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6/14/2005
1
Solving The Network Planning ChallengePresented to the Regional Seminar on Evolving Network Infrastructures to
NGN and related Planning Strategies and Tools for the CEE, CIS and Baltic StatesBelgrade (Serbia and Montenegro), 20 – 24 June 2005
Copyright 2005, VPIsystems, Inc.CONFIDENTIAL
Stephen DavidsVice President of Sales EMEA
+44 1252 851 871
June 2005Copyright 2005 VPIsystems, Inc.
All Rights Reserved2 of 19
The Vision/Mission of VPIsystems
VPIsystems is the leading provider of software solutions that streamline network capacity planning and network engineering
� VPI provides:� Network Operators solutions that streamline the
processes of designing, deploying and optimizing their networks, saving significant CapEx and OpEx;
� Communications Equipment Vendors with solutions that automatically design optimized equipment configurations in response to customer proposals and quotation requests, enabling a competitive sales advantage;
� Communications Equipment Vendors Subsystem Vendors with software tools for optimizing engineering design
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VPIsystems
40+ network operators• Bell Canada• Bell South• AT&T Wireless• Worldcom• Vodafone• Many European
Operators
90+ equipment vendors• Cisco• Fujitsu• Siemens• Alcatel• Huawei
20+ component vendors• JDS Uniphase• Hewlett Packard• Lasertron• Hitachi
CUSTOMER BASE
June 2005Copyright 2005 VPIsystems, Inc.
All Rights Reserved4 of 19
CurrentNetwork (N)
TechnologicalAdvances
CustomerDemand
CompetitivePressures
Next Year’sNetwork (N+1)
Do you have a defined process to manage the network lifecycle, minimize CapEx and maximize profitability?
External Drivers
ForecastPlan
Reconfigure &Deploy
Internal Tools & Processes
The Network — Your most valuable asset
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• Network capacity over-engineering
• Poor design optimization• Incorrect engineering plans, non-standard installations,
older equipment installs
• Poor consumption rules resulting in network hot spots
• No data flow through and process automation
Inefficient Network Planning and Engineering processes cost each carrier �Millions in CapEx and OpEx annually
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The challenge of MPLS enabled IP network planning
Service Convergence
InternetIP VPN
VoIP, PSTN FR, ATM, Ethernet
Circuit Emulation
• How does every service map across the core?• What is the impact of services at each layer of the
network, including fiber, Sonet/SDH, WDM, and IP? • How to do traffic engineering to off-load congested links?
Service Convergence
InternetIP VPNVoIP, PSTNFR, ATM, EthernetCircuit Emulation
IP/MPLS Core
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VPIsystems is the only software vendor with a cross domain view of network planning and engineering
Strategic Planning Tactical Planning Engineering
Acc
ess
Tran
spor
tLa
yer
2&3
• Vertical integration: Layer 1, 2, & 3 Convergence• Horizontal integration: Engineering Support Systems Domain
VPI/next-gen RLM
VPIaccessMakerVPIlinkConfigurator
VPIaccessMakerVPIlinkConfigurator
VPIserviceMaker IPVPIserviceMaker ATMVPIserviceMaker Switch
VPIserviceMaker IPVPIserviceMaker ATMVPIserviceMaker Switch
VPItransportMaker RingVPItransportMaker Mesh
VPItransportMaker RingVPItransportMaker Mesh
June 2005Copyright 2005 VPIsystems, Inc.
All Rights Reserved8 of 19
Consistent transport network design
Design cases:• Hybrid mesh/ring network design• SONET/SDH ring optimization• Equipment library definition• Network analyzing and reporting
Design cases:• Hybrid mesh/ring network design• SONET/SDH ring optimization• Equipment library definition• Network analyzing and reporting
ADMMuxHSI
LSI
ADM
ADM
ADM
ADM
ADM
ADM
ADM
ADM
ABC
DE
A BCD
E
CA B
DE
A BD
E
C
A BCD
E
A BCD
E
CC
Hybrid network design
Mesh
Ring
Equipment library
Duct
Fiber
Line/MSlayers
Pathlayers
Circuit layers
Network layer model(according to ITU G.803)
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BSS/OSS: How network resources are consumed…unified, mature, efficient
OSS
SELL
PROVISION
ACTIVATE
BSS
Physical Network Inventory
Logical Network Inventory
Deliver and Support Services
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Decommission
How resources are created…fragmented, underdeveloped, inefficient
OSS
SELL
PROVISION
ACTIVATE
BSS
Vendors Network Planning and Engineering
FORECAST
Physical Network Inventory
Logical Network Inventory
Plan and Build Network Resources
Demand
Forecast
Re-OptimizePlan New Build
ImplementationStrategy Build Maintain
ChooseTechnology
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VPI in the telecom landscape
OSS
SELL
PROVISION
ACTIVATE
BSS
Vendors
PLAN BUILD RUN DECOMMISSION
FORECAST
CONSUMPTION RULES
VPI Physical Network Inventory
Logical Network Inventory
Deliver and Support Services
Plan and Build Network Resources
June 2005Copyright 2005 VPIsystems, Inc.
