Product Assessment - Evolved Packet Core

Transcription

1 Ericsson Evolved Packet Core (EPC); Virtual Evolved Packet Core (vepc) June 2017 Glen Hunt Principal Analyst Transport & Routing Infrastructure Product Assessment - Evolved Packet Core SUMMARY Leader Very Strong Product Ratings Ericsson Evolved Packet Core (EPC); Virtual Evolved Packet Core (vepc) Product Class Average Strong Competitive Vulnerable Overall Strategy Differentiators Go-to-Market Support Momentum 2017 GlobalData Generated: June 8, 2017 COMPETITIVE Strengths STRENGTHS AND WEAKNESSES Competitive Strengths Established Mobile Network Provider: Ericsson has a demonstrated track record and a history of delivering solutions to over 300 network operators, including ten vepc networks now in live commercial operation. Seamless Migration: Ericsson addresses market requirements, from 2G, 3G, LTE, IoT, and on to 5G, by delivering software and hardware without disrupting an operator s ongoing business. Competitive Weaknesses Competitive Pressures: Ericsson will have competition from a stronger Nokia (post AU acquisition) and Huawei (outside of the U.S.) for virtualized mobile core technologies. Third Party Performance Validation: Despite Ericsson s extensive in-house testing, competitors such as Nokia could note the lack of independent performance validation. Network Optimization and Management: Ericsson provides management support through including virtual network function management for VNFs, network slicing, SON, and analytics.

2 CURRENT PERSPECTIVE Ericsson s mobile packet core solution, the Evolved Packet Core (EPC) and virtual EPC (vepc), are leaders in the mobile core market as evidenced by 300+ EPC (2G, 3G, and LTE) wins, and features such as high availability, service scale, voice over LTE (VoLTE), WiFi calling and high scale and critical Internet of Things (IoT) all backed by a global professional services team. Ericsson also reports traction with its vepc with major operators and is engaged in multiple 5G partnerships to facilitate the transition to next generation networks. Ericsson mobile core solutions are well positioned in the market and have been deployed in major mobile operator core networks alongside the company s RAN and OSS capabilities. Ericsson stresses the efficiency of implementing an end-to-end mobile network solution, of which the EPC is an integral and critical component. The EPC solutions offered are pre-integrated and tested and supported by the company s extensive global professional services organization. Ericsson s experience in managing the operation of mobile networks for its customers (e.g., Sprint), provides firsthand experience in dealing with performance, customer experience and on-going maintenance and operation. Ericsson offers service providers a traditional EPC solution as well as a virtual EPC solution which supports greater flexibility in terms of scale and support for new applications. Ericsson s vepc has been leveraged to provide virtual network services (VNS) to over 80 operators. Target applications include: mobile broadband, distributed mobile broadband, enterprise communication, Internet of Things (IoT), and MVNO VNS. The vepc has been validated on Ericsson Cloud and 3PP Cloud execution environments, and provides operators with multiple deployment options and a flexible software licensing model. Ericsson s network manager provides end-to-end management and supports LTE networks, mobile backhaul and fronthaul transport networks, radio, mobile core, VNFs, network slicing for 5G, VNS, and lifecycle management of vepc and EPC. In addition, its current OSS-RC and IPT NMS management systems are being migrated in a step-wise manner to include predictive and automation capabilities. STRENGTHS Strengths AND WEAKNESSES Strengths Established Mobile Network Provider: Ericsson has a demonstrated track record and a history of delivering pre-integrated and tested solutions to over 300 network operators. Its virtual EPC deployments include 80+ operators in several verticals with ten networks now in live commercial operation. Seamless Migration: Ericsson continuously advances its mobile core solutions to meet new market requirements, from 2G, 3G, LTE, IoT, and on to 5G, by delivering software and hardware without disrupting an operator s ongoing business. Recent advances in virtual network solutions, for example, provide full feature compatibility and interoperability between its physical (EPC) and virtual (vepc) platforms. Weaknesses Competitive Pressures: The mobile network infrastructure market is highly competitive with pressure being exerted by rivals such as a stronger Nokia (post AU acquisition) and Huawei (outside of the U.S.) which have mobile core virtualization technologies to prepare networks for 5G and IoT services, and who also provide in-house IP and optical transport solutions. Third Party Performance Validation: Despite Ericsson s extensive in-house and operator testing, competitors such as Nokia could highlight that their solutions have been validated by independent test organizations, such as EANTC, which can ease operator concerns about deploying new technologies. Network Optimization and Management: Ericsson provides management support through the Ericsson Network Manager, which include virtual network function management for VNFs, network slicing, SON and analytics to provide predictive and automation capabilities. As network complexity grows, operators will rely heavily on effective management solutions.

