Pure-Play Virtualization for Rural Broadband

Pure-Play Virtualization For Rural BroadbandChoice. Agility. Performance.

© 2016 ADVA Optical Networking. All rights reserved. Confidential.2

ADVA Optical Networking Today

Network innovator – Speed for customers – Trusted partner

Our LEADERSHIP#1 Ethernet access devices3 global#1 Enterprise DCI4 in EMEA; #2 global#2 Metro WDM5 in EMEA#2 Network synchronization6 global

Our NUMBERS EUR 442 million revenue1

>1,700 employees2

Our CUSTOMERSHundreds of carriersThousands of enterprises

1) Annual 2015; 2) March 31 2016: 1724; 3)&5) IHS Infonetics Research, 4) Ovum 6) ADVA Optical Networking internal estimates

HeadquarterOfficeRepresentative


Innovation Overview

CLOUD&

MOBILITY

FSP 3000 CloudConnect™Shipping in Q1 2016Specifically designed for DCI marketMost compact and scalable product Open optical line system

Access to USD 4 billion NFV market Enabling choice, performance, agility

Most advanced and comprehensive solution

Transforming the industry and expanding our competitive advantage

ConnectGuard™Complements secure optical DCI leadership Fixed and mobile user secure cloud access

Encrypted Ethernet connectivity

Access device industry firsts: SFP-based timing excellence Rubidium-based timing with unique holdover algorithm


Our Hardware, Software and Services

Cloud interconnectCloud access

Service delivery and assurance

Metro/Core Distribution and hosting

Business continuity

Cloud and OTT services

Connecting, extending and assuring the cloud

Synchronization delivery and assurance

Cloud Extension


Network Virtualization in Rural Broadband


Future of Rural Broadband• Rural broadband providers face an uncertain future of federal funding

• Changes in Universal Service Funding make it difficult to obtain funding or recoup high costs of servicing low-density, remote locations

• Rural broadband providers need new technologies and strategies to build revenue, reduce costs and gain operational efficiencies

• Rural broadband providers need strategies for competing and partnering with larger providers and/or public-owned providers

• Network virtualization provides many advantages for communication service providers and it can be particularly beneficial for rural broadband providers


Network Virtualization = Greater Profitability• Virtualization replaces today’s expensive custom hardware

appliances with software-based virtual network functions (VNFs) running on low-cost and open commercial off-the-shelf servers

• Network functions virtualization (NFV) and software defined networking (SDN) provides service agility, network flexibility and performance

• To reap the true rewards of NFV and SDN, rural broadband provides need to focus on pure-play NFV and SDN architectures

• NFV can help rural broadband providers drive new business today and set them up for continuous innovation in the future


What Can You Do With NFV?• Compete with larger communications providers in neighboring urban areas

• Automation of network and service operations provide significant reduction in costs and an opportunity to be more competitive on price

• Quickly define and deploy new services while eliminating the need for truck rolls and hands-on access to configure remote network equipment • Including cloud-based managed services such as security, firewall, VPN, database, PBX, etc.

• Personalize end-customer experience through granular network orchestration and management

• License software on a pay-as-you-go or pay-as-you-grow scale• Eliminate need for huge upfront investment• Minimize financing on upgrades or expansion


What is Pure-Play Virtualization?Pure-play virtualization enables users to realize the benefits of the cloud by replacing closed appliances with their choice of software that can be hosted anywhere in the network on their choice of open hardware.


Pure-Play Enables Choice!

• Hardware suppliers• Brand• Compute power and memory• Features (NEBS, power, redundancy)

• Software VNF suppliers• Ability to change as needed• Including swapping out ECE

• Deployment location• Cloud / data center• Central office• Service edge• Service chains between the above


Benefits of Pure-Play: Choice of Software

Pure-play virtualization allows users to:• Pick best-of-breed VNFs from a variety of suppliers• Use different VNFs for same function with differing performance, features and

price points• Replace VNFs as needed without requiring any hardware changes or truck rolls• Deploy new VNFs on a common hardware architecture

