5G Core – Heart of the transformation: evolution considerations

Webinar Series

Anders Askerup Terence Nally John O’Connell Dana Nehama Chris Daniel John DiGiglio
Solution Architect Segment Lead Chief Technologist Product Management Director 5G Core Networks, Software Marketing Manager
HPE CMS Intel Network & Custom Logic HPE CMS Intel Network & Custom Logic Business Line Manager, Intel Network & Custom Logic
Group Group HPE CMS Group

4G to 5G transition planning: Evolution and co-
existence with legacy systems
- with Anders Askerup, Terence Nally – June 6
Explore the options for 5G and 4G interworking deemed
crucial for enabling operators to offer seamless service
delivery.
5G and the IT-ification of Telecommunications
- with John O’Connell, Dana Nehama – June 27
Explore how the adoption of IT and cloud concepts will
enable the creation of agile and flexible open networks
with a cloud-native approach, leveraging micro-service
design, DevOps concepts and container virtualization.
5G Sourcing Strategies: Openness with Risk
aversion
- with Chris Daniel, John DiGiglio – July 18
Key questions to help service providers consider changes
and optimizations that may be needed in the sourcing
processes in getting ready for 5G core networks

Webinar Series with Sue Rudd

Director Networks and Service Platforms, Strategy Analytics
©2019 FierceWireless. All rights reserved.

©2019 FierceWireless. All rights reserved.

5G Core Sourcing Strategies: Openness
with Risk Aversion

July 18, 2019

©2019 FierceWireless. All rights reserved.

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 Our speakers today:

Sue Rudd Chris Daniel John DiGiglio

Director Networks and 5G Core Networks, Software Marketing Manager,
Service Platforms, Business Line Manager, Network and Custom Logic Group
Strategy Analytics Communications & Media Solutions Intel
Hewlett Packard Enterprise

You can read their full bios on the left side of your window by selecting the “speaker bio” tab.
©2019 FierceWireless. All rights reserved.
 5G Core Sourcing Strategies
Today’s agenda

• New ‘Win-Win’ approach to 5G Core Sourcing needed Strategy Analytics – Sue Rudd, Director
Networks and Service Platforms, Strategy
Analytics
• Openness with Risk Aversion Hewlett Packard Enterprise – Chris Daniel,
5G Core Networks, Business Line Manager,
Communications and Media Solutions, HPE
• Network Platform Sourcing
Intel – John DiGiglio, Software Marketing
Manager, Intel Network and Custom Logic
• Q&A Group

©2019 FierceWireless. All rights reserved.

 5G Core Sourcing Strategies – HPE and Intel Webinar July 18th. 2019

Introduction Prepared By Sue Rudd, Director Networks & Service Platforms

email: srudd@strategyanalytics.com

July
July18
18th.2019
th.
2019 Copyright© Strategy Analytics 2019 6
Business Drivers for 5G ‘out of Synch’ with Sourcing Process

Cost Reduction Revenue Generation Time To Market Right Size the Network
• Decompose to • Enable new • Embrace Agility • One size no longer
commoditize services with fits all
• Open Source emphasis on the • Efficient connectivity
• Automation Enterprise • Right resources for
the right services
BUT….Sourcing/Procurement Process is:

Expensive Costly Slow Complex for any size

• Monolithic • Focus on Legacy • ‘Hide Bound’ Purchase
• Closed Processes • One size for all
• Labor Intensive • High Overhead

July 18th. 2019 Copyright© Strategy Analytics 2019 7

Traditional Differences in Network & IT Procurement
Network has evolved but …..Procurement has not…
Network Procurement IT Procurement
Very costly and vendors hold a huge
amount of power and influence Lower cost and less influence
over customers
Hardware-centric, transitioning to
Software-centric
software
Key segments are networks (core Key segments are licenses, services and
and access) and managed services platforms
Minor role for systems integrators Major role for systems integrators

