SDN and NFV at a crossroads: vendors innovating and positioning for the future of CSPs network virtualisation

Transcription

1 Research Report SDN and NFV at a crossroads: vendors innovating and positioning for the future of CSPs network virtualisation September 2013 Glen Ragoonanan and Anil Rao

2 2 Contents Slide no. 5. Executive summary 6. Cloud computing, NFV and SDN disruption is more evident in the SCN vendor landscape than in the implemented technologies in CSPs 7. Business environment and fundamental differences between CSPs and DCPs 8. The boundaries between cloud computing, NFV and SDN will continue to blur as virtualisation overcomes traditional hardware barriers 9. CSPs have more-extensive network and business responsibilities than DCPs, and the distribution and access layers are the most costly 10. CSPs and DCPs need to address virtualisation in different ways because of the variations in their business and operational characteristics 11. SCN reference architecture and value chain 12. Software-controlled networking architectural categories 13. SCN market taxonomy for cloud computing, NFV and SDN market opportunities that we will size in the SCN research programme 14. The SCN market is still evolving, but we developed our SCN reference architecture based on existing architecture, because migration is certain 15. Software and services will be the main focus, even for hardware vendors, because they provide higher revenue margins than hardware and devices 16. Market definitions 17. Definitions of SCN market and revenue types 18. Definitions of the SCN market s layered sub-segments [1] 19. Definitions of the SCN market s layered sub-segments [2] Slide no. 20. SCN technology roadmap forecast 21. Both CSPs and vendors are contributing to the rapid changes in the developments in the NFV and SDN landscape 22. End-to-end IP simplification initially presents opportunities for NFV in the core, and later for CSP SDN in the transport and access networks 23. We forecast the following inaugural virtualisation events in CSPs during the next 7 years, which may propel SCN progress 24. Our roadmap forecasts that NFV will reach maturity much faster than CSP SDN, which is encouraging CSPs to invest in the technology 25. Established telecoms vendors will be relevant to CSPs as they migrate to SCN technologies, but vendors need to stay relevant with SCN solutions 26. NFV and SDN have led to a vendor boom that will consolidate during the next two decades as the technologies mature 27. Recommendations for CSPs and vendors 28. Recommendations for CSPs 29. Recommendations for vendors 30. Vendor profiles 31. New start-ups are emerging, and the role of established vendors is changing to adopt to the network evolution that NFV and SDN will bring 32. ADARA Networks 33. Alcatel-Lucent 34. Big Switch Networks 35. Brocade Communications Systems (Vyatta)

3 3 Contents Slide no. 36. Ciena 37. Cisco Systems 38. Citrix Systems 39. ConteXtream 40. Cyan 41. Embrane 42. Ericsson 43. F5 Networks 44. Hewlett-Packard (HP) 45. Huawei Technologies 46. IBM 47. Intel 48. Intune Networks 49. Juniper Networks 50. NEC 51. Nokia Siemens Networks (NSN) 52. NoviFlow 53. Oracle 54. Palo Alto Networks 55. PLUMgrid 56. Red Hat 57. Tail-f Systems 58. VMware (and Nicira Networks) Slide no. 59. Other notable SCN vendors [1] 60. Other notable SCN vendors [2] 61. Other notable SCN vendors [3] 62. About the authors and Analysys Mason 63. About the authors 64. About Analysys Mason 65. Research from Analysys Mason 66. Consulting from Analysys Mason

4 4 List of figures Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Figure 12: Figure 13: ICT convergence in CSPs networks from cloud computing, NFV and SDN technologies Comparison of CSPs and DCPs scope of operations, support and investment/spend responsibility to reach their consumers Software-controlled networking architectural categories SCN market opportunity segments in cloud, NFV and SDN SCN vendor value chain in cloud, NFV and SDN SCN market definitions SCN market revenue type definitions Definitions of SCN market sub-segments by architectural layers Definitions of SCN market sub-segments by cloud/virtual layers Overview of SCN technologies on an end-to-end CSP multiservice IP network Forecast of virtualisation events that will drive SCN adoption in the CSP environment, Forecast of NFV and SDN use cases and functions adopted by CSPs, Vendor market dynamics as a result of new technology introduction Figure 14a c: Company summary of other notable SCN players

