Myth vs. Reality 5 Myths around BSS Virtualization

whitepaper Myth vs. Reality 5 Myths around BSS Virtualization

The telecommunications in- other acronyms which are taking management, diameter signaling dustry is one of the very few in- the rounds in the telco world as control, session border control, dustries talking about any par- much so that there is a soup of and even real-time charging, are ticular technology or innovation acronyms. all beginning to fall under this for ages much before it s actually emerging term s umbrella. Soft- implemented. This has more to In this journey two acronyms are ware-defined networking (SDN) do with the very nature of tele- the most dominating: software- decouples the data and con- com business than the fear of defined networks (SDN) and net- trol planes, removes the control innovation. Virtualization is one of these technologies that has work function virtualization (NFV). NFV is the technology being used plane from network hardware and implements it in software instead. VIRTUALIZATION been around since 1960 but it has to virtualize the network s control This enables programmatic ac- matured over the past ten years. plane. It separates specific net- cess and, as a result, makes net- Today the term virtualization has work functions from proprietary work administration much more become somewhat of a buzzword hardware and supports usage of flexible. Both NFV and SDN have reshaping communications service providers (CSPs) networks with technologies like SDN, NFV, cloud etc. There are plenty of commercial of-the-shelf (COTS) hardware, while the network function by itself is available as virtualized systems. Things like policy a profound effect on how the networks are designed and controlled and especially how services are managed. Virtualization basically refers to a computing technology used to create a virtual instance rather than an actual one of hardware mited to telcos but also to their suppliers it means a big change. Network equipment providers (NEP) and BSS/OSS players are lized BSS by 2016. Beyond the cost optimization that virtualization promises, operators are leveraging virtualization concepts >> platforms, operating systems (OS), and network or storage services. Virtualization enables mul- getting ready for this new business framework in the SDN/NFV era. Most of the operators have to transform their BSS environments in order to innovate more rapidly, drive new revenues and tiple virtual instances running on not even thought about how they better compete. one single platform at the same will adapt their BSS and OSS ca- time, resulting in virtualized so- pabilities for these new dynamic lutions to be more portable and digital services scenario. CSPs scalable than any traditional are already getting head start on hardware-based solutions. The virtualization by implementing technology behind virtualization SDN and NFV technologies in is known as a virtual machine mo- their networks. But fast networks nitor (VMM) or virtual manager, would be of no use if there is no which separates compute envi- suitable monetization strategy ronments from the actual physical in place. That s where the BSS infrastructure. systems and the effect of virtualization on these systems or vice- CSPs are looking at virtualiza- versa come into play. tion from a network perspective and working on their SDN/NFV A recent survey by Telecoms.com strategy to prepare for the future Intelligence* showed that 66 per- business scenario. This transition cent of operators have deployed to secure the future is not only li- or are planning to deploy virtua- two *Telecoms.com Intelligence, Survey Report Operators BSS Strategies: Turning BSS Agility into Business Ability, April 2014 three

BSS VIRTUALIZATION BSS virtualization means that the mission-critical BSS applications are using an underlying virtualization platform. BSS virtualization is probably the most misunderstood term in the industry. BSS virtualization simply means that the support systems can now run on an underlying virtualized platform and technologies with the same performance and scalability as in a non-virtualized environment. There are CSPs who are starting with the virtualization of their support systems and then switch to network virtualization. Some CSPs start with the network virtualization and then go top down to IMS nodes, policy servers, and BSS/ OSS. Industry pundits believe that virtualization should be done at all levels servers, networks, and storage to get the full benefit out of the technology. Consequently, BSS/OSS solutions clearly have to evolve along with the network, and with the same virtualization goals in mind. BSS/OSS and SDN/NFV need to operate harmoniously as a network cloud environment that can link customers, products, network services and resources, shared definitions and automated interfaces.* Moreover it enables new business models suit-able for a cloud-powered world, and brings onboard new functions and capabilities on a regular basis from any vendor. It s worth noting that the BSS/OSS players aren t lagging behind on SDN/NFV because it didn t occur to anyone to check whether backend systems could support it. It s simply because most efforts have been focused on getting SDN/NFV itself. With mission-critical applications like BSS the main issue is not to virtualize the applications per se but to get the same performance and scalability as in a non-virtualized environment. It s not a mission-critical applications Cloud CSP s CAPEX SDN/NFV Strategy standards BSS OSS time-to-market OPEX Reality computing question if BSS will run virtualized the question is when will the first BSS suppliers really deploy fully virtualized revenue management stacks while ensuring that performance and availability requirements are met, which have historically been provided on bare-metal systems. Either way, the big question arises what is the best way to move forward and realize the full benefits of virtualization. There are as many approaches as CSPs to implement virtualization. This paper is a step towards getting some answers or at least start a discussion on some of the myths and realities around virtualization. Virtualization Benefits Infrastructure Savings Myths virtualized Software *TM Forum, Article Back-office agility is the key to virtualization success, September 2014 four five