Strongly standards-based Lack of standards

Minimal customization Highly customized solutions

Gradual transition to cloud-based
Fast transition to cloud-based solutions
solutions
No significantly dominant suppliers, rather a
combination of some fairly large telecoms-
Dominated by a few large, telecoms-
specific vendors, a few large multi-vertical
specific suppliers
companies and hundreds of small- to
medium-sized players
Source: ‘Time to kill the RFP? Reinventing IT procurement for the 2020s: Volume 1 and 2’ Mark Newman, TM Forum May 2019

July 18th. 2019 Copyright© Strategy Analytics 2019 8

Example of Impact of ‘Softwarization ‘-
Virtualized Software needs new Licensing/Pricing Approaches
Licensing. NFV License Classification
• Different types of software licenses
• Many can be reused in NFV context Table 1: Overall classification of software licenses
License classification made according to Free and Open Source Software (FOSS)
entitlement for: Public Open Source Open Source Open Source Freeware, Proprietary Trade
Rights domain (Without (Weak (Strong Shareware, secret
• Reproduction (i.e. copy) copyleft) copyleft) copyleft) Freemium
• Distribution and
• Use of the software Examples SQLite,
ImageJ
Apache, BSD,
MIT
GNU LGPL,
MPL
GNU GPL,
GNU Affero
Irfanview,
Winamp Windows World of
warcraft
Differs depending on:
Copyright No Yes Yes Yes Yes Yes Yes
• process of software production retained
• motivations of the licensor e.g.
Right to Yes Yes Yes Yes Yes Yes No
software editor or open source use
community. Right to
copy Yes Yes Yes Yes Often No No
Pricing. Right to
Options similar to Cloud & IT modify Yes Yes Yes Yes No No No
 Per Simultaneous Active Instance Right to Yes, under Yes, under Yes, under
(with Threshold Vol. Discounts) distribute Yes same license same license same license Often No No
 Per ‘Suite’ of functions Right to
 Per Subscriber License sublicense Yes Yes No No No No No
 Per Site
 Per Use Source: ETSI ‘NFV-EVE 10 Release 3.1.1. Licensing Management; Report on License Management for NFV’ Dec 2017

July 18th. 2019 Copyright© Strategy Analytics 2019 9

Procurement Model Out of Synch. with DevOps and CI/CD
Procurement & RFP Process Platforms and Software have moved to ‘DevOps’ and
stuck in the sequential Continuous Integration/Continuous Deployment (CI/CD) Model
‘Waterfall’ Model
Pipeline Continuous Deivery Model

DevOps Model of Operations

Legacy Waterfall Software

Development Model

Source: ‘Time to kill the RFP? Reinventing IT procurement

Source: Accenture ‘Unlocking the True Benefit of Software Defined Networking’
for the 2020s: Volume 1 and 2’ Mark Newman, Chief
TMForum Live! May 2017
Analyst, TM Forum May 2019

July 18th. 2019 Copyright© Strategy Analytics 2019 10

New ‘Win-Win’ approach to 5G Core Sourcing needed
 Cloud Native ‘5G Changes Everything’ - Now Procure:
 Service Functionality not Boxes
 Multiple Vendors
 ‘Mix and Match’ VNFs and microservices functionality
 Everything upgradeable with software and firmware
 ‘Best of Suite’ instead ‘Best Network Node’ or ‘Best Appliance’
… and soon ‘Best of Function’ for Network (NF) and Service Functions (SF)
 Allow Vendors to Recover Software Development cost NOT just cost of last copy
 “Large scale Software is like Semiconductors” 1st. Copy cost $500 million…1000th. Copy cost $5.00
 Move to Life Cycle Cost Analysis to match Life Cycle Service Management
 Fully Allocate all Costs – Hardware, Software, Systems Integration, Interop. Testing, Ops.
Labor/Maintenance and Energy Costs
 ‘As A Service ‘ - Virtualized Cloud and Edge support new Telco. Business Models incl.:
 ‘Host to Own’ with Cloud based ‘Platform as a Service (PaaS)’
 ‘Everything as a Service’ incl. ‘Network as a Service (NaaS)’ w. Compute in Cloud, Core, Edge etc.

