Network

Function Virtualization(NFV)
Telco Perspective
C.G.Gustiana
NFV ITB Day
GM Strategic Technology Planning, Telkomsel
Bandung
March 21st, 2016

1 CONFIDENTIAL INTERNAL USE ONLY

Todays Agenda

1 NFV in a nutshell, trend in the industry

Key Messages

2 The Values that NFV bring, main drivers for CSP/Telcos to

adopt or acquired NFV technology

How the others are doing, describing various deployment

3
strategies, benchmark, case studies that possible to be done or
adopted by the CSP

4 Telkomsels NFV insight, some introduction, overview, sneak

peak on how Telkomsel doing this NFV, future possibilities for local
industry or developer, etc

TELKOMSEL - Confidential |
NFV Approach, from Legacy & Vendor Specific to Standardize &
Commodity Hardware
Network Function Virtualization
(NFV) definition :

Leveraging standard IT virtualization

technology to consolidate many network
equipment types to reduce cost and
improve flexibility, operability, and
maintainability ETSI NFV ISG

characteristics:
Vendor agnostic
CAPEX and OPEX optimization
Common hardware (COTS) support
New service creation capability increased
Multi tenancy support
Self provisioning and orchestration support
More flexible and simplify network
architecture
Fast time to market
Hypervisor needed and specific management
system
Resource pooling (compute, storage,
network) for any function

3 SOURCES: ETSI NFV ISG White Paper

Main Difference betwween Legacy vs NFV Deployment
Serial & Iterative Process

Procure New Hardware (Dedicated

/proprietary for specific network
function, usually take long time on
delivery, Hardware reuse is impossible,
especially for different vendor)
Finding Space and Power required
Install Hardware
Commissioning, Integrate, Operate
Redo the whole process for the other or
new network function
Vs
Parallel Process
One hardware (x86 COTS) can be
used by several network function
Hardware procurement and delivery is
faster, since the hardware is a
common commodity
Procure Hardware, Finding Space &
Power, Installation, Commissioning,
only needed to be done at the initial
deployment
All Network Function is only software
based and can be Install remotely and
parallely
Fail fast support to achieve faster
time-to-market

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 NFV ETSI ISG Architectural Framework

The main architectural constituents of the

NFV Architectural Framework are :

The NFVI (Network Functions

Virtualization Infrastructure), which
provides the virtual resources required to
support the execution of the Virtualized
Network Functions. It includes Commercial-
Off-The-Shelf (COTS) hardware, accelerator
components where necessary, and a
software layer which virtualizes and
abstracts the underlying hardware

The VNF (Virtualized Network Function) is

the software implementation of a network
function which is capable of running over the
NFVI. The VNF is the entity corresponding to
todays network nodes, which are now
expected to be delivered as pure software
free from hardware dependency.

The NFV M&O (Management and Orchestration), which covers the orchestration and lifecycle management of physical
and/or software resources that support the infrastructure virtualization, and the lifecycle management of VNFs. NFV
Management and Orchestration focuses on the virtualization-specific management tasks necessary in the NFV
framework. The NFV M&O also interacts with the (NFV external) OSS/BSS landscape, which allows NFV to be integrated
into an already existing network-wide management landscape

5 SOURCES: ETSI NFV ISG White Paper

 NFV ETSI ISG Use Cases Reference
Network Functions Virtualization is applicable to any
data plane packet processing and control plane
function in mobile and fixed networks. Potential
examples that can be listed include (not in any
particular order):

Switching elements: BNG, CG-NAT, routers.

Mobile network nodes: HLR/HSS, MME,
SGSN, GGSN/PDN-GW, RNC, Node B,
eNode B.
Functions contained in home routers and set
top boxes to create virtualised home
environments.
Tunnelling gateway elements: IPSec/SSL
VPN gateways.
Traffic analysis: DPI, QoE measurement.
Service Assurance, SLA monitoring, Test
and Diagnostics.
NGN signalling: SBCs, IMS.
Converged and network-wide functions: AAA
servers, policy control and charging
platforms.
Application-level optimisation: CDNs, Cache
Servers, Load Balancers, Application
Accelerators.
Security functions: Firewalls, virus scanners,
intrusion detection systems, spam
protection..

6 SOURCES: ETSI NFV ISG White Paper

 Operators Adoption on NFV Use Cases
Based on Infonetics Survey

There is no
clear correlation
between
criticality of
Network
Function with
operator
decision on
which NF going
to be
transformed into
NFV first

Mobile Core, vEPC

compared with vIMS
Core, .. Which one is
the most critical NF ?

