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Celebrating 30 years as global specialist advisers on telecoms, media and technology (TMT) 30 years LEVERAGING NEXT-GENERATION AND VIRTUAL NETWORKS VIRTUALISATION: BUILDING TOMORROW’S MORE SCALABLE, FLEXIBLE AND DYNAMIC NETWORK

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  • Celebrating 30 years as global specialist advisers on telecoms, media and technology (TMT)

    30 years 30 ans 30 años

    30 years 30 ans 30 años

    LEVERAGING NEXT-GENERATION AND VIRTUAL NETWORKS

    VIRTUALISATION: BUILDING TOMORROW’S MORE SCALABLE, FLEXIBLE AND DYNAMIC NETWORK

  • 2

    CONTENTS

    Introduction p 3

    CSPs must overcome NFV operationalisation obstacles to commercialise hybrid physical–virtual networks p 4

    What network function virtualisation will mean for service fulfilment p 6

    NFV and SDN enable CSPs to stay relevant to their customers in the digital economy p 8

    OSS and BSS will play a central role in the automated orchestration of APAC’s networks and services p10

    New research p12

    About Analysys Mason p16

    Analysys Mason newsletters p18

  • The telecoms industry is no longer a walled garden that stands apart from the wider digital economy.

    To be full participants in the digital economy, which Analysys Mason defines as “all socioeconomic activity, mediated by software, enabled by telecoms networks, leveraging big data”, telecoms players must rethink networking, innovate more rapidly and radically than in the past and embrace a broader view of their customers and competitors.

    CSPs must build mobile and fixed networks that enable much more agility in developing, deploying and managing dynamic and personalised services and that are much more cost-efficient. Communications networks must support a wider array of third-party digital economy applications. Network and network operations support suppliers must support more open, multi-vendor approaches and cloud-based delivery models.

    Virtualisation is a new and important tool for building tomorrow’s more scalable, flexible and dynamic network foundation, whether it be a 5G mobile broadband network, a fixed broadband network, a data centre network or the IP/optical wide network that connects these assets to each other and to enterprise customers.

    Key considerations when rethinking networks

    What it means for CSPs

    With billions of US dollars invested in physical network assets and employees trained to build and maintain them, a CSP cannot simply start over with a clean slate; it must develop a plan and evolve over a decade or longer to that plan. CSPs must retrain or hire employees; conduct proof-of-concept (PoC) tests; develop new business models; reframe content and applications providers (aka OTTs) as potential customers, not competitors; partner and negotiate with vendors; and implement new network deployment and service delivery strategies. In short, CSPs must create business plans that reconsider their entire operation…all while continuing to support today’s customers and services and maintaining high quality and reliability.

    What it means for vendors

    Similarly, vendors must revamp their entire development process; learn to take advantage of open source software; create or join partner ecosystems to streamline product development and distribution; restructure professional services offerings and partnerships; reconsider pricing models; and anticipate new competitive threats.

    In this issue

    In this issue, which highlights research from the last 12 months, we cover a number of key challenges that surround network innovation including how CSPs must overcome network function virtualisation (NFV) operationalisation obstacles to commercialise hybrid physical–virtual networks. Our experts also look at what NFV will mean for service fulfilment and how NFV and software-defined networking (SDN) enable CSPs to stay relevant to their customers in the digital economy. Finally, we look at how OSS and BSS will play a central role in the automated orchestration of Asia–Pacific (APAC) networks and services.

    We also share some of our latest research around the challenges of virtualisation. Our latest forecast predicts that NFV will grow at a faster pace than SDN, while another looks at how CSPs should understand that vNGN-OSS is critical to deploying network virtualisation and must plan accordingly.

    We hope that this download will provide you with a detailed insight into the challenges surrounding network innovation and virtualisation. Please feel free to contact me with any questions or enquiries.

    DANA COOPERSONPractice Head, Network-Focused Telecoms Software Practice [email protected]

    The telecoms industry is no longer a walled garden that stands apart from the wider digital economy

    Introduction

    3

    Communications service providers (CSPs) know they need a new, more automated approach to network operations in order to enable new digital economy services, but the industry has yet to agree the best way to integrate physical–virtual function management, control and orchestration to support automation. ”“

  • However, commercialisation, scaling and operationalisation of NFV technology requires that communications service providers (CSPs) overcome the challenge of merging the old (physical) and the new (virtual) networks. The progress and challenges associated with the market’s movement from proofs of concept (PoCs) to scale deployments were discussed at the Layer123 NFV World Congress event, held in San Jose during

    5–8 May 2015. In order to address the challenge of managing hybrid physical–virtual multi-vendor networks, CSPs and their partners will require a horizontal platform approach and convergence around common frameworks. This comment discusses the advances in NFV that have been made over the past 3 years, as well as the barriers that CSPs and their partners will face in moving NFV in to production.

    THE TELECOMS INDUSTRY IS SHOWING POSITIVE SIGNS THAT POCS CAN PROGRESS TO PRODUCTION

    Progress is being made through collaboration

    Most speakers at the Layer123 NFV World Congress event highlighted positive developments in moving NFV to commercialisation, including:

    • the successful culmination of several multi-vendor PoCs (for example, NFV for multi-domain distributed policy and charging control interworking (Amartus, Openet and Procera Networks in conjunction with Cobham, Intel and Red Hat))

    • progress closing gaps in the carrier- class in OpenStack

    • burgeoning ecosystems (for example, Intel’s Network Builders Ecosystem)

    • recent or imminent open source software project releases – including OpenMANO, OpenNFV and OpenStack.

    Reference implementations of critical, virtual network building blocks – created through collaboration between CSPs and vendors – are helping to reduce the time it takes to achieve convergence, compared with the time required for a typical telecoms standardisation process. Examples include:

    • Telefónica’s OpenMANO project, which implements what the company refers to as a ‘practical management and orchestration (MANO) stack’

    • Open Platform for Network Function Virtualisation’s (OPNFV’s) imminent first release of a working NFV infrastructure (NFVI) reference implementation

    • Intel’s extensive and growing Network Builders Solutions Library and associated ecosystem, which has over 130 partners (Cisco was announced at the event as the latest vendor partner).

    OPERATIONALISING NETWORK VIRTUALISATION REQUIRES SHORT- AND LONG-TERM PLANNING AND MAY TAKE YEARS TO ACHIEVE

    Many industry players want to scale their deployments, but they lack a viable plan for moving past the trial deployment phase (see Figure 1).

    Candid remarks made at the conference by representatives of Colt Technology Services Group, Comcast and NTT DOCOMO highlight the challenges that these companies face in moving beyond PoCs to commercial-scale deployments.

    • NFV affects every organisation, and they must be ready, able and willing to support virtualisation. Colt described the difficulties it faced in the development of its virtualised customer premises equipment (vCPE) project. These included internal obstacles to designing a service around vCPE, concerns that customers might expect a discount, the lack of inventory tools and a configuration process, and an inability to troubleshoot problems.