Start:1 VNF

Later:2 VNFs

Even later:2 VNFs, 1 replaced

Firewall X

Firewall X

Firewall Y

Firewall Z

Firewall Y

Later still:3 VNFs, 1 new

Firewall Z

Firewall Y

Router A


Benefits of Pure-Play: Choice of Hardware

Pure-play virtualization allows customers to:• Let the application dictate the hardware requirements• Leverage the wide array of available COTS servers• Ride the Moore’s law curve of increasing compute power and efficiency

Residential Gateway

Deep Packet Inspection

Intrusion Detection

Content Delivery/ Cache

Encryption

Application Acceleration

Load Balancer

Network Address Translation

Network Firewall

RouterSIP Gateway

Test Set

Basic Traffic Management

Traffic Management

Digital PBX

Session Border Controller

Choose any platform or brand


Benefits of Pure-Play: Choice of Location

Pure-play virtualization provides choice in deployment locations:

Metro edge/central office

x86

Virtual functions

Service edge

Virtual functions

Datacenter/core/metro

Cloud ordatacenter

VNFs placed where needed, based on:

x86 Server

• Edge/CPE: low entry cost, resources scale with services• CO/POP: reduced cost, increased speed, migration

• Datacenter: lowest cost, highest scalability• Chained: best of all worlds

Virtual functions

• Service requirements (security, latency, bandwidth)• Resource availability

• Preference (customer or operator)


Our Approach to Pure-Play Virtualization

To be considered pure-play virtualization, a solution must incorporate the following four components:1. Completely open architecture

• Including hardware and software2. Open carrier-class orchestration

• Supports a variety of VNFs with internal or external VNFM3. Comprehensive ecosystem of VNFs

• Both 3rd party and open source4. High-performance virtual switching and Carrier Ethernet

• Enables single-box deployment anywhere in network


Ensemble Use Cases


Customer problem• Limited operational automation in appliance-

based solutions• Proprietary and incongruent management

requirements for appliances• Limited flexibility for new service introduction• Multiple boxes required for each new customer

Challenges• Locked into expensive, proprietary appliances• Service activation tied to new ‘boxes’, truck-rolls• Easily change service offering over time• Operational efficiencies across service

management

Use Case: Enterprise Service Delivery Challenges

Service provider

Router

Firewall

NID


Use Case: vE-CPE NFV-Based Service DeliverySolution• Ensemble Connector for Carrier Ethernet and high

performance virtual hosting:• Accelerated vSwitch• Supports DPDK enabled VNFs

• VNFs from any supplier can be deployed• Standard server-based, can be multi-purposed for

different service offerings

Benefits• Rapidly launch new services, drive new revenues,

reduce costs (over time)• Real-time, low-touch service deployment and

activation• Subscriber self-provisioning capability for new

services

ADVA FSP 150vSE or ProVM or COTS

Service provider


Inject new services into existing Layer 2 and 3 VPNs running over existing MPLS networks, CPE deployments – without modifying existing infrastructure!

Use Case: Upgrade Existing MPLS Networks

MPLS backbone

Layer 3VPN

Ability to derive incremental, value-added service revenue from existing customers with minimal cost and operational overheads

Data center


Use Case: Virtualized Networks

Enables operators to join the fray by delivering NFVIaaS along with Carrier Ethernet connectivity

Enables overlay service providers or enterprises to manage their own network without buying or managing hardware

To this:

From this:

Provider YEAD

Provider X FSP 150 vSE

Customer

Provider Y FSP 150 ProVM

or vSE

Provider XVNFs

Customer

Provider XVNFs


DartPoints Use Case – Micro Datacenter

Multi-tenant building

Co-locate with end-users to provide network and secure cloud services

Gatewayrouter

Customer 2FSP 150 vSE

Customer 1FSP 150 vSEPublic

Internet

Micro data center DartPoints

NOC


Use Case: SD-WANSD-WAN management layer

IP/MPLS IP/MPLS

Branch

BranchVNF

Connector

VNF

VNF

Connector

VNF

ADVA FSP 150 vSE

ADVA FSP 150vSE

HQ

VNF

Connector

VNF

ADVA FSP 150 ProVM

NFVO(Ensemble Orchestrator)

SDN Control(Ensemble Controller)

Cloudmanager

REST

PE

IP

(MPLS in IP)

