With its basis in SDN and cloud computing, Huawei s SoftCOM strategy helps telcos reduce cost and enhance network utilization & operational efficiency. 3SOFTCOM
Huawei Communicate 04 10 Huawei SoftCOM: Reshaping the future of network architecture Carrier SDN: Next-gen carrier networking Huawei SoftCOM Reshaping the future of network architecture Huawei believes that the future of network evolution lies in the ability to provide operators with a simple approach to overcoming the challenges brought about by an accelerated industry ecosystem. We propose SoftCOM Huawei s vision of a cloud-based, systemic future network architecture that leverages the power of SDN and enhances operator competitiveness by holistically reshaping the way networks and operations are managed. T he world is becoming increasingly complex in virtually all respects, with telco being no exception one billion smartphones in use, seven billion people using them, and another 50 billion devices expected to join in the mix within seven years. Network infrastructure designs are not keeping pace with these ever-growing needs, and operators are struggling to upgrade their networks in a timely, efficacious, and costeffective manner. Simplicity is what is needed to bring the network situation back into balance, but what will this look like in practice? The challenges of ICT complexity Huawei believes that telco competitiveness can be enhanced through the holistic reshaping of network and operational management. Facing increased customer requirement diversity, telco 4
Huawei SoftCOM: Reshaping the future of network architecture market dynamism, and industry complexity in terms of industry competition, operators need to simplify basic network architecture and determine which functions are truly essential. Only by doing so, and by addressing their equipment-related and business/commercial model challenges, can they support and drive business development (enhance competitiveness). Devices and the apps/services that they run have usurped the operator in the minds of most consumers, marginalizing the network pipe in the process. Operators must find a way to monetize their pipes again, and the way to do so is to deconstruct pipe capabilities, identify strengths and control points, create more granular business models, and find ways to gain and retain subscribers. The latter two points are intertwined, as more personalized services will prove the killer app that keeps operators ahead of the commodification curve. However, this sort of flexibility, in terms of experience, content, and billing, will not be easy, at least not without the expense normally associated with tailoring. The complexity of telco networks is growing in step with their functionality. Diverse network elements need to be connected and new collaborative relationships need to be established between them, necessitating evolution in terms of network architecture (increased investment). Therefore, operators need to conceptually break down the functions of networks and devices and optimize resource allocation so that fixed rules can be applied for managing change. When technological upgrade is carried out, it frequently encompasses a large number of elements, making for a costly proposition unless operators make the relationships between technologies and devices more abstract and flexible. SoftCOM: A holistic approach to network architecture If operators are to compete in the 21st century, an overhaul is needed of network architecture as we know it. It will involve the breaking down of complex issues via abstraction, optimized allocation of network resources (making their management/ operation easier), reduced time-to-market for new services, and elimination of the gap between business demands and network possibilities. In other words, simplification is needed to overcome the challenges being brought about by the aforementioned changes in the industry landscape, and Huawei offers a strategy to achieve SoftCOM is a cloud-based systematic network architecture that leverages software-defined networking (SDN) to enhance telco competitiveness through transformation at the network, operation, and business level. 5
Huawei Communicate it through SoftCOM a cloud-based systematic future network architecture that leverages the power of software-defined networking (SDN) while enhancing operator competitiveness by transforming their networks, operations and businesses. The SoftCOM evolutionary path encompasses four key processes: Equipment-level cloud formation The decoupling of hardware and software; Network-level cloud formation The decoupling of forwarding and controlling; Telecom IT cloud formation IT infrastructure migration to the cloud; Internet orientation Transformation of operator systems from telco orientation to the Internet. Equipment-level cloud formation By decoupling software from hardware and abstracting functionality, network device functions will no longer be dictated by individual hardware. Instead, network elements will share a unified hardware platform, with resources shared flexibly and functions defined by software. A scalable hardware pool will be established, enabling flexible and efficient deployment. Network-level cloud formation By decoupling the control plane from the forwarding plane and abstracting network resources to separate management from usage, network elements will be centrally managed at the upper layer, ensuring their optimized allocation, while enhancing efficiency and enabling software-based upgrade to boot. This creates a smarter architecture that will make the network better utilized, more agile, and easier to use. Telecom IT cloud formation A cloud-based telco IT platform will achieve huge capacity at low cost via elastic computing, distributed storage, parallel applications, and automatic scalability. Through them, a computing pool and a storage pool will be enabled that optimizes the utilization of IT resources. Internet operation To achieve true user-centric service, telcos must make their operations more Internet-oriented. This transformation will be realized not only through APIs and the development of richer applications 6
Huawei SoftCOM: Reshaping the future of network architecture (possibly combining CT and IT capabilities), but also through transforming traditional IT infrastructure to a cloud-based IT system built upon a distributed web framework that is capable of providing business intelligence via big data analysis. This will provide end users with online, self-service offerings on demand. Dig in, widen out Reflecting on the development of the ICT industry over the past five years, Huawei believes that two innovations have had significant impacts on the cloud, pipe, and device industry. The first is cloud computing, which has enabled computing and storage capabilities to transcend Moore s Law while effectively addressing the challenges of managing huge volumes of data. The second is the arrival of the smartphone, which has catalyzed the explosive growth of the mobile Internet. However, both of these have brought about tremendous returns for those who have effectively leveraged them, but operators have enjoyed modest profit growth at best. Huawei understands operators business needs and can provide the most comprehensive and systematic portfolio of ICT solutions available so that an equitable return on investment comes into being. Thanks to SoftCOM, Huawei is poised to help operators both succeed in and change the landscape of the ICT industry through our dig in, widen out strategy, which will reduce costs and create innovative business models through