accedian.com/vcpe-trends

2016

CloudconnectivityandvirtualizedservicedeliveryatthenetworkedgevCPE TrendsforCarrierEthernet

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PracticalResultsreflectcurrentnetworkandnear-termprojectsandstrategies

NetworkEngineering

andOperations66%

Other24%

CorporateManagement

10%

EngineersSpeakOut

BigMorethanhalfofCSPssurveyedareTier1operators,reporting over$1BillionUSDinrevenueannually

Wireline47%

Converged34%

Mobile19%OperatorType

Global•68communicationsserviceproviders (CSPs)•MorethanhalfofCSPssurveyedoperatefixedandwirelessnetworks

•AllCSPssurveyedofferCarrierEthernetservices

2015HEAVYREADINGCARRIERETHERNET SURVEY:RESPONDENTS

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By2020

Bytheendof2016

Today

98%85%55%<2%

ofoperatorswillofferdatacenterconnectivity

ofoperatorswillofferdatacenterconnectivity

ofoperatorswillofferdatacenterconnectivity

ofoperatorshavenoplanstooffer specializedservice

HybridCloudConnectivityStrategy

GrowingRevenue,GrowingCompetitionofserviceprovidersseeincreasedpricepressure,withMetroEthernetfacingthemostcompetition.

nearly

70%

SERVICESTRATEGIES

BUTofoperatorsexpectrevenuegrowthoverallservices.90%

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VirtualizingandControllingNetworkFunctionsacrucialbutunclearroad

vCPE ROADMAP

ofoperatorssayVNFs/controlismostimportant

Nearly

70%plantooffervirtualized

functions in2016

Over

50%

ANDdon’thave

clearplanstomakeithappen

Over

33%

BUT

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NETWORKEDGEEVOLUTION

EvolutionFromRouterstoNIDsforvCPEWhatoperatorspredict:

ofcustomersiteswillhaveaphysicalrouterfromtheserviceprovider.

WhyvCPE?•Driveoutcost•Increaseagilityandvisibility•Optimizeperformance

willuseaNIDsinstead.

willuseNFV-basedNIDs(smartSFPs,compactNIDmodules) toreducefootprint, deploymenttime,andcost.

under10%

over90%

and40%

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THEROLEOFVNFs

ServiceProviderDataCenter/NOC

WhereVNFsWillLiveHostingVirtualNetworkFunctions (VNFs)indatacentersisfavoredby56%overon-siteCOTSappliances.

PrivateCloud

Internet

PublicClouds

ServiceProviderNetwork

NIDs/vCPE

TheNIDisresponsibleforperformanceThemajorityofoperatorsareprioritizing

QualityofServiceSLA&PerformanceMonitoringTurn-UpTesting

12

3

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CUSTOMERCONCERNS

Whatcustomersvalue:

ServicePerformance&Flexibility

HowServiceisDelivered

Whatisthemainservicedifferentiatortoday?

2015End-to-endSLAswith

performanceguaranteesIdentifiedascriticalby

88%ofoperators

VS

Themainservicedifferentiatortomorrow?

(next12-18months)

PerformancevisibilityPredictedby

73%ofoperators

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NETWORKVISIBILITY

Perform,ButProveItWebservice/performance-reportingportalsrankinthetopvalue-drivingtechnologies.Operatorspredicttheseportalswillinfluencetwice asmanypurchasedecisionsinthecomingyear.Overhalfthinkreal-timereportingisessentialtosellingtheirservice.

noplantooffer it

Real-TimePerformance

Reporting:OperatorPlans

plantoofferitby2017

offeritnow

IntheBlinkofanEyeCustomersarebecomingmoresavvyaboutreportingastheirCarrierEthernetservicesbecomelifelinestocloudinfrastructure.Whichmeasurementsmattermost?

Identifiedascriticalby4outof5operators:•One-waylatencyanddelayvariationmillisecondprecisemeasurements

•Sub-secondreporting burstdetection

Identifiedascriticalby3outof4operators:•QualityofExperience(QoE)forVoIP,video,SaaS

•TCPthroughputcapacity(TCP/PM)•Packetlossperflow

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LEARNMORE

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