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New Technology, New Services & 
New Business Models 
Dr. Recep Ozdag 
Director of Marketing 
© 2014, CYAN, INC. 
1
The Rise of the OTTs 
 OTTs build services on top of 
commoditized technologies: 
 Scale Out 
 Compute and Storage 
 Broadcom COTS switches 
 Open Source Software 
 Scale Up 
 Virtualization 
 Multi-Technology Compute, 
Storage, IP, MPLS, Packet-Optical 
Networks 
 OTTs are early adopters of SDN 
and NFV 
© 2014, CYAN, INC. 2
Service Provider Business Models 
Under Pressure 
© 2014, CYAN, INC. 3 
3
Commoditization 
Custom -> Standard -> White-box -> Bare Metal 
Proprietary -> Standard -> Open source -> ‘Free’ 
OTT Business Models exploit Commoditization 
© 2014, CYAN, INC. 4
What is Network functions Virtualisation? 
Classical Network Appliance 
Approach 
Session Border 
Controller 
Message Acceleration 
Router 
BRAS 
CDN 
DPI Firewall 
WAN 
Tester/QoE 
monitor 
Radio Network 
Controller 
Carrier 
Grade NAT 
SGSN/GGSN PE Router 
Independent 
Software 
Vendors 
Orchestrated, 
automatic & 
remote install. 
Standard High Volume Servers 
Standard High Volume Storage 
Fragmented non-commodity hardware. 
Physical install per appliance per site. 
Hardware development large barrier to entry for 
new vendors constraining innovation & 
Standard High Volume Switches 
competition. Network functions Virtualisation 
Approach 
Adding Machine Typewriter Printing Press 
Competitive & 
Innovative 
Ecosystem 
Net Apps Store 
Bronze NfV 
Gold NfV
Impact on Telcos? 
© 2014, CYAN, INC. 
6
Opportunity for Carriers: 
Both above and below the Line: 
 Integration 
 Optical + Packet + Storage + Compute + Software + … 
 Agility 
 Planning, Operations, PM and Analytics 
 DIY Programmability 
 Integration with Information Technology systems 
 Virtualization and Delegation of Control 
 Network and VNF as a Service 
 End-User empowerment via APIs 
© 2014, CYAN, INC. 7
Adaptability and Flexibility 
Software Defined Business 
 Today’s Assets = Tomorrow’s liabilities 
 Obsolescence and cost of maintenance 
 Commoditization and revenue erosion 
 Opportunity cost 
 Adaptability requires Modularity: 
 New Applications 
 New Technologies 
 Modularity is more of a challenge higher up the stack 
 Paradox: Hardware is more modular than software 
8 
CYAN CONFIDENTIAL 
© 2014, CYAN, INC.
Compelling Advantages: 
Cost 
• Software Reuse 
• Hardware Virtualization Savings 
• Reduction in Design Costs 
• Hardware Import Duty (multinational 
carriers) 
• Installation Costs 
• Equipment Recovery 
• Simplified Project management 
• Elimination of site surveys, cabling, etc 
• Shipping Costs 
• Reduced time to revenue 
Revenue 
9 
CYAN CONFIDENTIAL 
© 2014, CYAN, INC. • Quicker physical deployment 
• Quicker service turn-up and change orders 
• Elastic services as a Utility 
• NFVaaS (firewall, load balancing, 
encryption..) 
• Consistency through automation 
• End User configuration 
• ICT integration 
• Short term, service contracts 
• NaaS 
• Isolation based security improvements
Service Orchestration 
Blue Planet Service Orchestration 
Network Orchestration 
Cloud 
Orchestration 
APIs APIs 
NFV 
Orchestration 
VNF Services 
Controller 
Multi-Layer, 
Multi-Vendor NaaS 
Controller 
Access Metro Core 
Cloud Services 
Controller 
10 
CYAN CONFIDENTIAL 
© 2014, CYAN, INC.