MYTHS AROUND BSS VIRTUALIZATION Myth # 1 Virtualization and cloud are competing technologies Reality: IT and non-it professionals alike sometimes see these technologies as competitors which is not true. Both virtualization and cloud computing are complementary technologies. The two technologies are not interchangeable but surely have an overlap. Virtualization is one of the fundamental technologies that make cloud computing work. However, virtualization is not cloud computing. Both virtualization and cloud can work in a one-to-many model. By applying virtualization you can run multiple applications or operating systems on one server at the same time as virtualization is applied locally. Cloud computing can allow many companies to access one application and is accessed as a service. Virtualization is not necessary to create a cloud environment, but it enables rapid scaling and porting of resources in a way that non-virtualized environments find hard to achieve. Any discussion of cloud computing typically begins with virtualization. Virtualization is critical to cloud computing because it simplifies the delivery of services by providing a platform for optimizing complex IT resources in a scalable manner. When it comes to BSS systems both technologies virtualization and cloud play a very significant role. CSPs require both to achieve excellent results but can go for virtualization without cloud computing and for cloud computing without applying virtualization. Keep in mind, however, that virtualization and cloud services are not end-all, be-all solutions. Like any other technology or service a business adopts, things can always change. Customers that virtualize their hardware servers may adopt cloud computing over time for increased self-service, scale, service delivery levels and agility. Essentially, virtualization differs from cloud computing because virtualization is a software that impacts hardware, while cloud computing refers to a service that results from that impact. Virtualization may enable hardware resource sharing, but it cannot create a BSS in the cloud. Storage virtualization, for example, is unable to dynamically distribute application data; equally, host virtualization cannot converge small-granularity hardware. While an important supplement for cloud computing, virtualization does not underpin the conversion process to BSS systems in the cloud. The true benefits from cloud computing especially in terms of automation and elasticity can be achieved by applying virtualization. Automation ensures appropriate configuration and management of the underlying hardware resources. While elasticity enables resources to be more dynamic which may be added or removed based on changing demand. Myth # 2 Lower CAPEX and OPEX is a natural after-effect of virtualization Reality: One of the main reasons why virtualization is much in focus nowadays is a simple factor cost savings. By employing network virtualization the CAPEX and OPEX savings seem obvious, but is this really the case? It is true that a virtualization technology such as SDN/NFV promises to reduce spending on infrastructure and hardware systems but it does not mean that savings start coming in from day one. In reality operators need invest a lot before the actual saving begins. If CSPs do not have a well-conceived If CSPs do not have a well-conceived virtualization strategy in place, CAPEX and OPEX savings will remain a distant dream. virtualization strategy in place, CAPEX and OPEX savings will remain a distant dream. A solid virtualization strategy, not only on the network and infrastructure side but also on the BSS/OSS/IT side, helps to achieve the desired CAPEX and OPEX savings. On the contrary there are no immediate savings in high availability environments (BSS virtualization) due to additional software costs. Many operators are turning toward new approaches to networking in the form of softwaredefined network (SDN) and network function virtualization (NFV) technologies to help reduce costs associated with offering services in these complex environments. According to a survey by one of the leading research companies, over 90 percent of operators surveyed, plan to include SDN or NFV in their network at some point. In addition to cost savings, these technologies help operators reduce time-to-market for new services, lower the risk of trialing new services with customers, and deliver agility, flexibility and scalability. The fact is that investments in SDN/NFV technologies might give some initial savings, but the long-term reduction in CAPEX and OPEX can only be achieved when the right monetization strategy is in place. Lower CAPEX and OPEX benefits can be realized by applying mission-critical BSS applications like rating and charging, policy management and other support solutions. These applications will help operators in rapid release of new services, time-to-market and utilizing the virtualized infrastructure to its fullest. Myth # 3 BSS virtualization is not that relevant Reality: Virtualization of missioncritical applications such as BSS solutions are definitely on the radar of almost every operator but it s not a priority. CSPs in their very nature have always been riskaverse and this hasn t changed in regards to virtualization either. The focus is on network and server virtualization and many CSPs are busy in defining or implementing SDN/NFV strategies. CSPs have no issues with hardware, infrastructure, and network virtualization but when it comes to BSS virtualization they are reluctant to do so. Actually there are two schools of thought here one where CSPs are virtualizing their mission-critical applications first and then move to SDN/ NFV. The second group is where CSPs do not want to touch their mission-critical applications and think that these are not relevant and focus on SDN/NFV technologies only. Very often CSPs are putting most of their efforts on network virtualization which is much easier today in comparison to virtualizing mission-critical applications like BSS. The BSS ecosystem includes a combination of systems billing, rating and charging, mesix seven

