Seminar Series Sponsor Event Sponsor

Stan HubbardDirector of Communications & Research, MEF

MEF Strategy and Market Trends

30 min

2

Topics

• MEF Overview & CALA Members

• MEF Strategic Work At A Glance

• Market Trends & Opportunities

• MEF’s Industry-Wide Initiatives

• Upcoming Activities & Latest News

MEF Overview

MEF focused on enabling dynamic “Third Network” services

– Digital economy & hyper-connected world

– Agile, assured & orchestrated with user-directed control over network resources & cloud connectivity

MEF leverages global 210+ membership community

– Created the robust $80 billion Carrier Ethernet market

– Transition toward automated, virtualized, interconnected networks

– Powered by LSO (Lifecycle Service Orchestration) with evolution towards SDN and NFV implementations

210+ Member Companies

NA EMEA APAC CALA

SPs Vendors Others

MEF CALA Members

124

35

5

MEF Strategic Work

• Dynamic Network Services– Carrier Ethernet 2.0 is the Foundation

– Layer 3 IP & Higher Layer 4-7 Service Definitions

– Powered By LSO + SDN + NFV

• Lifecycle Service Orchestration– Enables Automated, Virtualized and Interconnected Networks

– Overcomes OSS/BSS Challenges For SDN, NFV & Traditional Networks

– LSO Reference Architecture and Interface Definitions

– Common Information Models

• Industry Collaboration & Open Initiatives– Collaborating with upstream Open Source initiatives

– LSO Hackathon

• Expanded Certification Program

Market Trends & Opportunities

7

Strong, Growing CE Market

• CE 2.0 is digital fuel for digital economy

• $50B market, double-digit CAGR– 50+% of surveyed professionals representing ~50 service

providers expect >10% revenue growth between mid-2015 and mid-2016

• Key drivers– Expanded service coverage

– Bandwidth demand

– Extraordinary performance/price advantages

– Accelerated service rollout

Sources: CE Services Market Trends Report, MEF and Frost & Sullivan (Sep 2015); market estimate by IHS Infonetics

8

CE 2.0 Is Foundation For Third Network Services

8

• 97% of surveyed service provider professionals said CE 2.0 is critical or important foundation for dynamic services

• CE 2.0 connectivity fabric expanding– Many more intend to offer CE 2.0 certified or compliant

services by mid-2017

– Ethernet Interconnect Points (EIP) Project, etc.

Sources: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015); CE Services Market Trends Report, MEF and Frost & Sullivan (Sep 2015)

9

What Is A “Third Network” Service?

• Provides an on-demand, orchestrated, assured, and secured experience with user-directed control over network resources and cloud connectivity.

• Optimized for real-time traffic & integration of value-added network functions-as-a-services.

• Delivered over more automated, virtualized & interconnected networks powered by CE 2.0, LSO, SDN & NFV.

10

Transition To Dynamic Third Network Services

10GE UNI Services

Hybrid Layer 2 / 3 VPNs

Multiple Access Options

Ultra-Low Latency

100GE UNI Services

Multi-COS w/ Standardized Performance Goals

Service Performance SLAs Standardized Services / Manageability Over Interconnected Networks

Accelerated / Automated Delivery

Standardized E-Access

100G Wavelength Services

Expanded Service Coverage

Real-Time Performance Management w/Granularity

Scal

able

, Dyn

amic

, Cu

sto

miz

ed, E

very

wh

ere

Pre-Defined Connectivity Model Automated Cloud-Centric Model

11

Transition To Dynamic Third Network Services

10GE UNI Services

Hybrid Layer 2 / 3 VPNs

Multiple Access Options

Ultra-Low Latency

100GE UNI Services

Multi-COS w/ Standardized Performance Goals

Service Performance SLAs Standardized Services / Manageability Over Interconnected Networks

Accelerated / Automated Delivery

Standardized E-Access

100G Wavelength Services

Expanded Service Coverage

Real-Time Performance Management w/Granularity

Scal

able

, Dyn

amic

, Cu

sto

miz

ed, E

very

wh

ere

Dynamic Capacity - API-Driven

Ethernet Cloud Carrier

Dynamic Capacity Manual, Threshold

SD Cloud Exchange

Application-Aware Networking

API-Driven Performance-On-Demand Connect Me

Cloud + On-Demand WAN Connectivity

Automated, Self-Service Provision (One Network)

Automated, Self-Service Provisioning (Multi-Network)

Virtualized Network Services Using NFV

NaaS

Pre-Defined Connectivity Model Automated Cloud-Centric Model

12

MEF & Vertical Systems Group Study

• Global Survey – October 2015– Service provider, technology, and other professionals who work for MEF

member companies and/or are MEF Certified Professionals.