All Rights Reserved12 of 19
VPI's Value Proposition
VPI automates your network infrastructure planning processes to
�improve planning process efficiency
�achieve higher asset utilization
�>20% CapEx savings and accompanying OpEx savings
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Determined the cost of top 50 COswhile applying 3 user defined routing rules :
• Least Hop Routing• Shortest Path Routing • Minimum Cost Routing
CapEx Saving~39 %*
Existing Network Optimized Network# of Modular Rings 19 14Ring Technology 2F-BLSR 2F-BLSR# of Nodes 27 25Time Slot AssignmentDesign Methodology Ring validation Just ring deloading# of ADMs 71 54# of Pass Thru Nodes 45 38# of Networkwide Wavelengths 116 92Avg. Ring Utilization 39.64% 64.27%ADM Fixed Cost 4,896,000 3,888,000ADM Port Cost 290,200 316,600Pass Thru Node Cost 45,000 38,000Fiber Cost 717 589Total Ring Layer Cost 5,231,917 4,243,189
CapEx Saving~19 %*
1. New Build 2. Re-optimization of existing rings
Results from actual Proof of Concept
Top 20 Carrier predicted savings using VPIsystems
Detail on next slide
June 2005Copyright 2005 VPIsystems, Inc.
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Existing Network Optimized Network# of Modular Rings 19 14Ring Technology 2F-BLSR 2F-BLSR# of Nodes 27 25Time Slot AssignmentDesign Methodology Ring validation Just ring deloading# of ADMs 71 54# of Pass Thru Nodes 45 38# of Networkwide Wavelengths 116 92Avg. Ring Utilization 39.64% 64.27%ADM Fixed Cost 4,896,000 3,888,000ADM Port Cost 290,200 316,600Pass Thru Node Cost 45,000 38,000Fiber Cost 717 589Total Ring Layer Cost 5,231,917 4,243,189
Detail from previous slide:
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Actual Top 20 carrier business case for VPIsystems
• IRR = 115%
• Payback in under 12 months
• 7% recurring CapEx savings for optimized new builds
• 1% annual realizable CapEx savings on embedded network optimization
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Carrier savings @ �1 Billion annual CapEx budget
0
50
100
150
200
250
300
350
400
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
�M
illio
ns
CUMULATIVE CAPEX
CUMULATIVE OPEX
0
100
200
300
400
500
600
700
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 50
100
200
300
400
500
600
700
800
900
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
5%Capex; 2%Opex 10%Capex; 2%Opex 15%Capex; 2%Opex
5 Year Cumulative Savings
�340 Million5 Year Cumulative Savings
�595 Million5 Year Cumulative Savings
�850 Million
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Some typical problems solved by VPIsystems
• How can I free up additional network capacity due to inefficient provisioning and gain more revenue?
• How can I be sure that the network is not “over built” and minimize my new CapEx investment?
• How can I more efficiently plan a migration to VoIP and advanced IP services?
• How can I plan my network migration to IP/MPLS, including true service redundancy and QoS?
• How can I anticipate and eliminate network hot-spots, and enforce network planning standards?
• How can I reduce the cost of backhaul for my mobile network?
• How can I minimize the cost of my tariffed enterprise network designs?
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Recent successes
• Enabling a tier one carrier to implement their next generation initiative to migrate TDM/ATM network to IP and optimize their core transport layer
• Enabled a tier one carrier to optimize infrastructure cost at the transport layer and save 20% CapEx for a �1 billion+ transport network
• Saved a wireless carrier �80 million annually by enabling them to selectively arbitrage selected long-haul traffic over owned facilities versus third party facilities
• Enabled a tier one carrier to retain key enterprise customers by optimizing network designs to lower costs within existing tariff constraints
• Enabled a major IP network vendor to transform their 6,000 sales force into design experts, providing 20% lower price quotations for major RFPs and improving profit margins
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In summary
• We offer the only solutions for planning and optimizing network resources across all network layers
• We are the leading vendor of Engineering Support Software solutions that streamline network planning and engineering
• Our solutions are business case proven - in both the carrier and equipment vendor markets, providing strong CapEx and OpEx benefits, high IRR and short payback periods
• We offer the most comprehensive portfolio of network planning tools in the industry
Thank [email protected]
www.VPIsystems.com
Copyright 2005, VPIsystems, Inc.CONFIDENTIAL
Stephen DavidsVice President of Sales EMEA
+44 1252 851 871