The Network Meets the Cloud

Filippo Galimberti

filippo.galimberti@cisco.com

Cisco

June, 2014

Network Evolution through SDN and NfV

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The New Normal?

Applications Few Many Lots

PAST: 3 Years Ago

PAST: 3 Years Ago

NOWNOW

Time to Deliver New Services

Telecom: 18 months

Internet: 6 months

Social: Overnight

Connectivity Location based (Work / Home)

Device based Ubiquitous

Information Disjointed AnalyticsIntelligence:

Network+Analytics+Policy

How Does the Networking Business Evolve?How Does the Networking Business Evolve?

Near Future 2-3 Years

Near Future 2-3 Years

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51 62 76 91

110 132

0

20

40

60

80

100

120

140

2013 2014 2015 2016 2017 2018

Cisco VNI - Global IP Traffic Growth / Top-LineGlobal IP Traffic will Increase 3X from 2013 to 2018

Source: Cisco VNI Global IP Traffic Forecast, 2013–2018

21% CAGR

Exabytesper Month

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Cisco VNI - Global Connected Devices Growth by TypeBy 2018, M2M More than a Third of the Total Connections

* Figures (n) refer to 2013, 2018 device shareSource: Cisco VNI Global Mobile Data Traffic Forecast, 2013–2018

11% CAGR

Billions of Devices

0

5

10

15

20

25

2013 2014 2015 2016 2017 2018

M2M (18.6%,35.2%)

Smartphones (14.1%,19.1%)

Non-Smartphones (37.6%,16.8%)

TV (10.0%,12.8%)

PCs (12.2%,7.0%)

Tablets (2.3%,5.0%)

Other Portable Devices(5.2%,4.1%)

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Entering a New Era in the SP Network Evolution

Evolved Programmable Network

Open APIs

Evolved Programmable Network Infrastructure

SDN Control Resources Services

Evolved Services Platform

Applications and Services

Open APIs

Evolved Programmable Network (EPN) Era

Network Function Virtualization, Software Defined Networking, and Service Orchestration enable- Open and Dynamic - Optimal resource utilization- Accelerated innovation- New services & revenues - Reduced costs- Reduced complexity

Network Function Virtualization, Software Defined Networking, and Service Orchestration enable- Open and Dynamic - Optimal resource utilization- Accelerated innovation- New services & revenues - Reduced costs- Reduced complexity

Discontinuity #1:TDM rigidity limits new services,

forces architectural shiftIP NGN Era

IP unleashes new wave of innovation and service revenuesIP unleashes new wave of innovation and service revenues

Discontinuity #2:Commoditization of IP services

plus high traffic growth limits profitability, forces architectural

shift

TDM Era

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Major upcoming industry shifts – SDN & NFV

SDNCreate network abstraction to

enable faster innovations

� Network abstraction

� Network programmability & slicing

� Hybrid Centralization & distributed of control functions

NFVReduce Costs and provides

agility

� Relocation of network functions from dedicated appliances to generic servers

� Scalability and Distribution of Services

OpenInnovation

SoftwareDefined

Networks

NetworkFunctions

Virtualisation

Complementary Concepts

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17.000

18.000

19.000

20.000

21.000

22.000

23.000

24.000

25.000

2012 2013 2014 2015 2016 2017 2018

N. Am. MSOs - Cost by Year

Base Cost SDN Cost NFV Cost SDN+NFV Cost

Key Assumptions / Observations:• SDN Cost Savings: ~$1.1B by 2018

• CapEx saving of 5% per year from‘12 – ’18 for CPE, CMTS, Edge

& Core Routing, Carrier Ethernet & Network Functions

• OpEx savings of 2.5%, 2.5%, 5%, 5%, and 5% for ‘14 – ’18;

• NfV Cost Savings: ~$1B by 2018• CapEx saving of 10%, 10%, 20%, 30%, 30%, 30%, 30% for ‘12 –

’18 for a) network functions (L4 – L7), SP DPI, and Policy Servers

• OpEx savings of 2.5%, 2.5%, 5%, 5%, and 5% for ‘14 – ’18;

• SDN + NfV Cost Savings: ~$2.7B by 2018• Incremental SDN HW reduction for CPE and CMTS from 5% to

