vCloud NFV - Accelerating deployment of the Telco Cloud (SDN NFV Day ITB 2016)

3. © 2015 VMware Inc. All rights reserved. Traditional Architectures Cannot Deliver a Sustainable Business Model. The Problem: Traditional Network Architectures • Enable Vendor Lock-In. • Inefficient Use of Resources / Capital. • Increase Operational Costs. • Increase Deployment Timelines. • Slow Time to Revenue. • Prohibit Cost/Revenue Matching.

4. © 2015 VMware Inc. All rights reserved. Maximizing Total Return on Investment with A Common Platform Approach. The New ROI for Network Function Virtualization • Eliminate Siloed Architectures. • Decreasing Vendor Leverage. • Increasing Operations Efficiency. • Match Supply with Demand • Service Agility & Time to Market. Strategy: A Common Platform Approach

5. © 2015 VMware Inc. All rights reserved. Three Architecture Options for NFVI Today Old School Old Turned New Game Changing Appliance X86 Server Hypervisor Dedicated VNF Vendor-Optimized H/W Vendor-Optimized NFVI Vendor-Selected VNFs Hypervisor Cloud Manager Operator-Selected H/W Multi-Vendor Optimized NFVI Operator-SelectedVNFs Hypervisor Multiple Cloud Managers Custom Stack Common Platform Modular NFVI Platform Multi-Cloud & Multi-Domain VNF Vendor Independent Limited VNF Selection Integrated OEM Solution Vendor Dependent Single Application Solution Low Scalability Limited Flexibility High Total Cost of Ownership NO Service Flexibility Lowest Total Cost of Ownership MAXIMUM Service Flexibility Lower Total Cost of Ownership LIMITED Service flexibility

6. © 2015 VMware Inc. All rights reserved. Static Capacity Cost Across Architectural Approaches Infrastructure Savings From NFV Modeled Scenario: 25% CAGR of Control and Data Nodes over 5 Years of Deployment. • Global Operator with 7M+ Mobile Subscribers, Common Platform, 13 VNFs. • Americas Operator with $4M+ Subs on vEPC ($40M Forecasted by end of 2015). • EMEA Operator with deployed vCPE Solution Delivering Enterprise Services. Based on Real Customer Cost Experience

7. © 2015 VMware Inc. All rights reserved. Common Platform Benefits Magnify Across Multiple Service Deployments • Custom Stack TCO Tracks to Requirements Growth – Common Platform TCO Increases at ½ the Rate of Requirements • 62% Lower TCO vs. Traditional Appliance Approach • 33% One-Year & >350% Five-Year ROI for Phased Deployment • Capacity tracks Demand to maximize platform efficiency • Common operational process and procedure maximizes resource productivity and agility 7 Efficiently Matching Demand with Supply Breaks Linkage Between Cost & Requirements

8. © 2015 VMware Inc. All rights reserved. Decreasing Vendor Leverage A Common Vendor Neutral Platform Can Help Decrease CapEx. • Separate NFVI & VNF Vendors • VNF Vendors Build to the Platform • Operator Has Total Control • Encourages Competition • Easy Portability and Swap-Out • Build Best in Breed Services

10. © 2015 VMware Inc. All rights reserved. Founded 1998 $6.57B Revenue 2015 500,000+ Customers 75,000 Solution Partners 1,100 Technology Partners 100+ Consulting Partners 93,000 VMware Certified Professionals 1,000+ VMware Service Professionals 128 Offices Worldwide 10 Cloud Innovation Empowering Transformation. Gartner “Magic Quadrant for x86 Server Virtualization Infrastructure” 2015. VMware Microsoft Red Hat Huawei The World’s Leading Virtualization and Cloud Infrastructure Company

11. © 2015 VMware Inc. All rights reserved. ONE Cloud for SP Services & IT 11 Source: VMware Journey Benchmark Survey,4th Wave 37% more responsive to IT requests. 30% of operations and development staff’s time released for service innovation vs routine tasks. 30% increase in company revenues attributable to a more agile IT. 66% more budget secured than their less mature counterparts. Proven Results Powered by

12. © 2015 VMware Inc. All rights reserved. Enabling Service Provider Transformation Leveraging Our Virtualization Experience to Enable SP Transformation. • Installed in 80%+ of SP IT Networks. • Over 2500 SPs WW in VSPP Program. • Deep In-House Service Provider DNA. “All of our partnerships, whether financial, operational or technological, have been concluded with companies that not only share our dynamism and innovative entrepreneurial vision, but are also the undisputed experts in their respective fields. - Frank Fischer, JOIN Experience Co-founder. Service Provider DNA

15. © 2015 VMware Inc. All rights reserved. Introducing vCloud NFV • Production proven – Over 45 service deployments servicing over 30 million subscribers • Widest array of 3rd Party Virtual Network Functions • Multi-Domain – Mobile core and fixed line services – Networking and IT • Radically reducing costs • Enabling innovation at speed 15