5 CSP SDN SDN and NFV at a crossroads: vendors innovating and positioning for the future of CSPs network virtualisation 8 The boundaries between cloud computing, NFV and SDN will continue to blur as virtualisation overcomes traditional hardware barriers Cloud computing and NFV are similar, but essentially distinct. Cloud computing is the virtualisation of commodity IT hardware and applications/software, which can run at least 99% availability level. It is acceptable for non-real-time telecoms software (OSS, BSS) on x86 servers, but is not yet proven for telecoms network functions. NFV is the virtualisation of telecoms-specific network functions into applications that will run at least % availability on suitable carrier-grade hardware and software. Telecoms software systems that provide network functions can easily reside in a private cloud computing architecture. The SDN roadmap needs to navigate and mature in the data centre before it can reach CSPs networks (CSP SDN). NFV and SDN overlap in the core/aggregation layer of CSPs network. CSP SDN is still largely in R&D and remains an open opportunity for both telecoms and non-telecoms vendors. Trials have so far clearly separated SDN/OpenFlow from CSP SDN but this could change as R&D continues and SDN vendors provide solutions for both data centres and CSPs as part of their strategy. Figure 1: ICT convergence in CSPs networks from cloud computing, NFV and SDN technologies [Source: Analysys Mason, 2013] NFV Revenue management Charging, fraud, interconnect Service layer Service delivery platforms Control layer IMS, Diameter, SIP Network layer Multi-service IP-based network Access layer Multi-technology fixed and mobile access networks Next-generation telecoms OSS Core/aggregation Distribution Transport SDN Customer care Cloud computing Enterprise IT Virtualised applications (SaaS) Cloud management (virtual domain, IT hardware and network) IT hardware Enterprise IP network Enterprise SDN/OpenFlow

6 9 CSPs have more-extensive network and business responsibilities than DCPs, and the distribution and access layers are the most costly Significant differences in costs and responsibilities separate CSPs and DCPs. DCPs total costs are less than 10% of CSPs for delivering and operating services and supporting customers, because DCPs run over the top of CSPs expansive transport and access networks to reach end users. Figure 2: Comparison of CSPs and DCPs scope of operations, support and investment/spend responsibility to reach their consumers [Source: Analysys Mason, 2013] User layer DCPs spend is concentrated on their core (data centre) networks, but this is mainly commodity IT and networking hardware and software. CSPs core networks use carriergrade hardware and software, which is on average ten times the cost of commodity IT, to meet the demand of delivering their own services and DCPs services to end users. Very few DCPs physically network their data centres and own the costs and operations. However, in most cases CSPs have their own transport networks between data centres. 1 CSPs own almost all of the access layer, although in a few cases DCPs fund Wi-Fi and fibre access (namely Google). CSPs worldwide spent about 77% of their capex (USD267 billion) in 2012 on network hardware, software, rollout, professional services and associated network infrastructure. CSPs spend more on user support via call centres, because of stronger regulation in telecoms. DCPs mainly spend on supporting enterprise customers, with minimal effort. 1 Costs refers to primarily capex and opex cost ownership. If the DCP outsources its data centre connectivity to a CSP the capex and opex responsibilities are primarily with the CSP. Key CSPs DCPs Increasing cost Access layer Distribution layer Core layer Optics

7 62 Executive summary Business environment and fundamental differences between CSPs and DCPs SCN reference architecture and value chain Market definitions SCN technology roadmap forecast Recommendations for CSPs and vendors Vendor profiles About the authors and Analysys Mason

8 63 About the authors Glen Ragoonanan (Senior Analyst) is the lead analyst for Analysys Mason s Infrastructure Solutions, Service Delivery Platforms and Operations Transformation Software Strategies research programmes. He joined Analysys Mason in 2008 and has worked as a consultant on projects on next-generation IT and telecoms networks, systems and technologies for incumbents, new entrants, private companies, regulators and public-sector clients. His primary areas of specialisation include operations and business support systems (OSS/BSS) solution architecture and integration for business process re-engineering, business process optimisation, business continuity planning, procurement and outsourcing operations and strategies. Before joining Analysys Mason, Glen worked for Fujitsu, designing, delivering and managing integrated solutions. Glen is a Chartered Engineer and project management professional with an MSc from Coventry University. Anil Rao (Analyst) is a member of Analysys Mason s Telecoms Software research team, focusing on the Service Assurance, Infrastructure Solutions, Service Delivery Platforms and Telecoms Software Strategies programmes. He has more than 10 years experience in the telecoms industry, working in systems integration and service delivery with major Tier 1 mobile and fixed-line operators, and independent software vendors. Anil joined Analysys Mason in early He holds a BEng in Computer Science from the University of Mysore, and an MBA from Lancaster University Management School.

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