Network Virtualization: Market View & Amdocs Update

network virtualization: market view & amdocs update September 2018 2 table of contents

4 state of the market summary 6 NFV deployment approaches 8 carriers’ implementation strategies 10 NFV standards 10 ONAP 12 ETSI – NFV MANO and ONAP 14 NFV ecosystem 15 Amdocs NFV powered by ONAP

3 state of the market summary

There are three approaches to operationalizing network virtualization: • There is more than one route to end-to-end service orchestration: WAN SDN, led by network operations/engineering; NFV, led by CTO orchestration associated with SDN and OSS transformation is on offices and the different lines of business, and the third is an OSS the critical path together with NFV upgrade, led by the IT department for virtualization. While a coherent • NFV orchestration: The question remains as to whether a generic virtualization platform is the end goal, this is currently a long way VNF manager (G-VNFM) will prove sufficient. Confusion remains in from fruition. The successful decoupling of hardware from software the market over the right approach here has still not happened. Network equipment vendors have increased • Orchestration is a strategic enabler of the various NFV deployment their software charges to offset hardware losses, while service approaches on the road to digital transformation. Operators are at providers still complain they cannot use one vendor’s virtual network very different stages in achieving full end-to-end orchestration functions (VNFs) with hardware equipment from another. The road to network virtualization is still evolving in several streams, and service providers and vendors are looking for new business models based on partnership and co-creation to expedite the adoption of virtualization in the network.

4 Network operations/ CTO office working engineering (linked to with LoBs (linked to network transformation network capacity programmes, service planning or service roll-outs) roll-outs WAN SDN: NFV: creating a creating a way programmable, of managing real-time all-software multi-layer network management functions platform

2017: USD 0.4B USD 38B1 2017: USD 0.5B 2021: USD 1.5B 2021: USD 2.7B CAGR: 41% CAGR: 55%

Rationalizing and upgrading OSS for virtualization readiness

2017: USD 4.4B IT operations 2021: USD 6.0B (linked to network transformation CAGR: 8% programmes)

Figure 1. Three points of attack on operationalizing network virtualization

1 Cumulative spend for all three markets (2017-21), software+PS. All market CAGRs are 2017-2021. NFV is the total of NO (VNFM, NO, CD-NO) + VIM. OSS assumes 25% (2016) growing to 33% (2021)of total OSS spend is for upgrades/rationalization for virtualization readiness. 5 NFV deployment approaches

Operators are taking three different approaches to NFV deployments Achieving the full NFV business case depends on operators deploying an end-to-end platform on which to host and manage any virtual • Domain-specific use case: Operators virtualize a single network network function (VNF) from any vendor. Currently, most operators function in a specific network domain e.g. mobile as stand-alone are deploying VNFs as “virtual boxes” – domain or use-case specific technology stack or “virtual boxes”. This approach re-creates technology stacks from a single vendor, which leads to the risk of vendor traditional network silos in a virtualized way. lock-in. Operators will need a C-level mandate and strong governance • Domain-specific orchestration: Use cases such as vCPE require to succeed in moving to an end-to-end horizontal platform for all their a platform approach because they involve multiple multi-vendor NFV deployments. VNFs. However, this is not necessarily followed across the organization and enterprise use-cases like SD-WAN and vCPE We recommend that operators define a target end-to-end platform may remain a siloe’d orchestration domain. This approach is often for NFV deployment, including its principles, key components and SDN-driven. industry alignments, while planning interim, tactical, domain-specific deployments. Operators who already have multiple domain-specific • End-to-end orchestration: Leading operators recognize the need deployments should seek a C-level mandate for a strategy to migrate for a digital network and operations platform that spans multiple to a common platform. network domains and brings together NFV and SDN. This is the long-term vision for NFV deployment. Service providers should choose the platform development and integration strategy right for their business, whilst minimizing vendor lock-in through strong governance.

And to reduce the risk of lock-in, operators using a single vendor to create a pre-integrated platform should assess the suppliers’ commitment to industry standard/open-source technologies and open APIs. Vendors should ensure their NFV solutions are modular enough to enable each component to play in an end-to-end platform in future, pre-integrating with partners where necessary.

6 Automate Cross-domain

Effectiveness orchestration Dynamically aligned to NFV Evolution business needs Orchestrate Self-healing – close loop Lower cost Virtualize Improve user experience Speed TTM Lower cost Increase utilization Consolidate Higher flexibility Define management and control – ETSI MANO Market is here

Time

Figure 2. Stages on the road to network virtualization

7 carriers’ implementation strategies

Our experience indicates there are three main phases and implementation strategies on the road to NFV.

