RESEARCH STRATEGY REPORT vngn-oss: AN ARCHITECTURAL FRAMEWORK FOR VIRTUAL NETWORK MANAGEMENT AND ORCHESTRATION SHANTHI RAVINDRAN, DANA COOPERSON and GLEN RAGOONANAN analysysmason.com
About this report This report analyses the changes that network virtualisation will demand of communications service providers (CSPs ) OSS architecture so that virtual and hybrid next-generation networks (vngn) 1 can be properly operated and maintained to meet customer expectations and CSP business objectives for service innovation in the digital economy. An expanded, more open control layer architecture will create new technical requirements and enable new products and services, which will change the vendor competitor landscape and lead to changes to Analysys Mason s telecoms software market segmentation. This report provides recommendations for those engaged in transforming physical networks to hybrid or virtual networks. The research in this report is based on several sources. Analysys Mason s extensive qualitative and quantitative telecoms software market research. Interviews with more than 10 software vendors regarding their capabilities and strategies, and 20 CSPs regarding their needs and expectations. Secondary research into the enabling technologies and market forces that are shaping this OSS evolution. KEY QUESTIONS ANSWERED IN THIS REPORT How does a new approach to network design and operational systems support CSPs digital economy business objectives? What are the key characteristics and building blocks of an end-to-end functional architecture that pulls together network function virtualisation (NFV) management and orchestration (MANO) and OSS? What are the business and technical requirements of a vngn-oss? How does the vngn-oss affect segmentation in the software market? What opportunities and threats do OSS evolution present to vendors? How are different vendor types approaching the vngn-oss and related professional service opportunities? WHO NEEDS TO READ THIS REPORT OSS and infrastructure strategy, product marketing and management executives in incumbent and new entrant vendor organisations, who want a forward-looking analysis of market shifts to help them position their products and services and develop their businesses. CTO and CIO staff in CSPs, who want a forward-looking analysis of vngn- OSS architecture in order to understand the functional blocks and how they fit together so they can start building their evolution plan. Strategy officers in CSPs, who want to understand how virtual networks can be part of their platform for providing digital economy services. 1 Analysys Mason defines vngn as hybrid (physical and virtual) network components because we do not expect 100% virtualised networks to be possible. Network virtualisation includes network function virtualisation (NFV), software-defined networking (SDN) and cloud computing. 2
CONTENTS EXECUTIVE SUMMARY CHANGES TO THE OSS ARCHITECTURE NEW TECHNICAL REQUIREMENTS CHANGES TO VENDOR COMPETITION AND OUR TAXONOMY APPENDIX ABOUT THE AUTHORS AND ANALYSYS MASON 3
Executive summary orchestration The success of CSPs in the digital economy depends on them deploying a vngn-oss architecture that can dynamically and holistically manage physical and virtual resources to support service innovation at scale. 1 CSPs will need to protect potential revenue of USD1.71 trillion in 2015 2 while attacking the wider market for digital economy services. In order to do this, CSPs need to build new networks. Analysys Mason s proposed vngn-oss will enable CSPs to provide digital economy services via NFV and SDN, and support traditional fixed and mobile services. Important elements of a vngn-oss include a dynamic master control inventory, a service orchestration layer for process automation, and a management and enforcement layer for resource orchestration and control. We provide the following recommendations. CSPs should understand that vngn-oss is critical to deploying network virtualisation and must plan accordingly. Vendors should expect significant competition for vngn-oss business, have a solid strategy for providing hybrid network solutions and expect the competitive landscape to change. Figure 1: Key capabilities of a virtual next-generation network OSS (vngn-oss) architecture to manage multi-vendor hybrid networks fulfilment assurance Dynamic inventory CSP revenue: USD1.7 trillion worldwide orchestration Physical and virtual network management, orchestration and control 1 We expect vngn-oss to be less expensive and more agile than existing OSS. For more information, see Analysys Mason s Preparing for an OSS architecture that can support NFV, SDN and established technologies. Available at www.analysysmason.com/network-virtualisation- Apr2014. 2 For more information, see Analysys Mason s Global telecoms market: interim forecast update 2014 2019. Available at www.analysysmason.com/gtf2015. New elements discussed in this report Source: Analysys Mason 4
An automated network that reacts and scales on demand will enable digital economy services, but a design does not exist CSPs know they need a new approach to network operations in order to enable new digital economy services, but the industry has yet to agree the best way to integrate physical virtual function management, control and orchestration to support automation. Figure 2: An approach to building and operating networks for enabling digital economy services Present method of operations Future method of operations Virtualisation should enable a flexible operations framework. Creating this framework will be disruptive for CSPs, but will pay off in terms of increased revenue through digital economy service enablement services while supporting existing revenue streams in a more cost-efficient manner. ETSI has sketched out an architectural framework and functional blocks for management and orchestration (MANO) of virtual infrastructure, but has not specified the best flow through these functional elements and existing OSS functional blocks. Therefore, CSPs and their suppliers are debating and testing many different approaches. Business and operational objectives specifically those for improved service agility and enabling new digital economy revenue should drive functional and technical requirements for the integration and automation of hybrid physical virtual network resource management, control and orchestration. Existing service assurance, service fulfilment and network management systems and virtual network NFV orchestration and SDN control systems must interwork for networks to scale and change on demand. fulfilment assurance EMS/NMS API PNFs PNFs? agility and revenue Development and maintenance costs Integration of physical and virtual resources vngn-oss Business and operational objectives: How to integrate ETSI MANO and OSS? API PNFs VNFs Source: Analysys Mason 5
