Alcatel-Lucent's Marcus Weldon at CommsDay Summit 2014

COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

DEFINING THE FUTURE OF NETWORKS

MARCUS WELDON,Bell Labs President and ALU Corporate CTOApril 2014


THE CLOUDSHIFT…

…IS HAPPENING

Optimize:

• Fixed Costs

• Financials

• Portfolio


THE CHALLENGEWEBSCALE & ENTERPRISE

TAM

1B SESSIONS DELIVERED

WEBSCALE VALUE

CREATION

CLOUD SERVICES

SERVICE PROVIDER

TAM

4


AND THE WORLD IS CHANGING FASTER THAN EVER

By 2018, U.S. consumers will upload more data on

Smartphones + Tablets than they did on laptops in 2013

(VNI)

US Mobile data revenue reached $90 billion in 2013 =

> 50 % of revenues for wireless companies in Q4

0 1 2 3 4 5 6 7

YEARS AFTER INTRODUCTION

CUMULATIVEUNITS

1.5B TABLETS (2017)

2B WEARABLES (2018)

6.5B M2M CONNECTIONS (2017)

6.5M CLOUD SERVERS (2015)

0.5B SDN INVESTMENT (2013)


NETWORK OPERATORS

Assets: Ultrabroadband AccessNew Services: Limited and ClosedE/R: Increasing Network spend, flat revenueInnovation Speed: Years

WEBSCALE OPERATORS

Assets: Massive global compute and storageNew Services: Limited but Open APIs to Web E/R: Increasing DC spend, growing revenueInnovation Speed: Days

IP TECHNOLOGIES IT TECHNOLOGIES

THE OPPORTUNITY

6COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY

INSTRUCTION

THE FUTURE: SOLVING THE RADIO CAPACITY PROBLEM

2x

>10x2x

MORESPECTRUM

(Hz)

MORE SPECTRAL

EFFICIENCY (Bits/Sec/Hz)

MORE SPATIAL

EFFICIENCY (Bits/Sec/Hz/User)

WIRELESSCAPACITY

THE FUTURE OF WIRELESS IS SMALL....AND WIRED (CONVERGED)

10x more

3x more3x more

5G

0

2

4

6

2012 2013 2014 2015 2016 2017

Average Usage (GB/ Mo/ User) Strategy2017

GB/Mo

Growth

from 2012

Alternative Bus. Models 4.9 14x

Smart Loading 4.5 12x

Small Cells 3.8 10x

4G 2.1 6x

2G/3G 0.5G 1.3x


INSTRUCTION

THE FUTURE: THE ECONOMICS OF WIRELESS ULTRABROADBAND

Conservative Growth Model

LTE, SMALL CELLS (inc. WIRELINE) ARE KEY TO FUTURE LEADERSHIP AND PROFITABILITY

Bell Labs Modeling


0.1 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

1

10

20

50

75

100

300

500

1000

0.1 – 0.5

100

ADSL2+

Bonded ADSL2+

VSDL2

VDSL2 + Vectoring

Bonded VDSL2 + Vectoring

1 GPON/G.Fast

CO-Home Distance (km)

Node-Home Distance (km)

Mbps per subscriber

LOWEST COST PER MBPS/SUB

THE FUTURE: THE WIRELINE ANSWER

DS/US ratio

LOWEST COST PER MBPS/SUB

1 25

5

10

20

50

80

100

120

150

300

500

1000 1

1 2 3 4 5 6 8 10 12 14

DOCSIS 3.1 (WITH NODE SPLITS)

FTTLA

FTTH (GPON)

Mbps per subscriber

(DS)

10-20x

5x2x

MORESPECTRUM(Hz)

MORE SPECTRAL EFFICIENCY (Bits/Sec/Hz)

MORESPATIAL EFFICIENCY (Bits/Sec/Hz/User)

WIRELINECAPACITY

Bell Labs

Modeling

THE FUTURE OF WIRELINE IS DEEP FIBER... AND SHORT COPPER LOOPS


CREATE & MANAGE VIRTUAL NETWORK FUNCTIONS (VNFs)