    • Progressing from PoC to commercial deployment requires a simultaneous short- and long-term focus. Comcast noted that although it is quicker and easier to acquire a vertical stack from a single vendor, it has the disadvantages of lock-in and slower upgrade cycles in the long term. Any sustainable plan for moving from PoC to full-scale production must include hybrid network operational support, and address the technology’s new problems and complexities. In addition, this plan requires network operations centre (NOC) tools for diagnosis and repair, as well as a multi-vendor management strategy. Comcast has none of these elements in place.

    4

    DANA COOPERSON Practice Head, Network-Focused Telecoms Software Practice

    CSPs must overcome NFV operationalisation obstacles to commercialise hybrid physical–virtual networks

    The telecoms industry is making progress developing and testing network virtualisation use cases, as well as certifying technology – particularly where network function virtualisation (NFV) plays a central role. ”“

  • • Advancing from the early stages of research to scale deployment can take years. NTT DOCOMO started basic research in 2005 and launched its virtualised evolved packet core (vEPC) project in 2012. The company plans to launch vEPC deployments by March 2016, following multiple, multi-vendor PoCs and several small-scale commercial deployments. It is advocating standardisation of intra-MANO and inter-MANO interfaces, and OSS and BSS interfaces, to improve operability.

    NTT DOCOMO had to be a pioneer because it was an early adopter. However, industry co-operation since 2012 may allow other CSPs to significantly reduce the time required for scale deployment. It is not clear to Colt how it will commercialise a virtual network. The company is frustrated by code immaturity, uncertain how to support integration of IT platforms and network functions, unclear on which management options and hardware to choose, and which tools and processes to upgrade or create to support a virtual network. Comcast would like to be more directly involved with open source initiatives, but it is constrained by resources. These carriers’ challenges are representative of those faced by the wider carrier community.

    CSPS NEED VENDOR PARTNERS AND PLATFORMS TO FOSTER COMMERCIAL-SCALE DEPLOYMENTS

    Two challenges could delay accelerated progress towards commercial scaling of network virtualisation technology.

    • CSPs’ tend to build vertical solution stacks around specific service launches. Our discussions with 20 large CSPs over the past 6 months indicate that 80% of them favour a service-led approach to virtual network deployments. However, a sustained focus on short-term solutions based on this approach could sacrifice progress towards long-term evolution to a platform-based approach. CSPs and their vendors must work towards building horizontal, scalable multi- vendor, multi-domain, multi-service platforms in order to reap the full benefits of virtualisation.

    • Common frameworks that are not common. Approaches to virtualisation remain scattered despite the collaboration and convergence efforts of ETSI, OPNFV, TM Forum and others – particularly with regard to integration of MANO with OSS and BSS. It is essential that industry co-operation leads to convergence on useful frameworks and standard interfaces. CORBA is one example of a standardisation effort – the ‘C’ stood for ‘common’, after all – that was undermined by vendor-specific implementations.

    Vendors that are aspiring to be virtualisation leaders are beginning to integrate virtualisation products into platforms. They are also starting to allow for multi-vendor operation, and to provide links to existing OSS and BSS, as well as offer virtualisation-related professional services. For example, Hewlett-Packard’s

    (HP’s) OpenNFV is leading the way with an integrated virtualisation platform supported by professional services. In addition, Alcatel-Lucent recently strengthened its OSS, NFV and software-defined networking (SDN) integration plan with the release of its Network Services Platform (NSP), as did NetCracker Technology with its NetCracker 10 release. Many other vendors are building credible platform solutions. Recent vendor consolidation (for example, the intended acquisition of Cyan Technology by Ciena, and HP’s acquisition of ConteXtream) may extend vendors’ virtualisation platforms, but this will require integration time.

    Many CSPs are seeking prime integrators to help them build hybrid physical–virtual networks. Vendors contending for this role include Alcatel-Lucent, Amdocs, Ericsson, HP, Huawei Technologies, NEC/NetCracker, Nokia and Oracle. These companies aspire to sell products and services, as well as act as brokers for smaller vendors that need distribution channels. For example, HP is helping Telefónica to implement its UNICA project, which provides HP with an early win. In addition, systems integrators such as Accenture, Tech Mahindra, Wipro and others will play a role in virtualisation transformations, but it is unlikely that they will replace independent software vendors (ISVs) and network equipment providers (NEPs) as prime integrators while they have no products to sell.

    CSPs’ main goal is to improve service innovation and flexibility through genuine commercial scale – and across operating companies – to support millions of customers and co-ordinate the physical installed base. CSPs should not be tempted to implement short-term solutions that do not lay the groundwork for an NFV-enabled network.

    Published: June, 2015

    5

    Questions? Please feel free to contact Dana Cooperson, Practice Head, Network-Focused Telecoms Software Practice, at [email protected]

    FIGURE 1: LIFECYCLE FOR A SINGLE VIRTUALISATION SERVICE OR INFRASTRUCTURE PROJECT [SOURCE: ANALYSYS MASON, 2015]

    Quantify costsand benefits

    Do trialdeployment

    Automate andoperationalise

    Calibrate theprocesses

    Extendgeographically tomore customers,to more services

    Scale thedeployment

    Define thebusiness purposeCreate theconcept

    Prove it worksin a lab

    Design andtest PoC

  • Many virtual network function (VNF) proof-of-concept (PoC) exercises and trials are already underway worldwide. The introduction of virtualised network environments into mature commercial communications networks will create a physical–virtual hybrid network with a new set of challenges for communications service providers (CSPs). This comment summarises the current state of thinking surrounding NFV, what it will mean for the evolution of OSS and how far the industry is from introducing NFV in large-scale deployments.

    FUNDAMENTAL CHANGES IN OSS ARE REQUIRED IN ORDER FOR CSPS TO BENEFIT FROM NFV

    For service fulfilment system vendors, the introduction of NFV has a significant impact on the design of their traditional legacy fulfilment solutions, where a single stack can manage the fulfilment of services that span legacy and virtual networks. However, in order to take advantage of the benefits of using a virtualised network – and to realise operational flexibility and service agility – fundamental changes to the way that OSS work together are required.

    Orchestration layers in the OSS and network management systems are being introduced: these layers mediate and control the provisioning flow between the various software systems in order to enable ‘zero touch’ automation on network orders, as well as facilitate customer service orders. In addition, systems that were previously not required to work in real-time are being moved to a real-time state to allow provisioning flows and dynamic network changes. Finally, CSPs are focusing on a service-orientated deployment strategy for NFV (rather than a network- or platform-based strategy). As a result, service fulfilment functions will play a more important role than they did previously, and could act as a potential bottleneck in the automated provisioning process.

    6

    What network function virtualisation (NFV) will mean for service fulfilment

    The main theme of this year’s TM Forum Live! event was network function virtualisation (NFV), and what the OSS vendor community is doing to prepare its solution sets for the technology’s introduction.

