Sot Sped01b ML5 PDF

e d u c a t io n se rv ic e s c o u rse w a re
Market Description, Trends,

and Challenges
Student Guide
Market Description, Trends, and Challenges
NOTE: Please note this Student Guide has been developed from an audio narration. Therefore it will have
conversational English. The purpose of this transcript is to help you follow the online presentation and may require
reference to it.
Slide 1
Build the Best
© 2015 Juniper Networks, Inc. All rights reserved. CONFIDENTIAL SOT-SPED01B-ML5 www.juniper.net | 1
Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 2

Slide 2
Juniper Networks
Service Provider Edge Design
Best Practices
Market Description, Trends,

and Challenges
© 2015 Juniper Networks, Inc. All rights reserved. | www.juniper.net | Proprietary and Confidential
Welcome to Juniper Networks “Market Description, Trends, and Challenges” eLearning module.
This module will describe the various types of service providers and the trends and challenges they face as well as
some of the factors and requirements affecting edge design.

Slide 3
Navigation
Throughout this module, you will find slides with valuable detailed information. You can stop any slide with the Pause
button to study the details. You can also read the notes by using the Notes tab. You can click the Feedback link at any
time to submit suggestions or corrections directly to the Juniper Networks eLearning team.

Slide 4
Course Objectives
After successfully completing this course, you will be

able to:
•Describe the various types of service providers and the
trends and challenges they face
•Discuss some of the factors and requirements affecting
edge design
•Describe the requirements needed to enhance the quality of
experience for a service provider customer
•Describe the challenges associated with policy management
After successfully completing this course, you will be able to:

• Describe the various types of service providers and the trends and challenges they face;
• Discuss some of the factors and requirements affecting edge design;
• Describe the requirements needed to enhance the quality of experience for a service provider customer; and
• Describe the challenges associated with policy management.

Slide 5
Agenda: Market Description, Trends, and

Challenges
Market Description
Trends and Challenges
This course consists of two sections. The two main section are as follows:
• Market Description; and
• Trends and Challenges.

Slide 6
Juniper Networks
Best Practices
Market Description
Market Description
This section will describe the various types of service providers and the market dynamics they face.

Slide 7
Section Objectives
After successfully completing this section, you will be

able to:
•Describe the various types of service providers
and segments
•Describe the market dynamics affecting service providers
After successfully completing this section, you will be able to:

• Describe the various types of service providers and segments; and
• Describe the market dynamics affecting service providers.

Slide 8
Service Provider Tiers

Tier 1 Tier 2 Tier 3
Typically own the Have a mix of their Purchases all or a
assets, means, own transit significant amount
and capabilities to capacity and of their transit
transmit their own capacity that they capacity from
Internet traffic purchase from other Tier 1 or
Typically no fees some other transit Tier 2 providers
are paid for company
transmitting traffic
through the
networks of other
Tier 1 carriers
Service Provider Tiers
This course will explore many aspects of the service provider edge. But first, we will define the different types of
service providers.
Business and personal use of the Internet has continued its explosive growth, and through this growth, service
providers have evolved into essentially three distinct tiers. There is no formal authority that defines these tiers, but the
most common definition of a tier 1 service provider is one that can reach every other network on the Internet without
purchasing IP transit capability or paying settlements. This means that tier 1 companies typically own the assets,
means, and capabilities to transmit their own Internet traffic. Tier 1 service providers are large national and
international providers. Tier 1 service providers are directly connected to the Internet backbone and can be considered
part of the backbone.
Tier 1 companies traditionally provide data, voice, and broadband services to their customers. An important distinction
to remember is that a tier 1 network peers with every other tier 1 network on a transit-free basis—meaning no fees are
paid for transmitting traffic through the networks of other tier 1 carriers.
In contrast, tier 2 networks might peer with some other networks (typically tier 1) but are required to purchase IP
transit capability or pay settlements to reach at least some portion of the Internet. Tier 3 networks will typically have to
purchase all or most of their transit capability from other networks to reach the Internet. So, tier 2 and tier 3 are similar.
The primary distinction between tier 2 and tier 3 is that tier 3 will tend to purchase all or significantly most of their
transit from other tier 1 or tier 2 providers, whereas tier 2 tends to have a mix of their own transit capacity and also
transit capacity that they have to purchase from other transit companies. From this point forward, we will refer to tier 2
and tier 3 as the same group.