A Generic SDN+NFV Architecture 
SDN Controller SDN Controller 
Cloud 
Orchestration 
Cloud Management 
System 
NFV Management & 
Orchestration 
Cloud Management 
System 
SDN Controller 
SDN Controller SDN Controller 
POTN 
Network 
OSS / BSS 
Multi-Domain Orchestrator 
Multi-Domain Orchestrator 
Multi-Domain Orchestrator 
IP/MPLS 
Network 
Data Center 
Telco Cloud 
NFV 
OpenFlow 
Enabled 
Network 
© 2014, CYAN, INC. 11
Standards and Open Source 
WAN NaaS 
WAN Networks 
Cloud Applications 
Network 
Functions 
DC Protocols Transport Protocols 
Network Hardware 
XaaS 
Datacenter Networks 
LAN 
Hardware 
Cloud 
Compute 
Virtualization 
Compute 
Servers 
Network 
Appliances 
© 2014, CYAN, INC. 12
NFV Driving Network 
Transformation 
 DC technology is Commoditizing 
 Application and Content Networks 
 VM and Content Placement 
 More Data Centers 
 Power Law Size Distribution 
 Few Hyper Scale DCs 
 Long Tail of Small DCs provide proximity, resilience, low latency, 
partition tolerance 
 NFV and the confluence of WANs/MANs + DCs 
 Multi-layer, multi-vendor WAN/MAN 
 Flexible placement of content, functions and applications 
 Telco-Cloud orchestration ≡ Integration 
© 2014, CYAN, INC. 13
ETSI NFV 
End-to-End Reference Architecture 
© 2014, CYAN, INC. 14 
1 
 Complies with ETSI’s NFV ISG 
Management and 
Orchestration (MANO) 
framework 
 Planet Orchestrate serves as 
the orchestrator and VNF 
manager, where needed 
 Supports centralized and 
distributed NFV deployments 
 NFVO can stand alone or work 
in concert with other Planet 
Orchestrate capabilities
Example Use Cases 
© 2014, CYAN, INC. 
15
Virtualized CPE 
 Provision business Ethernet services 
 Run network functions as VMs in central or customer premise servers 
vEPC 
Firewall NID 
appliance 
NID Firewall 
16 
appliance 
© 2014, CYAN, INC.
Virtualized CPE 
vEPC 
NID 
COTS server NID Firewall 
17 
appliance 
© 2014, CYAN, INC. vFW
Virtualized CPE 
vEPC 
Virtualized CPE running 
virtual network functions 
over 
© 2014, CYAN, INC. 18

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TFI2014 Session I - State of SDN - Recep Ozdag

  • 1. New Technology, New Services & New Business Models Dr. Recep Ozdag Director of Marketing © 2014, CYAN, INC. 1
  • 2. The Rise of the OTTs  OTTs build services on top of commoditized technologies:  Scale Out  Compute and Storage  Broadcom COTS switches  Open Source Software  Scale Up  Virtualization  Multi-Technology Compute, Storage, IP, MPLS, Packet-Optical Networks  OTTs are early adopters of SDN and NFV © 2014, CYAN, INC. 2
  • 3. Service Provider Business Models Under Pressure © 2014, CYAN, INC. 3 3
  • 4. Commoditization Custom -> Standard -> White-box -> Bare Metal Proprietary -> Standard -> Open source -> ‘Free’ OTT Business Models exploit Commoditization © 2014, CYAN, INC. 4
  • 5. What is Network functions Virtualisation? Classical Network Appliance Approach Session Border Controller Message Acceleration Router BRAS CDN DPI Firewall WAN Tester/QoE monitor Radio Network Controller Carrier Grade NAT SGSN/GGSN PE Router Independent Software Vendors Orchestrated, automatic & remote install. Standard High Volume Servers Standard High Volume Storage Fragmented non-commodity hardware. Physical install per appliance per site. Hardware development large barrier to entry for new vendors constraining innovation & Standard High Volume Switches competition. Network functions Virtualisation Approach Adding Machine Typewriter Printing Press Competitive & Innovative Ecosystem Net Apps Store Bronze NfV Gold NfV
  • 6. Impact on Telcos? © 2014, CYAN, INC. 6
  • 7. Opportunity for Carriers: Both above and below the Line:  Integration  Optical + Packet + Storage + Compute + Software + …  Agility  Planning, Operations, PM and Analytics  DIY Programmability  Integration with Information Technology systems  Virtualization and Delegation of Control  Network and VNF as a Service  End-User empowerment via APIs © 2014, CYAN, INC. 7
  • 8. Adaptability and Flexibility Software Defined Business  Today’s Assets = Tomorrow’s liabilities  Obsolescence and cost of maintenance  Commoditization and revenue erosion  Opportunity cost  Adaptability requires Modularity:  New Applications  New Technologies  Modularity is more of a challenge higher up the stack  Paradox: Hardware is more modular than software 8 CYAN CONFIDENTIAL © 2014, CYAN, INC.
