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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

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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

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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….

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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

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Growth by Cloud……

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Different Clouds and Different Services……

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44

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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

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Heavy Reading: Ethernet and SDN executive council survey- July 2013

Opportunities – Transport connectivity and Network

Based Broker Services

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Opportunities – Big Data Analytics

Questions

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