Colt Technology to Launch Virtual Network in 2019

Colt Technology Services Group says it plans to start a three-stage company-wide deployment of NFV capabilities in 2019. What will that entail? The ability to use generic universal CPE (uCPE) supporting virtual firewalls, cloud-based WAN acceleration and SD-WAN.

To complicate matters, the use of generic CPE might clearly be an instance of NFV, but virtual firewalls, WAN acceleration and SD-WAN might properly be considered SDN applications.

That illustrates neatly the problem we have when describing network virtualization.

As a practical matter, it sometimes can be difficult to understand precisely what a “virtual communications network” actually does. It also can be difficult to understand how a "virtual" network is created, as that most often includes a mix of changes broadly including both network functions virtualization and software defined network adaptations.

Network functions virtualization (NFV) is one key aspect of virtualization, but not the only key aspect. It also is hard to understand what a “network function” is, in terms of “virtualizing” it.

source: fiber-optic-equipment.com

Software defined networking is the other key building block, and arguably is even more important where it comes to new service creation, where NFV mostly is about lower capital investment and operating cost.

So what are examples of network functions that can be virtualized? Routers, mobility management,policy and charging rules, session border controllers,session initiation protocol and media gateways. Providing IP Multimedia Subsystems functions (IMS) provides another example.

source: Wikibon

That is the terrain of NFV: separating data and control planes and allowing compute and control functions to be moved back from remote network elements to more-centralized locations.

SDN is more centrally related to enabling remote control of services. Software-defined wide area networks (SD-WANs) provide one good example. But supplying firewall, antivirus, video or parental control services are examples of SDN virtualization.

Note that, in general, NFV deals with network optimization, while SDN tends to involve customer-facing features.

source: Spirent

source: SDX Central

Nokia Launches Fixed Network "Network Slicing"

In a move with huge potential implications, Nokia has launched its fixed access network slicing solution, allowing fixed network service providers to create virtual networks as mobile operators will be able to do on their 5G platforms.

That might potentially enable full control of virtual networks that allow many new providers (app providers, platform providers, device suppliers, mobile virtual network operators, content providers) to essentially create their own national or global networks quickly and flexibly, with differentiated network features, to an extent.

Sure, entities have been able to construct private networks using traditional wholesale purchase agreements. But network slicing should allow faster, easier, more flexible flow-through networks all the way to the network edge. Over time, such virtual networks also should be less costly.

Network slicing allows fixed network operators to “scale to a virtually unlimited number of discrete network slices that can be independently operated, for example to run 5G mobile transport, wholesale or business services,” says Nokia.

A network slice is a logical network partition, defined within an operator network, that
can be dynamically created to meet certain SLA criteria (latency, reliability, throughput, geography).

Such virtual networks flow through the core network up to the optical network terminal or customer premises equipment. In other words, a full end-to-end virtual network is possible.

That means full control and autonomy is provided for each slice, with possibly-differentiated performance metrics for the network and services for the user of each slice. Network slicing is a product of the use of software defined networks and network functions virtualization (SDN/NFV)

In principle, network slices can be used by the network operator or any wholesale customer. The new solution is built around Nokia's cloud-native software platform Altiplano and open standards.  

Network slicing accomplishes in software much of what has traditionally been known as “wholesale,” where retail customers purchase the use of capacity from network owners.

Historically, such wholesale services have represented as much as 11 percent of total telecom service provider revenue, according to Ovum. That suggests revenue of perhaps $213 billion in 2021, Ovum predicts.

Essentially, Nokia says, network slicing creates a full Network as a Service (NaaS) offer for third parties that arguably provides a richer “own your own network” capability, compared to traditional spatial, spectral or temporal sharing techniques.

Business models might reflect historic preferences in each market. Some service providers, operating in markets where there is high reliance on wholesale, might extend NaaS using network slicing.

In other markets, where wholesale is less preferred, network operators likely will try and create new retail services that take advantage of network slicing.

source: nokia  

Nokia's programmable slicing solution creates virtual slices that look, feel and operate just like a physical network, the company says.

“Each service provider runs its own dedicated controller with a dedicated view of their slice of the network,” says Nokia.

That might well create new opportunities for any entities that formerly might have considered becoming a mobile virtual network operator or a private network operator in the fixed network realm.

Fiber to the Lightpole in 5G Era

“Fiber to the light pole” is one of the ways to think about optical fiber and other backhaul networks for 5G small cells.

Additional spectrum and smaller cell sizes are the two fundamental tools network designers can use to increase network bandwidth. In the pre-5G eras, when networks operated at lower frequencies, a macrocell tower (at 950 MHz) might transmit more than 17 miles, on flat terrain without major obstructions.

A 4G network using 1.8-GHz to 2.1-GHz signals might transmit only about 7.5 miles, by way of comparison. Low-frequency spectrum often is described as assets at and below 800 MHz (450 MHz, 600-MHz, 700 Mhz and 800 MHz). “Mid-frequency” tends to include 1.8 GHz to 2.1 GHz spectrum. “High frequency” traditionally has meant the 2.5-GHz range.

