MEF Strategy and Market Trends
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1 Seminar Series Sponsor Event Sponsor MEF Strategy and Market Trends Stan Hubbard Director of Communications & Research, MEF
2 Topics MEF Overview & CALA Members MEF Strategic Work At A Glance Market Trends & Opportunities MEF s Industry-Wide Initiatives Upcoming Activities & Latest News 2
3 MEF Overview MEF focused on enabling dynamic Third Network services Digital economy & hyper-connected world Agile, assured & orchestrated with user-directed control over network resources & cloud connectivity MEF leverages global 210+ membership community Created the robust $80 billion Carrier Ethernet market Transition toward automated, virtualized, interconnected networks Powered by LSO (Lifecycle Service Orchestration) with evolution towards SDN and NFV implementations SPs Vendors Others 210+ Member Companies NA EMEA APAC CALA
4 MEF CALA Members
5 MEF Strategic Work Dynamic Network Services Carrier Ethernet 2.0 is the Foundation Layer 3 IP & Higher Layer 4-7 Service Definitions Powered By LSO + SDN + NFV Lifecycle Service Orchestration Enables Automated, Virtualized and Interconnected Networks Overcomes OSS/BSS Challenges For SDN, NFV & Traditional Networks LSO Reference Architecture and Interface Definitions Common Information Models Industry Collaboration & Open Initiatives Collaborating with upstream Open Source initiatives LSO Hackathon Expanded Certification Program 5
6 Market Trends & Opportunities
7 Strong, Growing CE Market CE 2.0 is digital fuel for digital economy $50B market, double-digit CAGR 50+% of surveyed professionals representing ~50 service providers expect >10% revenue growth between mid and mid-2016 Key drivers Expanded service coverage Bandwidth demand Extraordinary performance/price advantages Accelerated service rollout Sources: CE Services Market Trends Report, MEF and Frost & Sullivan (Sep 2015); market estimate by IHS Infonetics 7
8 CE 2.0 Is Foundation For Third Network Services 97% of surveyed service provider professionals said CE 2.0 is critical or important foundation for dynamic services CE 2.0 connectivity fabric expanding Many more intend to offer CE 2.0 certified or compliant services by mid-2017 Ethernet Interconnect Points (EIP) Project, etc. 8 Sources: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015); CE Services Market Trends Report, MEF and Frost & Sullivan (Sep 2015) 8
9 What Is A Third Network Service? Provides an on-demand, orchestrated, assured, and secured experience with user-directed control over network resources and cloud connectivity. Optimized for real-time traffic & integration of value-added network functions-as-a-services. Delivered over more automated, virtualized & interconnected networks powered by CE 2.0, LSO, SDN & NFV. 9
10 Scalable, Dynamic, Customized, Everywhere Transition To Dynamic Third Network Services Pre-Defined Connectivity Model Automated Cloud-Centric Model Real-Time Performance Management w/granularity Accelerated / Automated Delivery Expanded Service Coverage Service Performance SLAs Standardized E-Access Hybrid Layer 2 / 3 VPNs 10GE UNI Services Multiple Access Options Ultra-Low Latency 100GE UNI Services 100G Wavelength Services Standardized Services / Manageability Over Interconnected Networks Multi-COS w/ Standardized Performance Goals 10
11 Scalable, Dynamic, Customized, Everywhere Transition To Dynamic Third Network Services Pre-Defined Connectivity Model Automated Cloud-Centric Model API-Driven Performance-On-Demand Connect Me Automated, Self-Service Provisioning (Multi-Network) NaaS Cloud + On-Demand WAN Connectivity SD Cloud Exchange Dynamic Capacity - API-Driven Application-Aware Networking Automated, Self-Service Provision (One Network) Ethernet Cloud Carrier Dynamic Capacity Manual, Threshold Virtualized Network Services Using NFV Real-Time Performance Management w/granularity Accelerated / Automated Delivery Expanded Service Coverage Service Performance SLAs Standardized E-Access Hybrid Layer 2 / 3 VPNs 10GE UNI Services Multiple Access Options Ultra-Low Latency 100GE UNI Services 100G Wavelength Services Standardized Services / Manageability Over Interconnected Networks Multi-COS w/ Standardized Performance Goals 11