Slide 9
Service Provider Segments
Wireline
•Connectivity through copper or fiber-based wiring
Wireless
•Connectivity through radio frequency signals
Converged
•A network that offers wired and wireless connectivity
regardless of the access method or type of subscriber
Residential
Business Mobile
Service Provider Segments
Within the service provider market, there are also three distinct segments—wireline, wireless, and converged—which
are concerned with delivering access and services to their residential, business, and mobile customers.
Wireline is a service that uses copper or fiber based wiring to connect residential or business customers (subscribers)
with network access and services.
A wireless service provider offers wireless network services to users of wireless devices—such as handheld
computing devices or telephones—through radio frequency signals rather than end-to-end wired communication. This
could include cellular services, satellite services, or Internet connectivity.
The converged service provider network is concerned with the provisioning of network and service capabilities
regardless of the access method or type of subscriber.
The network edge is a very complex location, where services are delivered, multiple technologies co-exist, and where
the customer experience is defined. The network edge is an area of intense focus for service providers of all types.
Next, we will look at the trends and challenges that service providers face at the network edge.

Slide 10
Market Dynamics
New Devices
Disintermediation New Applications

X
Disruption of the
Economic Model
New Connectivity
Flood of New Content
Paradigm (Mobility)
Moving Resources and

Content to the Cloud
Market Dynamics
Forces within the market have created an environment of unpredictability for service providers. End user demand for
anywhere, anytime access to new applications and rich media content, regardless of the device they are using, is
dramatically increasing pressure on service providers and enterprise networks, forcing them to reconsider how their
networks are built. Today’s users are accessing dynamic, media rich applications, and demand massive bandwidth,
even when they are using mobile devices to connect to services and applications in the cloud.
Instead of these market dynamics resulting in value creation, the service provider often does not realize new revenue
and yet is still responsible for the connection and service quality in this challenging and ever-changing landscape. This
is an unsustainable situation and it is causing disruption to the service providers’ economic model. Service providers
want to monetize emerging opportunities, but they need a network that accelerates service innovation, reinvents the
customer experience, and delivers viable economics. Also, they want to move up the value chain to overcome the risk
of disintermediation (that is, being cut out as the middle-man) by the over-the-top (OTT) providers, and in turn capture
the value from new, advanced, and innovative service offerings.

Slide 11
Explosive Growth
Worldwide Internet traffic, 1990-2020 PB/month
# of Connections
180,000
Forecast Model
MACHINE TO
160,000 MACHINE?
140,000 +27%
2008-
2008-
2020
120,000
CAGR
17x
100,000 Growth
2008-
2008-
2020
80,000 WWW is Born
Video
60,000
Digital Decade
40,000
20,000 Non-Video
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2021
Source: Juniper, Cisco, MINTS
Explosive Growth
Traffic generated by mobile devices has been one of the fastest-growing segments of the Internet for years. Mobile
traffic in 2010 alone was triple the size of what the entire Internet traffic was back in the year 2000. Mobile traffic is
being generated not just by smartphones but also other devices such as tablets that did not even exist two years ago.
In 2010, video traffic comprised the majority of consumer Internet traffic for the first time—53% of all uploads and
downloads consisted of video traffic. By 2015, video traffic could comprise more than two-thirds of all Internet traffic. If
you include peer-to-peer file sharing, then in the coming years video will actually make up 90% of all Internet traffic.

Slide 12
Section Summary
In this section, we:

•Described the various types of service providers
and segments
•Described market dynamics affecting service providers

• Described the various types of service providers and segments; and
• Described market dynamics affecting service providers.

Slide 13
Learning Activity 1: Question 1

Which service provider tier is directly connected to
(and considered a part of) the Internet backbone?
A) Tier 1
B) Tier 2
C) Tier 3
D) Tier 4

Slide 14
Juniper Networks
Best Practices
This section will discuss the trends and challenges service providers are encountering and the requirements to
successfully meet those challenges.

Slide 15
Section Objectives
After successfully completing this section, you will be

able to:
•Discuss the challenges service providers face
•Describe how quality of experience requirements affect
edge design
•Describe quality of service and policy management
challenges
After successfully completing this section, you will be able to:

• Discuss the challenges service providers face;
• Describe how quality of experience requirements affect edge design; and
• Describe quality of service and policy management challenges.