3 POINT AND COUNTERPOINT Point Competitors could note that operators using Ericsson s current mobile core solutions will need to migrate their mobile core infrastructures to the vepc to take advantage of the new service capabilities offered. Huawei and ZTE could stress their recent wins in China as well as in Europe and the Americas with Tier 1 telcos and smaller operators. With cloud technology and reduced entry costs, operators will be looking for alternative suppliers capable of supporting their needs, thus giving them an opportunity to poach customers from the traditional suppliers. Competitors such as Cisco and Nokia can highlight that their solutions have been submitted to an outside test organization, EANTC, who has provided an independent assessment of functionality, performance, and efficiency to ease concerns of operators considering deployment of new technologies. End-to-end network providers such as Nokia, Huawei, and ZTE could cast doubt on Ericsson s ability to deliver best-in-class network components such as IP routers and packet optical transport gear, and needs to rely on partners to source this equipment. Counterpoint Ericsson could counter by stressing that its customers can migrate at their own pace or stay with their current EPC implementation since the two solutions leverage full feature compatibility and interoperability. This is not the case with many competitors who have spawned a totally new mobile core solution. Ericsson could counter by noting that it has not lost any market share and is looking beyond the traditional mobile core applications (mobile broadband, distributed mobile broadband, enterprise communication, IoT and MVNO VNS) and can leverage its ability to deliver a complete end-to-end network solution, which not only includes the mobile core and infrastructure components, but also addresses the need for automation, business case support, and vertical market expertise (via Ericsson's professional services team). Ericsson should stress its long standing approach to delivering pre-integrate and tested solutions to its customers, and stress that it continues to do so. Ericsson can note that it has tested its solutions on multiple delivery platforms, and further it s professional services organization is well adept at supporting operator deployments. Ericsson could counter by noting that its strategy is to excel in its core mobility business and capabilities, establish leadership in core mobility technologies and targeted vertical markets, and expand its business through strategic partnerships with vendors like Cisco for IP and transport. This frees up its non-core business R&D resources to better innovate in mobility (e.g., 5G and IoT).

4 Buying/Selecting Criteria VISION STRATEGY Manage Network Transitions: Ericsson touts that its EPC and vepc solutions enable operators to move forward with cloud-based solutions while leveraging existing investments in mobile core technologies, maintaining feature parity between both environments. This strategy served the company well during the transition from 3G to 4G and will be crucial as operators look to 5G. Provide Leadership in Targeted Areas: Ericsson continues to drive mobile standards and the expansion of 3GPP technologies to support 5G and IoT services. This is embodied in its overall Networked Society strategy and is key to maintaining its leadership positon in the ongoing digital transformation. Excel in Mobility Partner for the Rest: Ericsson s strategy is to excel in its core mobility business and capabilities, establish leadership in core mobility technologies and targeted vertical markets, and expand its business through partnerships with vendors like Cisco for IP and transport. This frees up non-core business R&D resources to better innovate in mobility (e.g., 5G and IoT). KEY CAPABILITIES AND DIFFERENTIATORS Global Professional Services: Ericsson s global professional services capabilities position it well to deal with all aspects of an operator s network needs, from concept through network operation. Mobile Network Customer Base: Ericsson s global presence in most all of the major mobile network operators, provides visibility into the needs of multiple operators as well as trends that will drive future network investments. End-to-End Mobile Network Capabilities: Ericsson offers a complete end-to-end mobile network solution (RAN to back office) which enables it to create synergies that can lead to network efficiency, service agility and operational improvements. GO-TO-MARKET STRATEGY VERY STRONG Market Expansion Initiatives: Ericsson has maintained its focus on the current and future requirements of the mobile network infrastructure. Its professional services arm has added expertise areas in strategically important areas such as Smartgrid and M2M connectivity technologies to expand into new revenue opportunities. Retaining/Growing Existing Customer Base: Ericsson has traditionally provided strong migration support for its customers as they transition to new technologies, existing and new customers can benefit from Ericsson s latest products such as vepc, network slicing and other new capabilities. Expanded Capabilities: Ericsson has invested in expertise and technologies to expand its appeal to a broader set of customers. Examples include the acquisition of MetraTech, to address cloud billing and settlement solutions in support of growing IoT requirements, which can be significantly different that traditional mobile services such as voice and data.