July 18th. 2019 Copyright© Strategy Analytics 2019 11

5G Core Sourcing Strategies:
Openness with Risk Aversion
Chris Daniel – 5G Core Networks Business Line
Manager, HPE
Telco design keeps on cloud-ifying

Monolith Virtualized Cloud native

Network Element Network Function Network Network
Function Function
Management (OMA&P) OSS/BSS Management (OMA&P)
OSS/BSS
Integration Integration Business Business Business
Business Logic Integration Business Logic Logic Logic Logic SOAP/Rest
Integration
SS#7 SS#7
Data Diameter Data Diameter µServices µServices µServices

VNF
OS/Middleware PaaS/IaaS

Shared Data Analytics Messaging

Hardware Virtual Infrastructure
Management Operations Orchestration Automation

Compute µServices
Infrastructure platform Framework

OSS/BSS
Cloud-ification leads to different way of thinking
With different challenges for engineering and integration
Monolith/Virtualized Cloud native
Network Function Network Network
Function Function
Management (OMA&P)
OSS/BSS
Integration Business Business Business
Business Logic Logic Logic Logic
Integration SOAP/Rest
SS#7
Data Diameter µServices µServices µServices

VNF
PaaS/IaaS
Shared Data Analytics Messaging
Virtual Infrastructure
Management Operations Orchestration Automation

µServices
Infrastructure Compute platform
Framework

• Vertically-engineered stack: OSS/BSS

business logic, data, and
infrastructure
• Integration of signaling and • Microservice/cloud native
management engineering of business logic
• Horizontal engineering of PaaS/IaaS
• Integration of:
• NFs to PaaS
• PaaS to network and OSS
Five 5GC Underrepresented Success Factors
#1: Clear PaaS Strategy
Network
Function

Business Business
– Same PaaS should be common for all 5G NFs Logic Logic

– Make conscious decision on custom vs. enterprise PaaS µServices µServices

distributions (i.e., Redhat Openshift, Microsoft Azure)

PaaS/IaaS
– Be prescriptive on how NFs shall integrate to your PaaS
Shared Data Analytics Messaging

– Be careful of hybrid VM/container transition plans

Management Operations Orchestration Automation

Compute µServices
Infrastructure platform Framework
OSS/BSS

Optimize cost of operations.

Ensure network supportability and service reliability.

15
Five 5GC Underrepresented Success Factors
#2: Optimize amount of system integration
Network
Function

Business Business
– Temptation to single source 5GC is strong but risky Logic Logic

– Integration domains to consider: µServices µServices

– NFs, Paas/Caas/IaaS, OSS

PaaS/IaaS
– NFs optimize by functional groupings (best of suite) such as: Shared Data Analytics Messaging
– User plane (AMF, SMF, UPF)
Management Operations Orchestration Automation
– Authentication (AUSF, UDM)
Compute µServices
– Data plane (UDR, UDSF) Infrastructure platform Framework
OSS/BSS

Avoid single vendor lock-in.

Ensure service agility and ability to differentiate.

16
Five 5GC Underrepresented Success Factors
#3: Design for automation

Requirements to be specified:
– Slice management: Resource, connectivity and service orchestration
– DevOps tools and processes for suppliers to integrate with
to enable CI/CD
– Microservice lifecycle management
- Blue/Green and Canary upgrades
– Provisioning and fulfillment integrations for closed loop automation

Cost of operations is a primary design requirement.

Openness for automations is key.

17
Five 5GC Underrepresented Success Factors
#4: Data management designed for service agility

3GPP TR.23.732 Study Item:

“User data interworking, coexistence and migration”

- Standards and RFPs demonstrate fights for data control

- Separation of business logic from data
- 12-factor app design
- Service based Architecture (SbA)
– Data plane resiliency
– Requires carrier grade “wrapper”
– Validate open source aligned to workload
Solution Approach #2:
SbA based 4G-5G internetworking

Separation of data from applications is key for

service agility and time to market.