Slide 16
Drivers and Challenges

Devices Define the Experience
Value creation and capture
between device vendors
and service providers
QoE--centric service
1 QoE
Consumer is the Driver innovation
Better, more engaging Market 2 Open, accelerated

experiences Dislocations service delivery
Secure environments
Price driven by competition Build on converged,
3
scalable solutions
Over-
Over-the-
the-Top
Services Define Value
Value creation and capture
between content providers
and service providers
Drivers and Challenges
In the service provider market, the customer is the driver. Customers expect a great deal from their service providers.
They require convenience and personalization, simplicity, personal content, mobility, and flexibility on the services
they consume. At the same time, devices increasingly dictate the experience, and it is those devices that capture the
attention of consumers. Look at the impact of the iPhone and iPad for both personal and business use.
Increasingly, OTT services define value. OTT is a term used to describe services that ride on top of the broadband
network, but these services do not have any technology or business affiliation with the underlying network. For
instance, a consumer might order an OTT voice service, use the service over their cable or digital subscriber line
(DSL) connection, attach a phone and start making calls—the OTT voice service charges the consumer, but the cable
or DSL service provider carrying the service does not see any increased income, just increased bandwidth usage.
Consumers spend considerable time and consume considerable bandwidth accessing this type of content on media
properties outside of the service provider’s control. Yet, these same service providers are bearing all of the costs of
carrying the content traffic. Think about how Netflix video or Vonage voice services are monetized versus any value
they create for the provider who carries the content over their network.
This market dislocation explains a major challenge faced by providers. To survive, service providers must embrace
the “New Network”—the network where they are the center of value creation. To do this, service providers will have to
focus on the following:
• Embrace service innovation focused on the customers quality of experience (QoE) that enables customer
retention;
• Enable an open, accelerated, service delivery model to launch revenue generating services faster; and
• Build on converged, scalable solutions to enable sustainable economics to protect their network investments.

Slide 17
Other Areas of Concern
TR-101—”Migration to Ethernet-Based
DSL Aggregation”
TR-177—”IPv6 in the Context of TR-101”
TR-187—”IPv6 for PPP Broadband Access”
Broadband Forum Technical Reports:
http://www.broadband-forum.org/technical/trlist.php
Transition from IPv4 to IPv6

•IPv4 address depletion
•IPv6 coexistence and transition
Efficient delivery of video and other services
Construction of a flexible, dynamic network
Other Areas of Concern
Service providers are searching for ways to make their networks more flexible so they can add, change, and delete
applications or services between multiple locations. For example, service providers want to more fully optimize their
available network resources and deliver differentiated services, and they want to monetize additional subscriber
services beyond current offerings. Service providers would like new services to be introduced without significant
disruption to the existing network topology or currently deployed services; allowing faster time-to-market from a
design, upgrade, testing, and deployment perspective. Service providers would like to enable network devices that
provide service functions, yet can be deployed independently of the underlying network topology.
Along these lines, the service provider network infrastructure needs to be concerned with several issues including the
following:
• The transition of ATM to Ethernet: To help facilitate this transition, broadband network gateways (BNGs), will need
to comply with the Broadband Forum Technical Report 101 (TR-101). TR-101 enables service providers to evolve
their DSL access networks to better support faster access rates so as to introduce new high-value services. There
is a significant cost advantage offered by Ethernet networks. The availability and standardization of Ethernet
services in contrast with the high cost of high-speed Asynchronous Transfer Mode (ATM) is driving the migration
to IP Ethernet networks.
• TR-177 focuses on network architecture that enables operators to support IPv6. TR-177 does not replace, but
rather builds on the requirements of prior technical report TR-101. TR-177 describes enhancements to a TR-101
network architecture to support Ethernet encapsulated IPv6 services in combination with IPv4 packet services.
• The Broadband Forum released TR-187 to augment TR-101 and some of their other documents describing PPP-
based IPv4 access. TR-187 provides details necessary for the deployment of IPv6 alongside IPv4.
• Transition from IPv4 to IPv6: IPv4 addresses have been exhausted. The transition to IPv6 has begun. However,
while the move to IPv6 is necessary to accommodate the continuing explosion of Internet space requirements, the
current Internet technology profile mandates that access through IPv4 and access through IPv6 have to coexist—
now, and for the foreseeable future. Service providers need access to the devices, technologies, and expertise to
assist with this transition.
• The majority of network traffic will be video: Efficient network architectures to support video traffic will be needed
to cost-effectively deliver video services and maintain end user satisfaction. Mechanisms will be needed to
dynamically manage traffic and deliver a wide range of services easily, efficiently, and with assured QoE.
Service provider networks will need an architecture that is open at the device, network, and application layer,
facilitating creation of a multi-layered eco-system that accelerates service creation and delivery. Comprehensive