5 SERVICE AND SUPPORT Cisco Partnership: Ericsson s partnership with Cisco augments its services value proposition with industry-leading IP networking assets, and helps strengthen the vendor s end-to-end network proposition. Services Innovation: Ericsson has pivoted to an end-user, experience-centric model that aligns service delivery with operator business objectives to satisfy increasing end-user demands, especially important to achieving success in IoT and new 5G services. Focused Service Approach: Ericsson uses productized services offerings to communicate the value of its services to the market as well as dimension project scoping (e.g. IoT transformation services, Smart Metering as a Service, and others) -- key to achieving success in emerging vertical markets. MARKET AND CUSTOMER MOMENTUM EPC: Ericsson reports 300+ EPC customers, including: 220+ commercial contracts for 4G/EPC with 170+ commercial live networks and deployments in all the leading 4G/LTE markets, including Australia, Canada, China, Japan, Korea, and North America. vepc: Ericsson notes vepc engagements with 80+ operators with 50+ contracts as well as traction in several verticals. Ten vepc networks are in live commercial operation, including: Digicel, LG UPlus, Softbank, and Vodafone (Netherlands and Egypt); announced contracts include: Vodafone Netherlands, Swisscom, Telstra, Vodafone Hutchinson Australia, Tampnet US, and Motorola (public safety). vepc Partnerships: Ericsson notes vepc partnerships with operators such as AT&T, KT, NTT DoCoMo, Telefónica, SK Telecom, LG Uplus, and Zain Group. Related Product Wins: Ericsson s virtual policy controller (virtual SAPC) is live in three commercial deployments in networks in Americas and Europe. Ericsson has 60+ Wi-Fi calling wins (EPC & IMS) and supported the first commercial Wi-Fi calling service with T-Mobile US. Ericsson also notes that it supports a significant number of globally launched VoLTE networks. ARCHITECTURE AND KEY COMPONENTS vepc: Ericsson s vepc provides a cloud optimized architecture and includes the capabilities to support the deployment of a broad range of virtual network services. Key components include vmme, vsgsn, vpgw, vsgw, vggsn, vpcrf, vdpi, vepdg, and vtwag, which have all been validated and in commercial operation on Ericsson Cloud and 3PP Cloud execution environments. EPC: Comprised of the SGSN-MME and Service-Aware Policy Controller (SAPC), which are integrated in Ericsson s Blade System (EBS); the Evolved Packet Gateway (PGW, SGW, GGSN, PCRF, DPI, epdg and TWAG) & WiFi Mobility Gateway (WMG), which support the epdg and TWAG functionalities, are hosted on the SSR 8000 router platform.

6 Metrics PRODUCT OVERVIEW Product Name Primary Solution Components Solution Architecture Reference Hardware 3GPP Release(s) supported Virtual: vepc; Physical: EPC Virtual: vepc includes: vmme, vsgsn, vpgw, vsgw, vggsn, vpcrf, vdpi, vepdg, and vtwag. hosted on Ericsson's Cloud and 3PP Cloud execution environments; Physical: SGSN-MME and Service-Aware Policy Controller (SAPC) hosted on Ericsson Blade System, Evolved Packet Gateway (PGW, SGW, GGSN, DPI) & Wi-Fi Mobility Gateway (epdg and TWAG), hosted on Ericsson SSR 8000 router Virtual: Openstack and VMware datacenters for large scalable and redundant configurations, Ericsson cloud Execution Environment; Physical: MME functions on EBS, Gateway functions on SSR 8000 Virtual: Ericsson Data center & COTS HW. EPC-IN-A-BOX; Physical: MME, Ericsson Blade System, Gateway, SSR 8000 Router 3GPP Rel 13 for all new or enhanced functions