an open network architecture. Digging in, in this case, refers to network optimization, where the current high CAPEX and OPEX model is transformed to one with substantially reduced TCO through network abstraction, programmability, control simplicity, and automated management, enabled by SDN, NFV, and cloud computing technologies. Huawei SoftCOM will facilitate structural TCO reduction. Through equipment-level cloud formation, network resources can be flexibly shared, with utilization maximized. Networks will become much more scalable, with network functions defined on demand and time-tomarket shortened. Through network-level cloud formation, network capabilities are consolidated in an abstract manner, which will enhance network intelligence. Widening out, on the other hand, means network monetization, a fundamental transformation from today s fully controlled, closed, and rigid business model to one that is open, innovative (in terms of service enablement) and agile. Operators Through equipment-level cloud formation, SoftCOM enables flexible network resource sharing, with utilization maximized. Networks will be much more scalable, with network functions defined on demand. 7
Huawei Communicate can establish key differentiators and new value propositions in the new digital ecosystem by leveraging their key strengths and capabilities through a converged cloud platform that utilizes distributed data centers and other decentralized network infrastructure. Through Internet orientation, an innovation platform connecting various industries will be created, enabling ubiquitous networking and an avenue through which social and business interactions take place. This will accelerate the development of the ICT industry and network monetization will be maximized through drastically enhanced network services and extended value propositions across the digital ecosystem. Evolution and transformation Huawei SoftCOM will bring about a network that is oriented around data centers and cloud in a box. In tomorrow s network architecture, the network control plane and all applications will run in the data center and network element functionality will be defined by software; this will encompass the: Radio access network The remote small cell control plane will be moved to the macro base station, where the BBU and RRU of the base station will be separated, with the former centralized and virtualized as a cloud BBU. Fixed access network The control plane for the ONT and MXU will be moved to the OLT, which will be centralized and virtualized as a cloud OLT/DSL. Metro and backbone network As the control plane and forwarding plane are decoupled, the IP network will be centrally controlled through an IP controller, and the optical network will be centrally controlled through an optic controller, collectively forming the cloud network control. Network elements The RNC, GGSN, SBC, and FW, will evolve as cloud network services, with functions defined by software. Operator services The IMS, IPTV, CDN and third-party applications, as well as the business and operational support systems. will be moved to the cloud, forming cloud IT and cloud applications. Enhancing services while reducing costs Tomorrow s networks will enable operators to meet the challenges of an increasingly technical 8
Huawei SoftCOM: Reshaping the future of network architecture business environment, delivering the following benefits. CAPEX optimization Network costs will be structurally optimized through cloud formation at both the equipment and network levels, with hardware pooled and virtualized, which will improve efficiency and reduce costs dramatically. What s more, the lifecycle for network gear will be extended, thanks to the decoupling of hardware and software (enabling faster and more effective software upgrade), which will have the added benefit of reducing time to market and making the entire network more agile and business-oriented (the entire evolution from UMTS to LTE could be conceivably done through software). Network resources can also be better assigned and managed, thanks to networklevel cloud formation and adoption of logicallycentralized IP and transport controllers, improving the usage and efficiency of both the IP and transport networks. OPEX reduction Network deployment and upgrade will become very simple, while network function virtualization (NFV) will become the new network deployment strategy. In an EDGE network, deployment and upgrade of elements such as the BRAS, XGSN, SR, and firewall can be done via software or upgrade of flexibly-allocated virtual hardware, both of which can utilize a simple user interface. Network maintenance will also be extremely simple. In an IP RAN network, with centralized control, network configuration and feature addition can be operated remotely, with the gear plug-and-play. The control plane and application will run in cloud-controlled data centers, enabling the best use of cloud technology to minimize power consumption, while in the network forwarding plane, the improved resource allocation enabled by centralized control will improve efficiency and reduce power consumption, resulting in a greener network environment. Better services Through telco IT cloud-formation, networks can deliver both CaaS and IaaS. This will bring operators new direct revenue opportunities (M2M), as well as new cooperative revenue streams (other verticals). Through Internet-oriented operations, all services can be Internet-oriented and available on demand, improving the efficiency of network monetization. Hundreds of businesses and millions of consumers will be able to access customized, ondemand services through a telco s network. Network openness based on centralized control will provide third parties with end-to-end access to a telco s network capabilities, meaning that network policies, infrastructure profiles, and network QoE will all have commercial value. Certain applications may require an extremely stable connection in order to attain a high QoE, and this can be achieved for certain APIs, which can be monetized. Conclusion The industry is moving forward at an astounding pace and network design and infrastructure are often unable to keep up. Telcos must recognize the need for change to their approach to managing network architecture, and this change should not be made in isolation. What is needed is a holistic approach to how operators enhance their competitiveness through reduced cost, business expansion, and the creation of innovative business models with open networks. Huawei understands operators business needs and can provide the most comprehensive and systematic portfolio of ICT solutions that will enable an optimized return on investment. SoftCOM, Huawei s vision of a cloud-based, systemic future network architecture, will help operators address their challenges and enhance competitiveness for business success by leveraging the power of SDN to transform how operators manage their networks and operations. Both cloud formation and virtualization are key technologies abstracted along the entire network, promoting elasticity and efficient allocation of resources, targeting the reduction of overall network TCO while enabling smoother broadband expansion. Additionally, the exposure of network capabilities through APIs will trigger value creation and monetization, opening endless possibilities for the development of applications that combine the CT and IT worlds. This will dramatically improve the overall experience of end users, making for a new and promising future for the network operator. Editor: Jason jason.patterson@huawei.com 9