All that will change in the 5G era, as millimeter wave assets are commercialized. When millimeter spectrum is used (28 GHz, 39 GHz), small cells might cover a few to several hundred meters radius. In those cases, small cells might be placed about every other light pole along roads.

source: Cowen and Company

source: Cowen and Company

The following table shows the dependency of the coverage area of one cell on the frequency of a 3G network.

Frequency (MHz)	Cell radius (km)	Cell area (km2)	Relative Cell Count
450	48.9	7521	1
950	26.9	2269	3.3
1800	14.0	618	12.2
2100	12.0	449	16.2

Large Enterprises Want to Compute at the Edge, Study Finds

Most large enterprises are looking to deploy Internet of Things devices (IoT) on the edge but are struggling to do so, a survey by VansonBourne, sponsored by Software AG has found.

Some 80 percent of respondents want to deploy IoT on the edge but only eight percent are actually doing that already.

source: NTT

What firms would like to do is process data locally. Instead of sending all the data from a wind turbine to the cloud and processing the data centrally, users want to process data and analytics locally and then send the results to the cloud.

That reduces network load, cloud processing and storage requirements while making IoT feasible in areas without reliable networks. (Get full survey results)

Many other applications with real-time and low-latency requirements likewise will benefit from processing at the edge: medical, smart cities, image recognition, speed recognition, smart house or gaming applications, for example.

According to market research firm IDC, the IT spend on edge infrastructure will reach up to 18% of the total spend on IoT infrastructure by 2020.

At Least 8.4 Billion IoT Devices in Use in 2018: Where are They?

Gartner says 8.4 billion connected things were in commercial use globally in 2017, up 31 percent from 2016, a fact that might surprise many, as the internet of things often is viewed as a “future” business.

By 2020 there will be 20.4 billion IoT devices in use.

Today, consumer use cases represent perhaps 63 percent of IoT usage, at 5.2 billion units.

Total spending on endpoints and services will reach almost $2 trillion in 2017. "Aside from automotive systems, the applications that will be most in use by consumers will be smart TVs and digital set-top boxes, while smart electric meters and commercial security cameras will be most in use by businesses," said Peter Middleton, research director at Gartner.

In addition to smart meters, applications tailored to specific industry verticals (including manufacturing field devices, process sensors for electrical generating plants and real-time location devices for healthcare) drove the use of connected things among businesses through 2017, with 1.6 billion units deployed.

Regionally, Greater China, North America and Western Europe are driving the use of connected things and the three regions together will represent 67 percent of the overall Internet of Things (IoT) installed base in 2017.

Businesses represent 3.1 billion connected things.

                           IoT Units Installed Base by Category (Millions of Units)

Category	2016	2017	2018	2020
Consumer	3,963.0	5,244.3	7,036.3	12,863.0
Business: Cross-Industry	1,102.1	1,501.0	2,132.6	4,381.4
Business: Vertical-Specific	1,316.6	1,635.4	2,027.7	3,171.0
Grand Total	6,381.8	8,380.6	11,196.6	20,415.4

source: Gartner

From 2018 onwards, cross-industry devices, such as those targeted at smart buildings (including LED lighting, HVAC and physical security systems) will take the lead as connectivity is driven into higher-volume, lower cost devices.

In 2020, cross-industry devices will reach 4.4 billion units, while vertical-specific devices will amount to 3.2 billion units, Gartner predicts.

While consumers purchase more devices, businesses spend more. In 2017, in terms of hardware, the use of connected things among businesses will drive $964 billion worth of activity.  

Consumer applications will amount to $725 billion in 2017. By 2020, hardware spending from both segments will reach almost $3 trillion.

IoT Endpoint Spending by Category (Millions of Dollars)

Category	2016	2017	2018	2020
Consumer	532,515	725,696	985,348	1,494,466
Business: Cross-Industry	212,069	280,059	372,989	567,659
Business: Vertical-Specific	634,921	683,817	736,543	863,662
Grand Total	1,379,505	1,689,572	2,094,881	2,925,787

source: Gartner

Total IoT services spending (professional, consumer and connectivity services) is on pace to reach $273 billion in 2017, Gartner also predicts.

IBM Revenues Illustrate Rule: Replace 1/2 of Current Revenue Every Decade

In both the computing and communications business, one good rule of thumb is that firms must replace about half their current revenue every decade. That works for IBM just as for Intel, Comcast and AT&T.

International Business Machines Corp. said in the second quarter of 2018 it generated more than half of its revenue from newer services such as cloud and artificial intelligence, a first for the company.

In 1994, IBM earned half its revenue from hardware sales.

One sees the same pattern at Intel.

source: Seeking Alpha

By 2012, IBM was earning 57 percent of revenue from services and just 18 percent from hardware sales.

The point is that in the computing industry, as in the communications industry, a key principle is that firms must replace about half their current revenue every decade.

 

source: Annex Bulletin