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Cisco Knowledge Network
Capturing New Business Models and Revenues with Cisco Policy Suite
Ben Bleichman, Product Manager, Cisco Policy Suite Bob Smith, Product Manager, Cisco Policy Suite May 26, 2015
2 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
• Market Trends and Today’s Need for Policy • New Business Opportunities • Cisco Policy with Dynamic Orchestration • Cisco Access Policy Solution
Agenda
3 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco Policy Suite: Delivering Dynamic Services
Services Dynamic Policy User
• Profile • Services • Segment • Device • Etc.
Session
Network
• Load
Analytics
• Existing services • OTT providers • New services
SON
Gi LAN
Core Network
Delivery optimization
• Subscriber Id • Access Type • Location
• QoS • Time • Etc.
4 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Mobile Data Traffic Drivers
More Mobile Connections
More Mobile Users
Faster Mobile Speeds
More Mobile Video
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019
By 2019:
Mobile Momentum
Metrics
2014 2019 7.4 Billion 11.5 Billion
2014 2019 1.7 Mbps 4.0 Mbps
2014 2019 4.3 Billion 5.2 Billion
2014 2019 55% of Traffic
72% of Traffic
5 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Mobile Device Growth by Type By 2019, M2M Devices will grow to 28% of devices, up from 7%
0
2
4
6
8
10
12
2014 2015 2016 2017 2018 2019
Other Portable Devices (0.2%,0.2%) Tablets (1%,3%) Laptops (3%,2%) M2M (7%,28%) Smartphones (29%,40%) Non-Smartphones (61%,27%)
9% CAGR 2014–2019
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019
Billions of Devices
* Figures (n) refer to 2014, 2019 device share
6 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
How Operators Capitalize on Mobile Growth
Individual Services • Turbo boost • Freemium • Location-specific
information • Parental control
Vertical Markets • Automotive • Internet of Everything • Healthcare
New Business Models • Enterprises/MVNOs • VoLTE/VoWi-Fi • Sponsored data
Policy Opportunities
7 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco Policy ready for vertical take off
Modular Platform Next-Gen Architecture Open environment
Orchestration Automation, provisioning and
interworking of physical and virtual resources
NFV Network functions and software running on any open standards-
based hardware
SDN Separation of control and
data plane
8 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Service Velocity Lets You Seize Your Opportunities
• The market’s most rapid service innovation engine
• Extensive library of use case plug-ins for instant rollout
• Self-serve Policy Builder: new use cases without new code
• Feature-based platform easily programmable for complex cases
New Service Time-to-Market
Cisco Policy Suite Legacy Policy
1-30 Days
3-6 Months
9 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Business Opportunities
Congestion Management
MVNO
Connected Car
10 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Congestion-Aware Content Delivery Challenge: Unpredictable network congestion deters premium and on-demand quality of service (QoS)
offers for high-bandwidth apps (such as gaming, video, enterprise apps)
Ensure that the subscriber experience meets service expectations and entitlements
Truly monetize QoS (for example, turbo boost, bandwidth on demand)
Monetize exclusive and premium content (for example, NFL, Champions League, etc.)
Default on / Speed Step Downs Turbo Boosts Happy hour Tiered plans or Services Market
methods
11 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Schedule-based RAN Congestion Description:
§ Alleviate user plane network congestion § Provide all users a fair access to network
bandwidth § Potential evolution to SON/Probe-based
solution
§ Fair use policies § P2P BW Limits § Video Optimization § Heavy User Bandwidth Throttling
Benefits:
§ Improved user experience § Prevent revenue erosion from subscriber
churn
§ CAPEX savings from deferred capacity growth
Cisco Policy Suite
12 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Service Providers are Connecting Cars
“Connected cars will create new business models and provide opportunities for current businesses to greatly improve their service offerings.”
Forbes, February 20, 2015
13 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
AT&T to Utilize Cisco Virtual Mobile Network Technology Within Its Connected Car Services "With this new software-driven mobile Internet solution incorporated in to our offerings, we can help to provide auto makers with advanced connected car services that give consumers more real-time communications services that positively impact the driving experience.”
