Network Virtualisation – A Service Provider’s Perspective

Presented by: Steve Legge, Chief Operating Officer8 May 2007

The Evolution of SOUL

• Australian broadcasters required a broadband network for Digital TV (DTV)

• Buy or Build? Optus or Telstra were the only bandwidth resale options … (both expensive)

• NBN therefore elected to build excess broadband capacity at minimal marginal CapEx and OpEx

• A separate entity was created as a licensed carrier to facilitate the sale of excess capacity, adopting the Soul Pattinson name

• Convergence of broadcast television and telecommunications content and distribution successfully implemented across the network

• The business and network expanded along eastern seaboard of Australia

Who is SOUL?

• The largest operator of ‘greenfield’ MPLS based IP networks in Australia

• The only national PSTN interconnected IP network in Australia

• Voice, video and data over a single, national IP network

• Fibre network throughout intercapital and regional Australia

• In excess of 300 points of presence (PoPs)

Who is SOUL?

• Network has full QoS feature support with Service Level Guarantees to support lower latency, packet loss and jitter

• 100% Powered by Cisco Systems – Single vendor platform

• Infrastructure is SOUL owned and operated, and independent of Telstra

• In excess of 900 employees in offices throughout Australia

• Consumer Call Centres in Perth and Sydney

Network Design

• The network was initially designed for DTV Transmission

• Provides higher availability than standard Telco networks, as the network core cannot suffer any downtime

• Increased redundancy in all layers

• Architecturally different to other telco networks as design is optimised for content delivery, not just traditional services

• This increases the access to regional areas due to distributed core design

• Diverse fibre paths also operate across the country for redundancy

• Capability exists to rapidly increase regional reach (new POI deployments)

New Demands on the WAN

BusinessImperatives

ITApplications

WANImplications

• Collaborative apps

• B2B applications

• Web services

• IP telephony

• Video applications

• Storage / back-ups

• Content distribution

• Distributed data centers

• Teleworkers

• Reduce cost

• Increase productivity

• Improve Responsiveness

• Build resilience

• Focus on core competencies

• Any-to-any

• Scalable bandwidth

• Convergence

• QoS

• Security

• Availability

• Remote access

• Web integration

• Manageability

More ComplexCommunities of Interest

• IP Telephony drives PVC growth• Full mesh for media bearers• Separate voice and data

PVC’s• Larger PVCs for desktop

video• Shared services require PVC’s

back to data centres• Ultimately a cost that you bear

• Direct• Via Service Provider• Network Performance

Source : Ovum, 2003

Degree of Meshing

Hub and Spoke Full Mesh

QoS IP VPN

Frame Relay

Frame Relay vs QoS IP VPN Costs

A compromise between performance, customer satisfaction & budget

ApplicationDemands

More ComplexConnectivity Demands

• Support an expanding range of devices and technologies

• Aggregate users and content from anywhere without bottlenecks

• Maintain accessibility, security and control over all connections

• Seamless, consistent experience to anywhere in the IP cloud

GPRS 3G UMTS WLAN Ethernet ATM / FR DSL / Cable

Internet

Intranet &Extranet

Applications

& Collaboration

Content &

Information

—Communication

& Messaging

Accessible from any device, portable across devices

Seamlessly accessible from any access technology

Dial

Benefits of MPLS VPN

MPLS

IP VPN

ATM FR

ScalabilityLow-high speed access

Any technology

Security Equivalent to ATM/FR

Flexibility

Any-to-any connectivity

Easy add/remove users and sites

IP address freedom

Performance Guarantees

CoS for voice, video & data

IP SLAs for predictable latency, throughput, availability, packet loss & jitter

Coverage and Reach

OnNet for performance, function and SLA

OffNet for global coverage and remote users / devices

Price and Cost efficiency

Lower price per bit of IP

One access line, multiple services

A More Extensive Feature Set

RoutingSimplicity

4-8 CoSLevels

Integrationwith

CSS Portal

End-to-EndPrioritisation

Network-Based

Firewalls

IPSec &SSLRemoteAccess

End-to-EndSLAs

P2P &ApplicationBandwidth

Control

Multicast

ApplicationAcceleration

Unified IPComms

Core Features / Functions

Ancillary Features / Functions

AccessTechnology

Agnostic

Any-to-anyConnectivity

SimplifiedNetwork

Integration

CoS /QoS

CleanInternetAccess

NetworkAdmission

Control(VPNAC)

A Closer Look

Full Service Networking

PE PE

VPN BCE

VPN ACE

Layer 3 Routing protocols available on

PE-CE – Static, RIP, OSPF, EIGRP, eBGP

IP Services like NAT, DHCP can be

configured on per-VPN basis on the PE router

Traffic Engineering for SLA, bandwidth protection and

restoration

Layer 3 access via DSL, Cable, Ethernet, ATM/FR, Dial, 3G

QoS mechanisms like Queuing and Policing

are configured at CE and PE routers

Traffic separated by unique route

distinguishers

Layer 2 Circuits available – Ethernet,

ATM, Frame Relay, PPP, HDLC

VPN ACE

VPN BCE IP / MPLS

Core routers have no knowledge of customer

network

Layer 3 Routing protocols available on

PE-CE – Static, RIP, OSPF, EIGRP, eBGP

IP Services like NAT, DHCP can be

configured on per-VPN basis on the PE router

Layer 3 access via DSL, Cable, Ethernet, ATM/FR, Dial, 3G

QoS mechanisms like Queuing and Policing

are configured at CE and PE routers

Traffic separated by unique route

distinguishers

Layer 2 Circuits available – Ethernet,

ATM, Frame Relay, PPP, HDLC

Core routers have no knowledge of customer

network

Internet PSTN

A Closer Look

Shared Services

PE PE

VPN BCE

VPN ACE

VPN ACE

VPN BCE

ERP Collaboration VideoHostedContent

InternetGateway

VoIPGateway

IP / MPLS

A Closer Look

Remote Access

Internet PSTN

PE PE

VPN BCE

VPN ACE

VPN ACE

VPN BCE

ERP Collaboration VideoHostedContent

InternetGateway

VoIPGateway

IP / MPLS

SSL

IPSec

IP VPNs = Improved Performance

Operational Performance

• Enable a range of applications from voice to video, content, and storage

• Increased productivity

• Improved communication effectiveness

• Focus on core competencies

• Closer ties to partners and suppliers

• Lower communications & improved productivity for remote users

Technical Performance

• End-to-end QoS for data, voice, and video

• Affordable, any-to-any connectivity and enhanced network availability

• Any access speed and technology

• Security and privacy equivalent to or better than Frame Relay and ATM

• Support private IP addressing plans

• Favorable price/performance ratio of IP networks

The Next Generation Leased Line

• Driven by business & market needs• Enterprises AND Service Providers • More complex communities of interest• More complex connectivity demands• Appetites for Value-Added Services

• Migration from ATM/FR is NOT just about cost1. Scalability2. Reach3. Security4. Application convergence5. Enabling evolution

Source : Business Communications Review / InfoTech

Why Choose SOUL?

• “SOUL-owned” competitive infrastructure, providing an alternative to traditional Telco incumbents

• New and improved broadband products and services to metro and regional communities

• Commitment to our Customers and their business

• Commitment to solution delivery

• Premium purpose built network designed to support real time applications

In Summary

• SOUL - one network• Greenfield National MPLS – IP Network• True convergence – Broadcast video, carrier voice and

private data across one MPLS network

• Consider convergence across the business• Network, Service, Application

• Broadband IS and WILL BE the delivery enabler• Economics of multiple services

• SPs must continue to enforce a place in the value chain