20% due to virtualization of CPE and CMTS which requires both

SDN & NfV

• Incremental SDN HW reduction for Network Functions, SP DPI,

and Policy Servers of 15%, 15%, 25%, 35%, 35%, 35%, 35% for

‘12 – ‘18

• Other HW cost reductions same as SDN and NfV stand alone

scenarios

• OpEx savings of 2.5%, 2.5%, 5%, 7.5%, and 10% for ‘14 – ’18;

assumed slightly high OpEx leverage in ‘17 and ‘18 once both are

deployedSources: Gartner, Cisco VNI, Infonetics, Canalysis,

Gigaom, DrPeering, Frost & Sullivan, & SNL Kagan 7

SDN & NfV: Potential for Significant Cost Savings

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The SDN Proposal The SDN Proposal The SDN Proposal The SDN Proposal The “purist” viewpoint

Data Plane

Control Plane

Data Plane

Provisioning Controller

Today SDN / OF

Dev

ice

Vendor-specific APIs

Openflow Protocol

SDN Optimist View• Simpler to configure• More flexible• More scalable• Cheaper/Monetisation

SDN Optimist View• Simpler to configure• More flexible• More scalable• Cheaper/Monetisation

SDN Pessimist View• Reinventing the wheel• Moving complexity around

protocol integrations

SDN Pessimist View• Reinventing the wheel• Moving complexity around

protocol integrations

Centralised

Distributed

“…In the SDN architecture, the control and data planes are decoupled, network intelligence and state are logically centralized, and the underlying network infrastructure is abstracted from the applications…”

Openflow Hardware

In Service Provider, formal definition of SDN will NOT meet market demands and risks being the next “Great Hype”

Key Factors in SDN evolution

• SDN needs “simplification” and an Evolution of current environment

• Collaborative “Hybrid” Control plane adoption

• Abstraction layers and Programmability via API’s/Protocols

• Use case driven based on SDN models

Conclusion: Derive the common themes and adapt to thrive bring real value to SPs

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The Collaborative “Hybrid” Control PlaneThe Collaborative “Hybrid” Control PlaneThe Collaborative “Hybrid” Control PlaneThe Collaborative “Hybrid” Control PlaneTrue Service Level Benefits

� Distributed Components –Functions tightly coupled to data plane– IGP convergence, OAM and physical link state driven protection, Distributed SON

� Centralized Components –Functions where a holistic/abstracted view is required– PCE (Path Computation Element) Traffic Placement : 30% efficiency, Centralised SON

� Existing distributed control plane ->Augmented by centralised control plane function

Application

Distributed Control Plane

Data Plane

Centralized Control Plane

APIs

Traditional Control Plane Architecture(Distributed)

SDN Control Plane Architecture(Centralized)

Collaborative Control Plane Architecture

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SDN Network EvolutionNetwork “simplification” with integration of Cloud and SDN techniques

• IP+Optical Multi-Layer Optimization

• Unified MPLS/Flex LSP

• Segment Routing

• Infrastructure Controller/WAN Orchestrator

• IP/MPLS and Cloud Integration/NfV (Network function Virtualisation)

• Cross Domain Orchestration

Combining Advancements from Multiple Technology Areas

Infrastructure Controller/WAN Controller

Infrastructure Controller/WAN Controller

IP/OpticalIP/Optical

Unified MPLS/FlexLSP

Cross Domain Orchestration

Segment Routing

MPLS with SDN Technology Enablers

MPLS Architecture

NfVNfV

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Network Solutions: Requirements And Today’s Approaches

Business CPEBusiness CPE

Appliances (L4-L7)

Appliances (L4-L7)

Backbone, Metro and DC switching

Backbone, Metro and DC switching

Wireline GWsWireline GWs

Home CPEHome CPE

Wireless GWs

Wireless GWs

CPUReqs

0 10Mbps 100Mbps 1Gbps 10Gbps 100Gbps 1Tbps 10Tbps 100Tbps 1Pbps

High

Low

Distributed: CPUs + Lots of NPUs

Distributed: Lots CPUs + NPUs

Centralized: CPU + NPU

CPU

Centralized: CPU or SoC

Variable CPU / FPGA / NPU

OSS/BSS, subsystemand N/W control

OSS/BSS, subsystemand N/W control

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APIs and AgentsAPIs and AgentsAPIs and AgentsAPIs and Agents

Application Frameworks, Management Systems, Controllers, ...

