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A C A D E M Y
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Who is QuEST Forum?
Global community of Service Providers, Suppliers & Liaisons
Jointly create, develop and share quality management standards, best practices offerings and industry-leading resources
Develops & maintains TL 9000, an information and communication technologies (ICT) industry quality management system standard
What Is ?
Created by the QuEST Forum
Globally recognized quality standard, designed to improve communications products: hardware, software and services
Built on ISO 9001 and the eight quality principles
Includes requirements for continual improvement, customer satisfaction and reporting of industry standard measurements
Economic Impact of NFV & Cloud Services Eniola Campbell
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Agenda
I. US Economy today and future
II. Technology Life Impacts
III. Telecommunication Industry
IV. NFV… What is it
V. Cloud…What is it
VI. Potential Business Opportunities
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USA economic demise has been greatly exaggerated
GDP growth along with unemployment and consumer confidence provides a good view of the current health of a region and country.
Business confidence is strong and steady for North America. GDP levels are over 3.4%. Countries with strong ties to the US are also growing.
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To know where you are going must know where
you have been….
1. World's largest national economy since 1890
2. Gross Output at $28.7 Trillion in 2012
3. US GDP at purchasing power parity is estimated to be the second largest in the
world accounting for 16.3% of the world total
4. The U.S. dollar is the currency most used in international transactions
5. Stable overall GDP growth rate, a moderate unemployment rate, and high levels
of research and capital investment.
6. Abundant natural resources, a well-developed infrastructure, and high
productivity.
7. World's largest producer of oil and natural gas.
8. World’s 2nd largest manufacturer, representing a fifth of the global
manufacturing output.
9. 132 of the Worlds 500 Largest companies are headquartered in the US, twice
that of any other country.
#1 Economy in the World over 100 years
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US Economy not the same for all though….
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11
Customer Electronics and Apps Economics
Technology Life Impacts
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Technology is changing faster
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Technology is forming new countries
If Facebook was a country would be 3rd largest
population wise
1.3B 1.1B 600M 319M
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Technology making some items disappear…..
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Technology making new money
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Technology changing how we do things…
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Technology changing how we share pictures
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Technology driving new apps for life
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Technology changing how we workout
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Technology changing how we watch TV
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Technology changing where we watch TV
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Multitasking at all time high
TelecommunicationIndustry
25
What Telecom Industry means to US Economy…
2012 US Total Gross Output was $28.7 Trillion
2012 Telecom Industry Gross Output was $4.67 Trillion
Telecommunication represents 16% of the total US Economy
26
Who are the US Telecom Service Providers
And Many other Tier 2 and Tier 3 companies
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Spending a lot to get a little…….
Wire Line Network
• Losing Line lines but lot of demand for broadband at higher rates
• Video and Broadband revenue helping to offset phone revenue loss
• Must deploy fiber to stay competitive and leverage faster DSL copper speeds
• Having to consolidate to survive – Lot of non traditional competitors taking business
• Limited upside in present environment but must invest to maintain customers
WireLess Network
• Lot of customers with explosion in broadband that requires significant investment
• 3G to 4G (LTE) and increase in Small Cells and DACS for better coverage
• Intense competition that is driving APRU down
• Limited upside but must invest heavily to maintain customers and address broadband
needs
Business Services
• Leverages investment in Wire Line Network to provide services to Corporate
customers
• Huge growth area based on Cloud needs from $40B to $160B in next few years
• Lot of competition but growth of innovative services allow growth for all
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Telecom before all about voice….
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Tomorrow all about data…..
NFV…What is it
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What is Network Functions Virtualization (NFV)?
Physical network
functions
OS
APP
HW
HW and SW bundled together
Network Functions Virtualization (NFV)
OS
APP
HW
OS
APP
OS
APP
NFV PLATFORM
Common HW, Management and Orchestration
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WHAT IS DRIVING NFV?
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Network Function Virtualization….what is it??
