Capturing the Promise of Virtualization![]() Network virtualization coupled with automated management is rapidly evolving into a game changer for next-generation communications service providers due to growing market demand for flexible, agile and cost-efficient multi-service support. However, the possible gains are being eroded by existing management information silos, hampering flexibility and resulting in operational inefficiency. One estimate by Wipro and Orchestral Networks derived from telcos' annual reports, outsourcing contracts and a financial model developed with a telco, shows that even small telcos could be paying upwards of a $400 million operations and integration tax every year. For larger telcos, such as one large US telco with over 200 different inventory management systems, the costs could be three times that. The risk is that, if the silo problem is not addressed first, network virtualization can add to the silo problem and make things worse rather than better.
Profusion confusion
The Silo Problem
![]() An illustration of telco operations information siloed in a large complex systems environment.
Today, this large number of incompatible interfaces is held together by large numbers of engineers and technicians doing highly manual operations tasks. Compared to automated operations, the highly manual systems generate an additional annual cost for a small telco in the range of $400 million per year (as per Wipro's and Orchestral Networks' estimate from the same sources noted above). Even to support the highly manual mode of operations, significant systems integration work attempting to tie together these non-compatible systems is required. Because of the large number of management interfaces, the fact that they are changing, as is conventional systems integration technology, this systems integration work is ongoing and struggles to catch up. The result is only partially integrated ops with a large and growing annual systems integration cost. Because of its ongoing nature, some have begun to characterize this cost as the "integration tax." As networks have grown in size, complexity, and volatility this integration tax has started to grow exponentially.
The resulting manual partially integrated network suffers problems in quality of service (QoS) that result in a degraded quality of experience (QoE) for the end customer. To attempt overcome these QoS/QoE challenges, more resources are thrown at the network than would otherwise be needed, thereby increasing capex. Finally, these highly manual, partially integrated operations systems dramatically limit the speed of development and deployment of new services leading to diversion of revenue to OTT providers.
Managing the problem Network function virtualization (NFV) focuses on the "cloudification" of telco data centers. Software-defined networking (SDN) focuses on moving network control plane functionality from special purpose hardware to software running on general purpose computers and the ability to program the network through service chaining. These transitions promise cost savings and increased flexibility and agility. However, given the long useful life of installed legacy systems, the transition to NFV and SDN will take decades. The danger is that in this transition period, NFV and SDN will produce more incompatible operations data silos, increasing the integration tax. This increase in the integration tax has the potential to more than offset the savings from NFV/SDN. If, on the other hand, a product solution to the operations data silos problem can be deployed in such a way as to reduce manual operations and the integration tax while providing a graceful on-ramp to NFV/SDN, then the full benefits they promise can be realized. In follow-on articles, we'll discuss the key issues surrounding a practical solution of the operations data silos problem. — Mark Cummings, CTO, Orchestral Networks, and Jayanta Dey, CTO, Media and Telecom Business Unit, Wipro, special to The New IP |
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Today's telcos have an operational data silo problem solved by manual stopgaps that limit ability to field new services, maintain QoE and reap the benefits of NFV. Although YANG may make things better, a real solution requires an über-model.
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NFV Orchestration, Infrastructure and VNF
Click to read the Multi-Vendor Interoperability Showcase 2017 CSP Attitudes Toward Digital Transformation: A Reality Check Click to download NFVi - VNF Interoperability Evaluation Status: Updated December 2016 Click to read test results from 2015 Service Chaining Interoperability Evaluation - Live NFV Interoperability Demo Status: Completed in May 2016 Click to read the Live NFV Interop Demo Report To learn how NFVi vendors may participate in the NIA's evaluations, click here. TEST REPORTS
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