Phase 1 Phase 2 Phase 3 Starting with basic “virtual boxes” where Domain-specific orchestration where the Here the scope is cross-network and the scope is virtual instantiation of a scope is siloe’d use-case orchestration operational domains with a horizontal, physical network element with basic VNF with integration to north and south-bound end-to-end platform that can incorporate management and no orchestration. interfaces, i.e. BSS/OSS and the network. all NFV deployments. The challenges in this The challenge here is single vendor silos phase lie mainly around standardization The challenge with this approach is that with proprietary software stacks causing and certification. Vendor-proprietary it re-creates traditional network silos in a inefficient resource utilization and complex solutions might cause operation and visibility virtualized way, so services are operated with cross-domain service management and inefficiencies where multiple operational silos multiple VNF management (VNFM) tools. orchestration. cause inefficient resource utilization. One solution is the adoption of standardization, followed by a certification As mentioned above, operators should Examples of end-to-end orchestration and process together with generic VNF minimize vendor lock-in through strong wide network transformations include: management (GVNFM) to replace vendor- governance. An agnostic NFV orchestrator specific VNF management. In this way service (NFVO) which is open and vendor-neutral • AT&T’s ECOMP project operations can be streamlined. Example use would avoid vendor lock-in while maximizing cases for VNFs without orchestration include resource efficiency. • Bell Canada’s ONAP-based network vEPC, vIMS and some small VNFs like vFW, service orchestration (NSO) platform vPCRF and vHSS. Example use cases for domain orchestration include more complex and dynamic use cases such as SD-WAN and vCPE where the service includes chaining of multiple VNFs from different vendors.

8 Phase 1 Phase 2 Phase 3

NFV NFV Orchestrator analytics controllers Orchestrator

VNFM VNFM VNFM VNFM VNFM VNFM VNFM VNFM onboarding

VNF VNF VNF VNF VNF VNF VNF VNF inventory

NFV Infrastructure NFV Infrastructure NFV Infrastructure

VNF with no orchestration Domain orchestration E2E service orchestration Virtual instantiation of a physical Multiple VNFs, network element Multi-Vendor Deployment share Large Medium Small vEPC vCPE ONAP Top examples vIMS SD-WAN OSM Others: vFW, vPCRF, vHSS... Mobile Core

Re-creates traditional network Siloed orchestration Cross-domains network and Approach to NFV silos in a virtualized way Short/mid term vision operations platform Often SDN-driven Exec sponsorship, long term vision

Figure 3. Implementation phases on the road to NFV. Source: Amdocs and Analysys Mason

9 NFV standards

ONAP To expedite NFV adoption there is a need for platform standardization. ONAP’s first code release, Amsterdam, was delivered in November Leading operators such as AT&T, Bell, Orange, Vodafone, Comcast, 2017 and integrated the original ECOMP and Open-O code bases Verizon and others believe the Linux Foundation’s Open Network into a common orchestration platform. The second ONAP release, Automation Platform (ONAP) will become the de-facto industry ‘Beijing, was launched this June and focuses on expanding ONAP’s standard open source platform for NFV/SDN automation. platform maturity.

ONAP provides a comprehensive platform for real-time, policy- Amdocs, as co-creator of the original ECOMP code along with AT&T, driven orchestration and automation of physical and virtual network is rated among the top three vendors contributing code to ONAP. functions that will enable software, network, IT and cloud providers Amdocs brings unique expertise derived from working with ONAP’s and developers to rapidly automate new services, and support early adopters, including AT&T, Bell and European carriers such as complete lifecycle management. By unifying member resources, Orange, to help service providers drive value from virtualization. ONAP is accelerating the development of a vibrant ecosystem around Amdocs NFV powered by ONAP lays the framework for additional a globally shared architecture and implementation for network carrier-grade enhancements as the ONAP code matures. automation – with an open standards focus – faster than any one product could on its own.

It is important to emphasize that ONAP is not a solution or a product – ONAP is a platform for NFV/SDN automation. As a platform, it offers the flexibility to select and mix and match as many components as needed; operators can take one or more components and package them into a product or a service.

10 Peak of inflated expectation Time to value

Where they started

Slope of Enlightenment

Where we are now

Innovators Early Adopters Early Majority Late Majority Laggards Time

Figure 4. ONAP reality check

11 ETSI – NFV MANO and ONAP

The European Telecommunications Standards Institute (ETSI) developed a Reference Architecture Framework and specifications in support of NFV Management and Orchestration (MANO). The main components of the ETSI-NFV architecture are the orchestrator, VNF Manager, and VIM (Virtualized Infrastructure Manager).