7 SOURCES: Infonetics Service Provider NFV Survey, 2015

 Main Driver for Telco operators going into NFV

What happen online in 60 seconds?

Smart phones drive the massive

traffic of data, putting huge strain to
the CSPs network infrastructures

Cost dominated by Data usage

New services demand increase

Costs for addressing data traffic

growth is getting higher, while the
data revenues declines

8 SOURCES: Cisco VNI Mobile 2014, Internal Analysis

 Values and Benefits that NFV Bring to the Industry
Reduce Capital Expenditures (CAPEX)
Reduce hardware cost using COTS / commodity servers
Service delivered in software, no dependency on vendor hardware
(price will be decreased)

Reduce Operational Expenditures (OPEX)

Quick and easy to move and scale the functionality, eliminate to deploy
and maintain specialized hardware for specialized functions.
Reduce space, power and cooling costs
Automation can be used to simplify roll out and ongoing management.

Accelerate Time-to-Market
Simple installation and provisioning to quickly deploy services
Virtualized function enable easiness of conducting trial, segregation with
production can minimize the potential of risk.

Deliver Agility and Flexibility

Able to easily move, scale, and configure services as the demands of
customers or the business changes.
Operator doesnt have to buy a new server / hardware system every new
service with small scale needed.

Technology Trends
Legacy vendors are starting to look into NFV technology.
Several operators in the world already conducted trial and RFP.
The rise of software-based company that develop NFV enrich the NFV
vendor options.
Based on research done by Infonetics NFV widespread commercial
deployments will start from Y2016
9 SOURCES: ETSI, sdxcentral, Internal Analysis
 IT Cloud vs Network Cloud NFV Requirements
vs
SLA 99.95% 99.99 % SLA 99.999%
Enterprise (IT) Focus on the compute Focus on the compute Carrier (Network)
and storage capacity and networking capacity
Oracle, CRM, SAP, CRM,
Exchange Most application running Most application running GGSN, SGSN EPC, IMS
HRIS
in light load in heavy load
Virtualization Layer Simple network Complex network Virtualization Layer
connection (internet and connection (signaling,
intranet) Media, OM)
COTS Hardware No large flow between Large flow between COTS Hardware
VMs VMs
No strict requirement on Strict requirement on the
the network latency and network latency and
QoS QoS

Operators General NFV Requirements

10 SOURCES: ETSI, sdxcentral, Cisco, Internal Analysis

 Posible NFV Implementation or Deployment Scenarios

VNF Case Specific, Includes VNF-

e.g. M and NFV
vMS, VPC Orchestrator
VNF Led Orchestration Led
Orchestration Led

Service driven approach Service Elasticity

Service Agility Compute, Network & SDN Controller, Storage, VIM Ease of Provisioning;
Business outcome desired Time to market
(OpenStack) & Automation

Infrastructure led approach Cloudify & Automate DC Infra

aka NFVI is gaining Infrastructure Led Leverage Opensource
Virtualize, Programmable & Provisionable
prominence!

Challenges that needs to be answered by the SPs

Integrating multiple virtual appliances from different vendors. Network operators need to be able to
mix & match hardware from different vendors, hypervisors from different vendors and virtual
appliances from different vendors without incurring significant integration costs and avoiding lock-in.

11 SOURCES: ETSI, Cisco, Internal Analysis

 Posible NFV Migration Scenarios
Time to
Cost Less New
Efficient Complex Operation Revenue

Scrap & Grow, retire legacy network and

start fresh with NFV

Grow & Grow, co-exist between legacy

and NFV, decision based on cost-based
analysis to find best match between
technology availability, performance
and operation cost

Cap & Grow, limit legacy network

until hardware retired, grow with NFV
and slowly transform legacy network
to NFV on new capacity expansion.

Slice & Grow, start NFV with

network slicing for specific need and
slowly migrating legacy slice to new
NFV slice

12 SOURCES: Ericsson, NFV Strategy Rec. for Tsel

 Operators Adoption Positioning and Time Line
AT&T
High Singtel Telstra
Telefonica
CenturyLink DT
Orange
China Telecom Verizon NTT
China Mobile KDDI Vodafone Early Adapter
Importance
Strategic