CREATE & EXPOSE VIRTUAL PRIVATE

NETWORKS(OF VNFs AND PNFs)

THE REVOLUTION: SOFTWARE-DEFINED NETWORKS

NFVSDN

SCALE THE NETWORK

SCALE THE BUSINESS

AND NETWORK FUNCTION VIRTUALIZATION

10


Virtualization Value Factor

Value

Dynamic

Control

Gain

Elastic scaling Greater ability to react to changing demand

Faster deployment cycles

Shorter time to market for new apps/SW releases

Domain-specific network slicing/control

Better network re-use and OAM/fault isolation

Cost Gain

Lower CapEx + OpEx (TCO) Depends on Application

WHY & WHEN NFV ?


COST GAIN

CORE ROUTERS& 100G+

SWITCHES

FTTx, RF,COHERENTOPTICAL,

CMTS

EDGEROUTERS

RADIOACCESS

NETWORK

PACKET GATEWAYS

MEDIA GATEWAYS

MEDIA SERVERS& CDN CPE

NETWORKAPPLIANCES

NETWORKAPPS (IMS)

ANALYTICSPLATFORMS

CHARGINGAPPLICATIONS

NFV/SDNCONTROL

OSS/BSS

EMS/NMS

MORELESS

LOW

HIGH

DYNAMICCONTROL

GAIN

CONTROL PLANEFUNCTIONS

YES

MAYBE

NEVER

WHY & WHEN NFV ?

NOW

WHY NFV ?

Application A

Application B

NETWORK PROVIDER “DATA CENTER”

SWITCH

MEMORY

PHYSICAL INTERFACES

STORAGE

COMPUTEApplication C

SERVER CARD

SERVER

Application(s) ‘X’

SERVER

SERVER

SERVER

SERVER

TOR

SERVER

IT DATA CENTER

APP

VM

VSWITCH

HYPERVISOR

VIRTUALIZED APPLICATION

13


WHY SDN ?

TOR TOR TOR TOR

ANY NETWORK ANY NETWORK

…APP

APP

NPNP NPNPNP

Automatic, Optimized IP Networking & TransportMassive (Ms of VMs) ScalabilityNo VM limitationsAny User IP @Multi-tenant Security

WAN

APP

APP APP

NPNPNP

CLOUD PLATFORM

SDNCONTROLLE

R

APPAPP

APP

I’m here and I’m App

X

X

GLOBAL NETWOR

K


INSTRUCTION

STARTING POINT: SEPARATE NETWORKS


THE START OF …

THE NEXT WAVE

SDN EnabledL2 CPE

SDN EnabledL2 CPE

Base Station w/L1

SDN Enabled(Small/L1) Access

Node

vBNG

vSGWvSGWvSGWvPGW

TOR

vBNG

…

……VINE Node

vCPE

vCPE vPEvFANvFAN

TOR

vCPE

… …vRAN

vRANvRAN vRANvRAN

TOR

vRANvCDN

vCDN vCDNvCDNvCDN

TOR

vCDN

VINE SDN CONTROLLER

Virtualized Integrated Network

Edge

WAN SDN CONTROLLER

DC SDN CONTROLLER

SDN Enabled Router

SDN-Enabled OLT

SDN Enabled Packet-Optical

Node

Core Router

InternetAccess Metro Core

Fixed, Mobile & Enterprise Service Core

(IMS/VoLTE, AAA, OSS/BSS)

vPE Router

Enterprise DC

L2 CPE

Federation

Federation


TECHNOLOGY & ARCHITECTURE

SHIFTSITIP

OPTICALIP

WIRELINEWIRELESS

DYNAMICSTATIC

OPENCLOSED

DISTRIBUTEDCENTRALIZED

17


GREATNESS IN AND BY SOLVING REAL WORLD ‘10X’ CHALLENGES

BELL LABS: STILL INVENTING THE FUTURE

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INSTRUCTION

THE TIME IS NOW

Alcatel-Lucent's Marcus Weldon at CommsDay Summit 2014

Technology

alcatellucent confidential

im app x x global network

network scale

increasing network

x 5x2x

x 2g3g

x more3x

network operators assets