security will be needed to protect users, devices, the network, and applications while providing flexibility for services.
Service providers also want to simplifying the network architecture to provide improved scalability, automate
processes to scale service delivery, and support network capacity and subscriber scale with flexible, high performance
platforms. Many service providers worldwide will look to ease their operations with a single converged network that
can give them the ability to rapidly deploy new, highly differentiated services, and more efficiently monetize the IP
edge.

Slide 18
The Need for a New Network Equation

New Service Provider
Network Innovation Ecosystem Innovation
Network
High Performance Partner Solutions Extend Accelerated Innovation

Networking is the Foundation the Possibilities and Competition Drives
Fast Profitable New, Better Experiences
Secure
Versatile New Flexibility and Agility
Scalable
Dynamic New Customer Solutions
Reliable
Simple
Open $ New Revenue Sources
The Need for a New Network Equation
As networks become more relevant in the world in which we live, Juniper Networks believes the network can unleash
a great wealth of possibility, innovation, and discovery beyond measure. Juniper is leading the charge to architecting
the New Network. Juniper offers a high-performance network infrastructure built on simplicity, security, openness, and
scale, and is innovating in ways that empower customers, partners, and ultimately everyone in a connected world.
Service providers are at an inflection point, one where they can transform these challenges into opportunities as they
evolve toward a New Network.

Slide 19
Simplifying Service Architecture with

MX Series as Service Control Gateway
Converge Subscriber Awareness, Routing, and Network Services
into a Single Platform
WEB AWARE
Appliance
Load Network Firewall VPN DPI/TDF

Balance Address
Parental CACHING and

Control CONTENT
Appliance APPLICATION Appliance
Appliance
Service Control
Gateway Router
Converge
Benefits:
Consolidate network functions into existing router platform
Lower operational and capital expenses by minimizing network elements
Efficient use of routing resources
Simplifying Service Architecture with MX Series as Service Control Gateway
Using the MX Series as Service Control Gateway (SCG) routers allows consolidation of network functions—such as
deep packet inspection (DPI), HTTP Header Enrichment, traffic load balancing, stateful firewall, and Network Address
Translation (NAT)—to run in a single system. This helps operators to lower operational costs and reduces the number
of network elements.

Slide 20
Virtualize the Appliances

Create Virtualized Network Functions to Facilitate Scalability
OSS = operations support systems
OSS/BSS BSS = business support systems
SDN = software-defined networking
Policy SDN Controller WEB AWARE
PARENTAL CACHING and

CONTROL CONTENT
Appliance APPLICATION Appliance
Appliance
Service Control
Virtualize
Gateway Router
Benefits:
Link subscriber awareness to policy and service delivery
“Service Pools” of network functions
Common x86 hardware architecture
Virtualize the Appliances
The SCG can interface with the policy and control layer, leveraging RADIUS- or Diameter-based protocols for dynamic
and user-specific profile selection.
With the Contrail SDN Controller you can build an end-to-end architecture to support, manage, and operate the
implementation of virtualized service functions.

Slide 21
Service Delivery Complex

Built On Industry Leading MX Series Routing Platform
SDN
OSS/BSS
AAA PCRF OCS Orchestration
Systems
Sy
Contrail
SPR
Gx/Sd Gy/Gyn
RADIUS Service Virtualization
w/ CoA
Service Enforcement Portals
Orchestration
Charg. and Policy
Mobile
SG/Gi Service Control
Access OTT applications
Steering and
Chaining TLB/SLB
GGSN/PGW
CGNAT VPN
BNG Caching
Fixed Internet
Access
The SCG is an open platform that enables the delivery of subscriber- and application-aware
services and network functions independent of access technology
Service Delivery Complex
As illustrated on this slide, the service delivery complex allows for unified service offerings for fixed and mobile
operators. The SCG is an open platform leveraging standard interfaces for integration into existing service provider
back-office infrastructure.