– 110 individuals employed by 87 companies operating in every region of the world • 64 professionals representing 50 service provider organizations / business units

• 46 professionals representing 37 technology and other firms.

• Service Provider Profiles– AT&T

– Level 3

– Telstra

13

MEF & Vertical Systems Group Study - Focus

• How & when revenue-generating dynamic services will impact the market

• Drivers, benefits & challenges of deploying dynamic services

• Available & planned dynamic capabilities that customers can control on their own networks, and

• Role and relative importance that LSO, SDN & NFV will play alongside CE 2.0 in driving the market

14

Dynamic Services Expectations Are Increasing

Source: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015)

Sell by 201860%

No plans or unsure

40%

Service Provider Plans To Offer Dynamic Ethernet Services

MEF & Vertical Systems Survey:~50 service provider business units

worldwide

• 64 Ethernet Service Provider Professionals from ~50 Organizations / Business Units – including nearly all leading Global & US Providers

• 97% said CE 2.0 services are essential or important as a foundation for dynamic services

• 74% said LSO is essential or important to support dynamic services

15

Transition To Dynamic Third Network Services

10GE UNI Services

Hybrid Layer 2 / 3 VPNs

Multiple Access Options

Ultra-Low Latency

100GE UNI Services

Multi-COS w/ Standardized Performance Goals

Service Performance SLAs Standardized Services / Manageability Over Interconnected Networks

Accelerated / Automated Delivery

Standardized E-Access

100G Wavelength Services

Expanded Service Coverage

Real-Time Performance Management w/Granularity

Scal

able

, Dyn

amic

, Cu

sto

miz

ed, E

very

wh

ere

Dynamic Capacity - API-Driven

Ethernet Cloud Carrier

Dynamic Capacity Manual, Threshold

SD Cloud Exchange

Application-Aware Networking

API-Driven Performance-On-Demand Connect Me

Cloud + On-Demand WAN Connectivity

Automated, Self-Service Provision (One Network)

Automated, Self-Service Provisioning (Multi-Network)

Virtualized Network Services Using NFV

NaaS

Pre-Defined Connectivity Model Automated Cloud-Centric Model

16

What Can Customers Expect, 2016 – 2018?

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Schedule Bandwidth Increase / Decrease On Existing Service Port

Manually Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port

Allow Lower Priority To Use Bandwidth When There Is No Traffic In Higher Priority

Dynamic Ethernet Capabilities – Customer Direct Control Via Web Portal or API

Automatically Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port

Sources: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015)

17

What Can Customers Expect, 2016 – 2018?

17

Schedule Bandwidth Increase / Decrease On Existing Service Port

Manually Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port

Allow Lower Priority To Use Bandwidth When There Is No Traffic In Higher Priority

Dynamic Ethernet Capabilities – Customer Direct Control Via Web Portal or API

Automatically Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port

Increase / Decrease Bandwidth On Existing Connection To Private Or Public Cloud

Active / Deactivate Ethernet Virtual Connection

Sources: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015)

Add Virtual Network Service To Ethernet Service –e.g. NFV-Enabled Virtual Firewall, Virtual Security

Activate A New Service Port

Change VLANs Mapped To EVC

Change Class of Service On Connection

18

Third Network Pillars: LSO / SDN / NFV

MEF LSOONF SDN ETSI NFV MANO

ServicePortal

NetworkInfrastructure

SDN Applications

SDN Controller

Man

age

men

t Fu

nct

ion

Network Infrastructure

Element Control and Management

OSS/BSS

NFVO

EMVNFM VIM

Network Controller

VNF

NetworkInfrastructure

NFVInfrastructure

OSS/BSS

Infrastructure Control and Management

Strategic MEF Industry-Wide Activities

21

MEF UNITE Program

Launched in late 2014 to coordinate internal & external engagement with Standards Development Organizations, Associations & Open Source Projects, to lead the industry migration to agile, assured and orchestrated services.

22

ITU & MEF Sign MOU Oct 2015

WHEREAS, ITU and MEF now desire to express theirmutual intent to cooperate for the purpose of drivingstandards-development and related program work toenable Carrier Ethernet and the next generation ofagile, assured and orchestrated connectivity services,and to enhance related knowledge infrastructurecapabilities globally with a special focus ondeveloping countries.

23

MEF & ON.Lab Sign MOU March 2016

Memorandum of Understanding centered on ON.Lab’sE-CORD and the MEF’s new OpenCS (Open ConnectivityServices) and OpenLSO (Open Lifecycle ServiceOrchestration) Projects.

