© 2018 Nokia1

The future of network and service automation

Timo Perälä

Nokia

September 2018

Public

© 2018 Nokia2

• Focus on “elephant” mass-market services that can justify the cost & time

• Expensive and slow to get new service to market due to complex OSS/BSS systems, and manual processes

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

New Markets | Faster New Services | Faster Time to Revenue | Higher Customer Satisfaction

• Webscales deliver rapid, personalized, on-demand services - leverage cloud automation but mainly over the top delivery

• CSPs starting to evolve with NFV/SDN to speed the delivery of network services

Traditional CSP

Cloud Transformation

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 rapidlytrialed, deployed & scaled

• Open platform: ecosystem of cloud and network players

Source: Analysys Mason

Public

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The economic incentive to find new revenue sources is clear for today’s CSPs

Connecting the Business to the Network: Value creation lies in smart services

Cloud Services ($B) have strong growth but value captured by CSPs has been limited

Future DSP markets ($B in 2025) offer revenue expansion for CSPs

2015

1,000

556

234

207

2019

997

479

322

200

Data

Voice

TV

Traditional CSP service revenues in mature markets* ($B) are flat

* Western Europe, Canada, USA, Japan,

South Korea, Singapore, Australia, and NZ

Source: Gartner

359

41

68

19253139

79

2015

194

CloudAdvertising

2019

VOD/streaming

CloudInfra 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: Gartner

BPaaS = Business Processes as a Service

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Network and Service Automation are essential to DSP economics

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Source: Bell Labs Consulting

Without E2E automation NFV/SDN & network slicing add significant cost and complexity

© 2018 Nokia5

Closed Loop Automation: there is no silver bullet

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Closed loops at many layers, as local to the function as possible

VNF SDNSONPNF

Input sources

• By technology• By region• By legal entity• For re-use• For simplified

abstraction• For security

• Loops are autonomous• Loops are best when local:• Pace• Accuracy

• But need to be abstracted northbound for E2E

Many loops are required

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Nokia is already delivering:• Service lifecycle orchestration• Evolved SOC automations• Lean, DevOps design methodology

From reactivity to zero-touch automation Perspective: Evolution of network management automation

Public

Network/serviceoperations

Level of automation

Intelligence

Network agility

Past Present Future

Source: adapted from Analysis Mason

Zero-TouchProactiveReactive

Closed-loop network and service automation

Partially automated processesLow: single task

Prescriptive analytics & machine intelligence

Predictive analytics,e.g. for maintenance/repair

Descriptive & diagnostic analytics, e.g. anomaly detection

Fully programmable with embedded software control

More dynamic with partial software control overlay

Static network

Present

The challenge: to leverage new automation capabilities as part of a master program plan

© 2018 Nokia7

The shift: Transformation from CSP to DSP requires a new automation stack

Evolution

DIGITAL SERVICE LIFECYCLE MANAGEMENT (LCM)

OPERATIONAL SUPPORT SYSTEMS (OSS)

BUSINESS SUPPORT SYSTEMS (BSS)

PHYSICAL RESOURCES AND INFRASTRUCTURE

DIGITAL STOREFRONT CUSTOMER AND BUSINESS AUTOMATION

VIRTUAL & PHYSICALRESOURCES AND INFRASTRUCTURE

CL

OU

D IN

FR

A &

IT

PR

OP

RIE

TA

RY

TE

LE

CO

M

TRADITIONAL DIGITAL Service Provider

Managing complexity and agility of digital services requires a fully automated delivery platform

• Service operations• Network & cloud resource management• Data layer management

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The future architecture: What are we aiming for?

Service operations and network domain management with closed loop automation

DIGITAL SERVICE LIFECYCLE

MANAGEMENT (LCM)

DIGITAL STOREFRONT CUSTOMER AND

BUSINESS AUTOMATION

VIRTUAL & PHYSICALRESOURCES AND INFRASTRUCTURE

DIGITAL Service Provider

Service Operations &Cross-Domain Orchestration

Fixed Access DomainIP Routing Domain

Network Domain Management

IP/Optical DomainFixed Access Domain, etc.

Shared & Domain Specific Data

Two level architecture, each with similar operations functions including:

• Orchestration and fulfillment

• Topology and inventory

• Assurance and analytics

• DevOps(physical or virtual)Virtual & Physical Resources

Areas of focus for this discussion

Public

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From silos and custom integration to full multi-domain automation Perspective: Evolution of network management architectures

1980 - 2000

Single-Vendor Domains

2000 - 2012

Multi-Vendor Domains

2012 - 2018

Network Virtualization

Beyond 2018

Network Automation

A new architecture is required to enable network and service automation

Increasing operational complexity Operational agility and efficiency

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High level architecture: The Future X Network

Future X Network: building the digital fabric for the automation of everything

longfibers

shortwaves & wires

ProgrammableNetwork OS

UniversalAdaptive Core

Humans& Machines

multi-operatorfederation

access agnosticconverged core

modular, decomposednetwork functions

MassiveScale Access

AccessRemote

mass edgemonitoring

new trustframework

ecosystemsharing

4

5

8

1

2

commondata layer

self-optimizedcoverage

& capacity

dynamicnetwork optimization

dynamiccustomer

servicesSDN NFV

Management &Orchestration

Dynamic Data Security

Smart Network Fabric3

machine

learning

analyticsAugmented

Cognition Systems

Externaldata sources Digital Value

Platforms Vertical apps

ConvergedEdge Cloud

7

6Open APIs

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Industry alignment: Open Source and Standards collaboration

• Reuse, do not reinvent

• Industry has collaboratively defined

and agreed on models, interfaces,

etc. collateral. Let’s (re)use those

• On concurrent industry

collaboration, agree on meaningful

work split between organisations

Public

There is a requirement to leverage the best of multiple industry initiatives

NFV, ZSM, MEC

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We must automate the network

Automation is most

powerful when the

domains cross silos and

work together

Automation is difficult

Summary

To bridge silos, we must re-architect the service and domain management layers using a loosely coupled

framework to achieve increasing automation over time We are in this together

© 2018 Nokia13

Thank you!

Public