Slide 22
Residential, Business, and Mobile Services

The Legacy Approach Is Changing
Separate networks are no

longer economically feasible Data Centers
Not cost effective Mobile Mobile

Edge
Inefficient
Increased maintenance IP Internet
The trend is toward true Residential Broadband

Backbone
Edge
convergence
Scalable
Flexible Business
Business Edge
Cost-effective
Faster rollout of new services Traditional Service
Provider Network
Residential, Business, and Mobile Services
Traditionally, service providers have built and maintained separate networks to support their residential, business, and
mobile services. It is no longer feasible or financially advantageous to deploy standalone, service-specific appliances
and platforms. This approach adds significant cost, impacts the speed of rolling out new services, and increases
network maintenance requirements. Service providers are trending towards achieving true convergence and
unification across their service delivery networks. This is critical for efficient and fast rollout of next-generation
services. Therefore, it is essential that service providers deploy scalable, flexible, and cost-effective networks to
support mobile, residential, and business customers—ensuring the growth of profitable services.
Fundamental to this New Network approach is the Juniper Networks Universal Edge solution, comprised of
groundbreaking software, silicon, systems and partnerships. The Universal Edge is designed to help service providers
reinvent the experience and economics of networking, while fostering a broad ecosystem of innovation across the
network.

Slide 23
Universal Edge: A Service Delivery Solution
A single platform, optimized for the convergence of

business, residential, and mobile service delivery
Accelerated service innovation
Significant cost savings
Enables the convergence of network, services, and
subscribers
Universal Edge: A Service Delivery Solution
Unlike any solution on the market, the Universal Edge delivers a single platform—Juniper Networks MX Series 3D
Universal Edge Routers—optimized for the convergence of business, residential, and mobile service delivery, with a
single, open operating system. This solution accelerates service innovation and offers significant cost advantages.
The Universal Edge supports the broadband edge, business edge, and mobile edge as well as metro Ethernet,
enabling the convergence of network, services, and subscribers. We will discuss the details of the Universal Edge in a
later module within this course.

Slide 24
Key Requirements
Dynamic
Dynamically move resources to where they are
most profitably deployed
Real-time and policy-driven allocation
Resilient Centralized policy engine
Never stop routing
Secure
Never stop forwarding Protection at services and
network layers
Never interrupt services for
upgrades Policy driven and dynamic
The New Network

Open Efficient
Interfaces based on Reduce watts per bit
common standards Reduce carbon footprint
Scalable
APIs to transport and policy Better facility utilization
layers Traffic: direct and move the bits—scalable
transport and control plane
Subscribers and end points: scalable subscriber
density with QoE
Services: enabling multi-service, access,
and device agnostic QoE
Key Requirements
There are six requirements for the New Network, as follows:

• Dynamic Resource Management: The New Network must enable QoE and service level agreements (SLAs) even
when bandwidth is scarce and requires targeted allocation. The network must have the ability to direct network
resources in real-time to flow to the most profitable opportunities. This means that the New Network must include
a policy-based mechanism that enables dynamic, real-time resource allocation but can, as a limiting case, also
create and maintain longer-lived service relationships.
• Multilayer-Security: The New Network must be secured with a multilayer approach which provides not only secure
tunnels for application and endpoint communities but also enforces access policies and secures the network’s
own service layer elements.
• Energy Efficiency: The New Network must function at unprecedented levels of energy efficiency.
• Multi-Dimensional Scalability: The New Network must be scalable to handle increasing traffic loads, an explosion
of new devices and services, and rapid subscriber growth.
• Openness: Network and policy management layers must be based on common standards that offer open
application programming interfaces (APIs) to potential partners. This reduces operational complexity and
accelerates time to market for new service creation.
• Resiliency: The New Network must replicate “carrier-grade” availability in the new world of multiple and access
agnostic IP services.

