1. Business as (Un)usual Applying NFV principles and IPNaaS technologies to network access Telefonica I+D June 2013

2. 2 Transversal Projects and Innovation / GCTO Unit Telefónica I+D Sisyphus on Different Hills Network Service Providers Equipment Vendors SDOs Operator 1 2-6 Years Demand Drive Standardise Implement Sell Deploy Operator 2 Operator n Critical mass of supporters Develop Deploy Publish 2-6 Months The NSP Cycle The CAP Cycle 2-6 years 2-6 months Content and Application Providers AVAILABLE Idea !!

3. 3 Transversal Projects and Innovation / GCTO Unit Telefónica I+D The Hilly Landscape Trends  High performance industry standard servers shipped in very high volume  Convergence of computing, storage and networks  New virtualization technologies that abstract underlying hardware yielding elasticity, scalability and automation  Software-defined networking  Mobility, explosion of devices and traffic  Cloud services Challenges  Huge capital investment to deal with current trends  Network operators face an increasing disparity between costs and revenues  Complexity: large and increasing variety of proprietary hardware appliances in operator’s network  Reduced hardware lifecycles  Lack of flexibility and agility: cannot move network resources where & when needed  Launching new services is difficult and takes too long. Often requires yet another proprietary box which needs to be integrated into existing systems

4. 4 Transversal Projects and Innovation / GCTO Unit Telefónica I+D  Network functionalities are based on specific HW&SW  One physical node per role Traditional Network model Setting the Ground Effect of scale (better statistical multiplexing) Reduction of geographical dispersion of HW Reuse same HW for different role when no longer applicable CAPEXOPEX High volume Ethernet switches High volume standard servers High volume standard storage Orchestrated, automatic & remote install Independent Software Vendors Virtualised Network model

5. 5 Transversal Projects and Innovation / GCTO Unit Telefónica I+D Network Functions Virtualisation Network Functions Virtualisation is about implementing network functions in software - that today run on proprietary hardware - leveraging (high volume) standard servers and IT virtualization Supports multi-versioning and multi-tenancy of network functions, which allows use of a single physical platform for different applications, users and tenants Enables new ways to implement resilience, service assurance, test and diagnostics and security surveillance Provides opportunities for pure software players Facilitates innovation towards new network functions and services that are only practical in a pure software network environment Applicable to any data plane packet processing and control plane functions, in fixed or mobile networks NFV will only scale if management and configuration of functions can be automated NFV aims to ultimately transform the way network operators architect and operate their networks, but change can be incremental

6. 6 Transversal Projects and Innovation / GCTO Unit Telefónica I+D The ETSI NFV ISG Global operators-led Industry Specification Group (ISG) under the auspices of ETSI  More than 100 member organisations Open membership  ETSI members sign the “Member Agreement”  Non-ETSI members sign the “Participant Agreement”  Opening up to academia Operates by consensus  Formal voting only when required Deliverables: White papers addressing challenges and operator requirements, as input to SDOs  Not a standardisation body by itself Currently, four WGs and two EGs  Infrastructure  Software Architecture  Management & Orchestration  Reliability & Availability  Performance & Portability  Security

7. 7 Transversal Projects and Innovation / GCTO Unit Telefónica I+D A General NFV Framework Orchestration and management as the core enabler for NFV

8. 8 Transversal Projects and Innovation / GCTO Unit Telefónica I+D Avoid Reinventing the Wheel… Orchestration and management is business as usual in all the areas related to NFV  Network operation  Cloud management interfaces Commitment to not make additional noise  Identify applicable standards  Collect and organize them  Create best-practice guides And be sure we don’t shoot ourselves in the foot  Practice incompatibilities  Additional complexity  Security issues

9. 9 Transversal Projects and Innovation / GCTO Unit Telefónica I+D …While Adapting to a New Ground We need to go further than mix-and-match Network functions require different abstractions  Go beyond the virtual box Functional and non-functional requirements of network services are different  Go beyond the 3-tier Web application Networking plays its role at two levels here, both as an infrastructure and as a service by itself  Go beyond pure IaaS Current models for orchestration and management are still in their initial stages  Go and influence them