    “”

    DEAN RAMSAY Senior Analyst

    FIGURE 1: VNGN-OSS ARCHITECTURE COMPONENTS TO ENABLE AGILE AND AUTOMATED OPERATIONS[SOURCE: ANALYSYS MASON, 2015]

    Quantify costsand benefits

    Do trialdeployment

    Automate andoperationalise

    Calibrate theprocesses

    Extendgeographically tomore customers,to more services

    Scale thedeployment

    Define thebusiness purposeCreate theconcept

    Prove it worksin a lab

    Design andtest PoC

    BSS

    vNGN-OSS

    BSS and service layer

    Servicefulfilment

    Service orchestration layer

    Network

    Network orchestrators Network orchestrators

    VIM

    VNFs

    SDN-enabled

    NMS

    EMS

    PNF

    VIM

    VNFs

    SDN controller

    PNF

    SDN-enabled

    APIs APIs

    Dynamic unifiedinventory

    Serviceassurance

    Future method of operationsPresent method of operations

    ?Service assuranceService

    fulfilment

    EMS/NMS

    API API

    vNGN-OSSBusiness and

    operational objectives:Service agilityand revenueDevelopment and maintenance costsIntegration of physicaland virtual resources

    How to integrateETSI MANO and OSS?

    PNFs

    PNFs

    PNFs

    VNFs

    6

    Customer care and customer experience management

    MASTER CONTROL

    PROCESS AUTOMATION

    MANAGEMENT AND ENFORCEMENT

    New or significantly changed element Evolving element

    vNGN

    Service fulfilment

    Service orchestration

    SDN controllersVIM

    Network management and orchestration

    Closed-loop automation

    Service assurance

    Inventory

    Dynamic inventory

    Inte

    r-la

    yer

    flow

    s fo

    rau

    tom

    ated

    sca

    ling

    and

    secu

    rity

  • WE PREDICT STRONG GROWTH IN THE ADDITION OF VIRTUALISED ENVIRONMENTS TO COMMERCIAL NETWORKS

    Commercial deployments of virtual networks remain limited and have not yet been proved for a scale of millions of subscribers and network functions.

    However, we expect strong growth in the number of virtual network deployments (See Analysys Mason’s Software-controlled networking: worldwide forecast 2015–2019). During this initial growth phase, we have been speaking to many OSS vendors that are preparing for their service fulfilment portfolio to meet the challenges of the hybrid network, as well as to meet the demands of their CSP customers that increasingly need to provide next-generation digital services, complex bundled services and to operate within new and more complex value chains.

    THE CSPS AND VENDORS ARE SAYING

    We met several OSS vendors that are involved in PoC trials with CSPs that are integrating real-world experience with the theories underpinning hybrid network environment service orchestration. Several common themes emerged that have an impact on service fulfilment and OSS as a whole.

    • Order management will be significantly impacted by the introduction of a service orchestration layer because many of the functions of the order management system will be superseded by a new, more-advanced counterpart in orchestration.

    • ‘Zero-touch’ automation for OSS and network management functions will be essential in order to realise the perceived operational and service agility benefits of deploying a virtualised network environment.

    • Network analytics will continue to be critical to the development of service- led solutions that can dynamically support rapid on-demand service creation in a constantly changing environment (in terms of design, planning, optimisation and (de-) provisioning).

    • Inventory systems must become near real-time.

    • Vendors must develop multi-domain, multi-vendor and open solutions that can manage both physical and virtual network functions.

    • It is increasingly important to have a strong connection between service fulfilment and service assurance – this will ensure end-to-end automation and orchestration.

    Analysys Mason is conducting a series of in-depth studies on the impact of NFV and software-defined networking (SDN) on the telecoms software market, including a focus on the service orchestration layer, how it will change the face of service fulfilment and what vendors must do to remain competitive.

    Published: July, 2015

    7

    Questions? Please feel free to contact Dean Ramsay, Senior Analyst, at [email protected]

    Commercial deployments of virtual networks remain limited and have not yet been proved for a scale of millions of subscribers and network functions.

    “ ”

  • It has taken the market two decades to come to terms with the business consequences, and for communications service providers (CSPs) and their vendors to realise that increasing their relevance in the wider Internet economy will require significant changes to their organisations and processes. Using virtualisation techniques from IT, including network function virtualisation (NFV) and software-defined networking (SDN) technology to rethink the way communications networks are built and managed is critical for CSPs to rebuild relevance.

    CSPS CAN STRENGTHEN THEIR RELEVANCE BY COMBINING THE BEST OF THE IT WORLD AND THE TELECOMS WORLD

    CSPs’ improved relevance will spring from improving their ability to quickly launch compelling new services. Vendors will increase their relevance to CSPs and CSP competitors by becoming more software-oriented and supporting customers’ evolution into digital economy service providers. To prosper in the evolving cloud-based, virtual digital economy, CSPs and their vendors must do more than simply tap the new virtualisation technologies to improve asset and customer engagement flexibility: CSPs and their vendors must learn to combine the best heritage of the telecoms world (solid technical standards and operational processes, and a customer-centric approach) with the best of the IT world (agility, cost-efficiency, a flat development and operations (DevOps) organisation).

    NFV and SDN can enable the flexibility that will support increased relevancy, but only if they are implemented with clear business goals and a willingness to upend operational processes and human resource practices.

    VIRTUALISATION IS THE MOST SIGNIFICANT COMMUNICATIONS NETWORKING SHIFT IN 50 YEARS, SO THE EVOLUTION WILL NOT BE QUICK OR PAINLESS

    CSPs competing for relevance in the digital economy must master the shift to cloud computing, NFV and SDN, which represent the most significant shift in communications networking since that from analogue to digital (see Figure 1).

    The following critical areas will require significant work during the next 2–3 years to create the proper base for realising the NFV/SDN-enabled promise of being important, not just relevant, in the digital economy:

    • establishing sound business cases for NFV and SDN

    • planning business and network evolution priorities with revolutionary technology

    • managing organisational and process changes.

    NFV and SDN enable CSPs to stay relevant to their customers in the digital economy

    8

    GLEN RAGOONANAN Principal Analyst

    Since the commercialisation of the Internet, telecoms has ceased to be a closed market with its own unique standards and processes; we just did not realise it. ”“

    FIGURE 1: TIMELINE FOR THE DEVELOPMENT OF COMMUNICATIONS NETWORKING TECHNOLOGY [SOURCE: ANALYSYS MASON, 2015]

    DANA COOPERSON Practice Head, Network-Focused Telecoms Software Practice

    - -plus -

    -

    6.8 6.5 6.1 6.0

    8.0 8.2 8.4 8.3 8.3 8.0

    21.921.8 21.8 19.9

    24.1 25.025.9

    28.731.1 30.2

    0

    5

    10

    15

    20

    25

    30

    35

    20% 25% 30% 35% 40%

    Voic

    e m

    inut

    es (b

    n)

