ALCATEL-LUCENT 7750 SERVICE ROUTER: YOUR EDGE IN SERVICE EVOLUTION. Application Note

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1 ALCATEL-LUCENT 7750 SERVICE ROUTER: YOUR EDGE IN SERVICE EVOLUTION Application Note

2 Table of contents Service evolution drivers and opportunities / 1 External innovation driving service evolution / 1 Residential service trends and opportunities / 2 Business service trends and opportunities / 2 Mobile service trends and opportunities / 3 Service evolution challenges / 4 Scale and performance / 4 Differentiation and service richness / 5 Operational complexity / 5 Alcatel-Lucent : the edge in service evolution / 6 Higher performance / 6 More services / 6 Integrated intelligence / 7 Greater operational efficiency / 7 Alcatel-Lucent : IP edge evolution examples / 9 Large global Tier 1 provider / 9 National Tier 1 provider (EMEA) / 9 Summary / 10

3 Driven by the latest innovations in Internet-based services and multimedia-enabled TVs, PDAs and smartphones, consumers are once again fueling change in the network services industry. Whether it s mobile subscribers consuming more applications and video content while on the road, residential customers demanding more personalized, on-demand video services, or enterprises looking to fully leverage the efficiencies of cloud computing, service providers (SPs) are faced with both the challenge and the opportunity of evolving their services to meet the changing needs of their customers. The opportunity is substantial. The market for public cloud-based services is expected to reach $176.8 billion by PayTV services have already reached $200 billion annually and are experiencing healthy growth despite the recent economic downturn. The extent to which SPs can transform these opportunities into new revenue streams will often hinge on their ability to overcome challenges at the IP edge of the network that stand in the way of service evolution. Maximum return mandates an IP edge with the flexibility, scale and operational efficiency to capitalize on new service opportunities while keeping rising bandwidth costs under control. Many SPs have embarked on their service evolution journey and are driving new revenue in a profitable manner with the Alcatel-Lucent 7750 Service Router (SR) at the edge of their IP network. The allows SPs to: Diversify their network services portfolio with new or extended services Deliver more bandwidth more efficiently to meet growing demand Distinguish their services from the competition Drive operational efficiency and OPEX reduction This document provides SP product marketing, network architecture and network operations executives with an overview of changing enterprise and consumer needs. It describes the new opportunities now open to SPs, the transformational challenges they face, and how these challenges and opportunities are best addressed with an IP services edge based on the Alcatel-Lucent. Service evolution drivers and opportunities External innovation driving service evolution When the first network services were introduced decades ago, the innovation cycle was driven by the service providers themselves they defined connectivity services, brought them to market and added incremental enhancements along the way. In the past decade, technology innovations outside the domain of the service provider in Internet-based services and in personal computing devices have turned this model upside down and changed how subscribers view and consume connectivity services. To re-establish their central role in the new network-based service value chain, SPs must evolve their services to meet the changing needs of their customers, as they embrace the best of what technology innovation has to offer. 1