ON.Lab E-CORD Demonstrates Programmable, On-Demand CE 2.0 E-Line Service As First MEF OpenCSReference Build

24

Ethernet Interconnect Points (EIP) Project

• Launched in November 2014, EIPs will be used to interconnect CE Networks at ENNI, Service Lifecycle, and Service Orchestration levels

• EIP Implementation Guidelines use (existing and future) MEF specifications and certifications from the ENNI to the LSO

• Unique Rapid Prototyping concept

25

MEF Services Interconnect Program

Designed to bring small wholesale operators into the community of companies that can deliver standardized, certified E-Access and E-Transit services

This MEF program enables the operator to:

• Cost-effectively become MEF E-Access and/or E-Transit certified

• Participate in wholesale-oriented program education and marketing activities

MEF Membership is Not Required For Small Operators

262012 2013 2014 2015

244

870

2298

3797

MEF Certification Programs

CE 2.0 Certified Service Providers

MEF-CECPs

CE 2.0 Certified Equipment Vendors

2013 2014 2015

11

28

51

2013 2014 2015

24 35 4056

153

259Certified Equipment Manufacturers

Certified Devices

2016 YTD: • 3953 MEF-CECPs• 399 Companies• 209+ SPs• 76 Countries

Services& Equipment

Professionals

2016 YTD: • 56 Certified Service Providers• 42 Certified Equipment

Manufacturers• 276 Certified Devices

27

• CE 2.0 100G Certification– First six certified vendors announced at GEN15 at gala event

• CE 2.0 E-Transit and Access E-Line certification– Launch - Invitation/call-for-interest release on Jan 20th

– First Announcements - Target mid-2016

– Transition - Plan for Access EPL/EVPL installed base

• Updates to MEF CE 2.0 Certification Policies– No change to CE 2.0 equipment “highly recommended” policy

– Update “equipment” to “product” language

– CE 1.0 certs no longer offered

– Clarification of registry listing policy to include only members and MEF-SI program participants

CE 2.0 Certification Program Updates

• 56 CE 2.0 Service Providers

• 42 CE 2.0 Equipment Manufacturers

• 276 CE 2.0 Devices

• 9 100G CE 2.0 Devices

Upcoming MEF Activities & Latest News

29

Join Us For The MEF Q2 Rome Meeting

• Open to MEF members and invited guests

• Plenary session features technical strategy, work updates, Euro operator panel

• Brainstorming session

• Committee/program working sessions

• Euro16 LSO Hackathon

• Social events – Dinner at Casa dei Cavalieri di Rodi

– Exclusive visit to Galleria Borghese

Seminar Series Sponsor Event Sponsor

https://wiki.mef.net/display/LH/MEF+LSO+Hackathon

April 27-29 2016 │ Rome, ItalyCo-located with MEF Quarterly Meeting

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The Third NetworkEnabling Dynamic Network Services For The

Hyper-Connected World

www.MEF16.com V1 01.15.16

Hilton Baltimore Inner Harbor Hotel

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What Sets MEF16 Apart?

• 1,200+ attendees from 300+ organizations 35+ countries

• 275+ Service & Technology Executives – 55% of attendees at Director-level or above

• 120+ CE 2.0, LSO, SDN, NFV, Cloud experts from leading service provider, technology, analyst firms

• Proof of Concept Service & Technology Showcase demonstrations

• MEF Excellence Awards Dinner

• 3rd LSO Hackathon

• Wholesale Track & Networking– largest gathering of Ethernet service buyers & sellers

• Global Media Hub – Meeting place for top press & industry analysts

• Sponsorship packages available. Visit www.MEF16.com.

33

MEF Strategic Work – Dynamic Network Services

• Carrier Ethernet 2.0 Foundation

– 1st 100G Certified Service Provider – Mid March

– Ethernet Interconnect Points (EIP) Implementation Guideline - April

– CE & NFV White Paper – April

• Layer 3 IP & Higher Layer 4-7 Service Definitions

• SDN and NFV as a new substrate

– Lifecycle Service Orchestration• Automated, Virtualized and Interconnected Networks

• SDN, NFV and Traditional Networks

• LSO Reference Architecture and Interface Definitions

– LSO Reference Architecture & Framework – Late March

• Common Information Models

– Open Source Initiatives• Collaborating with upstream Open Source initiatives

– OpenCS & OpenLSO – 14 March

– ON.Lab – 14 March

• LSO Hackathon

– Euro16 LSO Hackathon in Rome April 27-29

Seminar Series Sponsor Event Sponsor

Stan HubbardDirector of Communications & Research

MEF

MEF Strategy and Market Trends