Transport network elements are likely to remain in existing central offices, even after their control functions have been virtualized to x86 servers.
In some cases, the x86 servers will be consolidated in data centers that are separate from the physical network, but in others, they will be collocated.
I recently posted a report that describes how traffic demands and the promise of virtualization are leading operators to segregate the functions in the network into two layers – a cloud services layer that consists of the many functions of network that are virtualized into standard high volume x86 servers, and a transport layer that consists of the remaining functions of the network, which are focused on sending traffic across the network.. As report notes, operators are beginning to implement network functions virtualization (NFV), but they are still determining where to locate the NFV servers. The answer, of course, is likely to be in next-generation central offices (COs), headends and/or data centers, but the question remains; just what does a next-generation CO look like? Continue reading “Implications of the Two-Layer Network on Next-Generation Central Offices”→
A theme of Juniper’s 2015 Innovation Showcase, “Innovation That Matters” points to a pragmatic view of the market.
This pragmatism, however, applies to its commercial as well as R&D operations – suggesting a need for more active engagement by its customers.
Last week, Juniper held its 2015 Innovation Showcase down at its Sunnyvale, CA HQ. Rami Rahim – Juniper employee #32 and current CEO – was there to kick things off and answer questions. Jonathan Davidson – GM of Juniper Development and Innovation – was there to talk up their newest launches and field some customer interviews. They showed off their latest routing and switching innovations. They hosted panel and individual sessions to talk technology along with go-to-market strategy. They had a story to tell. They captured some of it on video.
The title of the report is a not-so-subtle reference to last year’s conference where an over-arching theme was the “Rise of the Creative Planet.” Back then, CEO Shaygan Kjeradpir talked about the exciting, pioneering work Juniper was embarking on, and the ways in which Juniper was going to change the world by sparking creativity via “Cloud Building” and Juniper’s “High-IQ Networks.” This year, any romanticized comparisons to a latter-day Lewis and Clark expedition were traded in for a more pragmatic message: “Innovation That Matters.” Embedded in this message was Juniper’s focus on network performance and automation as competitive differentiators. It’s exactly the type of message you’d expect from a company’s who’s CEO was also an engineer on its “first breakthrough product.”
When your top competitor is generally acknowledged as a master of sales and marketing strategy, a focus on engineering prowess is logical. That’s not to say that Juniper’s newly messaged pragmatism ends at the lab. This year, partners (OEMs, VARs, SIs) were put front and center as key to both go-to-market and product development efforts. For large service providers, any added focus on the channel isn’t likely to change their relationship with Juniper; the vendor will likely keep direct touch points on them. For smaller carriers, the pros and cons of work working more via partners need to be acknowledged. To be sure, those partners are likely to be more responsive than Juniper might be when it comes to servicing the needs of Tier 2 or Tier 3 service providers. At the same time, where sales support, product support or product requirements are being funneled via an intermediary, a tight coupling between Juniper and its partners will be critical. In some cases, this may make it incumbent on the customer to drive engagement in order to get their demands understood and keep abreast of (then plan for) Juniper roadmaps.
Selling NFV as a tool for helping operators grow their revenues – vs. save on OpEx and CapEx – is something vendors have struggled with.
Monetizing NFV, however, needs to be seen as a core part of the technology’s value proposition, by vendors and operators, alike.
Last week, in the aftermath of Mobile World Congress, we had a customer reach out to ask about memorable demos and announcements focused on customer experience, monetization and network functions virtualization (NFV). It wasn’t immediately clear if the question was about multiple, distinct topics or about virtualization in the service of customer experience and new revenues. While awaiting a clarification, however, a friendly debate around the relationship between virtualization and monetization developed between our Service Provider Infrastructure analysts. I’m not sure that we all ended up on the same page, but I think it’s fair to say some conclusions and points of agreement were reached. Continue reading “Monetizing NFV: Why is it So Hard?”→
• At MWC 2015, Huawei promoted its Business Enabling System (BES), a framework using assets like pre-integrated software modules, analytics, and API management designed to drive operator adaptation to and influence over B2C/B2B/B2B2x digital ecosystems.
• Huawei needs to produce proof of concepts (PoCs), use cases and endorsements that demonstrate operators are ready to use the BES as the integral framework required for replacing the traditional BSS and drive their overall digital transformation.