The open source version of ETSI MANO is called OSM (open source MANO) yet as Javier Gavilan, Telefónica’s planning and technology director, Group CTO said: “OSM cannot be compared with ONAP because the scope of ONAP is bigger and OSM is only a small part of the Telefónica transformation project”. Srinavasa Kalapala, Verizon’s VP of global technology and supplier strategy, added: “…OSM is mainly an orchestrator at the virtual network function level, while ONAP is a comprehensive service management platform.”

12 ETSI NFV architecture ONAP architecture

OSS/BSS Os-MA ONAP Execution OSS/BSS Orchestrator Framework ONAP Design Framework Se-Ma Service, VNF and Meta Data for Service, VNF

Infrastructure Description and Infrastrucure (Description, and Events Collection, Data (DCAE) Analytics Or-Vnfm Constraints, Recipes, Policies VNF and processes) Orchestrator (MSO) EMS 1 EMS 2 EMS 3 VNF Manager(s) Ve-Vnfm Ve-Vnfm-vnf VNF VNF 1 VNF 2 VNF 3 Controllers VNF 1 VNF 2 VNF 3 Or-Vi

Vn-Nf Vi-Vnfm Vn-Nf NFVI NFVI

Virtual Virtual Virtual Virtual Virtual Virtual Computing Storage Network Computing Storage Network Infrastructure Nf-Vi Orchestrator Virtualized Nf-Vi Virtualization Layer Infratructure Virtualization Layer VI-Ha Manager(s) VI-Ha Infrastructure Hardware resources Hardware resources Controller Computing Storage Network Computing Storage Network Hardware Hardware Hardware Hardware Hardware Hardware

Execution reference points Other reference points Main NFV reference points Execution reference points Other reference points Main NFV reference points

Figure 5. ONAP alignment with ETSI MANO reference architecture

13 NFV ecosystem

Network virtualization demands a partner ecosystem to bring The vendor offerings listed in the table below have been proven to together infrastructure and applications to ensure they interact integrate with Amdocs NFV Powered by ONAP in proofs of concept openly and integrate seamlessly to fulfil a wide range of multi-vendor (PoCs) and lab environments. NFV use cases, maintain vendor neutrality and achieve service agility. The NFV orchestrator is right at the heart of the partner ecosystem, Amdocs continues to add new partners and supported platforms from driving automation, open interfaces and end-to-end performance. a range of vendors to provide its NFV orchestration customers with the broadest possible selection for any given project. Any NFV ecosystem should be open, offer ease of integration, and include many ecosystem vendors at all layers of the NFV stack, from Visit www.amdocsnfvpartners.com to learn more about Amdocs NFV the bare metal servers, hypervisors, cloud management systems, and partner program. SDN controllers through to the VNFs themselves.

Figure 6. Amdocs’ NFV partner ecosystem 14 Amdocs NFV powered by ONAP

The industry’s first software and services portfolio to leverage ONAP Holistic approach to NFV service lifecycle management: Top-down, open source, Amdocs NFV powered by ONAP enables service providers service-centric approach offers rapid service commercialization while to accelerate NFV/SDN adoption and service innovation. minimizing project risk. Business-driven service orchestration provides a high level of integration with wider Amdocs and third-party BSS/OSS. Amdocs has experience with early NFV adopters: Having worked with AT&T, Bell and a Tier1 MSO in North America, we can therefore ONAP co-creator through ECOMP partnership with AT&T: Amdocs offer unique, experience-based insights that will accelerate your supports the industry’s first production environments for ONAP at NFV strategy. AT&T and Bell Canada. Amdocs developed the code so we know how to help you maximize the benefits of ONAP today and in the future. Focusing on the hybrid network: Amdocs’ modular offering features capabilities powered by ONAP to accelerate service design, Full suite of NFV services: Amdocs provides a unique, experience-backed instantiation and operations in the hybrid network (physical and portfolio of expert services to support your network virtualization and virtual, live and historic). hybrid operations. From planning to implementation and operations, we bring the tools and insights you need to build your strategy and Open partner ecosystem for multi-vendor innovation: Featuring 160+ make network virtualization a reality. VNFs from leading industry vendors to deliver collaborative NFV use cases that speed up complex multi-vendor service deployments while For more information visit: www.amdocs.com/nfv-powered-by-onap avoiding vendor lock-in.

15 about amdocs

Amdocs is a leading software and services provider to communications and media companies of all sizes, accelerating the industry’s dynamic and continuous digital transformation. With a rich set of innovative solutions, long-term business relationships with 350 communications and media providers, and technology and distribution ties to 600 content creators, Amdocs delivers business improvements to drive growth.

Amdocs and its 25,000 employees serve customers in over 85 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $3.9 billion in fiscal 2017.

For more information, visit Amdocs at www.amdocs.com