4 Residential service trends and opportunities In the residential broadband services domain, the catalyst for service evolution is video, which is set to permeate every aspect of a subscriber s online experience. Driven by the freedom and flexibility of video on demand (VoD) services delivered over the top (OTT), the high-quality viewing experience delivered by managed IPTV services, and an explosion in consumer electronics devices (such as tablets and Internet-enabled TVs) that consume content, subscribers are demanding a more flexible and personalized broadband experience, one in which they can consume any content on any device, anytime, anywhere. While flat-rate usage caps can be effective in minimizing the impact of surging OTT VoD bandwidth on the network, SPs can thrive in the video-dominated era of highbandwidth services by enriching their current lineup of voice, High-speed Internet (HSI) and linear IPTV services with the following offerings (illustrated in Figure 1): VoD services with guaranteed QoS levels Enhanced linear TV services with high video quality and fast channel change capability HSI plans with application-aware metering capability to personalize the service experience Application-aware zero rating and usage-based billing to monetize OTT traffic and ensure fair share use. Wi-Fi access that seamlessly extends the home connectivity experience out into the community and beyond Figure 1. Residential service opportunities LOCATION FREEDOM (Wi-Fi) Home experience at Wi-Fi hot spot Wholesale excess capacity to mobile networks METERING AND FAIR SHARE USE Business intelligence gathering Application-aware metering Personalized plans SUBSCRIBERS Residential broadband network ENHANCED VIDEO SERVICES Highest quality IPTV Distributed content caching for highest VoD quality and scale NEW APPLICATION SERVICES High performance gaming, personal video conferencing, many more OTT MONETIZATION OTT application zero rating HTTP error redirection Business service trends and opportunities In business services, the catalyst is cloud computing, storage and applications. Enterprise demands for increased flexibility and operational efficiency have spawned whole new industries around these areas, including application hosting and software-as-a-service. However, issues, such as loss of visibility and control and lingering concerns over the security and performance of cloud-based applications, are dampening enterprise adoption of these services. At the same time, margins in traditional connectivity services, such as VPNs and business Internet, are shrinking as universal availability transforms them into a commodity. 2

5 SPs can thrive in this new cloud-dominated era of business services by leveraging their strengths in building highly reliable networks to become the go-to choice for enterprises headed to the cloud. They can evolve their business service portfolios to include the following offerings (shown in Figure 2): Cloud access VPNs and business Internet services that restore application visibility and control to enterprise IT managers Network-based distributed denial of service (DDoS) mitigation services that eliminate potential threats before they can impact enterprise customers and the cloud data centers they rely on End to-end SLAs that guarantee performance for applications hosted in the SP data center and delivered by the SP network Rapid service provisioning for cloud VPN access Figure 2. Business service opportunities End-to-end hosted application SLAs Enterprise branch Enterprise SOHO VPN and cloud application monitoring and control services Cloud optimized IP VPN Data center Cloud optimized business Internet DDoS Cloud optimized Ethernet VPN External threat mitigation services Internet Cloud data center Enterprise data center Mobile service trends and opportunities A new generation of smartphones and portable computing devices is rapidly changing the previously predictable networks of mobile providers. As bandwidth utilization and related signaling surges, wider spectral bands used in Long Term Evolution (LTE) technology are bringing bandwidth efficiencies, but they do not replace lost voice and Short Message Service (SMS) revenues or provide a way to monetize the ever-increasing flow of traffic. SPs can increase average revenue per user (ARPU) and service profitability through the following offerings and capabilities (shown in Figure 3): Personalized, application-aware service plans that allow subscribers to make the best of available bandwidth while monetizing OTT traffic Value-added video distribution capabilities such as adaptive, high-quality streaming enabled by integrated service intelligence Higher-capacity mobile packet core that can accommodate more subscribers and bandwidth more efficiently Wi-Fi access networks that move traffic off the radio network to provide a seamless higher-bandwidth connectivity experience 3

6 Figure 3. Mobile service opportunities Wi-Fi 4G/LTE small cell Mobile service packet core Internet and other networks LTE AND SMALL CELL Increased bandwidth capacity and coverage to satisfy subscribers Wi-Fi AND CELLULAR Secure and trusted connectivity across Wi-Fi and cellular with seamless broadband experience MONETIZATION Application/user aware metering and charging Per event/session/ application charging NEW REVENUES Personalized service packaging Next-generation digital media distribution Service evolution challenges Many of the challenges SPs must overcome to ensure successful service evolution are centered at the point in the network where service policies are implemented at the IP edge. Chief among these challenges are scale and performance, enabling differentiation and service richness, and reducing high operational complexity and cost. Scale and performance The surging tide of bandwidth has surpassed the performance capabilities of legacy edge routers. Centralized packet-processing architectures are buckling under the load, and technology limitations in commercial or off-the-shelf routing silicon are forcing providers to trade off raw capacity for feature processing. Surging bandwidth is also creating bottlenecks at centralized IP edge routers, limiting service availability and scale. Residential video transport costs are escalating with the proliferation of per-subscriber video on demand sessions. Each session must traverse the entire network to reach the initiating subscriber, consuming bandwidth along the way and creating congestion at performance-limited IP edge routers. Centralized content injection and edge routers designed for yesterday s Internet speeds no longer make economic sense. Business networks have similar issues, as enterprise adoption of video communications and cloud-based client/server applications are taxing PE routers and limiting the cycles available for new services. In mobile networks, the introduction of LTE and small cell radio infrastructure and Wi-Fi offload techniques are resulting in higher bandwidth utilization and a much higher traffic burden at the mobile packet core (MPC). Performance is also an issue: As more Internet-capable devices, from tablets to smartphones, tap into the mobile network, the performance burden on the MPC which is responsible for processing their mobile IP connections also increases. 4

