Seminar Series Sponsor Event Sponsors

Igor GiangrossiConsulting Systems Engineer

Cisco

MEF Strategy and Market Trends

25 min

2

MEF Profile

• Leading evolution toward dynamic/agile, assured,

orchestrated network services

• Building upon $80B Carrier Ethernet market

• 210+ member companies, ~130 service providers

• Powered by LSO, SDN & NFV

• Addressing increasing demands of enterprise-cloud

connectivity

210+ Member Companies

NA EMEA APAC CALA

SPs Vendors Others

3

CALA Members

45

125

4

MEF Strategic Work

• Dynamic Third Network Services– Carrier Ethernet 2.0 is the Foundation

– Layer 3 IP & Higher Layer 4-7 Service Definitions

– Evolve to Cloud Services

– Powered By LSO + SDN + NFV

• Lifecycle Service Orchestration– Enables Automated, Virtualized and Interconnected Networks

– Overcomes OSS/BSS Challenges for SDN, NFV & Traditional Networks

– LSO Reference Architecture and Interface Definitions

– Common Information Models

• Industry Collaboration & Open Initiatives– Collaborating with upstream Open Source initiatives

– Enable closed source implementation for LSO

– LSO Hackathon

• Expanded Certification Program

Market Trends and Opportunities

6

CE 2.0 Connectivity Fabric Is Expanding

• 68 providers, 201 CE 2.0 certified services – Many more plan to offer CE 2.0 certified or

compliant services by mid-2017

• CE 2.0 increasingly in RFPs– Tier 1s asking about CE 2.0

– Access providers find it easier to respond when certified

• MEF Initiatives– Ethernet Interconnect Points (EIP) ENNI

Implementation Agreement (MEF 54)

– MEF Services Interconnect (MEF-SI) Program

– New CE 2.0 E-Transit & E-Access Services

Sources: Dynamic Third Network Services Joint Survey, MEF & Vertical Systems (Nov 2015); CE Services Market Trends Report, MEF and Frost & Sullivan (Sep 2015)

11

28

55

68

2013 2014 2015 Sep-16

CE 2.0 Certified Service Providers

20%

50%

66%

1Q13 - 1Q14 2Q14 - 2Q15 3Q15 - 3Q16

CE 2.0 E-Access Certification In Wholesale RFPs

7

Dynamic Service Expectations Are Increasing

• Oct 2015 MEF & Vertical Systems Survey – 64 Ethernet Service Provider Professionals

from ~50 Organizations / Business Units

– Representing nearly all leading Global & US Providers

• 97% said CE 2.0 is essential or important foundation for dynamic services

• 74% said LSO is essential or important for dynamic services

Sources: Dynamic Third Network Services Joint Survey, MEF & Vertical Systems (Nov 2015)

Sell by 201860%

No plans or unsure

40%

Service Provider Plans To Offer Dynamic Ethernet Services

MEF & Vertical Systems Survey:~50 service provider business units

worldwide

8

Provider Feedback Reinforces Market Trend Data

• March - June 2016: Engaged with 50+ service providers at ITW, INCOMPAS, BCE, and MEF seminars in Mexico, London, Africa

• Vast majority who commented said Ethernet wholesale is growing well

• Many aligning with CE 2.0 standards / planning to be CE 2.0 certified

• Growing number taking notice of emerging on-demand services

• Example – CTO, Tier 2 US Regional Service Provider– Ethernet is “absolutely growing at a phenomenal rate”

– Not MEF certified, but sees CE 2.0 certification as “table stakes” today

– Expects dynamic service capabilities will be “table stakes” by 2018

9

What Dynamic Features Can We Expect – 2016-2018?

Schedule Bandwidth Increase / Decrease On Existing Service Port

Manually Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port

Allow Lower Priority To Use Bandwidth When There Is No Traffic In Higher Priority

Customer Direct Control Via Web Portal or API

Automatically Initiate On-Demand Bandwidth Increase / Decrease On Existing Service Port

Increase / Decrease Bandwidth On Existing Connection To Private Or Public Cloud

Active / Deactivate Ethernet Virtual Connection

Sources: Dynamic Third Network Services Enabled By LSO, SDN & NFV Joint Survey, MEF & Vertical Systems (Nov 2015)

Add Virtual Network Service To Ethernet Service –e.g. NFV-Enabled Virtual Firewall, Virtual Security

Activate A New Service Port

Change VLANs Mapped To EVC

Change Class of Service On Connection

Self-Service Web Portal or API

Sources: Dynamic Third Network Services Joint Survey, MEF & Vertical Systems (Nov 2015)

10

Strategic MEF Industry-Wide Activities

12

MEF UNITE Program

Launched in late 2014 to coordinate internal & external engagement with Standards Development Organizations, Associations & Open Source Projects, to lead the industry migration to agile, assured and orchestrated services.

13

MEF 54: Ethernet Interconnect Points (EIP) Project

• Launched in November 2014, EIPs will be used to interconnect CE Networks at ENNI, Service Lifecycle, and Service Orchestration levels

• EIP Implementation Agreement use (existing and future) MEF specifications and certifications from the ENNI to the LSO

• Unique Rapid Prototyping concept

14

MEF Services Interconnect Program

Designed to bring small wholesale operators into the community of companies that can deliver standardized, certified E-Access and E-Transit services

This MEF program enables the operator to:

• Cost-effectively become MEF E-Access and/or E-Transit certified

• Participate in wholesale-oriented program education and marketing activities

MEF Membership is Not Required For Small Operators

15

MEF Certification Programs

PROFESSIONALS

62% 2 Year AAGR

SERVICES

91% 2 Year AAGR

EQUIPMENT

58% 2 Year AAGR

189SERVICES

69PROVIDERS

333DEVICES

42VENDORS

4445PROFESSIONALS

445COMPANIES

209+SPs

78COUNTRIES

16

Migration from Traditional to Virtualized, Software Defined TechnologiesInfrastructure

SDN NFV

Third Network Layers for Innovation

Robust, Flexible, Globally Standardized & Certified MEF Services

End-End, Automated, Across Multi-provider NetworksService

Orchestration

Service Innovation

Seminar Series Sponsor Event Sponsors

Igor GiangrossiConsulting Systems Engineer

Cisco

MEF Strategy and Market Trends

25 min