Huawei used the MWC 2015 event to promote its BES. Or more accurately, re-promote the BES framework it has championed for at least a year now (please see: Huawei Global Analyst Summit 2014: BSS Transformation Drives Huawei BES Vision, May 5, 2014). To Huawei’s credit its core message has remained consistent in advocating that the BES hierarchal architecture design – using integrated business processes adaptive to value chains, customer experience, infrastructure, and digital/non-digital services – is essential for replacing the limitations of the traditional BSS. Such legacy BSS limitations include multiple silo-bound processes predicated on delivering telco services like voice and data but not Internet-centric digital services (e.g., Baidu, Google, Alibaba, Amazon) and dependence on inflexible processes that limit operator agility.
Since Huawei has invested heavily in its BES framework, how can it differentiate and drive its BES proposition within the global digital ecosystem to prove its indispensable role in driving operator BSS and business model transformation?
• Crystallize Portfolio Details: Huawei’s outbound marketing of BES continues to lack some crucial upfront portfolio details. Through inquiries to Huawei, it has become evident that portfolio elements such as service delivery platform (SDP) and cloud infrastructure products (e.g., servers, cloud engine switches, storage platforms) play key roles in addition to designated BSS-to-BES transformation products (e.g., revenue management, business analytics, customer management). Huawei’s vision and messaging would benefit from a tighter presentation of the portfolio assets needed for BES implementations.
• BES and SDN/NFV?: In laying the groundwork for operator adoption of BES the linkage to meta-technology initiatives, such as SDN/NFV, SoftCOM and digital service platforms, remains tacit but scattered. In particular, Huawei needs to specify how BES interworks with NFV orchestration and SDN hypervisor technology to assure its primacy in operator digital services planning and pre-empt rival attempts to use SDN/NFV as a wedge against the framework.The Huawei BES framework proposes the transformation of the traditional BSS into the BES framework. What are the major considerations that operators need to consider in evaluating BES?
• BES Integration Options: Operators must evaluate Huawei’s BES proposition in the context of understanding how much of the Huawei portfolio in areas such as SoftCOM, distributed cloud data centers and SDN/NFV integration would be required to achieve adaptation and success within the global digital ecosystem. For example, the Huawei BES framework can play a pivotal role in adoption of the Huawei SoftCOM architecture (i.e., cloud-centric business model) to assure the scalable, elastic architecture required for operator agility in driving the digital value chain. How BES supports the cloud orchestration required across the B2C/B2B/B2B2X digital ecosystems will prove essential in generating operator confidence toward adopting the framework.
• Vertical Applications: Operators need to vet the Huawei BES framework in its potential to drive the targeting of vertical markets. Unlike many of its key competitors, Huawei does not customarily target customers in vertical markets directly. Since Huawei does not work directly in vertical markets, it might be fair to question the depth of its understanding of vertical market requirements. As one of Huawei’s objectives is to help its operator customers to penetrate verticals, then these customers need to know that the advice they will be getting from Huawei comes from a place of proven deployment experience. Huawei can count on rivals using vertical competencies as a differentiator in selling against the BES framework.
Overall Huawei needs to include progress with operator trials and PoCs, let alone operator endorsements and use cases, to fuel the year-plus marketing momentum behind BES. Otherwise Huawei risks entrapping BES in an early downward spiraling hype-cycle that creates the ecosystem impression that the framework lacks prime time readiness because it was too heavily promoted ahead of operator willingness to adopt BES on a robust, wide scale. Continue reading “MWC 2015: Huawei’s Business Enabling System (BES) – Ready for Digital Prime Time?”→
Virtual EPC investments pay off for start-ups as major vendors open their wallets, filling portfolio gaps and strengthening their virtual network propositions.
Multiple vEPC wins add credibility and a level of completeness to the virtual networking solutions; customers bite and move on from PoCs and trials to commercial services.
This year’s Mobile World Congress is obviously the show to attend and at which to exhibit, and as we predicted, this is the year when the industry rapidly sets aside its safety blanket of trials and proofs of concept (PoCs) in favor of making serious commitments to virtualized solutions. Several announcements appear to demonstrate that vendors and operators have set aside pure PowerPoint and replaced it with checks from acquirers (for startups) and from operators (to vendors) for serious deployments. Continue reading “MWC 2015: Virtual EPC Startups Snagged by the Big Guys, Filling Gaps in Portfolios”→