7 Differentiation and service richness The most effective way for SPs to achieve sustainable differentiation for their services whether it s enhancing VPNs to resolve cloud migration issues or providing a higher quality video experience is to add high-touch packet processing capability in the data path. Traditional edge routers often lack this capability outright, or they lack the performance and scale to support large-scale or high-bandwidth deployments. To compensate, some SPs have deployed specialized appliances at the edge of their networks and in CPE locations. While this approach allows for some differentiation, it requires SPs to deploy and maintain multiple platforms and hundreds of additional nodes and linkages. This greatly increases operational complexity while reducing service scale and reliability. Feature consistency across a diverse set of platforms is difficult to achieve, limiting an SP s ability to differentiate where it matters most in providing a consistent quality of experience to customers that consume multiple services. Operational complexity Traditional IP edge routers were single-purpose devices targeted for specific mobile, residential or business services. This fragmented approach to product development has resulted in a similarly fragmented IP-edge infrastructure. It is not uncommon to have separate edge routers for IPTV services, HSI services, Ethernet VPNs, IP VPNs and business Internet services all configured as overlays over the same aggregation and access networks. Mobile networks are also commonly fragmented, with separate mobile packet cores to aggregate 2G, 3G, LTE and Wi-Fi access networks and to offer IP-based services. The operational impact of this siloed approach to service deployment is massive. SPs must deal with the operational complexity of maintaining multiple service networks, certifying and maintaining multiple router operating systems, and providing their customers with a consistent experience across all their disparate service offerings. Delivery of new services and enhancements to existing services is a slow, complex affair. Service integration and blending such as providing IPTV content through an HSI service are difficult to achieve, as is network capacity planning across services based on subscriber requirements. The rapid growth of Internet-ready personal computing and machine-to-machine (M2M) devices has transformed IPv6 migration from a future consideration to a pressing reality for both business and consumer networks. SPs must grapple with the operational complexity of how to grow the network when there are no new public IPv4 addresses available. They must also determine how to transition to IPv6 while maintaining IPv4 continuity for application, networks and services that may not be ready to make the change. IPv6 migration is also compounding scale and performance issues by adding yet another processing hurdle for legacy edge routers already straining under the load. 5

