© 2018 Nokia1

Open networks for the 4thindustrial revolution

Lauri OksanenVP Research and Technology

Customer confidential

2 © 2018 Nokia

The next growth cycle is driven by an industrial revolution

Value creation lies in novel services where network service performance is critical

Cloud Services have strong growthbut coming against limits

Industrial markets promisingnew value creation with digitalization

2015

1,000

556

234

207

2019

997

479

322

200

Data

Voice

TV

Traditional CSP service revenuesin mature markets* are flat

* Western Europe, Canada, USA, Japan,South Korea, Singapore, Australia, and NZSource: Gartner

359

41

6819

25

3139

79

2015

194

Cloud

Advertising

2019

VOD/streaming

Cloud

Infra aaS

SaaS

BPaaS

61

56

134

Health 1590

Factories

Worksites

Cities

Logistics

& Transport

1660

850

1210

930

930

560

170

3700

160

Estimated 2025 value creation potential of the IoT- McKinsey Global Institute

Low Estimate High Estimate

Source: GartnerBPaaS = Business Processes as a Service

($B)($B) ($B)

3 © 2018 Nokia

Future DSP

• Digital experience: broad array of new services that

combine cloud services and network resources

• Tailor virtual networks for each use case: latency,

bandwidth, security, choice of functions

• Agile network: services are rapidly trialed, deployed &

scaled

• Open platform: ecosystem of cloud and network players

Source: Analysys Mason

The future of digital service delivery from Digital Service Providers (DSPs)

Customer Confidential

Implications to standards

• Standards need to cover the end-to-end chain of network, cloud, and services

• Network slicing standards are needed for configuration and assurance

• Standards need to enable automation of decisions and deployment

• Standards must define open interfaces and APIs at the right places in the end-

to-end architecture

4 © 2018 Nokia

ConvergedEdge Cloud

Software-defined

Massive ScaleAccess

Longfibers

ConvergedNode

Shortwaves& wires

Smart NetworkFabric

Universal

Adaptive Core Access agnosticconverged core

Programmable

Network OSDynamic customerservices

Management &Orchestration

SDN NFV

Digital Value

PlatformsWeb, Enterprise &Vertical apps

External data sources

Open APIs

Analytics

Modular, decomposednetwork functions

Commondata layer

Machinelearning

Dynamic

Data Security

• New trust framework

• Ecosystem sharing

• Mass edge monitoring

Dynamic networkoptimization

Multi-operatorfederation

Autonomously optimizedcoverage& capacity

Future X architecture – built on openness

Customer confidential

ETSI NFV

O-RAN

OpenStack

TIPCPRI

AkrainoOCP OPNFV

ONAP

Acumos

3GPP

Kubernetes

OB-BAA

ETSI ZSM

ETSI MEC

IEEE

IETF

Openness andstandardizationin collaboration

5 © 2018 Nokia

5G is the first network designed to connect everything, in an open and agileway3GPP is uniquely positioned to deliver the standards as it covers the network E2E

Distributed Centralized

Edge

Network slicing

Multi-radio

Core

Capacity

Connectivity

Latency

Reliability10 yearson battery

100 Mbpswhenever needed

>10 Gbpspeak data rates

<1 msradio latency

1,000,000devices per km2

5G

5G serves all use cases

Customer Confidential

3GPP

6 © 2018 Nokia

3GPP for industrial grade networks in next releases

Positioning for 5Gand IoT• Positioning with scalable bandwidth

and beamforming

Enhancements forlatency andreliability inRadio and E2E• Higher reliability with multi-

connectivity etc.

