1. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal Network Virtualization issues from a telecom operator perspective. Outcomes from IST 4WARD Project TELEFÓNICA I+D Version 1.0. Date: June, 9 th 2009 © 2008 Telefónica Investigación y Desarrollo, S.A. Unipersonal

2. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 2 01 IST WARD Project 02 Network Virtualization from an operator’s perspective 03 Challenges for Core Network Virtualization 04 Conclusions Index

3. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 3 01 IST WARD Project 02 Network Virtualization from an operator’s perspective 03 Challenges for Core Network Virtualization 04 Conclusions Index

4. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 4 4WARD Project: Combination of clean-slate approaches to address the Network of the Future: — Let 1000 Networks Bloom: co-existence of a multitude of interoperable network. — Let Networks Manage Themselves: self-managed networks. — Let a Network Path Be an Active Unit: Customized and self- configurable transport services (resilience, mobility, multi-path, security, compression, performance). — Let Networks Be Information-Centric: information objects and services are mobile and distributed throughout the network. 4WARD Project General Information Project duration 1.1.2008 – 31.12.2009 Size: around 23M€ Consortium: 37 partners http://www.4ward-project.eu/ According to Paulo de Sousa (European Commission), “4WARD is more than a simple project, it is a long term research program… it is the European main initiative to design Future networks”. Aims at supporting a family of dependable and interoperable networks providing direct and ubiquitous access to information following a clean slate approach

5. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 4WARD Project Network Virtualization within 4WARD Project Virtualization has gained sufficient momentum as one of the key paradigms for future networking TID’s goal is to achieve a technology transfer and to work out virtualization scenarios with fundamental assumptions from an operator’s perspective. The aim is to enable the co-existence of heterogeneous network architectures over a common infrastructure, to foster the development of Future Internet paradigms. Within 4WARD, an architecture for network virtualization is being developed. TID’s goal is to achieve a technology transfer and to work out virtualization scenarios with fundamental assumptions from an operator’s perspective: new revenues generation (net income) and operational excellence (OPEX/CAPEX). Use virtualization as basis for an innovation- friendly, open architecture! Co-existence (separate, but interworking where desired) Easier deployment of new networks in the future Systematic approach to network virtualization

6. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal Objectives: — To define the architectural approach to provision virtual networks on a shared infrastructure — To develop the technologies that enable scalable instantiation and inter-operation of different networks on a shared infrastructure — To demonstrate dynamically provisioned virtual networks in parallel using shared networking resources 4WARD Project Network Virtualization objectives and activities Instantiating Virtual Networks On Demand

7. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal The virtualization ecosystem in 4WARD consists of three different players: Infrastructure provider: it owns the physical resources, partitions them into isolated virtual resources (by means of different methods) and offers them to virtual network providers. — Virtual network provider: it “leases” slices of virtualized infrastructure from different infrastructure providers to compose complex virtual networks, and subsequently sells it to a virtual network operator. — Virtual network operator: it deploys its preferred architecture on top of the virtual network (i.e. it implements appropriate protocol stacks) and operates the network on its own. 4WARD Project Network virtualization architectural roles Infrastructure provider and virtual network provider roles might be merged

8. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 4WARD Project Network virtualization heterogeneous scenario In the real world, horizontally specialized players would coexist and interwork with vertically integrated operators

9. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 9 01 IST WARD Project 02 Network Virtualization from an operator’s perspective 03 Challenges for Core Network Virtualization 04 Conclusions Index

10. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal Network Virtualization from an operator’s perspective Rationale Technology Rationale Within the research community, virtualization has become a key enabler for the “Future Internet”: it will potentially allow the rapid deployment of new network architectures and protocols. Some vendors are already unveiling virtualization-enabling products (e.g. Juniper’s TX Matrix Plus / JCS 1200). Research-driven Industry-driven Network Virtualization To introduce the data center virtualization techniques into the core network to support the concurrent operation of different networks on a single, shared infrastructure. Concept How it works? Routers are “sliced” into virtual nodes. Virtual nodes and links are composed into Vnets to fulfil specific requirements. Each Vnet can be engineered to carry a specific service or can be rented to a third party. Vnets are isolated from each other in terms of QoS and control. Benefits, oportunities and threats for an operator are still not clear.

11. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal Single Network, Multiple Services Enabling the seamless deployment of whole new networks over a common IP infrastructure. VNet renting service to different Business Units, or network sharing in emerging markets. Allowing TCO reduction. Network Virtualization from an operator’s perspective Brainstorming of potential, future-term implications. Realistic Business Models Disruptive Business Models Future Internet Services Support for new Internet Architectures and interconnection models. Event-driven global VNet creation (e.g. soccer world championship). VNet renting to specialized micro-operators (e.g. user generated networks). Dedicated VNets to third parties Open garden: net- neutral added value access services (e.g. for P2P networks) VNO (VNet Operator): complete VNet selling to a third party (ej. Google). Search for income sharing. Changes in the Value Chain Cost optimization in case of regulatory separation of business and infrastructure operator. Network Externalization: Freeze network investment and become a VNet operator. Operational excellence Potential new revenues

12. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal Network Virtualization from an operator’s perspective Self-reselling network operator The typical approach of “logical infrastructures” is role splitting… …an alternative would be network provider’s internal operational separation. — Multiple networks over the same infrastructure. — The operator keeps the control of the value chain. — Rapid service/architecture deployment (reduced time-to-market). IT-services Physical Network Network Service Provider Infrastructure Provider Media-services Internet Per application Network Planes Virtualization might anyway just become a new configurable feature of future IP routers Might have been a good thing e.g. for mobile but… isn’t it too late? What about statistical multiplexing? Do we lose it? Doesn’t this approach go against the rule “postpone non needed investments”?

13. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 13 Network Virtualization from an operator’s perspective Vnet leasing as the next generation VPN What is the difference to current VPN services? — Routing capability? — Reconfigurability and control by the user? — Capability to deploy new architectures? (is this realistic?) Where is the business model? — Which kind of charging? Cheaper or more expensive than current VPNs? — Which would be the marging for the infrastructure provider? — Isn’t it usually cheaper to deploy your own core network? — Is a service-oriented income sharing feasible at all? Core Network Not clear business model yet. Maybe in the long term? Infrastructure & Network Service Provider Network Operator Vnet X

14. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 14 01 IST WARD Project 02 Network Virtualization from an operator’s perspective 03 Challenges for Core Network Virtualization 04 Conclusions Index

15. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 15 Challenges for Core Network Virtualization Virtual Nodes and Virtual Links in the core network Virtual Nodes in the core: — Virtual nodes would be deployed both at the edges (to provide PoPs) and in the core (to provide routing capability). — Router management and configuration would be leased to the Vnet client (e.g. to perform its own routing or QoS decisions). — Router providers are starting to develop virtualization products (e.g. Juniper announced a new “core virtualization” strategy with the TX Matrix Plus, Feb 09) Virtual Links in the core : — From a transport point of view, several link virtualisation techniques (e.g. ATM, 802.1q, MPLS) could be used. — Virtual links can be instantiated as transport paths between source and destination (e.g. control protocol). — If each node in the end-to-end path maintains a session state, potential scalability issues may arise. — How to assure QoS and isolation within Vlinks? IP/MPLS core Virtualizable IP edge nodes Highly Virtualizable core IP nodes Physic al link Virtual link Virtual link aggregate Virtual interface Substrate node Virtual node A B C Virtualizable IP edge nodes Scalability and isolation (QoS) challenges for link virtualization

16. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 16 Challenges for Core Network Virtualization Link Virtualization with MPLS But… how to deal with link isolation? Are current QoS strategies enough? Do they scale? Alternative approaches on how to proceed : — Design a VNet-specific link virtualisation solution from scratch: solving scalability & QoS issues. — Adapting and extending available solution (e.g. MPLS) taking VNet requirements into account. — Use available solutions (e.g.MPLS) unchanged (with the identified limits). A two level virtualization technique would be desired to solve the scalability issue — A virtual link aggregate merges all virtual links which follow a common path between source and destination virtual nodes. Awareness of virtual links is only required from end points. — Core routers perform virtual link aggregates forwarding. Edge nodes perform termination of virtual link aggregates and virtualisation. Physical link Virtual link Virtual link aggregate / Virtual path

17. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 17 01 IST WARD Project 02 Network Virtualization from an operator’s perspective 03 Challenges for Core Network Virtualization 04 Conclusions Index

18. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal 18 Conclusion Virtualization has a strong potential (at least to move research forces) to play a key role in the Future Internet. Key messages from an operator’s perspective: — Business use cases for a telecom operator are far from being clear. — There are potential scalability and QoS challenges in the deployment of Virtual Networks in current core networks. 4WARD aims at providing both demonstration facilities and developing realistic business cases for network virtualization from an industrial perspective.

19. TELEFÓNICA I+D © 2007 Telefónica Investigación y Desarrollo, S.A. Unipersonal© 2008 Telefónica Investigación y Desarrollo, S.A. Unipersonal