    Smartphone Penetration

    Maxis Digi DTAC - Thai TIM - Brazil

    Customer Segmentation

    Wholesalepricing

    Revenueshare

    Brandlicensing

    Commission-basedpricing

    Othercommercialarrangements

    Retailpackage

    Per unitof traffic

    Per unitof traffic

    Retail-minus Cost

    Per SIM

    PreserveARPU

    Drive ARPUGrowth

    Increase DataProfibility

    ACTIONSDesign Hard Bundles

    RESULTS

    Capacity-basedpricing

    Best optionfor mobilebroadband

    services

    The mostflexible, butchallenging

    to secure

    Analysys Mason Colour Palette

    Pantone 274

    RGB 34/31/114

    Pantone 123

    RGB 253/200/47

    Pantone 293

    RGB 0/103/177

    Pantone 151

    RGB 255/121/0

    Pantone Cool Gray 7

    RGB 154/155/156

    Pantone Cool Gray 10

    RGB 97/99/101

    Pantone Process Cyan

    RGB 0/174/239

    Pantone 360

    RGB 97/194/80

    Pantone 1655

    RGB 251/79/20

    Pantone 355

    RGB 0/155/58

    Pantone 032

    RGB 237/41/57

    Physical to virtualIntegrated control and data plane to

    decoupled control and data plane

    Copper to fibreSynchronous to IP SDN to

    IP/MPLS/Ethernet

    Asynchronous to synchronous

    (for example, PDH to SDH)Analogue to digital

    1960s 1980s 2000s 2015+1990s

    Fixed narrowband to mobile broadband

    -

    -

    Asynchronous tosynchronous (for example,

    PDH to SDH)

    Fixed narrowbandto mobile broadband

    Synchronous to IP SDNto IP/MPLS/EthernetCopper to fibre

    Physical to virtualIntegrated control and data plane todecoupled control and data plane

    Cost

    Analogueto digital

    1960s 1980s 1990s 2000s 2015+

  • CSP SDN-driven Traffic steeringin the core:

    Gi interface andISP DMZ LAN

    Transport trafficmanagement:

    optical, IP RAN,backhaul

    Content deliverynetworks (CDN):

    ABR, P2P routing,TCP optimisation,

    probes

    Wi-Fi accessgateways, edge

    routers andswitches

    Cloud RAN:software-definedradio, multi-RAN,

    HetNets

    NFV-driven

    IMS, SBC,CG-NAT, M/SMSC,

    NG-IN, vCPE,DVR, EPC

    Caching, FW/IPS, DNS/DHCP,

    load balancing,TAS, PCRF, DPI

    Media resourceprocessing:

    MRF, real-timetranscoding

    RTC/OCS,HSS/UDC,

    Diameter routing,IPTV headend

    Core routingfunctions,

    RT networkanalytics

    5G mobile core functions

    BSS/OSS virtualisation (cloud computing) will be ongoing

    Increasing network virtualisation spend from CSPs

    2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

    FIGURE 2: ROADMAP OF INITIAL NFV AND SDN USE CASES AND FUNCTIONS ADOPTED BY CSPS, 2013–2023 [SOURCE: ANALYSYS MASON, 2015]

    Analysys Mason is in the process of creating a business case framework for NFV and SDN. Meanwhile, in discussions with a range of CSPs and vendors, we have established a timeline illustrating the parts of network operations that are likely to benefit from NFV and SDN during the next decade (see Figure 2).

    Business and operational support systems (BSS and OSS) must evolve to manage hybrid physical–virtual networks, and organisational and process change to support the shift will also be ongoing during this period.

    NEW THINKING IS NEEDED TO HARNESS VIRTUALISATION: A VIEW FROM THE SDN & OPENFLOW WORLD CONGRESS 2014

    In an Analysys Mason-led CSP keynote roundtable panel discussion on managing next-generation networks at the industry’s largest SDN/NFV conference in Düsseldorf in October, Colt Communications, Deutsche Telekom and Telefónica called for new thinking to ensure that the industry overcomes existing, past and even future operational challenges. The following is a summary of the key messages from the discussion.

    • Eliminate silos: CSPs expect vendors to develop solutions with a service and customer focus, extending beyond their own range of technology solutions and areas of strength via partner ecosystems and open, standards-based architecture. What is good for vendors applies to CSPs as well; operators must also eliminate silos and reach out to third parties that can add relevance to their communications services.

    • Change operations: Vendors and CSPs must change corporate culture, staff mindsets and skills, and the tools and systems to migrate to a DevOps organisation where the design, development and operations teams are equally responsible for the problems and successes of operations and delivery (time to market). This is likely to be difficult, but it is essential.

    • Increase process automation: Panellists agreed that the cost of running a poor or complex implementation for years may have been acceptable in the past, but will be unacceptable in the future. Some panellists claimed to be comfortable with a proliferation of orchestrators, provided the operational overhead is less than the status quo and they can increase service and operational agility. However, Analysys Mason believes this presumes a level of standards and interoperability to which the industry aspires, but has yet to demonstrate. We suggest a minimum set of orchestrators at the service and network levels as a design goal.

    • Future-proof vNGN architecture: We will have failed as an industry if we implement NFV and SDN technologies but do not radically improve service agility, operational efficiencies and innovation capabilities and create a foundation that can meet the challenges and requirements needed for 5G and beyond.

    ULTIMATELY, RELEVANCE MUST BE DERIVED FROM OFFERING COMPELLING NEW SERVICES

    A strong vNGN platform and a streamlined operations approach will support increased relevance in the digital economy provided CSPs build attractive new services on these assets. Policy and orchestration software will link the three components of differentiated and personalised services in a cloud-based NFV/SDN world: communications, intelligent devices and compute power.

    Analysys Mason has worked with vendors and CSPs on the strategic implications of NFV, SDN and cloud-based delivery models.

    Published: January, 2015

    Questions? Please feel free to contact Dana Cooperson, Practice Head, Network-Focused Telecoms Software Practice, at [email protected] or Glen Ragoonanan, Principal Analyst, at [email protected]

    9

  • OSS and BSS will play an central role in the automated orchestration of APAC’s networks and services

    SHANTHI RAVINDRAN Senior Analyst

    The monetisation of network investments in broadband infrastructure is a top priority for communications service providers (CSPs) in Asia–Pacific (APAC) in 2015. ”“

    CSPs in developed Asia–Pacific (DVAP) countries focus on retaining their customers by offering multi-play, multi-screen, cloud and enterprise services. However, CSPs in emerging Asia–Pacific (EMAP) countries focus on acquiring new customers, as well as providing more services to their current customers. In order to support these services, CSPs are deploying new broadband and video technologies, and will share and consolidate infrastructure to improve operational efficiency and profitability.

    Operations and billing support systems (OSS and BSS) enable CSPs to fulfil end users’ service needs by using their network assets and transforming their operations to meet their business objectives. CSPs need flexible OSS and BSS that allow them to offer personalised, differentiated services to

    their customers. This comment discusses the role that OSS and BSS will play in providing CSPs with the visibility and control that they need in order to automate their operations for network orchestration, optimise service delivery and offer superior customer experience.

    CSPS NEED TO MONETISE THEIR BROADBAND INVESTMENTS AND PREPARE FOR DIGITAL SERVICES OVER VIRTUALISED NETWORKS

    LTE has stimulated data usage in APAC and, as a result, spending on mobile data services has increased. CSPs now offer other services to drive revenue growth, including bundling services such as multi-screen, video and fixed broadband. In addition to addressing enhanced consumer broadband demand, CSPs continue to offer differentiated services for high-value users and focus on small-

    and medium-sized enterprises (SMEs).CSPs in APAC must also establish a strong strategic response to over-the-top (OTT) messaging and voice threats in order to help minimise further disruption to legacy revenue streams. Digital economy services are being planned and launched, and these services will create the basis for revenue growth in 2017 and beyond. Digital economy services will be driven by cloud computing, m-commerce, utilities and m-health services.