Service innovation at low risk
Hardware independence
Improved economics
Flexibility and elastic scaling
Faster service time to market
TO DELIVER
THE GOALS OF
NFV
Openness
Location optimization
GENERIC
INFRASTRUCTURECommodity compute, storage,
and network equipment
(COTS)
VIRTUALIZATIONSeparation of sw from hw with
open and industry standard
hypervisors and managers
Network Functions Virtualization combines:
CLOUD AUTOMATIONApplication life cycle
management, virtual resource
placement
NETWORK AUTOMATIONSDN to automate the networking
of virtual resources
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NFV Market trends
2013Year of the PoCs
2014Vendors productize
NFV&SDN
2015Field trials move to a
few commercial
deployments
2016-2020Wider spread
commercial
deploymentsSource
Infonetics
2014
AT&T will virtualize and control over 75 percent of its network using the new [SDN & NFV] architecture by 2020
75%
Telefonica expects to have 30% of new network platforms virtualized by 2016
30%
CSPs' capex on SDN and NFV equipment will surpass $11.5 billion worldwide by 2017? (Gartner)
$11bn53% of service providers will have a quarter or more of the network workloads virtualized by 2017 (Heavy Reading)
53%
FROM THE CARRIER OF TODAY…
OPERATIONAL SIMPLICITY
AGILITY COST EFFICIENCIES
NEW REVENUE STREAMS
MOBILE
CORE
IPTV
RNC/BSC
IMS
CDN
OSS/BSS
ENTERPRI
SE
SERVICES
CDN
MOBILE
CORE IPTV
IMS
CDN
OSS/BSS
ENTERPRI
SE
SERVICES
MDM
RNC/BSC
… INTO THE CARRIER OF TOMORROW.
The Service Provider transformation -Network Function Virtualization
Virtualize
Telco
Function
Cloud…What is it
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Cloud…What is it
Cloud is shared computer resources uses for different
application across multiple users
Cloud computing relies on sharing of resources to
achieve coherence and economies of scale, similar to a
utility like the electricity grid over a network..
Cloud computing, or in simpler shorthand just "the
cloud", also focuses on maximizing the effectiveness of
the shared resources.
Allows dynamically reallocating resources per demand.
Multiple users can access a single server to retrieve and
update their data without purchasing licenses for
different applications
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Cloud…What is it
Moves away from a traditional CAPEX model (buy the
dedicated hardware and depreciate it over a period of
time) to the OPEX model
Avoid upfront infrastructure costs, and focus on
projects that differentiate their businesses instead of
on infrastructure.
Applications up and running faster, with improved
manageability and less maintenance
Enables IT to more rapidly adjust resources to meet
fluctuating and unpredictable business demand
Can implement a “Pay as You Go" model
.
Can lead to unexpectedly high charges if
administrators do not adapt to the cloud pricing model
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It is all about the Cloud….
40
Defining the Different Types of Cloud
PUBLIC CLOUD
HYBRID CLOUD
PRIVATE CLOUD
Internet Access
Cost Conscious
Shared
Infrastructure
Weak Multi-
tenancy
Best of Public &
Private
Multi-Tenant &
Secure
Highly Integrated
SLA with Managed
access
Single Tenant
Dedicated
Infrastructure
Operational
Transformation
Security Paramount
Emerging
41
Growth by Cloud……
42
Different Clouds and Different Services……
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THE SHIFT TO CLOUD HAS ONLY JUST BEGUN
3.9B30% YoY INCREASE IN MISSION-CRITICAL SERVICES I
3xINCREASE IN AVERAGEBROADBAND SPEED 2012–17
CONNECTED ‘THINGS’ TO INTERNET IN 2020
440%INCREASE IN
CLOUD AND DC
TRAFFIC
2012–17
>70B
CONNECTED
PEOPLE TO
INTERNET IN
2017
720%INCREASE IN
VIDEO
TRAFFIC
2012–17
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IT Spending by Different Industries
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Opportunities
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Opportunities – Software, Equipment, Applications
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Opportunities – Security, Migration, and Talent
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Opportunities – Implementation of Cloud
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Where does Cloud fit in the New Tech World
53
Heavy Reading: Ethernet and SDN executive council survey- July 2013
Opportunities – Transport connectivity and Network
Based Broker Services
54
Opportunities – Big Data Analytics
Questions
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