18
Five 5GC Underrepresented Success Factors
#5: Aligning cost to revenue

– It is still not clear which services are going to create revenue in 5G

– Need to try lots of enterprise services and fail fast
– Consider purchasing based on the consumption/utilization of the
service
– Separate software consumptions from hardware with incentives for
infrastructure optimization
– 5GCaaS as an overall economical model

Decrease up-front cost and risk.

Grow as 5G revenue and applications mature.

19
Thank you.
chris.daniel@hpe.com
 John DiGiglio
Software Marketing Manager
Network and Custom Logic Group
Intel Corporation

Intel & HPE Webinar, July 2019

 END TO END NETWORK TRANSFORMATION

INTEL AND ECO-SYSTEM DELIVERING PER LOCATION 5G SOLUTIONS

WITH A SCALABLE & HIGHLY PROGRAMMABLE ARCHITECTURE
22
Intel and HPE Webinar, July 2019
 NETWORK TRANSFORMATION BEGINS WITH
NETWORK PLATFORM TRANSFORMATION

5G
CLOUD NATIVE
AUTOMATION

SCALABILITY
AGILITY

CLOUD READY - CLOUDIFICATION

NFV - VIRTUALIZATION

BARE METAL – STANDARD SERVER

2017 2018 2019 2020

ENABLING A SPECTRUM OF DEPLOYMENT MODELS AND

EVOLVING TECHNOLOGIES
23
Intel and HPE Webinar, July 2019
 MULTI-LOCATION CONSISTENT ARCHITECTURE

WIRELESS ACCESS NEXT GENERATION CENTRAL

ON-PREMISE
AGGREGATION OFFICE
NETWORK EDGE SERVICES NETWORK EDGE SERVICES NETWORK EDGE SERVICES
FUNCTIONS Storage FUNCTIONS Storage FUNCTIONS Storage
uCPE/SD-WAN Video/AR/VR vRAN/vEPC (CUPS) Video/AR/VR vEPC, PE, vCPE, vBNG, Video/AR/VR
vCMTS, vCCAP, CRAN,
vRAN/vEPC (CUPS) Analytics/AI CRAN Analytics/AI Analytics/AI
SecGw

NETWORK PLATFORM NETWORK PLATFORM NETWORK PLATFORM

IA PLATFORM IA PLATFORM IA PLATFORM

SCALABLE HW + SW FRAMEWORK ACROSS LOCATIONS FOR DYNAMIC

PLACEMENT AND MOVEMENT OF SERVICES FROM EDGE TO CORE
24
Intel and HPE Webinar, July 2019
DISAGGREGATED NETWORK FUNCTION AND PLATFORM
CNTT
COMMON NFVI TELCO TASKFORCE

NFVI PROFILE & METRICS DEFINITION

COMMON NFVI MODELS &

ARCHITECTURE DOCUMENT

VNF OPERATIONALIZATION IN A MULTI-VENDOR SOURCING ENVIRONMENT

Source: Open Network Summit, San Jose, April 2019
OPNFV TSC Meeting April 23, 2019 25
*Other names and brands may be claimed as the property of others. Intel and HPE Webinar, July 2019
 WINNING WITH THE ECOSYSTEM
INVEST INDUSTRY COLLABORATION
OPEN SOURCE AND STANDARDS INTEL® NETWORK BUILDERS &
INTEL® DEVELOPER ZONE

350+ 35+ 13,000+

Members Comms SPs Developers Trained
worldwide

100+ 12,000+
POCs/Trials/Deployments Network Builder
Based on Member Solutions University Program
Members

50+ 251,480+
Network Edge IDZ page views
Ecosystem Program
Members

EXPERIENCE KITS
https://networkbuilders.intel.com/network-
technologies/network-transformation-exp-kits

USE INDUSTRY LEADING ECOSYSTEM PROGRAMS

TO DRIVE EDGE TRANSFORMATION & ENABLE DEVELOPERS
26
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