8 Alcatel-Lucent : the edge in service evolution Overcoming service evolution challenges requires a new generation of IP routers at the services edge, the Alcatel-Lucent 7750 Service Router (SR). The provides the following advantages: Higher performance to deliver more bandwidth, more efficiently More services supported concurrently on a single service routing platform to enable portfolio diversification Integrated network, service and application intelligence to distinguish services from the competition Greater operational efficiency to drive OPEX reduction Higher performance Powered by the industry s fastest network silicon the FP3 400Gb/s network processor the Alcatel-Lucent delivers more bandwidth to more subscribers, more efficiently. The enables high-density 10 Gigabit Ethernet (GE)/40GE/100GE networking, a path to 400Gb/s networking in the future, and the ability to scale performance and services concurrently with no compromise. Innovations in power consumption allow FP3-based routing platforms to consume 50 percent less power per bit transported, enabling additional operational savings and service efficiency. IPv6 and IPv4 can be run concurrently, at line rate, providing maximum flexibility for IPv6 migration. More services Unlike single-purpose edge routers, the Alcatel-Lucent contains the industry s most comprehensive set of IP-based services across the residential, business and mobile domains (see Figure 4). Services are based on the s feature-rich and highly robust software, the Alcatel-Lucent Service Router Operating System (SR OS). SR OS allows SPs to diversify their network services portfolios by layering new services on one common IP platform, eliminating the operational complexity of overlay networks. New services can be introduced quickly to leverage new opportunities and generate new revenue streams, Figure 4. Service opportunities with the Alcatel-Lucent and SR OS. Mobile Gateway Mobile Backhaul Router Wireless LAN Gateway (Wi-Fi) IPsec Security Gateway Broadband Network Gateway (BNG) Wireless LAN Gateway (Wi-Fi) Video Router/Content Caching IPv6 Transition Layer 2 Provider Edge (PE) Router/ Ethernet Services Edge Layer 3 Provider Edge (PE) Router/ Multiservice Edge MOBILE RESIDENTIAL ENTERPRISE 6

9 Integrated intelligence Service providers looking for a flexible approach to differentiate their services can leverage the Alcatel-Lucent 7705 SR s multi-service integrated service adapter (MS-ISA) to introduce high-touch processing to the common edge platform (see Figure 5). With MS-ISA applications and subscriber-aware monitoring and control capabilities, residential and mobile providers can create personalized service plans that are optimized for individual consumer needs. IPTV services can be revitalized to stand apart from the competition with fast channel change or higher-quality video delivery. Mobile video sessions can be intercepted to support automatic transcoding with specialized appliances or to provide upgraded quality of service. For differentiated business services, MS-ISA allows enterprise customers to monitor and control their cloud and enterprise applications, without the expense of a large-scale appliance rollout. New revenue streams in secure network and cloud services are enabled by adding DDoS protection capabilities to any service, at any point in the IP network. Figure 5. Service differentiation with the MS-ISA VIDEO Industry s fastest channel change Retransmit on error for high QoE PerfectStream video conditioning Video quality monitoring Content caching/delivery* IPv6 MIGRATION Carrier grade NAT Multiple tunneling and IPv6 migration capabilities *Future capability APPLICATION ASSURANCE Application-to-subscriber monitoring and control Metering and fair share usage Service personalization and consistency Application-aware business services SECURITY SERVICES Distributed Denial of Service (DDoS) attack mitigation IP Sec Greater operational efficiency The ability to drive operational savings is built into all aspects of the Alcatel-Lucent network. A common management platform for services, network elements and applications allows SPs to reduce service provisioning times by up to 97 percent and virtually eliminates provisioning errors during reconfiguration. Integration of new services into IT and OSS/BSS systems is greatly simplified, accelerating time to market for new services. Integrated service intelligence enables additional operational savings by allowing SPs to optimize their networks through application-level trend analysis or by extending IPv4 address continuity through carrier-grade network address translation (NAT). A recent study by Bell Labs identified multiple operational benefits obtainable through the convergence capabilities of Alcatel-Lucent, including streamlined sparing, training, repairs and OSS integration. Integration of business and residential services on a common IP services edge resulted in 60 percent OPEX savings (see Figure 6). 7