    CSPs are starting to deploy virtualised network solutions, and the earliest deployments in APAC will involve hybrid cloud and virtualised evolved packet core (vEPC) solutions. The increased agility and openness of cloud computing, network function virtualisation (NFV) and software-defined networking (SDN) provide the potential to reduce the time required to launch new services. However, it is essential to implement orchestration and automation in the OSS and BSS to realise this service agility.

    CSPS NEED POLICY-CONTROLLED AUTOMATION OF SERVICE DELIVERY AND END-TO-END VISIBILITY OF THEIR NETWORK AND OPERATIONS

    CSPs in APAC are now providing premium content for high-value users and popular content for other customers. In order to provide personalised, differentiated services to users based on the customer lifetime value (including multi-play bundles, as well as multi-screen and real-time offers), CSPs need to implement several new functions in their OSS and BSS, including:

    10Quantify costsand benefits

    Do trialdeployment

    Automate andoperationalise

    Calibrate theprocesses

    Extendgeographically tomore customers,to more services

    Scale thedeployment

    Define thebusiness purposeCreate theconcept

    Prove it worksin a lab

    Design andtest PoC

    BSS

    vNGN-OSS

    BSS and service layer

    Servicefulfilment

    Service orchestration layer

    Network

    Network orchestrators Network orchestrators

    VIM

    VNFs

    SDN-enabled

    NMS

    EMS

    PNF

    VIM

    VNFs

    SDN controller

    PNF

    SDN-enabled

    APIs APIs

    Dynamic unifiedinventory

    Serviceassurance

    Reduced capexand opex

    Increasedrevenue from

    high-valuedata services

    Differentiatedservice andcustomer

    experience

    Orchestration and automation

    OSS and BSS

    � ARPU – monetisation of networks

    � Time to market – optimal service delivery

    � Churn – superior customer experience

    � Costs – optimised network capacity

    Networks

    � Digital services

    � Multi-play, VoLTE and video

    � Personalised bundles

    � Differentiated services

    � Hybrid and virtual networks

    � Multi-vendor Mobile HetNets

    � FTTx, GPON next-generation access

    � 100G, 400G Optical networks

    OSS and BSS

    End user services

    Business objectives

    � Agile, policy-enabled, service bundling

    � Self-service and real-time charging

    � Customer, network, device analytics

    � End to end visibility, intelligent automation

    Policy

    Analytics

    FIGURE 1: CSPS’ BUSINESS OBJECTIVES AND POLICY-CONTROLLED AUTOMATION [SOURCE: ANALYSYS MASON, 2015]

  • • access to customer, device and network analytics in order to obtain a total view of customers, including their preferences and service usage

    • customer experience management strategies that relate to linking network and operational metrics to a customer experience index and Net Promoter Score (NPS)

    • service quality assurance conducted by the service operation centre (SOC) to provide end-to-end visibility and focused, automated optimisation mechanisms

    • omni channel customer care, including self care and social media as a channel to their current operations

    • multi-play service bundling, service creation for providing real-time offers for simple services supported by a unified inventory

    • policy control, supported by analytics and converged, real-time charging (see Figure 1).

    In the future, CSPs will provide and enable value-added digital economy services over virtualised networks. Software control will provide the agility to enable new services at lower costs. Incremental changes and transformations that CSPs introduce will need to have a blueprint to cover virtualisation and digital economy services in the future.

    OSS AND BSS ARE KEY PLATFORM ENABLERS FOR ESTABLISHING A SERVICE AGILITY FRAMEWORK

    CSPs and suppliers are beginning to differentiate from their competitors on the basis of network software intelligence. The OSS could be a key enabler for achieving service agility, operational flexibility and optimisation of costs if it is based around a holistic service agility framework (see Figure 2). Such a framework should increase the speed and flexibility of service delivery and lifecycle management, and use increased OSS automation to provide near real time views and control of operations based on analytics and policy-controlled automation.

    Most CSPs’ initial network virtualisation deployments will focus on providing new services using new virtual platforms. The ETSI NFV management and orchestration (MANO) layer will be critical to the management of virtual networks. CSPs’ selection of the most suitable MANO architecture – which provides operations support for service fulfilment, service

    assurance, network management, and service delivery and orchestration – is critical for the overall transformation of their networks and OSS and BSS. Similarly, vendors will need to provide OSS and BSS solutions that enable transformations with minimal disruption.

    Customised OSS and BSS should be replaced by integrated systems that have access to customer and network analytics

    Many OSS and BSS that support mature CSP networks in APAC represent customised solutions that have evolved over time. CSPs tend to deploy an additional stack to support a new service for a faster time to market. As a result, systems evolution can create service silos that require regular systems integration and maintenance. However, integrated solutions are becoming available from vendors and these can help CSPs to install systems that can be more easily maintained.

    CSPs need to develop an overall analytics strategy to provide data access to all operations and business support subsystems. This data can be used to provide real-time service offers, omni channel marketing for uniform customer experience across channels, and service orchestration for customised bundles and super-bundles.

    It may be possible to implement some of these improvements through incremental changes, but many of these changes involve multiple subsystems and require organisational and process changes. Therefore, CSPs may need to take a long-term transformational approach, particularly for scale and automation. CSPs’ evolution towards using automated, next generation OSS and BSS to support virtualisation and digital economy services provides a good opportunity to assess, rationalise and consolidate existing systems in order that new silos do not simply replace the old.

    Published: May, 2015

    Questions? Please feel free to contact Shanthi Ravindran, Senior Analyst, at [email protected]

    11

    Quantify costsand benefits

    Do trialdeployment

    Automate andoperationalise

    Calibrate theprocesses

    Extendgeographically tomore customers,to more services

    Scale thedeployment

    Define thebusiness purposeCreate theconcept

    Prove it worksin a lab

    Design andtest PoC

    BSS

    vNGN-OSS

    BSS and service layer

    Servicefulfilment

    Service orchestration layer

    Network

    Network orchestrators Network orchestrators

    VIM

    VNFs

    SDN-enabled

    NMS

    EMS

    PNF

    VIM

    VNFs

    SDN controller

    PNF

    SDN-enabled

    APIs APIs

    Dynamic unifiedinventory

    Serviceassurance

    Reduced capexand opex

    Increasedrevenue from

    high-valuedata services

    Differentiatedservice andcustomer

    experience

    Orchestration and automation

    OSS and BSS

    � ARPU – monetisation of networks

    � Time to market – optimal service delivery

    � Churn – superior customer experience

    � Costs – optimised network capacity

    Networks

    � Digital services

    � Multi-play, VoLTE and video

    � Personalised bundles

    � Differentiated services

    � Hybrid and virtual networks

    � Multi-vendor Mobile HetNets

    � FTTx, GPON next-generation access

    � 100G, 400G Optical networks

    OSS and BSS

    End user services

    Business objectives

    � Agile, policy-enabled, service bundling

    � Self-service and real-time charging

    � Customer, network, device analytics

    � End to end visibility, intelligent automation

    Policy

    Analytics

    FIGURE 2: CSPS’ BUSINESS STRATEGIES AND THE OSS AND BSS ENABLERS[SOURCE: ANALYSYS MASON, 2015]

  • An expanded, more open control layer architecture will create new technical requirements and enable new products and services, which will change the vendor competitor landscape and lead to changes to Analysys Mason’s telecoms software market segmentation.