DeviceDevice

ForwardingForwarding

ControlControl

Network ServicesNetwork Services

OrchestrationOrchestration

ManagementManagement

“Protocols”

onePK API & Agent Infrastructure

…

…

I2RS

I2RS

PCEP

PCEP

Ouantum

Neutron

OpenFlow

OpenFlow

OMI

OMI

Netconf

Netconf

Puppet

Puppet

BGP-LS

BGP-LS

onePK

Operating Systems – IOS / NX-OS / IOS-XR

BGP

Diameter

Radius

SNMP

…

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Evolved Programmable Network ArchitectureOpen SDN/NFV Innovations for an Evolved Programmable Network

Video

M2M

Cloud

MobilityEvolved Programmable Network

NCS NCS

APIs

APIs

EDGECORE

Access

VM VM

Edge

Core

VM

Access

Evolved Services Platform

VM / Storage Control

Service CatalogService Orchestration Apps

VM

Applications and Services

CDN

ACCELERATE

OPTIMIZE

MONETIZE ¥£€$

Always “ON”

On-DemandServices Anywhere

Dynamic Scale

ApplicationInteraction

SeamlessExperience

Policy

Real-Time Analytics

Fully Virtualized

IntelligentConvergece

Automated

Open and Programmable

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Centralised WAN Orchestration –WAEBird’s-eye view of converged IP/Optical

• Leveraging and extending upon Mate multilayer planning and policy engine

• Holistic view of E2E WAN

• Upon application network resource request, optimal path is calculated based on past and present data analysis

• Program network elements to bring up a path across converged IP/Optical network

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SDN in Transport: Multi-Layer RestorationLeverage End-to-End Control Plane, WSON Intelligence

ONS 15454MSTP

Client

Colorless, Omni-Directional ROADM switches to the best pathService is brought back up with the same Client and Optical interfaces, zero touches

Intelligent WSON identifies new paths

ROADM instructs client to re-tune its wavelength

Fiber Cut!

Client

New Path Attributes for Circuit:- Opt in or out of SRLG- Follow/avoid another Circuit- Use path with specific latency

Paths verified for circuit against requested attributes

Integrated ControlPlane + SDN/PCE

Wavelength Switched Optical Networks, GMPLS

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nLight Multi-Layer, IP+Optical CapEx SavingsReal World Examples

0%10%20%30%40%50%60%70%80%90%

100%

4 nodeexample

DT year 1 DT year 5 TEF year 1TEF year 5

Baseline MLBO MLBO+MLR-O MLBO+MLR-O+MLR-PMate

Mate w/ Optical & Packet Rest.

No Optimization

Cariden w/ Optical Rest.

4-nodebaseline

DTYear 1

DTYear 5

TelefonicaYear 1

TelefonicaYear 5

• Multi-layer capacity planning model for IP Networks over optical transport, including:

• Router port bypass with ROADM

• Multi-layer restoration via common IP + Optical control plane (nLight)

• Route optimization using Cariden MATE tool

• Real-world CapEx modeling for multi-layer capacity in partnership with DT and Telefonica

• Joint white paper submitted to IEEE Communications magazine

• Result: up to 60% CapEx savings over 5 years for IP + Optical multi-layer restoration

• Savings based on eliminating IP router ports, transponder ports, wavelengths, power, chassis

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Multi-tenant Virtual Private Cloud

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SDN/NfV change the Operations

SDN explicitly and automatically links applications to the physical network.

PMO(Present Mode of Operations)

SDN/NfV

Applications have little knowledge, control, or visibility of underlying network and resources

SDN provides APIs and a control layer that explicitly links applications to the physical network

ElementNetwork Element Element

Network Element Element

Network Element Element

Network Element

Infrastructure & Control Layers

Application Layer

ApplicationsBusiness

Applications

Application Layer

ApplicationsBusiness

ApplicationsAPI API API

ElementNetwork Element Element

Network Element Compute Compute

Infrastructure Layer

Control Data Plane Interface

Control Layer

ServicesNetwork Services

SDN

Control

SoftwareManual Interface

Source: Open Networking Foundation/Cisco

VnfVnfVnfVnfVnf

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DevOps: Faster time to Services

“DevOps literally means developers and operations.It’s a contraction. The concept behind it is getting developers and operations folk to work closely together to benefit the business.The goal is to reduce friction and increase velocity.”

• Reduced Release Cycles• Capture Demand faster• Adopted by OTTs

Creates new Revenues streams by improving Flexibility

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Success factors to SDN/NfV implementation

InfrastructureSilicon

ASICs

ComputeDataCenter, PoP

SoftwareVNF, Orchestration, Controllers

Operational ModelsFlexible adoption

EvolutionHybrid architectures

Silicon - NfV

Thank you.