Inter-layer flows for automated scaling and security vngn-oss: an architectural framework for virtual network management and orchestration CSPs need a vngn-oss that supports service agility enabled by automated orchestration of a hybrid network Analysys Mason is proposing a vngn-oss architecture that supports an agile operational model by allocating network resources dynamically. The vngn-oss is likely to change OSS product segmentation and the vendor competitive landscape. Network virtualisation will support agile service creation, provisioning and management that CSPs will need if they implement a vngn-oss framework in order to become digital service providers (DSPs). The framework must be built around a unified, dynamic inventory that integrates with service fulfilment and assurance functions and allows closed-loop planning; a service orchestration layer within service fulfilment that allows for conversion of customer-facing services (CFS) to resource-facing services (RFS); and a separate network management and enforcement layer that abstracts and controls the virtual and physical infrastructure. This report: introduces Analysys Mason s proposed vngn-oss framework, its benefits compared with the present method of operations and its fit with the ETSI MANO assesses vngn-oss business and operations drivers, technical requirements and fulfilment and assurance process changes highlights changes to competition dynamics and product segmentation in the OSS market. Figure 3: vngn-oss architecture components to enable agile and automated operations Customer care and customer experience management fulfilment MASTER CONTROL PROCESS AUTOMATION VIM MANAGEMENT AND ENFORCEMENT New or significantly changed element Closed-loop automation orchestration Network management and orchestration vngn SDN controllers Evolving element assurance Source: Analysys Mason 6
Recommendations 1 CSPs should understand that vngn-oss is critical to deploying commercial network virtualisation (NFV/SDN) and should include OSS evolution plans as part of their network virtualisation initiative. Creating a vngn is hugely disruptive, but justified for CSPs that want to become digital service providers. An OSS evolution plan that supports hybrid physical virtual resource management is essential to benefitting from virtualisation. The first evolutionary step will be abstraction of existing OSS management through controllers, orchestrators and infrastructure managers. CSPs should introduce new functions with a final blueprint in mind. 2 CSPs must move to an operations model that is supported by a dynamic inventory, and automated service and network orchestration and control layers. Business and operational goals must drive vngn-oss requirements. Evolving service fulfilment and service assurance systems will use a dynamic, unified inventory to enable closed-loop automation. Multi-vendor network and service orchestration layers should remain distinct in order to establish a clear demarcation, enhance operational flexibility and revamp workflows and order-to-cash, plan-to-provision and trouble-to-resolve processes. 3 Vendors should expect significant competition for vngn-oss business, have a solid strategy for management and control of hybrid networks, and expect product categories to change. Virtualisation is lowering entry barriers to new software vendors. Incumbent vendors need to differentiate themselves by providing multi-vendor capabilities, and new entrants must ensure that their NFV/SDN virtualisation software integrates with existing systems. The OSS product landscape will change as network management systems evolve. 7
CONTENTS EXECUTIVE SUMMARY CHANGES TO THE OSS ARCHITECTURE NEW TECHNICAL REQUIREMENTS CHANGES TO VENDOR COMPETITION AND OUR TAXONOMY APPENDIX ABOUT THE AUTHORS AND ANALYSYS MASON 30
About the authors Shanthi Ravindran (Senior Analyst) is a member of Analysys Mason s Telecoms Software research team, focusing on OSS, BSS and SDP for Asia Pacific customers. She leads the Network Orchestration programme. Shanthi has more than 20 years of experience at Tier 1 infrastructure vendors, working on design, deployment and operations of wireless and broadband networks for operators across the Asia Pacific region, starting with the first GSM and CDMA networks in Malaysia and Singapore, and continuing on through to 3G and 4G networks. Dana Cooperson (Research Director) is the research director for Analysys Mason s network-focused software research programmes. Her area of expertise is intelligent fixed and mobile network infrastructure. Her goal is to help customers strengthen their link in the communications value chain while evolving their business operations to benefit from, rather than be threatened by, shifts in the market. The key network infrastructure trends Dana focuses on include the integration of communications and IT assets and the drive towards softwarecontrolled, virtual networking. Glen Ragoonanan (Principal Analyst) is the lead analyst for Analysys Mason s Infrastructure Solutions, Delivery Platforms and Software-Controlled Networking research programmes. He joined Analysys Mason in 2008 and has worked as a consultant on projects on nextgeneration IT and telecoms networks, systems and technologies for incumbents, new entrants, private companies, regulators and public-sector clients. His primary areas of specialisation include operations and business support systems (OSS/BSS) solution architecture and integration for business process re-engineering, business process optimisation, business continuity planning, procurement and outsourcing operations and strategies. 31
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