    SUCCESS IN THE DIGITAL ECONOMY DEPENDS ON HOW PHYSICAL AND VIRTUAL RESOURCES ARE MANAGED

    The success of CSPs in the digital economy depends on them deploying a vNGN-OSS architecture that can dynamically and holistically manage physical and virtual resources to support service innovation at scale.2

    CSPs will need to protect potential revenue of USD1.71 trillion in 20153 while attacking the wider market for digital economy services. In order to do this, CSPs need to build new networks.

    Analysys Mason’s proposed vNGN-OSS will enable CSPs to provide digital economy services via NFV and SDN, and support traditional fixed and mobile services. Important elements of a vNGN-OSS include a dynamic master control inventory, a service orchestration layer for process automation, and a management and enforcement layer for resource orchestration and control.

    The report provides the following recommendations.

    1 CSPs should understand that vNGN- OSS is critical to deploying network virtualisation and must plan accordingly.

    2 CSPs must move to an operations model that is supported by a dynamic inventory, and automated service and network orchestration and control layers.

    3 Vendors should expect significant competition for vNGN-OSS business, have a solid strategy for providing hybrid network solutions and expect the competitive landscape to change.

    The success of CSPs in the digital economy depends on them deploying a network architecture that can dynamically and holistically manage physical and virtual resources to support service innovation at scale.

    12

    NEW research

    Reduced capexand opex

    Increasedrevenue from

    high-valuedata services

    Differentiatedservice andcustomer

    experience

    Orchestration and automation

    OSS and BSS

    � ARPU – monetisation of networks

    � Time to market – optimal service delivery

    � Churn – superior customer experience

    � Costs – optimised network capacity

    Networks

    � Digital services

    � Multi-play, VoLTE and video

    � Personalised bundles

    � Differentiated services

    � Hybrid and virtual networks

    � Multi-vendor Mobile HetNets

    � FTTx, GPON next-generation access

    � 100G, 400G Optical networks

    OSS and BSS

    End user services

    Business objectives

    � Agile, policy-enabled, service bundling

    � Self-service and real-time charging

    � Customer, network, device analytics

    � End to end visibility, intelligent automation

    Policy

    Analytics

    Service fulfilment

    Service assurance

    Service orchestration

    CSP revenue:USD1.7 trillion

    worldwide

    Physical and virtualnetwork management,

    orchestration and control

    Dynamic inventory

    vNGN-OSS: an architecturalframework for virtual networkmanagement and orchestration

    REPORT BY SHANTHI RAVINDRAN Senior Analyst DANA COOPERSON Practice Head, Network-Focused Telecoms Software Practice

    GLEN RAGOONANAN Principal Analyst

    New research from Analysys Mason analyses the changes that network virtualisation will demand of communications service providers’ (CSPs’) OSS architecture so that virtual and hybrid next-generation networks (vNGN)1 can be properly operated and maintained to meet customer expectations and CSP business objectives for service innovation in the digital economy.

    FIGURE 1: CSPS’ BUSINESS OBJECTIVES AND POLICY-CONTROLLED AUTOMATION [SOURCE: ANALYSYS MASON, 2015]

    1 Analysys Mason defines vNGN as hybrid (physical and virtual) network components because we do not expect 100% virtualised networks to be possible. Network virtualisation includes network function virtualisation (NFV), software-defined networking (SDN) and cloud computing.2 We expect vNGN-OSS to be less expensive and more agile than existing OSS. For more information, see Analysys Mason’s Preparing for an OSS architecture that can support NFV, SDN and established technologies. Visit www.analysysmason.com/Network-virtualisation-Apr2014. 3 For more information, see Analysys Mason’s Global telecoms market: interim forecast update 2014–2019. Visit www.analysysmason.com/GTF2015.

  • AN AUTOMATED NETWORK THAT REACTS AND SCALES ON DEMAND WILL ENABLE DIGITAL ECONOMY SERVICES, BUT A DESIGN DOES NOT EXIST

    CSPs know they need a new approach to network operations in order to enable new digital economy services, but the industry has yet to agree the best way to integrate physical–virtual function management, control and orchestration to support automation.

    Virtualisation should enable a flexible operations framework. Creating this framework will be disruptive for CSPs, but will pay off in terms of increased revenue through digital economy service enablement services while supporting existing revenue streams in a more cost-efficient manner.

    ETSI has sketched out an architectural framework and functional blocks for management and orchestration (MANO) of virtual infrastructure, but has not specified the best flow through these functional elements and existing OSS functional blocks. Therefore, CSPs and their suppliers are debating and testing many different approaches.

    Business and operational objectives — specifically those for improved service agility and enabling new digital economy revenue — should drive functional and technical requirements for the integration and automation of hybrid physical–virtual network resource management, control and orchestration. Existing service assurance, service fulfilment and network management systems and virtual network NFV orchestration and SDN control systems must interwork for networks to scale and change on demand.

    CSPS NEED A VNGN-OSS THAT SUPPORTS SERVICE AGILITY ENABLED BY AUTOMATED ORCHESTRATION OF A HYBRID NETWORK

    Analysys Mason is proposing a vNGN-OSS architecture that supports an agile operational model by allocating network resources dynamically. The vNGN-OSS is likely to change OSS product segmentation and the vendor competitive landscape.

    Network virtualisation will support agile service creation, provisioning and management that CSPs will need if they implement a vNGN-OSS framework in order to become digital service providers

    (DSPs). The framework must be built around a unified, dynamic inventory that integrates with service fulfilment and assurance functions and allows closed-loop planning; a service orchestration layer within service fulfilment that allows for conversion of customer-facing services (CFS) to resource-facing services (RFS); and a separate network management and enforcement layer that abstracts and controls the virtual and physical infrastructure.

    The report:• introduces Analysys Mason’s proposed vNGN-OSS framework, its benefits compared with the present method of operations and its fit with the ETSI MANO• assesses vNGN-OSS business and operations drivers, technical requirements and fulfilment and assurance process changes• highlights changes to competition dynamics and product segmentation in the OSS market.

    13

    FIGURE 2: AN APPROACH TO BUILDING AND OPERATING NETWORKS FOR ENABLING DIGITAL ECONOMY SERVICES[SOURCE: ANALYSYS MASON, 2015]

    Quantify costsand benefits

    Do trialdeployment

    Automate andoperationalise

    Calibrate theprocesses

    Extendgeographically tomore customers,to more services

    Scale thedeployment

    Define thebusiness purposeCreate theconcept

    Prove it worksin a lab

    Design andtest PoC

    BSS

    vNGN-OSS

    BSS and service layer

    Servicefulfilment

    Service orchestration layer

    Network

    Network orchestrators Network orchestrators

    VIM

    VNFs

    SDN-enabled

    NMS

    EMS

    PNF

    VIM

    VNFs

    SDN controller

    PNF

    SDN-enabled

    APIs APIs

    Dynamic unifiedinventory

    Serviceassurance

    Future method of operationsPresent method of operations

    ?Service assuranceService

    fulfilment

    EMS/NMS

    API API

    vNGN-OSSBusiness and

    operational objectives:Service agilityand revenueDevelopment and maintenance costsIntegration of physicaland virtual resources

    How to integrateETSI MANO and OSS?

