Virtualization is critical to developing next-generation intelligent networks, with cloud central offices seen as an important part of bolstering SDN and NFV.
Communication service providers are facing challenges on multiple fronts in today’s digital-first world. Operators need to find ways to cope with the never-ending tidal wave of data, fend off competition from over-the-top service providers, improve operational efficiency and lay the groundwork for next-generation services that will run on high-speed “5G” networks.
Intense pressure has been building on network infrastructure, particularly over the last decade. In 2005, networks were transporting one petabyte of data per month primarily through voice and text traffic. The rapid expansion in the capabilities of smart devices triggered an unprecedented data explosion and last year, global mobile traffic topped out at record 3.7 exabyte’s per month. Billions of end-users now expect access to high-definition conference calling, video streaming, social media networks as well as location-based applications such as mapping.
While wireless operators have made the transition from 2G towards 3G and 4G infrastructure, and wireline providers can now deliver as much as 1 gigabit per second per household to address capacity and service demands, challenges remain as the volume of data created and consumed shows no signs of slowing down. Up to 50 billion devices are predicted to be connected to the “internet of things” by 2020, and data-hungry technology such as 4K video, augmented/virtual reality and connected cars are all in various stages of deployment. It is estimated that networks will have to deal with at least an eight-times increase in global traffic by the end of the decade as upwards of 30.6 exabyte’s of data will require transporting each month.
To date, CSPs have addressed service demands by upgrading to ever more complex, monolithic, fixed-function appliances, routers and switches in central offices around the globe. But constantly expanding and upgrading fixed-function physical infrastructure at the edge of the network has proved expensive and inefficient; typically, network operators have an asset utilization rate of just 20%. This is because legacy equipment such as base stations are often left unused for long periods during each day, simply because they cannot be repurposed on-demand.
There is a pressing need then to make a transition to intelligent networks, which is where the concept of the cloud central office plays a pivotal role.
The benefits of the cloud central office approach
The cloud central office represents the natural evolution of existing central offices utilized by CSPs. As the name suggests, the cloud CO is a concept designed to help operators move away from their reliance on legacy tools such as broadband network gateways and embrace the advantages of virtualization and the cloud.
Using the cloud CO approach, telcos can use generalized network switches to move traffic from access functions towards virtualized network functions and/or towards the broadband core network. The cloud CO’s functionality can be accessed through a northbound API, allowing operators or third parties to consume its functionality without affecting the end-user experience. This is done using compute nodes running virtualization software to host virtualized network functions as virtual machines or containers. Infrastructure operators can use these VNFs or provide functionality “as-a-service” to third parties.
This change in behavior is important when it comes to the long-term business strategy of networks. Such is the importance of software and services to the evolution of CSPs that market watcher Analysys Mason predicts telecoms providers will invest upwards of $100 billion in these areas during 2020.
“Improving the digital experience will be the single biggest driver for CSP spending during the five-year forecast period. CSPs need to touch every category of systems, particularly omnichannel support, as they push to become digital service providers,” the analyst firm said in its Telecoms Software: Worldwide Forecast 2016-2020.
On a practical aspect, deploying a cloud CO solution is best suited to sites that are serving at least 10,000 customers, according to the Broadband Forum. The flexibility of the system also means it can be extended across multiple physical locations as required for the purposes of disaster recovery, for example.
Central to the successful implementation of the cloud CO are software-defined networking and network functions virtualization technologies. SDN simplifies networks by centralizing control of resources, enabling on-demand provisioning, load balancing and streamlining of infrastructure. Meanwhile, NFV replaces the need for fixed-function network appliances with software running on commodity servers. These technologies combine to help operators establish multipurpose, adaptable, agile, dynamic and scalable environments. Not only does this transition to virtualization technology reduce capital expenditure and operating costs, it also helps to drive innovation and drastically cut lead times. On average, early adopters have reported that the provisioning and deployment of new services has been slashed from weeks and months to days and hours.
The ultimate goal of the Broadband Forum’s Cloud CO Project Stream is to create a tried and tested implementation blueprint for service providers, systems integrators, and suppliers of software and network functions. As a test bed for application and service development, the cloud CO will help to expand revenue opportunities and eliminate technology silos. The early implementation of SDN and NFV architecture will also allow operators to take advantage of incoming benefits.
Looking ahead, rack scale architecture will evolve to separate compute, memory and networking resources at the server level. Groups of racks will enable resources to be allocated to applications on demand and their reconfigurable nature will allow infrastructure to be adjusted as and when there are changes to application requirements.
By making the cloud CO a foundation of a programmable, intelligent network, operators will be well placed to address the needs of enterprises, business users and consumers. They will also have the capabilities to create and deploy next-generation services faster than ever before.
Yves Hertoghs is lead NSX systems engineer for VMware EMEA, and project leader for the “Cloud Central Office” Project Stream for Broadband Forum.
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