7 MOBILITY MANAGEMENT ENTITY Mobility Management Entity SGSN/MME Configuration Typical Reference Hardware Number/Type of Physical Links MME: BTS Capacity MME: Subscriber Capacity MME: PDP Context Capacity Session Continuity IMS/VoLTE Support Circuit Switch Fallback Broadcast Service Support Network Sharing Small Cell Support Control Plane Resiliency Data Plane Resiliency Certifications/compliance Ericsson Virtual: Ericsson vsgsn/mme; Physical: EBS Virtual: Ericsson vsgsn/mme; Physical: EBS Virtual: support for most DC networking solutions; Physical: 12x10 GE + 12x1GE (-> 132 Gbps full duplex I/O), and legacy interfaces 300,000 Virtual: Cloud system dependent. 50M devices demonstrated at MWC 2016; Physical: 72 million Virtual: Cloud system dependent. 50M devices demonstrated at MWC 2016; Physical: 72 million Virtual: Pooling across multiple data centers for full POD outages with geographic redundancy (virtual and native); Physical: Pooling for planned out-of-service - move of subscriber without loss of traffic, unplanned out of service - geo-redundant pooling without loss of traffic; including VoLTE and Emergency services at MME for site failover. Full (including seamless VoLTE mobility and voice mobility to CS for geographical areas without VoLTE services) Full (including packet handover for seamless transfer of parallel data services) including Emergency calls Full support for LTE broadcast Full support for Network sharing, including multi-operator RAN (MORAN), Femto/Closed Subscriber Group. Dedicated Core Networks (DECOR) planned released early Support of Femto, WiFi and massive number of cells (see "BTS capacity above) Virtual: VNF internal, seamless failover on an 1+1 and N+1 basis for all VM types, redundant control plan links with automatic failovers; Physical (Node): Diameter protection towards external network elements, GTP protection towards external network elements, Protections against signaling storms and DOS attacks Seamless failover on a 1+1 and N+1 basis for all board/vm types All internationally acknowledged norms

8 GGSN/PGW/SGW - PHYSICAL SPECIFICATIONS & DETAILS Product Name Dimensions Rack/Chassis Quantity Mass Switch Fabric Power Consumption Number of Interface and/or Service card slots/chassis Number of Service Cards/chassis Virtual: Ericsson virtual Evolved Packet Gateway (vepg), Physical: Ericsson Evolved Packet Gateway dependent; Physical: 1690 x 440 x 600mm dependent; Physical: SSR 8020, one per rack; SSR 8010, two per rack. Scales from 1RU COTS to large scale data centers. dependent; Physical: SSR 8020, 280 kg; SSR8010, 180kg dependent; Physical: SSR 8020, 16 Tbps; SSR8010, 8 Tbps dependent; Physical: SSR 8020, 10.4 kw; SSR8010, 7 kw dependent; Physical: SSR 8020, 20; SSR8010, 10 dependent; Physical: SSR 8020, 19; SSR8010, 9 (at least one line card is required per chassis)

9 GGSN/PGW/SGW - CAPACITY AND SCALABILITY Number and Type of Physical Links PGW/SGW:Max IP Bearers PGW/SGW: Max IP Service Data Flows PGW/SGW: IP Packets Forwarding Rate PGW/SGW: Throughput Support PGW/SGW: Attach-Detach Rate PGW/SGW: Max SAU Footprint Efficiency: Bearer (GGSN/PGW-SGW) Footprint Efficiency: Throughput (GGSN/PGW-SGW) Virtual: Cloud system dependent; Physical: 2 X X10, 1 X 100G, 2 X 40G, 10 X 10G, 20 X 10, 40 X 1G 140 million 300 million 300 million Virtual: Cloud and execution system dependent. Support for both vswitch and SRIOV and SmartNIC deployments, a 40G/server was demonstrated at MWC 2017; Physical: 80 Mpps Virtual: Cloud and execution system dependent. Support for both vswitch and SRIOV and SmartNIC deployments; Physical: 240,000 TPS; 750,000 TPS with new SSC Virtual: Demonstrated up to 50M ; Physical: 30M, 1,152 million with pooling option Virtual: Cloud and execution system dependent; Physical: 227 M/m3 Virtual: Cloud and execution system dependent; Physical: 1.9Tbps/m3; Physical: With the new SSC the throughput efficiency will go up significantly and one SSR 8020 will be able to process 1 Tbps. This corresponds to close to 4Tbps/square meter