16. © 2015 VMware Inc. All rights reserved. What is ETSI? • The European Telecommunications Standards Institute (ETSI) is a non-profit organization that establishes telecommunications standards for Europe • ETSI was selected in November 2012 to be the home of the Industry Specification Group for NFV • Membership of Industry Specification Group (ISG) for NFV has grown to over 270 individual companies including 38 of the world's major service providers • The key objectives was to achieve industry consensus on business and technical requirements for NFV, and to agree common approaches to meeting these requirements • Important for the ISG for NFV to encourage development of an open ecosystem and to stimulate product innovation • Produced a set of high level reference documents 16

17. © 2015 VMware Inc. All rights reserved. Achieving the Benefits of NFV • Own the platform – The network, and network operations, as a strategic asset – Drive innovation and service roadmaps – Learn from the Enterprise cloud revolution • Embrace Shared Resource – A Maximum pool of resources shared across a Maximum number of VNFs – Avoid replicating hardware service silos in software - Avoid single-service projects – Start with Control Plane workloads to prove operational capabilities • Build the Operational Team Now – Establish roles and responsibilities – Define interfaces with other teams and business partners – Identify individual opportunities and skills – Consider an operational readiness assessment 17

18. © 2015 VMware Inc. All rights reserved. What is the NFV Architecture Framework? • High-level functional architecture and design philosophy for virtualised network functions and the underlying virtualisation infrastructure • Delineating the different constituents elements and outlining the reference points between them. Main constituent elements known as working domains are: – Network Functions Virtualization Infrastructure (NFVI) – Virtualized Network Function (VNF) – NFV Management and Orchestration (MANO) CONFIDENTIAL 18

20. © 2015 VMware Inc. All rights reserved. vCloud NFV Platform 20 ETSI NFV Architecture Reference model Service, VNF & Infrastructure Description Sample textCompute Hardware Storage Hardware Network Hardware vSphere NSX VSAN Virtualization Layer EMS1 VNF1 EMS2 VNF2 VNF3 NFVO EMS3 VNFM NFVI VNF VIM vCloud Director vROPs vR Log Insight Site Recovery Mgr FCAPS OpenStack A Modular ETSI Conforming Platform for Seamless Integration. Operations and Business Support Systems (OSS / BSS)

21. © 2015 VMware Inc. All rights reserved. VMware vCloud NFV™ Platform and vCloud NFVTM Bundle 21 COMPUTE NETWORK & SECURITY STORAGE AND AVAILABILITY vCloud NFV Platform Add-ons to vCloud NFV Bundle vSphere NSX Site Recovery Manager vSAN vCloud Director for Service providers VMware Integrated OpenStack vRealize Operations Insight Cloud Management and Orchestration Build and Manage a vSphere-based Private Telco Cloud

22. © 2015 VMware Inc. All rights reserved. vCloud NFV Multi-Domain Support PUBLICPRIVATE ONE Cloud Multi Domain Virtual Elastic Mobile Services (vEMS) Virtual Wireline Managed Services (vWMS) VoLTE vEPC vCPE IMS PCRF vMME v/PGW NGFFW vCloud Connect NAT DPI vRouter Multi Vendor Hybrid Optimized Service Provider Class Converged Cloud Solutions

23. © 2015 VMware Inc. All rights reserved. Common NFVI Platform Business Value vCloud NFV Drives Measurable Business Outcomes TODAY Dramatically Lower Overall Operations Cost. Operationalize Incrementally Optimize CapEx & Ensure Operational Success. Lower TCO vs. Siloed Virtualization Platforms. Horizontally Integrated Increase VNF Vendor Leverage and Lower Cost. vCloud NFV Common Platform One Cloud SP Services & IT B CA VNF MultiVendor Optimized vCloud NFV • Lower OpEx Costs • Optimize CapEx Costs • Increase Service Agility • Decrease Time to Service Revenue $$$ $$

24. © 2015 VMware Inc. All rights reserved. Building NFV – Sample Ecosystem Partners Service Orchestration (NFVO) vRealize Operations & Log Insight CLI/AP I Horizon Heat Neutron CinderNova Integrated OpenStack Glance Virtual Network Functions (VNF) Virtual Network Function Manager (VNFM) vCloud NFV Platform vCloud Director vROps API NSX Network Virtualization & Security Platform vCenter APIvSphere & vSAN Platform CLI/AP I Horizon Heat Neutron CinderNova OpenStack Distribution Glance OpenStack NSX PlugIn Network Function Virtualization Orchestration (NFVO) Service Assurance OpenStack Nova Driver OpenStack for KVM Management Pack

26. © 2015 VMware Inc. All rights reserved. Service Provider Momentum vCloud NFV Meets the Needs of Global Service Providers. • Common Multi-Vendor NFV Platform. • Modular & Open. • ONE Cloud Convergence. • Can be Operationalized Incrementally. • Carrier Grade. • Proven Platform that Works! Why SPs Prefer vCloudNFV:

27. © 2015 VMware Inc. All rights reserved. Vodafone has been able to combine the best Virtual Network Functions (VNFs) from different vendors on a single platform, and to bring high- value services to market more quickly." Rui Frazao, Director Network Engineering, Vodafone Germany Service Provider Validation Mijbil Al-Ayoub, Director, Corporate Comms. Ooredoo Kuwait Success Across a Broad Range of Service Providers Architecture & Requirements. • Fast Deployment • Service Innovation • Common Multi-Vendor Platform • Service Agility • Common Multi-Vendor Platform "The speed at which we have been able to trial our unified cloud and onboard the VoLTE service functions into our IT network has exceeded our expectations. We did a joint R&D project that took only two months to complete, and we finalized the development of our vIMS product that can be deployed in a production, commodity infrastructure, automatically in only 3.5 hours."