12 MEF & Vertical Systems Group Study Global Survey October 2015 Service provider, technology, and other professionals who work for MEF member companies and/or are MEF Certified Professionals. 110 individuals employed by 87 companies operating in every region of the world 64 professionals representing 50 service provider organizations / business units 46 professionals representing 37 technology and other firms. Service Provider Profiles AT&T Level 3 Telstra 12
13 MEF & Vertical Systems Group Study - Focus How & when revenue-generating dynamic services will impact the market Drivers, benefits & challenges of deploying dynamic services Available & planned dynamic capabilities that customers can control on their own networks, and Role and relative importance that LSO, SDN & NFV will play alongside CE 2.0 in driving the market 13
14 Dynamic Services Expectations Are Increasing Service Provider Plans To Offer Dynamic Ethernet Services Sell by % No plans or unsure 40% 64 Ethernet Service Provider Professionals from ~50 Organizations / Business Units including nearly all leading Global & US Providers 97% said CE 2.0 services are essential or important as a foundation for dynamic services 74% said LSO is essential or important to support dynamic services MEF & Vertical Systems Survey: ~50 service provider business units worldwide Source: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015) 14
15 Scalable, Dynamic, Customized, Everywhere Transition To Dynamic Third Network Services Pre-Defined Connectivity Model Automated Cloud-Centric Model API-Driven Performance-On-Demand Connect Me Automated, Self-Service Provisioning (Multi-Network) NaaS Cloud + On-Demand WAN Connectivity SD Cloud Exchange Dynamic Capacity - API-Driven Application-Aware Networking Automated, Self-Service Provision (One Network) Ethernet Cloud Carrier Dynamic Capacity Manual, Threshold Virtualized Network Services Using NFV Real-Time Performance Management w/granularity Accelerated / Automated Delivery Expanded Service Coverage Service Performance SLAs Standardized E-Access Hybrid Layer 2 / 3 VPNs 10GE UNI Services Multiple Access Options Ultra-Low Latency 100GE UNI Services 100G Wavelength Services Standardized Services / Manageability Over Interconnected Networks Multi-COS w/ Standardized Performance Goals 15
16 What Can Customers Expect, ? Dynamic Ethernet Capabilities Customer Direct Control Via Web Portal or API Manually Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port Allow Lower Priority To Use Bandwidth When There Is No Traffic In Higher Priority Schedule Bandwidth Increase / Decrease On Existing Service Port Automatically Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port 16 Sources: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015) 16
17 What Can Customers Expect, ? Dynamic Ethernet Capabilities Customer Direct Control Via Web Portal or API Manually Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port Allow Lower Priority To Use Bandwidth When There Is No Traffic In Higher Priority Increase / Decrease Bandwidth On Existing Connection To Private Or Public Cloud Schedule Bandwidth Increase / Decrease On Existing Service Port Automatically Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port Active / Deactivate Ethernet Virtual Connection Add Virtual Network Service To Ethernet Service e.g. NFV-Enabled Virtual Firewall, Virtual Security Activate A New Service Port Change VLANs Mapped To EVC 17 Change Class of Service On Connection Sources: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015) 17
18 18
19 Management Function Third Network Pillars: LSO / SDN / NFV ONF SDN MEF LSO ETSI NFV MANO Service Portal OSS/BSS OSS/BSS SDN Applications Infrastructure Control and Management NFVO SDN Controller Element Control and Management EM VNFM VIM Network Controller VNF Network Infrastructure Network Infrastructure Network Infrastructure NFV Infrastructure
20 Strategic MEF Industry-Wide Activities
21 MEF UNITE Program Launched in late 2014 to coordinate internal & external engagement with Standards Development Organizations, Associations & Open Source Projects, to lead the industry migration to agile, assured and orchestrated services. 21
22 ITU & MEF Sign MOU Oct 2015 WHEREAS, ITU and MEF now desire to express their mutual intent to cooperate for the purpose of driving standards-development and related program work to enable Carrier Ethernet and the next generation of agile, assured and orchestrated connectivity services, and to enhance related knowledge infrastructure capabilities globally with a special focus on developing countries. 22