10. 10 Area Razón Social An Evolutionary Approach NFV implies a significant change for current network infrastructures  No zero-day approach is feasible  Avoiding disruptions Identify relevant use cases  Emerging services  Reuse of equipment still in amortization  Leverage on new planned elements in architecture Plan for phased deployments  Interworking with existing infrastructure  Not breaking current operational practice Take advantage of NFV advantages  Flexibility  Extensibility  Reusability Soft-Node DS vCPE

11. 11 Transversal Projects and Innovation / GCTO Unit Telefónica I+D Applying OpenNaaS in NFV ManO On demand provisioning of network resources Recursive delegation of access right over managed resources Multi-tenancy support for physical resources. Lightweight operational model  Decoupled from infrastructure-specific details  Flexible enough to accommodate different design styles  Stable enough so common tools can be build and reused via plugins Security Lifecycle Monitoring Deployment and upgrade Service orchestration And support for evolution  Seamless operation of hybrid infrastructures

12. 12 Transversal Projects and Innovation / GCTO Unit Telefónica I+D Virtual CPE for PON Subscribers In GPON networks, two devices are placed within the residential environment:  The Optical Network Terminator (ONT): A layer 2 device that terminates the fiber  The Residential Gateway (RGW): A layer 3 device that provides routing functionalities to the end user The trend is that users have more and more devices running within the LAN  PCs, HDD, STBs, PLCs, AP,…  Some devices may interact with operator service performance  The LAN environment can be extremely hostile The operator is interested in managing the whole LAN environment  To preserve QoE of its services  Provide added value services to users not willing to get involved with technology issues RGW implies a barrier for providing a comprehensive Remote Management Service  And for seamless technology migration (IPv6 is the archetype here)

13. 13 Transversal Projects and Innovation / GCTO Unit Telefónica I+D Removing the RGW Virtualize the layer 3 functionalities within the access network. Moving all the software currently installed within the RGW  UPnP Control Point  Remote management TR-069  SMB server  Other value added services A Virtual Software Execution Environment (VSEE) is implemented in the access network  A VSEE instance is available for each user  An hypervisor hosts each instance  Each instance is associated to a C- VLAN (Customer VLAN)  A server manages the instances

14. 14 Transversal Projects and Innovation / GCTO Unit Telefónica I+D Building the Case for the vCPE Reduction on maintenance trouble tickets and the need for in-house problem solving  Depending on user services  Between 15% and 40% CAPEX initially raised by the need of adapting infrastructures  Soon compensated by OPEX savings  Align with natural CPE replacement Incremental approach Zero marginal cost Reduced cost per unit of new CPEs  And lifetime of infrastructures at the network edge is enlarged Virtual CPE approach is backwards compatible with currently deployed CPE Simplification of new physical CPEs to make them cheaper or more robust should be possible A more robust CPE reduces home problems related to the physical layer (OpEx) A cheaper CPE directly reduces CapEx

15. 15 Area Razón Social vCPE and NaaS Layer 2 visibility until the access network opens up new service possibilities  UPnP based services  Managed security  Personalized DC User mobility: network services follow users wherever they move Facilitate new service deployment  IPv6 migration and new protocols to come  Enhance reuse of existing infrastructure  On-demand user enrolment Identity-based services  On-demand provisioning  On-demand release NaaS itself for advanced users  VPN (eGov, eHealth, eScience…)  Enhanced OTT services

16. 16 Transversal Projects and Innovation / GCTO Unit Telefónica I+D Concluding Network Functions Virtualisation is about to change the network service and industry landscape over the next 2-5 years  NFV ISG formed under ETSI (Nov. 2012), led by network operators with wide industry participation Strong drivers  Significant CapEx/OpEx benefits leveraging the economies of scale  Shorter service cycles  And opportunities for new service models Novel ways to architect and operate networks, spawning a new wave of industry-wide innovation  Towards a truly ICT infrastructure  Emerging virtual network appliance market  Opportunities for new market players Numerous fields of application spanning all domains already identified  vCPE is a significant fist step for us  Evolutionary approach The NaaS model is a key enabler for NFV management and orchestration

17. 17 Area Razón Social