    PNFs

    PNFs

    PNFs

    VNFs

    6

    Customer care and customer experience management

    MASTER CONTROL

    PROCESS AUTOMATION

    MANAGEMENT AND ENFORCEMENT

    New or significantly changed element Evolving element

    vNGN

    Service fulfilment

    Service orchestration

    SDN controllersVIM

    Network management and orchestration

    Closed-loop automation

    Service assurance

    Inventory

    Dynamic inventory

    Inte

    r-la

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    flow

    s fo

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    View the report at: www.analysysmason.com/vNGN-OSS-SVF-Sep2015

  • 14

    This latest forecast report from Analysys Mason provides a realistic assessment of SCN market opportunities, with more segmentations than last year’s report.

    The report highlights key market trends for 2015–2019 including:

    • NFV will be the market’s main growth driver. Our updated 2018 forecast is up 81% over our previous estimate because increased NFV activity worldwide drove our 2014 baseline 110% above our previous estimate.• SDN continues to grow strongly. CSP SDN is likely to outpace enterprise SDN as CSPs implement service-led VPN SDN deployments.• Cloud computing will grow faster in the CSP market than in the DCP market as CSPs try to catch up and compete with DCP cloud offerings.

    Key recommendations from the report include:

    • Build a cloud-based SCN architecture that streamlines delivery of existing services and enables delivery of competitive, innovative, new digital services and B2B2B/C business models.• Develop agile, multi-faceted, long-term (10-year) vNGN transformation programmes that encourage enterprise IT and network staff to share software skills, technology knowledge and foster a DevOps culture.• Vendors should use open-source software to develop COTS products in order to effectively participate in the increasing competitive SCN supplier market.

    Software-controlled networking: worldwide forecast 2015–2019

    REPORT BY GLEN RAGOONANAN Principal Analyst

    GORKEM YIGIT Analyst

    The software-controlled networking (SCN) market – which comprises hardware, software and services for cloud computing, network function virtualisation (NFV) and software-defined networking (SDN) – is dynamic, but not monolithic. For example, the NFV segment is growing much more rapidly than the cloud computing and SDN segments.

    NEW research

    Future method of operationsPresent method of operations

    ?Service assuranceService

    fulfilment

    EMS/NMS

    API API

    vNGN-OSSBusiness and

    operational objectives:Service agilityand revenueDevelopment and maintenance costsIntegration of physicaland virtual resources

    How to integrateETSI MANO and OSS?

    PNFs

    PNFs

    PNFs

    VNFs

    Customer care and customer experience management

    MASTER CONTROL

    PROCESS AUTOMATION

    MANAGEMENT AND ENFORCEMENT

    New or significantly changed element Evolving element

    vNGN

    Service fulfilment

    Service orchestration

    SDN controllersVIM

    Network management and orchestration

    Closed-loop automation

    Service assurance

    Inventory

    Dynamic inventory

    Inte

    r-la

    yer

    flow

    s fo

    rau

    tom

    ated

    sca

    ling

    and

    secu

    rity

    1. COST OPTIMISATION

    2. SERVICE AGILITY

    3. NEW TECHNOLOGY LAUNCH

    4. NEW REVENUE

    Strong drivers

    � SDN WOULD OUTPACE NFV

    � NA WOULD OUTPACE ALL REGIONS

    Key spending trends

    1. NEW DIGITAL SERVICES REVENUE

    2. SERVICE AGILITY

    3. COST OPTIMISATION

    4. OPEN-SOURCE BASED COTS

    Strong drivers

    � NFV WILL OUTPACE SDN

    � EMEA WILL MEET NA

    � APAC WILL HAVE A LATE START BUT GROWTH WILL ACCELERATE

    Main spending changes

    2014 forecastCSP focus wasmore tactical

    This forecastBalancing tacticaland strategic needs

    + +

    59627349

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    18832

    0

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    6000

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    CLOUD COMPUTING

    NETWORK FUNCTIONVIRTUALISATION (NFV)

    SOFTWARE-DEFINEDNETWORKING (SDN)

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    Future method of operationsPresent method of operations

    ?Service assuranceService

    fulfilment

    EMS/NMS

    API API

    vNGN-OSSBusiness and

    operational objectives:Service agilityand revenueDevelopment and maintenance costsIntegration of physicaland virtual resources

    How to integrateETSI MANO and OSS?

    PNFs

    PNFs

    PNFs

    VNFs

    Customer care and customer experience management

    MASTER CONTROL

    PROCESS AUTOMATION

    MANAGEMENT AND ENFORCEMENT

    New or significantly changed element Evolving element

    vNGN

    Service fulfilment

    Service orchestration

    SDN controllersVIM

    Network management and orchestration

    Closed-loop automation

    Service assurance

    Inventory

    Dynamic inventory

    Inte

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    s fo

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    sca

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    and

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    1. COST OPTIMISATION

    2. SERVICE AGILITY

    3. NEW TECHNOLOGY LAUNCH

    4. NEW REVENUE

    Strong drivers

    � SDN WOULD OUTPACE NFV

    � NA WOULD OUTPACE ALL REGIONS

    Key spending trends

    1. NEW DIGITAL SERVICES REVENUE

    2. SERVICE AGILITY

    3. COST OPTIMISATION

    4. OPEN-SOURCE BASED COTS

    Strong drivers

    � NFV WILL OUTPACE SDN

    � EMEA WILL MEET NA

    � APAC WILL HAVE A LATE START BUT GROWTH WILL ACCELERATE

    Main spending changes

    2014 forecastCSP focus wasmore tactical

    This forecastBalancing tacticaland strategic needs

    + +

    59627349

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    15244

    18832

    0

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    4000

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    2014 2015 2016 2017 2018 2019

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    ion)

    CLOUD COMPUTING

    NETWORK FUNCTIONVIRTUALISATION (NFV)

    SOFTWARE-DEFINEDNETWORKING (SDN)

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    FIGURE 1: SOFTWARE-CONTROLLED NETWORKING REVENUE, WORLDWIDE, 2014–2019[SOURCE: ANALYSYS MASON, 2015]

    FIGURE 2: VNGN-OSS ARCHITECTURE COMPONENTS TO ENABLE AGILE AND AUTOMATED OPERATIONS[SOURCE: ANALYSYS MASON, 2015]

  • NFV technology is driving the SCN market and pulling through CSP SDN spend, while cloud computing spend remains steady

    DCPs are balancing tactical and strategic business goals as they target increasing revenue with digital services using agile, scalable, flexible SCN-powered cloud platforms.

    Since we published our 2014 forecast, the number of NFV trials and commercial deployments has increased significantly and outpaced our expectations. We now expect NFV spending to overtake SDN this year. Also, CSPs in NA will not spend significantly more than those in APAC and EMEA. These main changes in the forecast were influenced by the following.

    Worldwide NFV and CSP SDN commercial service deployments, while traditional SDN is facing commoditisation.