PE

PE

PE PE

On-netOff-Net

Gateway Connector

Xeon Intel Server

Provides flexible and secure network overlay to deliver IP connectivity to customers on-net as well as out of region

VRF


Ensemble Active Customer EngagementsService provider Application/

use caseEnsemble

OrchestratorEnsemble Analytics

Ensemble Connector

FSP 150 VSE

FSP 150 ProVM

Masergy Prem-based virtual CPE Yes YesDartPoints DC virtualization Yes Yes Yes

Tier 1 fixed (US) CO virtual Service Yes Yes YesTier 1 fixed (US/EMEA) Virtual CPE/SD-WAN Yes Yes YesTier 1 cable MSO (US) Virtual CPE Yes Yes

Tier 1 fixed/mobile (CALA) Virtual CPE Yes Yes Yes YesTier 1 fixed/mobile (EMEA) Virtual CPE Yes Yes Yes Yes

Tier 1 fixed (US) Virtual CPE/SD-WAN Yes Yes Yes YesTier 1 fixed (US) Virtual CPE Yes Yes

Tier 1 fixed (US/APAC) Virtual CPE Yes Yes Yes YesTier 1 fixed (APAC) Virtual CPE Yes Yes Yes Yes

Tier 1 cable MSO (US) Virtual CPE Yes Yes YesTier 2 fixed (US) Virtual CPE/SD-WAN Yes Yes Yes

Tier 1 cable MSO (US) Virtual CPE Yes YesTier 2 fixed (APAC) Virtual CPE Yes Yes Yes

Tier 1 fixed/mobile (APAC) Virtual CPE Yes Yes YesTier 1 fixed (EMEA) Virtual CPE Yes Yes Yes


Solution integrators

Comprehensive Ecosystem - HarmonyVNF providers Technology partners


Vendor VNF category ProductRouter, vADC, vEPC 5400, 5600 vRouter, vEPC, vADC

Encryption vCEPFirewall FortiGateFirewall Security Gateway Virtual EditionRouter VSR 1000

WAN Optimizer Ipanema WAN Optimization Router vMX

Core IMS, SBC Clearwater IMS, Perimeta SBCFirewall VM-Series for KVM

DPI DeepflowWAN Accelarator SteelHead

SBC SBC Software EditionSmall Cell Gateway SmGW, seGW

Tier 1 NEP (via VNFM) vEPC vMME, vS/PGWTier 1 NEP (via VNFM) vIMS vIMS, Open TAS

Testhead Test Center Virtual with DPDK

Current VNF LibraryVNF category Product

Firewall Untangle

Firewall pfsense

IP PBX Asterisk

Packet crafter, traffic generator and analyzer Ostinato

Proxy server Squid proxy

Router Vyos

UCS SIPxecs

3rd party Open source

Benefits of Virtualization in Rural BroadbandSavings, service agility, flexibility


Primed for Innovation

“Our rural broadband clients are a passionate, motivated group and they will innovate. We’re going to be challenging them to find new and better ways of providing services with NFV. We fully expect these Tier 3 providers will create new ways to complete on service level and price without a lot of investment.”

Tory Richtmyer, Mid-State Consultants


Challenges With NFV• Current hardware-centric culture and staff skill set

• Training and some staff augmentation to become Agile/DevOps• Overhead is reduced as new technology facilitates more remote

support and maintenance• Engineering and support services providers will adapt by adding

software techs and keeping them trained on the newest offerings

• Fear of expense and unknown• New software licensing schemes and lower-cost hardware reduces risk• Partnering with engineering firms and vendors is critical• Overture Total Cost of Ownership Calculator and Agility Model

• Vetted with service providers of all sizes and areas• Provides a solid estimate of savings and new service revenue


Total Cost of Ownership Calculator


Summary• NFV brings real benefits to rural broadband providers

• Operational efficiencies and savings• New service innovation to grow revenue• Flexibility for quick and cost-effective changes• New pay-as-you-go licensing models lessening financial risk for

upgrades and expansion• Lower overhead costs with fewer truck rolls and “zero-touch” activation,

upgrades and maintenance• Choice of software. Choice of hardware. Choice of location. Choice to

change.

Thank you!

Mike HeffnerSenior directorTechnical product marketing

Pure-Play Virtualization for Rural Broadband

Technology

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