10 GGSN/PGW - SERVICE FEATURES & FUNCTIONALITY Service Awareness P2P Traffic Tracking Content Charging Bandwidth Management PGW: Max Policers Access Awareness PGW: Max APN Capacity PGW: Max L2TP Tunnels PGW: Max IPSEC Security Associations Interworking EPC with 2G and 3G networks Wireless Lan Interworking (WLAN) Stateful Firewall Other Value Add Features Supported Yes, Heuristic analysis Extended CDR support via DPI, time, volume, event, content; Yes Yes; BW management on bearer per user profile. Traffic allocation taking network congestion and subscriber location into consideration using Ericsson Service Aware Policy Controller. 30 Million 2G,3G,HSPA,LTE,WLAN,CDMA, trusted and untrusted WiFi 3GPP2 3,000 32,000 Virtual: provided by cloud system; Physical: 8,000 per SCC board Full support for 2G/3G/LTE with all performance numbers valid for any type of configuration. Trusted and Un-Trusted WLAN integration supported through standards based interfaces Yes, multi-instance Virtual: advanced policy management, QoS (E2E QoS capabilities RAN/Core and QoS retention across different access technologies), converged access, functional consolidation of fixed and wireless; content filtering via ICAP with cloud specific advances in areas such as full stack Ericsson integrated solution, workflows for multi-vendor cloud for advanced support for Scale-Out and Scale-In; Physical: same as above less cloud specific enhancements

11 SOLUTION DETAILS Commercial Availability Max IP Packets w/ 100% DPI Max IP Packets w/ 50% DPI Major Customer Wins Miscellaneous Virtual: commercially available since Q4 2014; Physical: supported the first live LTE network in 2009 with Telia Virtual: Cloud system dependent, No impacts for most deployments. In network IO optimized cloud up to 40% reduction in performance; Physical: 40% reduction No reduction in performance Virtual: Contracts include:softbank, Digicel, Vodafone (Netherlands and Egypt), Swisscom, Telstra, Vodafone, LG Uplus, Hutchinson Australia, Tampnet US. vepc partnerships with AT&T, KT, NTT DoCoMo, Telefonica, SK Telecom, LG Uplus and Zain group. 10 commercial live vepc networks (Q4, 2016); 5G partnerships (5G ready core) with Docomo, SK Telecom, China Unicom, TeliaSonera, Telefonica and T-mobile. Physical: Contracts and deployments in all the leading 4G/LTE markets such as U.S. (AT&T, Sprint, Verizon, TMO, US Cellular etc), Korea (SKT, LG U+), Japan (Softbank, KDDI), Australia (Telstra, Vodafone etc) and Canada (Rogers, MTS, Videotron, Eastlink). A main supplier to China Mobile and China Telecom, 60+ Wi-Fi calling wins (EPC & IMS) and supported Wi-Fi calling with T-Mobile US, Ericsson (RAN; IMS, EPC) has supported the majority of globally launched VoLTE networks. Virtual: Ericsson Device Connection Platform Ericsson IOT cloud connectivity platform with Enterprise customers is using vepc.; Physical: 170 contracts for Mobile Policy Control (SAPC). VoLTE references include SKT Telecom, LGU+, Softbank, KDDI, Swisscom, Bouygues France, Singtel, Vodafone Australia, Telstra. 60+ IoT engagements for NB-IoT, CAT M1 including EPC and vepc. Commercial introduction of CAT M (or LTE-M) announced with AT&T, Telstra, and Verizon. Partnerships with ABB, Boliden, BMW, SKF, Volvo, Zucchetti, and others. All materials Copyright 2017 GlobalData. Reproduction prohibited without express written consent. GlobalData logos are trademarks of GlobalData. The information and opinions contained herein have been based on information obtained from sources believed to be reliable, but such accuracy cannot be guaranteed. All views and analysis expressed are the opinions of GlobalData and all opinions expressed are subject to change without notice. GlobalData does not make any financial or legal recommendations associated with any of its services, information, or analysis and reserves the right to change its opinions, analysis, and recommendations at any time based on new information or revised analysis. GlobalData PLC, John Carpenter House, 7 Carmelite Street, London, EC4Y 0AN +44 (0)