Slide 25
Quality of Experience (1 of 2)
Improving the quality of experience is critical to reducing customer turnover
and supporting content monetization.
Old
Worker A Worker B
New
Work Work
Gaming Gaming
Worker A Worker B
Social Social
Media Media
Quality of Experience: Part 1
Providing connectivity from point “A” to point “B” is no longer enough. Improving the QoE is critical to reducing
customer turnover and supporting content monetization. The old “business as usual” model is too slow to respond to
new customer expectations. In the old model, networks hosted complete services and network features that were
bound directly to service features. The old model required high upfront costs and resulted in long development and
deployment cycles for new services. The old model was a system designed for a world of relatively few, premium,
walled garden services commanding high average revenue per user (ARPU), and was largely static over time. The old
model is not suited for today’s environment in which service providers must innovate and quickly create new services
to respond to changing customer expectations and market conditions.
The new model must convert the network from a cost center into a true profit center by making it a platform that
enables service providers and their partners to contribute discrete servlets. Servlets are compressed elements of
functionality that can be combined to support a larger service mission—each of which can then be customized,
operationalized, and managed for profit. Examples include basic transport and connection features as well as
messaging, media conversion, and application hosting capabilities. While the New Network will still support walled
garden services, it also allows partnerships to be built that can address service opportunities quickly as they emerge.
This benefits not only service providers, but also OTT online service providers.

Slide 26
Quality of Experience (2 of 2)
Superior QoE
•Service continuity—minimize subscriber outages
•Superior traffic engineering—prioritize what is more
important
•Faster service velocity—deploy innovative services faster
Time to Customer
Market ROI Satisfaction
€
$
£
¥
Quality of Experience: Part 2
Building the future-ready network involves delivering superior QoE through streamlined network operations and
converged services providing sustainable economics. A flexible network architecture will allow new services to be
deployed in a timely manner with zero to minimal service interruption. The network needs to deliver customer
satisfaction by providing service continuity, prioritizing the traffic that is most important, and delivering new services in
a fast, non-disruptive, economical manner. Holding down costs while finding ways to monetize the network is a
primary concern for service providers.

Slide 27
Service Delivery Model
OTT providers do not have the infrastructure that

network service providers have
Network service providers can offer OTT providers
value-added network capabilities
Network Service Providers OTT Service Providers
Service Delivery Model
OTT providers typically do not enjoy infrastructure economies comparable to those of the network service providers,
and their high internal rate of return requirements make it economically unfeasible for them to create many of the
security, customer support, and application components that are required for high QoE services. This locks them into
best-effort delivery models that can generate revenues only through advertising sponsorship. In contrast, network
service providers enjoy strong economies of scale in network infrastructure and operations. This allows network
service providers to leverage their networks to create those valuable servlets from which they themselves and their
partners can assemble new services and end-user experiences. At the same time, availing themselves of value-added
network capabilities provided by network service provider partners places OTT providers in a better position to offer
for-pay premium services and services that attract blue-chip advertisers.
The old network with its dedicated network and standalone services inhibited service innovation. The New Network
will instead leverage single transport and policy layer infrastructure to enable service delivery ecosystems. To do this,
network operating systems and policy layers will need to be open and dynamic for a rich ecosystem of developers to
build on. At the same time the New Network must have characteristics that are familiar from legacy business models,
such as resiliency, scalability, and cost effectiveness. The challenge is to build a network that meets all the
requirements without having to settle for trade-offs.

Slide 28
Build on Converged, Scalable Solutions
Bandwidth scale
•Meet ever-increasing traffic loads
Bandwidth Scale
Subscribers scale
•Fixed and mobile users
•New devices
Services scale Subscriber Scale
•QoE
•New services and
applications
Build On Converged, Scalable Solutions
Future revenue growth will be driven by an ever growing number of applications across multiple fixed and mobile
devices for an ever-increasing number of customers and endpoints worldwide, including a growing number of machine
to machine applications involving potentially billions of endpoints. Therefore, the New Network must be scalable not
only to meet exponentially increasing traffic loads, but also to accommodate an explosion of new devices, and types of
services and applications. The New Network must generate strong economies of scale in each of these dimensions
simultaneously.

Slide 29
Reducing Cost per Bit

Cost
Today
Time
Consolidate subscribers onto the single edge platform

Reduce number of discrete network devices and locations
Leverage the common platform and provisioning model to deliver
multiple services
Reducing Cost Per Bit
While providing value added functionalities, the network will also need to dramatically reduce cost per bit. The network
will need to optimize economies of scale through consolidation, simplified architectures, and elimination of legacy
functions. At the same, operating expenditures (OpEx) reductions will be achieved through the streamlining and
automating of operations.
Examples include the consolidation of multiple services and access modes (for example fiber, DSL, and radio access)
into common transport and subscriber management infrastructures, switching off legacy time-division multiplexing
(TDM), and collapsing layers by combining transport and routing. Other examples include consolidating facilities,
leveraging virtualization tools and policy management to increase capacity utilization, automating provisioning and
customer support, and leveraging common platforms across multiple services.