    Tier 1 CSPs are augmenting tactical (1–3-year) cost reduction business cases with strategic (5-year) digital revenue-based business cases to justify large SCN infrastructure upgrades.

    Open-source initiatives are accelerating, driving commercial off-the-shelf (COTS) and in-house development for NFV/SDN and rapidly decreasing the inhibiting effects of product immaturity. This also increased the software market forecast.

    APAC will start slowly because of China’s present macroeconomic instability, but growth will accelerate.

    The cloud computing market trends have been stable. CSPs are balancing tactical and strategic business goals as they target increasing revenue with digital services using agile, scalable, flexible SCN-powered cloud platforms.

    15

    FIGURE 3: KEY MARKET DRIVERS AND INHIBITORS THAT HAVE LED TO A CHANGE IN THIS SCN FORECAST COMPARED WITH THE PREVIOUS SCN FORECAST (2014–2019)[SOURCE: ANALYSYS MASON, 2015]

    Future method of operationsPresent method of operations

    ?Service assuranceService

    fulfilment

    EMS/NMS

    API API

    vNGN-OSSBusiness and

    operational objectives:Service agilityand revenueDevelopment and maintenance costsIntegration of physicaland virtual resources

    How to integrateETSI MANO and OSS?

    PNFs

    PNFs

    PNFs

    VNFs

    Customer care and customer experience management

    MASTER CONTROL

    PROCESS AUTOMATION

    MANAGEMENT AND ENFORCEMENT

    New or significantly changed element Evolving element

    vNGN

    Service fulfilment

    Service orchestration

    SDN controllersVIM

    Network management and orchestration

    Closed-loop automation

    Service assurance

    Inventory

    Dynamic inventory

    Inte

    r-la

    yer

    flow

    s fo

    rau

    tom

    ated

    sca

    ling

    and

    secu

    rity

    1. COST OPTIMISATION

    2. SERVICE AGILITY

    3. NEW TECHNOLOGY LAUNCH

    4. NEW REVENUE

    Strong drivers

    � SDN WOULD OUTPACE NFV

    � NA WOULD OUTPACE ALL REGIONS

    Key spending trends

    1. NEW DIGITAL SERVICES REVENUE

    2. SERVICE AGILITY

    3. COST OPTIMISATION

    4. OPEN-SOURCE BASED COTS

    Strong drivers

    � NFV WILL OUTPACE SDN

    � EMEA WILL MEET NA

    � APAC WILL HAVE A LATE START BUT GROWTH WILL ACCELERATE

    Main spending changes

    2014 forecastCSP focus wasmore tactical

    This forecastBalancing tacticaland strategic needs

    + +

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    The report provides:• a 5-year forecast of communications service provider (CSP) and data centre provider (DCP) spending on SCN technology and services • an analysis of the trends, drivers and inhibitors for the adoption of these technologies• recommendations for CSPs and suppliers (vendors and systems integrators).

    The Excel data annex provides a 5-year forecast of spending split into:• three technology types: cloud computing by CSPs; NFV by CSPs; and SDN by CSPs and data centre providers (DCPs). The forecast excludes non-CSP cloud computing and non-CSP and DCP SDN spend• three revenue types: hardware, software and services, with further sub-segmentation• four geographical regions: Asia–Pacific (APAC), Europe, the Middle East and Africa (EMEA), Latin America (LATAM) and North America (NA).

    View the report at: http://www.analysysmason.com/SCN-forecast-2015

    ABOUT THE FORECAST

    CSPs are balancing tactical and strategic business goals as they target increasing revenue with digital services using SCN-powered cloud platforms.

    “ ”

  • This year, Analysys Mason celebrates 30 years as global specialist advisers on telecoms, media and technology (TMT). Since 1985, Analysys Mason has played an influential role in key industry milestones and helping clients through major shifts in the market. We continue to be at the forefront of developments in the digital economy and are advising clients on new business strategies to address disruptive technologies.

    See what clients have to say about working with us: www.analysysmason.com/client-testimonials

    ABOUT OUR SERVICES

    At Analysys Mason, we understand that clients in the TMT industry operate in dynamic markets where change is constant. Our consulting and research has helped shape clients’ understanding of the future so they can thrive in these demanding conditions.

    CONSULTING

    • We deliver tangible benefits to clients across the TMT industry: operators, vendors, governments, regulators, service and content providers, financial institutions and private equities.

    • Our sector specialists understand the distinct territorial challenges facing clients, in addition to the wider effects of global forces.

    • We are future-focused and help clients understand the challenges and opportunities new technology brings.

    RESEARCH

    • Our dedicated team of analysts track and forecast the different services accessed by consumers and enterprises.

    • We also offer detailed insight into the software, infrastructure and technology delivering those services.

    • Clients benefit from regular and timely intelligence, and direct access to analysts.

    TMT INDUSTRYDYNAMICS

    Maximisingoperational

    efficencyReducing churn

    and aquiringcustomers

    Leveragingnext-generation

    and virtualnetworks

    Positioningfor the digital

    economy

    Monetisingdata services

    Regulation and policy

    Consumer and SME services

    Digitaleconomy

    Regional markets

    Network technologies

    Telecoms software

    Performance Improvement

    Transaction support

    Strategy and planning

    RE

    SEARCH

    CONSULTING

    CUST

    OM

    RES

    EARCH

    Celebrating 30 years in TMT

    “ This year, Analysys Mason celebrates 30 years as global specialist advisers on telecoms, media and technology (TMT). Since 1985, Analysys Mason has played an influential role in key industry milestones and helping clients through major shifts in the market. We continue to be at the forefront of developments in the digital economy and are advising clients on new business strategies to address disruptive technologies.”

    16

  • 17

    For three decades, Analysys Mason has delivered data and insightful analysis that helps clients make informed, timely decisions on key business issues.

    • We have helped network operators to monetise their 3G/4G and fibre investments to maximise the data services revenue opportunity.

    • Our annual consumer surveys support our continued insights into the impact of smartphones, the Internet of Things (IoT) and consumer wearables.

    • We help operators to optimise their businesses based on established investments.

    • We advise on how to retain and attract new customers using proven operational methods and software systems to achieve business outcomes.

    • We evaluate new, disruptive network developments – such as 5G and network virtualisation.

    • We offer insight into the digital economy – the combination of communications, distributed computing and smart devices is having a significant and rapidly changing impact on the entire economy.

    Visit Analysys Mason’s trending topics section on our website for the latest discussion and analysis of the issues that are driving changes in TMT revenue, subscribers and investments.

    analysysmason.com/Trending-Topics/

    Unique perspective on TMT industry drivers

    TMT INDUSTRYDYNAMICS

    Maximisingoperational

    efficencyReducing churn

    and aquiringcustomers

    Leveragingnext-generation

    and virtualnetworks

    Positioningfor the digital

    economy

    Monetisingdata services

    Regulation and policy

    Consumer and SME services

    Digitaleconomy

    Regional markets

    Network technologies

    Telecoms software

    Performance Improvement

    Transaction support

    Strategy and planning

    RE

    SEARCH

    CONSULTING

    CUST

    OM

    RES

    EARCH

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