Presentation by Overture Vice President of Marketing, Mark Durrett, to SDN OpenFlow World Congress on why the Central Office (Exchange) will be home to the new Telco Cloud. Major points: Cloud is both an opportunity and threat for Telecoms OTT Providers already causing Headaches NFV offers opportunity to differentiate from the CO NFV requires Carrier-class Management & Orchestration

1. ©2013 Overture Networks SDN and OpenFlow World Congress1
OVERTURENETWORKS.COM
Central Office (Exchange):
Home to the New Telco Cloud
D. Mark Durrett, Head of Marketing
October 16, 2013

2. ©2013 Overture Networks SDN and OpenFlow World Congress2
Pressure on Business Telecoms Operators
OTT Service providers
are changing the game
New providers beating
them at their own game

3. ©2013 Overture Networks SDN and OpenFlow World Congress3
Operators Responding with their Own Cloud
“There were 300 cloud service launches by telcos in 2012”
- Camille Mendler, Informa
Source: Informa 2013

4. ©2013 Overture Networks SDN and OpenFlow World Congress4
“Only 11 percent of SMBs said their preference was
for buying cloud services from the same company
that currently provides voice and Internet”
– Metaswitch 2013 Study
“Current Telco Cloud strategies, while defendable
starting points, are generally insufficient to create
sufficiently attractive, large enough or fast enough
traction.” – Arthur D Little 2013
Challenge: Businesses don’t look
to Telcos for Cloud Services
“Service providers such as telcos lag the
smaller, pure cloud players in driving cloud
propositions” - Rolf Meakin, PwC

5. ©2013 Overture Networks SDN and OpenFlow World Congress5
Opportunity: Bring Cloud to the Metro Edge
Leveraging cloud technologies to …
• Provide agility and scalability
• Simplify back office integration
• Create application-aware network
• Create network-aware applications
• Provide flexible workload placement
• Reduce OPEX and CAPEX
• Offer fast path to new features and services
Existing Cloud Technology is Ready for NFV
Only a Few Missing Pieces must be assembled

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Open Industry Initiative
• Open partnership begun by CIMI
Corp and 6 companies
• Inviting others to participate
• Based on ETSI NFV initiative
launched by major service
providers in October 2012
• Platform and architecture to
demonstrate NFV and SDN using
cloud virtualization concepts
• Using real-world technology,
tackling real-world applications
and services
• Demonstrates the full scope of
end-end services
Overture is founding member of CloudNFV

7. ©2013 Overture Networks SDN and OpenFlow World Congress7
But Wait –
Can’t the OTT and Cloud
Guys do this Too?
Yes, but ….

8. ©2013 Overture Networks SDN and OpenFlow World Congress8
Source: Infonetics 2013 Survey
Top 5
NFV Use
Cases
Latency, Scale, Security drives NFV to the Edge
Nearly all the profitable Internet traffic transits less than 40
miles, meaning it never leaves the metro area – Tom Nolle, CIMI
Corp.

9. ©2013 Overture Networks SDN and OpenFlow World Congress9
Central
Office #2
Central
Office #1
Buy Local - NFV Cloud in Central Office
Regional Cloud
Data center
Virtual Functions (VNFs)
live here
Latency
sensitive, Security
sensitive,
High performance
VNFs
Network
Service
Consumers
Network
Service
Consumers
Telco CO-based
Cloud Data
Center (fog)
Image Courtesy of

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Summary
• Cloud is both opportunity and threat for Telecoms
• OTT Providers already causing Headaches
• NFV offers opportunity to differentiate from the CO
• NFV requires Carrier-class Management & Orchestration

11. ©2013 Overture Networks SDN and OpenFlow World Congress11
Thank You
Mark.Durrett@OvertureNeworks.com