COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

Marcus Weldon

NETWORK VIRTUALIZATION: OPPORTUNITY OR THREAT?

CAPACITY & PROXIMITY

DEVICES & DEMANDS

CONVERGE & CONNECT SCALE & STREAM

VELOCITY & SIMPLICITY

3

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10€ / USER DEVICE 1€ / MACHINE

1 DEVICE / USER 10 DEVICES / USER

DEVICES & DEMANDS

100× LOWER COST BIT

1 BIG CELL / NODE

100× MORE BYTES

10 SMALL CELLS / NODES

CAPACITY & PROXIMITY

10 SEPARATE DOMAINS

100 CLOSED NETWORKS

1 CONVERGED NETWORK

1 OPEN NETWORK

CONVERGE & CONNECT

1 SYSTEM / SERVICE

1B APPS DOWNLOADED

10M SERVERS / SERVICE

1B CLOUD SERVICES DELIVERED

SCALE & STREAM

1 SERVICE / DECADE

100 OSS SYSTEMS

1 SERVICE / DAY

1 CLOUD OSS

VELOCITY & SIMPLICITY

8

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0 1 2 3 4 5 6 7

YEARS AFTER INTRODUCTION

CUMULATIVE UNITS

1.5B TABLETS (2017)

2B WEARABLES (2018)

6.5B M2M CONNECTIONS (2017)

6.5M CLOUD SERVERS (2015)

0.5B SDN INVESTMENT (2013)

9

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NETWORK OPERATORS

Assets: Ultra-broadband Access

New Services: Limited and Closed

E/R: Increasing Network spend, flat revenue

Innovation Speed: Years

WEB OPERATORS

Assets: Massive global compute and storage

New Services: Limited but Open APIs to Web

E/R: Increasing DC spend, growing revenue

Innovation Speed: Days

IP TECHNOLOGIES IT TECHNOLOGIES

10

COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

NETWORK 1.0 NETWORK 2.0

VIRTUALIZED IT PLATFORMS

+ SDN1.0

DEDICATED PLATFORM

+ NETWORKS

WEB/IT DC

INTERNET

TELCO DC

MANY ACCESS

NETWORKS

INTERNET

WEB/IT DC

TELCO IT DC

UBB IP ACCESS NETWORK

DISTRIBUTED TELCO IT DC

VIRTUALIZED IT PLATFORMS

+ SDN2.0

VIRTUALIZED AND FEDERATED

IP NETWORKS

11

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NUMBER OF PROCESSORS

SPEEDUP

0

20

1

VIRTUALIZATION IS THE ANSWER

AMDAHL’S LAW OF PARALLEL PROCESSING

65536

VIRTUALIZATION

12

COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

COST GAIN

CORE ROUTERS & ETHERNET

SWITCHES

FFTx, RF, COHERENT OPTICAL

EDGE ROUTERS

RADIO ACCESS

NETWORK

PACKET GATEWAYS

MEDIA GATEWAYS

MEDIA SERVER AND CDN CPE

NETWORK APPLIANCES

NETWORK APPS

ANALYTICS PLATFORMS

CHARGING APPLICATIONS

NFV / SDN CONTROL

OSS/BSS

EMS / NMS

MORE LESS

LOW

HIGH

DYNAMIC CONTROL

GAIN

CONTROL PLANE FUNCTIONS

THREAT

OPPORTUNITY

THREAT OPPORTUNITY

13

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ULTRA- BROADBAND ACCESS

CLOUD DYNAMIC

PROGRAMMABLE NETWORK

SDN BUSINESSES

HOMES

CONSUMERS

vNF vNF vNF vNF

CLOUD OPTIMIZED

ROUTING

CLOUD OPTIMIZED PLATFORM

14

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