  • 9. Compelling Advantages: Cost • Software Reuse • Hardware Virtualization Savings • Reduction in Design Costs • Hardware Import Duty (multinational carriers) • Installation Costs • Equipment Recovery • Simplified Project management • Elimination of site surveys, cabling, etc • Shipping Costs • Reduced time to revenue Revenue 9 CYAN CONFIDENTIAL © 2014, CYAN, INC. • Quicker physical deployment • Quicker service turn-up and change orders • Elastic services as a Utility • NFVaaS (firewall, load balancing, encryption..) • Consistency through automation • End User configuration • ICT integration • Short term, service contracts • NaaS • Isolation based security improvements
  • 10. Service Orchestration Blue Planet Service Orchestration Network Orchestration Cloud Orchestration APIs APIs NFV Orchestration VNF Services Controller Multi-Layer, Multi-Vendor NaaS Controller Access Metro Core Cloud Services Controller 10 CYAN CONFIDENTIAL © 2014, CYAN, INC.
  • 11. A Generic SDN+NFV Architecture SDN Controller SDN Controller Cloud Orchestration Cloud Management System NFV Management & Orchestration Cloud Management System SDN Controller SDN Controller SDN Controller POTN Network OSS / BSS Multi-Domain Orchestrator Multi-Domain Orchestrator Multi-Domain Orchestrator IP/MPLS Network Data Center Telco Cloud NFV OpenFlow Enabled Network © 2014, CYAN, INC. 11
  • 12. Standards and Open Source WAN NaaS WAN Networks Cloud Applications Network Functions DC Protocols Transport Protocols Network Hardware XaaS Datacenter Networks LAN Hardware Cloud Compute Virtualization Compute Servers Network Appliances © 2014, CYAN, INC. 12
  • 13. NFV Driving Network Transformation  DC technology is Commoditizing  Application and Content Networks  VM and Content Placement  More Data Centers  Power Law Size Distribution  Few Hyper Scale DCs  Long Tail of Small DCs provide proximity, resilience, low latency, partition tolerance  NFV and the confluence of WANs/MANs + DCs  Multi-layer, multi-vendor WAN/MAN  Flexible placement of content, functions and applications  Telco-Cloud orchestration ≡ Integration © 2014, CYAN, INC. 13
  • 14. ETSI NFV End-to-End Reference Architecture © 2014, CYAN, INC. 14 1  Complies with ETSI’s NFV ISG Management and Orchestration (MANO) framework  Planet Orchestrate serves as the orchestrator and VNF manager, where needed  Supports centralized and distributed NFV deployments  NFVO can stand alone or work in concert with other Planet Orchestrate capabilities
  • 15. Example Use Cases © 2014, CYAN, INC. 15
  • 16. Virtualized CPE  Provision business Ethernet services  Run network functions as VMs in central or customer premise servers vEPC Firewall NID appliance NID Firewall 16 appliance © 2014, CYAN, INC.
  • 17. Virtualized CPE vEPC NID COTS server NID Firewall 17 appliance © 2014, CYAN, INC. vFW
  • 18. Virtualized CPE vEPC Virtualized CPE running virtual network functions over © 2014, CYAN, INC. 18