23 MEF & ON.Lab Sign MOU March 2016 Memorandum of Understanding centered on ON.Lab s E-CORD and the MEF s new OpenCS (Open Connectivity Services) and OpenLSO (Open Lifecycle Service Orchestration) Projects. ON.Lab E-CORD Demonstrates Programmable, On- Demand CE 2.0 E-Line Service As First MEF OpenCS Reference Build 23
24 Ethernet Interconnect Points (EIP) Project Launched in November 2014, EIPs will be used to interconnect CE Networks at ENNI, Service Lifecycle, and Service Orchestration levels EIP Implementation Guidelines use (existing and future) MEF specifications and certifications from the ENNI to the LSO Unique Rapid Prototyping concept 24
25 MEF Services Interconnect Program Designed to bring small wholesale operators into the community of companies that can deliver standardized, certified E-Access and E-Transit services This MEF program enables the operator to: Cost-effectively become MEF E-Access and/or E- Transit certified Participate in wholesale-oriented program education and marketing activities MEF Membership is Not Required For Small Operators 25
26 MEF Certification Programs Services & Equipment 2016 YTD: 56 Certified Service Providers 42 Certified Equipment Manufacturers 276 Certified Devices CE 2.0 Certified Service Providers Professionals CE 2.0 Certified Equipment Vendors 2016 YTD: 3953 MEF-CECPs 399 Companies 209+ SPs 76 Countries 244 MEF-CECPs Certified Equipment Manufacturers Certified Devices
27 CE 2.0 Certification Program Updates CE G Certification First six certified vendors announced at GEN15 at gala event CE 2.0 E-Transit and Access E-Line certification Launch - Invitation/call-for-interest release on Jan 20th First Announcements - Target mid-2016 Transition - Plan for Access EPL/EVPL installed base Updates to MEF CE 2.0 Certification Policies 56 CE 2.0 Service Providers 42 CE 2.0 Equipment Manufacturers 276 CE 2.0 Devices No change to CE 2.0 equipment highly recommended policy Update equipment to product language CE 1.0 certs no longer offered Clarification of registry listing policy to include only members and MEF-SI program participants 9 100G CE 2.0 Devices 27
28 Upcoming MEF Activities & Latest News
29 Join Us For The MEF Q2 Rome Meeting Open to MEF members and invited guests Plenary session features technical strategy, work updates, Euro operator panel Brainstorming session Committee/program working sessions Euro16 LSO Hackathon Social events Dinner at Casa dei Cavalieri di Rodi Exclusive visit to Galleria Borghese 29
30 Seminar Series Sponsor Event Sponsor April Rome, Italy Co-located with MEF Quarterly Meeting
31 Hilton Baltimore Inner Harbor Hotel The Third Network Enabling Dynamic Network Services For The Hyper-Connected World V
32 What Sets MEF16 Apart? 1,200+ attendees from 300+ organizations 35+ countries 275+ Service & Technology Executives 55% of attendees at Director-level or above 120+ CE 2.0, LSO, SDN, NFV, Cloud experts from leading service provider, technology, analyst firms Proof of Concept Service & Technology Showcase demonstrations MEF Excellence Awards Dinner 3rd LSO Hackathon Wholesale Track & Networking largest gathering of Ethernet service buyers & sellers Global Media Hub Meeting place for top press & industry analysts Sponsorship packages available. Visit 32
33 MEF Strategic Work Dynamic Network Services Carrier Ethernet 2.0 Foundation 1 st 100G Certified Service Provider Mid March Ethernet Interconnect Points (EIP) Implementation Guideline - April CE & NFV White Paper April Layer 3 IP & Higher Layer 4-7 Service Definitions SDN and NFV as a new substrate Lifecycle Service Orchestration Automated, Virtualized and Interconnected Networks SDN, NFV and Traditional Networks LSO Reference Architecture and Interface Definitions LSO Reference Architecture & Framework Late March Common Information Models Open Source Initiatives Collaborating with upstream Open Source initiatives OpenCS & OpenLSO 14 March ON.Lab 14 March LSO Hackathon Euro16 LSO Hackathon in Rome April
34 Seminar Series Sponsor Event Sponsor MEF Strategy and Market Trends Stan Hubbard Director of Communications & Research MEF
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