diation, policy management, order management etc. All this involves consider these dynamics from day one, instead of making de- the full BSS stack. As for partial virtualization, they will have to car- ly work with the legacy systems. The big bang approach can BSS can be moved from one physical server to another Myth # 5 many different disparate systems that are mostly managed by different vendors. It is important to cisions based solely on SDN/ NFV implementations, they will be better positioned to compete ry the burden of legacy systems which are designed to work with physical servers. To maximize per- work for some operators where the whole new virtualized BSS stack is implemented, especially without downtime, and with the scalable and robust performance known from a physical environ- Standards A necessity or an evil know that both kinds of virtualization are equally important. The beauty of virtualization not only lies on optimization in regards to cost, usage, scalability and availability of the infrastructure. The new technology also helps to create and deploy new services faster without upgrading the network or investing into new hardware. SDN/ NFV enables more advanced, personalized services that are going well beyond the traditional voice and data services of the past. And only a virtualized BSS ecosystem will provide the needed flexibility and robustness to monetize these services. in the future. Myth # 4 Full or partial virtualization of BSS Reality: Another debate which is taking the rounds among operators is whether to virtualize the full BSS stack or if only one or the other module will be enough. CSPs are running the multivendor legacy systems in a traditional environment, managing these highly complex organizations across national borders. formance and resource utilization with minimum risks the BSS solutions should adapt to the dynamic characteristics of virtual environment. The legacy systems would pose an administrative burden to the virtual machines and valuable resources if operators opt for a partial virtualization of their BSS in contrast to BSS systems built specifically for a virtual working environment. The ideal approach is the phased implementation of applications. That means one application at a time but the new virtualized application should also seamless- for operators who are working on a transformation project involving both network and IT systems. The investments in these transformation projects, where the networks are virtualized with the complete IT systems, are huge. But let s not forget the benefits of implementing virtualization. Average uptime for virtual environments is 99.5 percent, compared to the average uptime of 99.3 percent for physical environments*. The statistic clearly shows that if virtualization is properly implemented it can save the CSPs from any unnecessary downtime. Mission-critical applications like ment. Integrating the SDN/NFV enabled virtualized networks with the right monetization systems like virtualized BSS carries the promise of improving time-to-market for new digital services. For operators who want to realize the full benefit of virtualization, not only on consolidation and cost reduction but also to achieve faster time-to-market for new services/product launches and improved SLAs, the virtualization of the full BSS stack is a must. In a SDN/NFV enabled virtualized world standards play a significant role. The active role of the ETSI network function virtualization (NFV) industry specification group (ISG), Open Networking Foundation (ONF) and Cloud NFV among others cannot be denied. For network virtualization, especially NFV initiatives, standards are not a problem though SDN is suffering on this part. ETSI released nine draft NFV documents following the 7th meet-ing of its Network Functions Virtualization (NFV) Industry Spec- Very often the existing BSS environment of a CSP does not provide the flexible rating, orchestration and real-time capabilities requested from a virtualized network. Therefore it would be smart to implement virtualized BSS applications in the future. Not to forget that they are impacting the entire revenue stream of the operator. They can t just virtualize the whole stack in one day. CSPs struggle when implementing mission-critical applications like BSS in a virtualized environment. The robust nature of these systems and the scalability requirements are something CSPs are skeptical about whether they would work in a virtualized environment. Operators should consider the dynamics attached with disparate virtualization tools like SDN/NFV and the relevance of solutions that connect these virtualization tools with the existing BSS stack. If CSPs There is no doubt that to realize the full benefit of virtualization technology and introduce new digital and M2M services, enable faster timeto-market and overcome the OTT challenge, CSPs need to virtualize eight *VMWare, Whitepaper Reducing Operational Expense (OpEX) with Virtualization and Virtual Systems Management, November 2009 nine