Cameron Coursey, Vice President, Product Development and Operations, Internet of Things, AT&T
14 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
• In 2019, MVNOs will account for 3.7% of global mobile subscribers
• 43% CAGR from 2014–19 in Oceania, Eastern & South-Eastern Asia
• Japan predicted to be within top 5 countries with the highest ARPU for MVNO in 2019
MVNOs are Thriving Worldwide
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017 2018 2019
Africa
Middle East
Oceania, Eastern & South-Eastern Asia Central & Southern Asia Eastern Europe
Western Europe
Latin America & the Caribbean North America
43% CAGR
Source: “MVNO Outlook: 2014–19” Ovum, Oct’14
Source: “MVNO Outlook: 2014–19” Ovum, Oct’14
MVNO connection forecast by subregion, 2013-19
15 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Case Study: K-Opticom Mineo Service
“Cisco Policy Suite is providing the environment which we can serve the customer in the very best way”
- Yoshihiro Matsumoto, General Manager, Technology Planning and
Development Group, K-Opticom
Operator Challenge
§ Build a system with flexibility for subscriber services § Be attentive to each user’s needs, providing and managing
customized plans § Ensure precise management of its many plans and services
Benefit § Can now offer a broad range of useful services to Mineo customers,
including rollover unused data, family plans § Network resources available on demand § Future plans: 1M users while being attentive to each user’s needs
Solution
§ Cisco Policy Suite with Cisco ASR 5000
16 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco Policy with Dynamic Orchestration
17 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco Policy Suite NFV Evolution
2010
Virtualized QPS
• Virtualized Solution – no bare metal deployments - VMware
• Leverage standards-based orchestration tools to provision the VMs
Today CPS 7.5
• VM Orchestration Framework
• Automated installation • KVM/Openstack • Elasticity based on system
KPIs
Tomorrow CPS 8.x
NFV CPS
• NFV/Dynamic Orchestration • Cisco Telco Cloud Manager
Integration • Auto-Install/Start/Monitor • Orchestration API • Elasticity TPS Scale Up/Down
Virtualized today with Dynamic Orchestration
18 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
• 3GPP NFV Compliant (ETSI NFV 002)
• KVM/Openstack and VMware support
• CTCM
• Default NFVM – Shipped with CPS product
• Orchestrates QPS VMs – compute, memory, network and storage
• Handles lifecycle events: tracks VM health and key KPIs
• Elasticity – auto scales VMs based on hitting KPI thresholds
• Consistent interface for the NFVO to instantiate the CPS and VPC
• Cisco Policy Manager (PCRF Client)
• Policy Builder Configuration GUI
• REST based service configuration APIs from Policy Builder or external provisioning system
• SVN – used to publish VM configuration and software versions to available VM instances
• OA&M: KPI Mgmt, Logging, SNMP
Cisco Policy Suite NFV/Orchestration NFV-O “Top Level” Orchestrator
VNFM (Cisco Telco
Cloud Manager)
CPS Cluster Manager
Policy Director
OpenStack, VMware
(VIM)
Policy Director
Policy Server
Policy Server
Session Manager
Session Manager
Control Center
Network and Compute
CPS PCRF VNF
NSO (Tail-f)
OSS/BSS
19 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
NFVI
OSS/BSS
VIM (e.g. OpenStack)
NFV-O Os-Nfvo
Nf-Vi
Nfvo-i CPS VMs CTCM
(VNFM)
Or-Vnfm
Vi-Vnfm
Ve-Vnfm
Vn-Nf
CPS VMs
Bring up a Cisco Policy Instance
1. The NFV-O receives a message from the OSS/BSS to instantiate a CPS, e.g. small, medium, large
2. NFV-O provisions a VNFM for CPS (uses OpenStack to create the VM and attaches to the network)
3. NFV-O calls an API on the CPS VNFM to instantiate the CPS, e.g. “medium” as well as the external networks that need to be reachable
4. VNFM uses OpenStack to create the CPS VMs and attach to the various networks.vlans
5. NFV-O pushes the service configuration to the VNFM for diameter peers, policy rules, etc.
6. VNFM applies this configuration to the various VNFs
7. CPS is ready for service
1 2 3
4
5
6 7
20 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Virtual Policy – Why it helps new sectors.. Ops
Separation of interests Departments / companies Geo Features
Device SELECT Wi-FI?