• Deterministic QoS

5G Private Networksin licensed andunlicensed bands• Enable easy and cost effective

deployment of industrial privatenetworks

• High frequency

Industrial IoT in 5GSand NR• Support for Wireless Industrial

Ethernet and deterministic com-munications

• High performance, wide area

Cellular IoTevolution

• New NR IoT UE categories foruses cases beyond NB-IoT/eMTC

• Multi access

5G

5G

5G

5G

5G

7 © 2018 Nokia

In addition to 3GPP standards we need to define the domains ofcloud, transport, control, and automation

Distributed Centralized

Edge

Multi-radio

Core

Capacity

Connectivity

Latency

Reliability10 yearson battery

100 Mbpswhenever needed

>10 Gbpspeak data rates

<1 msradio latency

1,000,000devices per km2

5G

5G serves all use cases

Automation

Customer Confidential

ETSI NFV OPNFV

ETSI MECIEEE

IETF

ITU

ONAP

Acumos

ETSI ZSM

O-RAN

3GPP

8 © 2018 Nokia

The network edge is going through a major architectural change

Distributed Centralized

Edge

Multi-radio

Core

Capacity

Connectivity

Latency

Reliability10 yearson battery

100 Mbpswhenever needed

>10 Gbpspeak data rates

<1 msradio latency

1,000,000devices per km2

5G

5G serves all use cases

Automation

Customer Confidential

ETSI NFV OPNFV

ETSI MECIEEE

IETF

ITU

ONAP

Acumos

ETSI ZSM

O-RAN

3GPP

9 © 2018 Nokia

Industry Landscape around the edge – from cloud infrastructure to applications

Customer Confidential

10 © 2018 Nokia

Orchestration and management are critical for E2E control and agility

Distributed Centralized

Edge

Multi-radio

Core

Capacity

Connectivity

Latency

Reliability10 yearson battery

100 Mbpswhenever needed

>10 Gbpspeak data rates

<1 msradio latency

1,000,000devices per km2

5G

5G serves all use cases

Automation

Customer Confidential

ETSI NFV OPNFV

ETSI MECIEEE

IETF

ITU

ONAP

Acumos

ETSI ZSM

O-RAN

3GPP

11 © 2018 Nokia

Orchestration, control, and automation are going through a major transformation

Orchestration &Control Layers

End-to-end service (cross-

domain) orchestration

Domain-level orchestration

Domain-level

resource control

Network resources

(physical/virtual)

ONAP and ZSM are key initiatives for E2E automation

End-End Service

& Cross-Domain Orchestration

Domain-level Orchestration

Domain-level Resource

Control

Network Resources

(physical or virtual)

Standards & Architecture Definition Open Source Projects

OPNFV

ON

APAr

chite

ctur

eSu

bcom

mitt

ee

NFV

TMF

Ope

nD

aylig

ON

F

OpenStack

ZSMZero Touch

Network andService

Management

OSM

MEF

AI&ML

Linu

xFo

unda

tion

Net

work

ing

SA5

12 © 2018 Nokia

We need more than network standards to enable new IoT use cases

Distributed Centralized

Edge

Multi-radio

Core

Capacity

Connectivity

Latency

Reliability10 yearson battery

100 Mbpswhenever needed

>10 Gbpspeak data rates

<1 msradio latency

1,000,000devices per km2

5G

5G serves all use cases

Automation

Customer Confidential

ETSI NFV OPNFV

ETSI MECIEEE

IETF

ITU

ONAP

Acumos

ETSI ZSM

O-RAN

3GPP

13 © 2018 Nokia

A vertical view, what is needed to enable IoT applications

Customer confidential

Connectivity

Platforms

Vertical APPs

Multiple communication technologies fordifferent scenarios

Common ComponentsConnectivity, Security, Management, APIs…

IoT Ecosystem for E2E vertical applications &services: smart cities, smart home…

AIOTI

ü Deep, vertical-specific insightsü Interoperability and open

interfaces

ü Cooperation cross industriesü Industrial implementation: open source

© 2018 Nokia14

Opencommunity

Standards and

Open Source

Openinterfaces

open APIs for 3rd party plug-ins and

data exposure

Nokia

openness

Openanalytics

data-powered everything for

cognitive control

Always openDelivering on

5G promises

© 2018 Nokia15

We create the technology to connect the world