ification Group (ISG) in August 2014. The documents comprise the first release of NFV that will be published at the end of 2014. SDN/NFV is becoming more important to telecommunications networks as an increasing number of organizations are working on SDN/NFV standards while carriers and equipment vendors are racing to map out their SDN/NFV strategies. Some of the world s larger operators like AT&T, Telefonica, Deutsche Telekom, BT, NTT, and Verizon are very active and talking openly about their SDN/NFV initiatives. These operators are also actively participating in defining the standards to their benefits and to the industry as a whole. The challenge for these operators and others is a lack of standards for northbound APIs which connect the controller to the SDN applications. On the southbound (network) side there are already groups and consortiums working on standards. But the northbound (mission-critical) applications and interfaces side still has a long way to go. Standardization is a major concern among operators when it comes to implementing SDN/ NFV into their networks and the interfaces between the network and mission-critical applications like BSS. When it comes to BSS/OSS, standards do not play any direct role for the systems but a significant role for the orchestration layer between SDN/NFV enabled networks and BSS applications. CSPs are advocating and working on their own standards according to their needs and resources. On the other hand, the industry is pushing towards a common standardization of virtualized environment. Especially standard interfaces between systems and standards to manage the full BSS stack are of priority. TM Forum is focusing on the objective to help network operators manage the transition from traditional BSS/OSS systems to more flexible network operations that incorporate and take advantage of virtualization. For example CloudNFV is working on a project sponsored by Sprint and Telefonica to develop a model on the network management and orchestration solution. This should enable the southbound (network) and northbound (BSS/ OSS) sides to work as a single model. Virtualization at Orga Systems: OUTLOOK In the last couple of years the data, customer demands on new telecom industry has definitely made significant progress on the virtualization front, especially products and faster services and last but not least to stay competitive against OTT players. when it comes to implementing virtualization technologies in The journey towards the virtualized the networks. There are positive vibes about virtualization and some operators are also looking at the big picture. Meaning they are focusing on the virtualization world is not that smooth as one thinks, for operators and vendors alike. To ensure that the journey is fruitful and full of benefits now and in the future, a well thought of mission-critical applications virtualization strategy is a must. like BSS solutions for faster timeto-market, Operators should work on their new products and virtualization strategy depend- launch of services etc. There is no doubt that operators are heading into the right direction for securing their future. Especially since this is the only way forward to handle the huge amounts of ing on their priority and future direction. Network and BSS virtualization though are not dependent on one another but definitely help the operators to realize the full benefits of virtualization. Missioncritical applications like BSS are the cornerstone in any virtualization strategy and should not be ignored. How and when it should be virtualized depends upon the operators customer demand and the individual business case. >> Orga Systems believes that virtualization is a cornerstone technology and an essential ingredient for future success of our customers. To support CSPs applying virtualization technologies we initiated a comprehensive program to qualify our GOLD product family for virtualized systems: Release 3.0 of Orga Systems real-time product for Convergent Charging and Billing (GOLD CCB ) and the new release 1.1 of GOLD Catalog and Order Management (GOLD COM) both support VMware s vsphere 5.5 as an available platform for the ongoing trend towards virtualization. Furthermore, we work in close cooperation with Red Hat and Dell to provide a reference architecture and an operational concept to plan and operate all revenue management applications in a virtualized environment under control of Red Hat Enterprise Virtualization. ten eleven

Orga Systems is a leading software vendor for convergent charging and billing, with an international customer base in telecommunications, utilities and automotive markets. For more than two decades Orga Systems real time billing technology enables customers around the globe to quickly launch and monetize enhanced offerings. With integrated order and revenue management service providers can drive a new agenda for launching, selling, and monetizing products. Orga Systems GOLD product family provides embedded policy control, real time charging and billing and order management, all driven by a central product catalog. Best-in-class consulting and implementation services for convergent billing and utility billing guarantee customer satisfaction and immediate ROI. www.orga-systems.com contact details: communication@orga-systems.com Follow us on Linkedln Facebook YouTube Twitter OS. Blog twelve