Telenor SK Telecom
SoftBank Etisalat Mainstream

China Unicom BT Planning

KT
Stage
Bharti KPN

Tier-2
Operators

Low Rate of Adoption High

2013 2014 2015 2016 2020 2022

Late Majority
Early Commercial Wider-spread Commercial
Deployments Deployments
Many operators deploy 1 or 2
Mainstream Adoption
use cases
Operators deploy several NFV/SDN use
15 more commercial
cases, then more each year
deployments
POCs Field Trials
Operators, Vendors productize NFV/SDN software in operator lab trials Source: SDN and NFV Vendor
vendors learn in A few more field trials Leadership/Global Service Provider Survey,
lab Infonetics, Aug. 2015
10 Commercial deployments NFV/SDN Telecom Market Landscape,
Few field trials Technical Business Research, Oct. 2015
Cisco Service Providers Survey, Nov 2015
13 SOURCES: NFV/SDN Telecom Market Landscape, Technical Business Research, Oct. 2015
 Global NFV Implementation Use Cases
Virtual EPC Deployment
NTT Do Como Inc. first announced for a commercial launch of NFV back in May
2014
70% of the whole network will be virtualized by 2018
The solution is provided by Vmware, Fujitsu and NEC

Deployed program called UNICA for IoT and M2M Project

30% of the infrastructure has been virtualized and continue until 2023
Some vendors like Huawei, ALU, Ericsson, NSN, NEC, Vmware and Red Hat
KVM are collaborating in this initiative
Optimize its network to build services around IoT and M2M

Core Network Modernization based on NFV

By August 20th, 2014, Vodafone VHA has chosen Ericsson to replace and
upgrade complete national core network
The upgrade include such as EPC, IMS, policy control and MSS circuit core
Network (2016)

Signaling based on NFV

Vodafone Germany has implemented signaling control including SS7 and
Diameter into single platform based on NFV, in early January 2015
the solution is provided by Netnumber and VMWare
Source : http://www.lightreading.com/spit-(service-provider-it)/diameter-routing-
signaling/netnumber-decrees-the-end-of-signaling-silos/d/d-id/712972

Deployed program called Domain 2.0

calls for the company to virtualize more than 75 percent of its network using
software-driven architecture by 2020

14 SOURCES: various vendors and public analysis

 Typical or Generic SPs Adoption Scenario on NFV are Aligned with
Future Network Architecture Requirements for 5G
Future services and business require network to have scalability, agility, flexibility and faster time deployment. Core
network evolution is needed to meet the services and business requirement.
Today Future

Core Network
Network Extension Business Extension
Legacy EPC Virtualized STP,IMS,EPC
STP IMS MSS MME
MME SPGW IMS EPC XXX
DRA HSS SPGW GiLAN

Legacy Signaling Virtualization Platform NFV Enhancement

(NFV) NFV Orchestrator NFV Evolved
DRA STP Dynamic resource control Distributed
Scalability & Flexibility
Automation Service optimized

Legacy CS Core

MSS MGW
Generic Platform (COTS)
SDN across DC Cloud Telco SDN

Radio Access Network

5G
4G
3G
15 SOURCES: ETSI, sdxcentral, Internal Analysis
 Telkomsel Insight, Virtualization Experience ...
A Miles away toward NFV
Hardware

Using Intel Architecture x86 COTS server.

IT Virtualization Architecture Brand usage are : Dell, Fujitsu, HP, IBM

Hypervisor

Using only VMware ESXi as the hypervisor / virtual

infrastructure.

Operating System

Various operating system used as the foundation of

an application. e.g : Windows, Linux, FreeBSD

Telkomsel IT Group has been using virtualization

technology since Y2008, started from VMware 4.1. The
basic reasons of virtualization implementation are:
The operational easiness (install new server and Applications
service) which resulting faster time-to-market.
Cost efficiency, since several small applications can be Application type are from the small scale to the
installed in the same physical hardware, separated by enterprise level. e.g : web server, tcash, smsbulk,
different virtual machines. Space, power, cooling usage microsoft exchange, active directory.
also reduced.
except/exclude : OCS, CRM, OSDSS, Oracle

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 Telkomsel Encourage Openness, Welcoming wide variety of
eco-system and players including Academia ..

Industry group of Open source software suite Integration project under the Open platform for network User-driven organization
Communication Service Providers for cloud computing Linux Foundation to create a programmability for SDN dedicated to the promotion
(CSPs) and Network Equipment carrier-ready NFV Reference and adoption of SDN
Providers (NEPs) to specify NFV Platform (an IaaS platform) through open standards
business / functional out of open-source development
requirements and the interfaces components.
necessary to support them

Opensource NFV Platform

Benefits that can be achieved by the industry
Virtual compute Reducing vendor lock-in
Community development brings a higher feature
velocity
Cost efficient leads to TCO savings
Virtual storage Flexibility and freedom
Interoperability

Virtual network Enables a wide variety of eco-systems and

DPDK encourages openness. It opens the virtual
appliance market to pure software entrants,
Virtual small players and academia, encouraging more
Infrastructure innovation to bring new services and new
Manager (VIM) revenue streams quickly at much lower risk

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