStack

OpenStack Kilo Release

CLI / API HeatHorizon

VMware Optimized

OpenStack Install

+

Management

+

Upgrade

VMware SDDC

Nova Cinder Glance Neutron

vCenter vCenter vCenter

VSAN / vSphere Datastores / vVols

NSX

vRealize Operations

vRealize Business

vRealize Log Insight

• VMware Integrated Distribution.

• Simple Installation.

• Rich Infrastructure Features.

• Supported by vRealize Operations.

• Log Insight for Diagnostics.

• Hardened and Tested by VMware.

• Single Vendor Support.

Production OpenStack Up and Running in 15 mins.

32

VIO Roadmap Summary

VIO 1.0 (GA)

• Production Ready Architecture

• Automated Deployment &

Configuration

• Automated Patching

• Nova with vCenter Driver

• Glance and Cinder with VMDK

drivers

• NSXv Neutron plugin

• L2/L3/ security groups/ floating IPs

• Authentication w/ Active Directory

• Encrypted Passwords in

configuration files

Features

• Icehouse-based

• Nova, Neutron, Cinder, Glance, Horizon, Keystone, Heat

OpenStack

Release

• Life-Cycle Mgmt. of OpenStack

Services

• Multi-vCenter with AZs & Regions

• Automated Upgrades

• Backup & Recovery Procedures

• Support for vSphere

Reservations/Limits

• Support for guided placement of VMs

• LBaaS

• Keystone + Active Directory

Improvements

• Heat Auto-scaling with Ceilometer

• Branding of Horizon Portal

• Kilo Based• +Ceilometer

VIO 2.0

32

Demonstrating OpenStack Industry Leadership.

33

• Organize to Succeed

• Embrace Shared Resource for Live Services

• Own the Platform

Achieve the Benefits of NFV TODAY

CONFIDENTIAL 33

34

Bo Bo Zin

bzin@vmware.com

@bebezet

www.vmware.com/go/nfv