10 Figure 6. OPEX savings with residential and business service convergence on the Alcatel-Lucent (Source: Alcatel-Lucent) OPEX SAVINGS CUMULATIVE - 5 YEAR CONVERGED RESIDENTIAL, BUSINESS, MBH EDGE Total operational expenses NMS Fault and performance management New NMS/CLI intro/integration Power NMS/CLI recertification Router SW upgrades New router introduction Router installation and configuration Training Space lease Separate edge NWs fully converged edge The ability to distribute service intelligence such as application monitoring, policy enforcement and caching right to the edge of the network provides the highest quality of service for customers and the greatest operational savings for carriers. In a distributed architecture, subscriber management, content caches and high-touch processing capabilities move to the edge of the network, closer to the customer. By distributing service intelligence to the edge, SPs can provision more bandwidth and fewer subscribers per GE port to accommodate the growth of video and other high-bandwidth services. Video on demand (VoD) sessions are initiated closer to the subscriber and no longer traverse the entire IP network (see Figure 7). This has the dual benefit of enabling long-term scale and lower cost per bit for video transport. Since VoD content delivered by the SP has a much shorter distance to travel than content from Internet-based OTT vendors, SPs can also offer significantly higher service quality and performance than OTT offerings. Figure 7. Long-term scale and lower bandwidth costs with a distributed ebng architecture and on-net CDN External CDN or transparent cache SUBSCRIBER IP SERVICES EDGE Internet ebng Video servers Fixed access Wi-Fi access Peer caches Content partner origin servers 8

11 Alcatel-Lucent : IP edge evolution examples Large global Tier 1 provider A large global Tier 1 provider selected the Alcatel-Lucent to provide the flexibility, scale and operational efficiency required to remain at the cutting edge of service innovation, as they converged multiple networks into one (see Figure 8). The supports Ethernet VPN, IP VPN and residential services on a common platform to maximize operational savings and enable a consistent customer experience across services. Distribution of the subscriber management and business VPN functions closer to customers allows the provider to increase operational savings while enabling even greater flexibility and scale. Figure 8. Enabling service innovation flexibility through the convergence of multiple service networks into one Tier 1 exchange nodes Metro nodes Core nodes Retail IP services Residential Access Residential and business Business Access 5620 SAM Wholesale Competitors IP services National Tier 1 provider (EMEA) A national Tier 1 provider selected the Alcatel-Lucent to drive the strategic transformation of their network to support concurrent delivery of multiple IP-based services, including new HD video services, to mobile and residential customers (see Figure 9). Key requirements included line rate IPv6 support to 100Gb/s and a high-availability service delivery platform that would allow always-on services. The ability to integrate the mobile backhaul of cell site routers de-risked the service transformation process, as mobile backhaul became just another IP service on a common IP service platform. Figure 9. Concurrent delivery of new bandwidth-intensive service to mobile and residential customers Mobile switching center Cell site router MSE and BNG Core RNC Aggregation Video office and data center 9

12 Summary Whether it s video consumption from any device anywhere or the operational flexibility of cloud computing, subscribers want to benefit from the latest innovations in network and computing technology. Satisfying their needs means making changes at the IP services edge to reduce the operational complexity that slows service introduction and increases OPEX. It also means eliminating issues of scale and limited performance. The Alcatel-Lucent is uniquely qualified enable this transformation by providing the following features (see Figure 10): The industry s fastest network silicon the FP3 400Gb/s network processor to deliver more performance and more bandwidth to more subscribers, more efficiently The industry s most comprehensive set of IP-based services across residential, business and mobile domains to diversify SP service portfolios The integrated intelligence to distinguish services from the competition Operational efficiencies at every level including integrated service, element and application management and a common service platform to drive OPEX reduction Figure 10. The Alcatel-Lucent is uniquely qualified to evolve residential, business and mobile services. MOBILE PERFORMANCE SERVICES RESIDENTIAL ENTERPRISE INTELLIGENCE EFFICIENCY DIVERSIFY AND DISTINGUISH SERVICES WITHOUT ADDING A NEW OVERLAY NETWORK DELIVER BANDWIDTH EFFICIENTLY AND DRIVE OPERATIONAL SAVINGS Alcatel, Lucent, Alcatel-Lucent and the Alcatel-Lucent logo are trademarks of Alcatel-Lucent. All other trademarks are the property of their respective owners. The information presented is subject to change without notice. Alcatel-Lucent assumes no responsibility for inaccuracies contained herein. Copyright 2012 Alcatel-Lucent. All rights reserved. M (October)

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