28. © 2015 VMware Inc. All rights reserved. New VMware Ready for NFV Certification Program § Instantly Recognizable accreditation program extended to the NFV use case § Builds customer confidence and accelerates opportunity § Maintains technical leadership and differentiation § Leverages VMware brand and market presence Launched with the support of the above partners

29. © 2015 VMware Inc. All rights reserved. New Carrier-Grade Services and Support § Carrier-grade support both direct from VMware and through key partners § Reduces the risk of performance degradations and outages § VMware Services § Enhanced SLAs § NOKIA TotalCare for VMware § Supports VMware deployments with an extended SLA covered by Nokia directly 29

30. © 2015 VMware Inc. All rights reserved. Delivering Successful Deployments 30 How VMware Professional Services Drives Customer Success Typical Outcomes Achieved Design and Deployment of a vCloud for NFV Platform What We Deliver 1. Reduce Operating Costs and Increase Agility 2. Build More Agile Service Innovation Environment 3. Transform Operating Model Technical Product Specialists Tools & Methodologies Implementation Expertise How We Deliver

31. © 2015 VMware Inc. All rights reserved. VMware vCloud for NFV Assess, Design and Deploy Service 31 Planning and Kickoff Assess & Design Deploy & Validate Knowledge Transfer & Conclusion • Review scope, timelines, work streams, phases, and use cases. • Deliver solution overview workshop to provide a conceptual understanding of vCloud for NFV Platform. • Conduct interactive use case workshops to gather objectives, policies, and constraints based on gaps between current environment and desired end point. • Initiate solution design workshops. • Install and configure the vCloud for NFV Platform. • Conduct validation testing of the NFV Infrastructure, Virtualized Infrastructure Manager and NFVI Operations Management components. • Conduct knowledge transfer sessions covering the design and operations procedures. • Project conclusion and engagement summary. Key Activities – Assess, Design and Deploy Service

32. © 2015 VMware Inc. All rights reserved. NFV Summary • NFV aims to reduce OpEx through automation and scalability provided by implementing network functions as virtual appliances • NFV provides all the benefits of virtualization and cloud computing including orchestration, scaling, automation, hardware independence and high availability • NFV requires standardization of reference points and interfaces to be able to mix and match VNFs from different sources • NFV increases the speed of Time to Market by minimising the typical network operator cycle of innovation • NFV can be done now. Many virtual functions have already be implemented by carriers CONFIDENTIAL 32

34. © 2015 VMware Inc. All rights reserved. VMware Integrated OpenStack VMware Integrated OpenStack OpenStack Kilo Release CLI / API HeatHorizon VMware Optimized OpenStack Install + Management + Upgrade VMware SDDC Nova Cinder Glance Neutron vCenter vCenter vCenter VSAN / vSphere Datastores / vVols NSX vRealize Operations vRealize Business vRealize Log Insight • VMware Integrated Distribution. • Simple Installation. • Rich Infrastructure Features. • Supported by vRealize Operations. • Log Insight for Diagnostics. • Hardened and Tested by VMware. • Single Vendor Support. Production OpenStack Up and Running in 15 mins.

35. © 2015 VMware Inc. All rights reserved. VIO Roadmap Summary VIO 1.0 (GA) • Production Ready Architecture • Automated Deployment& Configuration • Automated Patching • Nova with vCenter Driver • Glance and Cinder with VMDK drivers • NSXv Neutron plugin • L2/L3/ security groups/ floating IPs • Authentication w/Active Directory • Encrypted Passwords in configuration files Features • Icehouse-based • Nova, Neutron, Cinder, Glance, Horizon, Keystone, Heat OpenStack Release • Life-Cycle Mgmt. of OpenStack Services • Multi-vCenter with AZs & Regions • Automated Upgrades • Backup & Recovery Procedures • Support for vSphere Reservations/Limits • Support for guided placement of VMs • LBaaS • Keystone + Active Directory Improvements • Heat Auto-scaling with Ceilometer • Branding of Horizon Portal • Kilo Based • +Ceilometer VIO 2.0 35 Demonstrating OpenStack Industry Leadership.

vCloud NFV - Accelerating deployment of the Telco Cloud (SDN NFV Day ITB 2016)

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vCloud NFV - Accelerating deployment of the Telco Cloud (SDN NFV Day ITB 2016)