Presentation I gave at SDN & OpenFlow world Congress in Dusseldorf October 17,2014

1. {Core Analysis}
BREAK THE SURFACE
SDN-NFV IN MOBILE NETWORKS 2014
{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress
Patrick Lopez
{Core Analysis}
SDN & OpenFlow World Congress
Dusseldorf- October 17, 2014
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2. {Core Analysis}
DISCLAIMER
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress
This report has been prepared specifically for Telco Cloud World Forum by {Core Analysis}. All rights of distribution and license of this report as well as the content and intellectual property herein are reserved by {Core Analysis}. This report cannot be distributed outside of Telco Cloud World Forum and its content cannot be reproduced partially or in its integrality for any purposes other than internal Telco Cloud World Forum presentation without written approval from {Core Analysis}.
Inputs to these analyses and financial models can and do change frequently. While every attempt has been made by {Core Analysis} to minimize such occurrences, information contained in these materials is not guaranteed for its timeliness, reliability or accuracy.
Figures, text and graphical representations should be considered directional prior to Client analysis and/or investment.
All figures herein are U.S. dollars (USD) unless otherwise noted.

3. {Core Analysis}
COMPANY BACKGROUND
Founder and CEO of {Core Analysis}, I provide advisory services to technology vendors, board of directors, carriers and venture capital firms on OTT video. As an analyst, I present at influential industry forums and conferences and publish an acclaimed blog, industry articles and reports.
In 2013, {Core Analysis} was exclusive advisor to Opera Software in its acquisition of Skyfire for $150m.
Prior to {Core Analysis}, I have 15 years of international progressive experience in marketing, strategy and product management in the United States, Canada, Switzerland, Ireland and France.
I hold a MBA in Corporate Management and a Bachelor Degree in Marketing Strategy.
Expertise
Value proposition Market category creation
Technical and strategic due diligence Market Analysis Business plan and forecast New product introduction Competitive analysis Product positioning and pricing
Publications and Interviews
Over 100 interviews with The Wall Street Journal, Wireless Week, CNNmoney, Washington Times, In-Stat Group, Telephony, Fast Track Wireless, Wireless Week, Wireless News, NetsEdge Research, Telecom Trends, RCR Wireless News , CNN, Wireless developer network, Total Telecoms, La tribune, Global Wireless, Telecommunications International Edition, Global Mobile, CNBC Europe, Broadcast News
Analyst Reports:
Various analyst reports I have collaborated to or written include Deutsche Bank, JP Morgan, Morgan Stanley Credit Suisse First Boston, IDC, Frost & Sullivan, Mobilestream, Stylus Communications, Yankee group, Ovum, Visiongain, Informa, Forrester Research...
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress

4. {Core Analysis}
MISSION AND EXPERIENCE
{Core Analysis} provides consultancy services on OTT video.
EXPERTISE Technical and strategic due diligence Market Analysis Vendor evaluation and selection Technology evaluation Business cases and forecasts Product strategy Pricing strategy Competitive attack plan
EXPERIENCE Due Diligence Acquisitions Turn around Financing Product, technology design & launches World's first dedicated video optimization engine World's first commercial MMSC Sent world's first MMS on CDMA World's first content, service and subscriber management for mobile TV World's first messaging tiered architecture Philips first WAP phone
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress

5. {Core Analysis}
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress

6. {Core Analysis}
AT&T’S CHALLENGE
Krish Prabhu, CTO AT&T labs
“ Our network today sees 60 TB per day.
We are projecting a 50% CAGR in traffic growth, resulting in 3 to 4x today’s level in 3 years.
Our CAPEX budget this year is $20 billion
Our revenues and budget will remain flat for the next 3 years
Google is making all the money, we are making all the investment, we have no choice but to squeeze the vendors on one hand and invent a new architecture on the other hand”
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress

7. WHY SDN / NFV IN WIRELESS? {Core Analysis}
Monolithic infrastructure
Platform
Computing
Networking
Storage
Platform
Computing
Networking
Storage
Platform
Computing
Networking
Storage
Load
balancer
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{Core Analysis} All rights reserved © 2014 - Public for Telco
Cloud World Forum
64% CAGR in busy hour vs average traffic

8. {Core Analysis}
EVOLUTION OF CORE NETWORKS – THE MAGIC V
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress
Plumbing
EPC
Messaging
IMS
BSS
Optimization
DPI
P/GW
GGSN
L2 Switch
Shaping
Filtering
Traffic classification
Policy enforcement
Firewall
PCRF
AAA
DNS
Charging
TCP
Web
Video
Caching
WebRTC
VoLTE
SMS
MMS
SGSN
MME
HSS
Load Balancing
Routing
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V

9. {Core Analysis}
STATE OF ORCHESTRATION MANO IN NFV
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress

10. {Core Analysis}
ETSI NFV ARCHITECTURE
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{Core Analysis} All rights reserved © 2014 - Public for Telco Cloud World Forum
Risk of verticalization App store strategy

11. {Core Analysis}
BREAKDOWN OF ETSI NFV POCS
Operators’ involvement
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress
25%
19%
16%
7%
6%
6%
3%
3%
3%
3%
3%
3%
3%
Telefonica
AT&T
British Telecom
Deutsche Telekom
Sprint
Telecom Italia
CenturyLink
China Mobile
KDDI
NTT
SK telecom
Telenor
Verizon

12. {Core Analysis}
BREAKDOWN OF ETSI NFV POCS
Number of PoC / vendor
3,5 vendors per PoC
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress
44%
7%
7%
6%
4%
4%
4%
4%
4%
2%
2%
2%
2%
2%
2%
2%
2%
Vendors in only 1 PoC
HP
Intel
Brocade
ALU
Huawei
RedHat
Tieto
WindRiver
AMD
Cisco
Cyan
Dell
Ericsson
IBM
Qosmos
Spirent
63%
33%
4%
Number of VNF vendors
0-1
2 or 3
3+
58%
42%
Orchestrator / MANO
No orchestrator

13. {Core Analysis}
VNF ROADMAP IN WIRELESS NETWORKS
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress
IMS Session Border Controllers
IMS CSCF
Analytics VNF
Enode -B
2014
2015
2016
2017
2018
2019
2020
DPI - shaping
EPC
Switching
Routing
Load balancing
DPI – classification
Web & video optimization

14. {Core Analysis}
CONTACTS
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{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress

15. {Core Analysis}
BREAK THE SURFACE
SDN-NFV IN MOBILE NETWORKS 2014
{Core Analysis} All rights reserved © 2014 - Public for SDN & OpenFlow world congress
Patrick Lopez
{Core Analysis}
SDN & OpenFlow World Congress
Dusseldorf- October 17, 2014
15