Security Redundancy SLA’s
Payment
Functionality Release cadence
Right model per customer
Global architectures
Data sovereignty
Access selection Device Entitlements
Bill for machines
Right SLA per customer
Industry sectors Different demands
21 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco Access Policy
22 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Access Network Selection Today A Source of Poor User Experience…and a Large Opportunity
Device Driven
Limited QOE awareness
Limited / no SP Operator controls / inputs
Wifi selection and login hassles
…thus an opportunity for SP / MSO differentiation through QOE improvement while also achieving managed cellular offload
23 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Typical Network Selection Problems
Wi-Fi 3G/4G
Signal Quality Signal quality alone does not guarantee user experience
Ping-Pong Effect Mobile users constantly switching
between Wi-Fi and 3G/4G
24 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
3GPP Solution Framework: ANDSF Operator Controlled, Client-Server Access Selection
S14 Mobile Network
IP Based Interface Works over 3G, 4G, Wi-Fi
SP Controlled Selection Which networks are preferred for the SP
Policies Per Time / Location Choose the network based on location, time of day, day of week, date, etc.
Policies Per Flow Each IP flow can use a different available network
In practice, a framework for an Always Best Connected User Experience that increases overall data usage and offloads 3G networks, and enables new SP monetisation
plays
25 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Open HTTP/XML Interface OMA-DM based S14
Flexible, optional extensions for value-added device client functions
(GCM, APNS, device based analytics)
APP
Network Interface
Bring SP controls and presence onto subscriber devices, ensuring better QOE and new service offerings
Operator driven policy rules
Wifi / RAN Analytics
Network Aware Access Policy • Personalized access policy in context of SP
commercial data bundles. • Integratable to PCRF, SPR, Analytics/OSS, SON/
RAN ecosystem for full network awareness. • Build to scale for millions of sessions • Integration of device Analytics
Improved User Experience
Focus on full device ecosystem / options Access selection based on link QoS
Policy on the Device (eg Wifi Roaming service)
Support for iOS and Android
SON PCRF/SPR/DBs
Security RA/CA Cisco Wifi APs
26 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Operator TelcoCloud
High Level Architecture
Mobile Network
Public Wi-Fi
Corporate Wi-Fi
Internet CPS 7.5
Cisco ASA
Android / iOS ANDSF Client
Mobile Network
2G/3G/4G
Public Networks are Unmanaged,
may require VPN
Corporate Networks are
Managed. Credentials may
be sent from ANDSF Server
GCM / APNS is used to send push notifications from Server to Device
Cisco ASA/AnyConnect for VPN termination
CPS 7.5 Access
Selection CPS
27 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
• Location Based Access • Time Based Access
• Power Geo-Fence
• Wi-Fi Link Quality
• Access Prioritization
• Smart Secure Wi-Fi
• Subscriber Profiling • Personalized seamless login
• Location Triggered Policy Pull
• Server Triggered Policy Push
• Automated subscribers on-boarding
Access Selection Policies Overview
28 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
North American MNO Adopts Cisco Policy Suite Enabling New Applications and Monetization Models
Connected Car (IoE)
Enterprise Private Mobility
Consumer PCRF
(500M subs/ 1M TPS)
Reseller / MVNO
virtualized platform
OTT App Gateway
29 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
• Policy enables service innovation and velocity • New policy architecture with virtualization will
create agility and scale • New business models and verticals enable
operators to grow revenues
Policy Creates New Business Opportunities
www.cisco.com/go/mobilepolicy