Slide 30
Quality of Service (1 of 2)
Exponential growth of network usage drives the need

for predictable results
•Need to optimize delivery of time-sensitive services such as
voice and video traffic
Use QoS to optimize traffic and meet SLAs
Service providers need to meet customer demands
while keeping their network simple, scalable, and
manageable
Network must be available 99.999% of the time
Quality of Service: Part 1
The increased demand for sophisticated, media-rich services, the exponential growth of mobile devices accessing the
network, and the emerging trend of cloud computing require an advanced networking infrastructure that supports an
immense numbers of subscribers, services, applications, and bandwidth. This increased demand has an impact on
the networks ability to provide predictable results and meet SLAs. Best-effort delivery of time-sensitive services such
as voice or video cannot provide the QoE needed to attract and keep subscribers. A number of features and methods
have been developed to address these advanced network requirements—such as quality of service (QoS). QoS is a
set of mechanisms that helps maintain specified service levels for the network by optimizing and prioritizing network
traffic so that demand for resources can be met. QoS mechanisms are used to control the allocation of network
characteristics such as available bandwidth, latency, jitter, packet loss, and bit rate errors so that resources are
managed to service levels acceptable to network customers and applications. These goals can be met by providing
queuing, congestion avoidance, packet classification, and traffic shaping.
Service providers need to meet these demands while keeping their networks simple, scalable, and manageable.
Network infrastructure must be made highly available before any QoS needs can be met. A minimum of “five-nines”
availability must be met, which means the network is available 99.999% of the time—this means only five minutes of
downtime per year!
QoS capability provides service providers with the tools they need to satisfy the highest level SLAs and maximize
revenue by offering the highest levels of differentiated services.

Slide 31
Quality of Service (2 of 2)
Different services demand different QoS

characteristics
•Delay, jitter, throughput, and so on
Prioritize what is most important
Using hierarchical QoS provides even more benefit
Quality of Service: Part 2
To achieve superior QoS and traffic engineering you need to prioritize what is most important. The variety of IP
services running on a service provider’s network has increased dramatically over the past decade. Different services
demand different QoS characteristics such as delay, jitter, throughput, and so on. For example, minimizing delay is
crucial for real-time gaming, while maximizing throughput is important for the download of large files such as photos or
podcasts. Many service providers offer differentiated, tiered services to subscribers on the same network (for example
– best-effort, silver, gold, and platinum). Therefore, it is critical for service providers to be able to prioritize traffic for a
platinum subscriber over a silver and gold subscriber.
Hierarchical QoS (H-QoS) is also of benefit to service providers. H-QoS allows a service provider to consolidate
different services on the same device, running on the same network infrastructure. Different packet types and different
flows can be given different priority, bandwidth requirements, and so on. Hierarchical QoS allows you to control QoS
at multiple levels: the physical level, the logical level, and fine-grained control at the command-line level. It is useful for
managing bandwidth congestion and link sharing in multi-service networks. Each of these services has its own set of
requirements, and running them on the same network infrastructure adds to the complexity. Classic QoS examines a
packet, puts it into the proper queue, and runs a scheduling method. Usually this is limited to eight queues and one
level of shaping and scheduling. H-QoS however, can have up to four levels of scheduling priorities per queue, so you
can look at each service individually for each customer. A service provider might have one large bandwidth allocation
for services, but they can give each customer smaller bandwidth allocations for individual applications—each one with
its own QoS and prioritization policies. H-QoS enables service providers to ensure that applications and services
receive the appropriate level of service regardless of traffic conditions.

Slide 32
Network Monetization Based on

Personalized Services P: Price
Y: Number of Subscribers
X missed Revenue Opportunities
Today Tomorrow
P P
x
“$49.99”
x
Y Y
• Little or no segmentation • Differentiated offers and bundles

• One-size-fits-all offering • High, medium, and low ends
• No value based services • Service increments
• Limited differentiation • Personalized experience
• No alignment with service usage • Alignment with service usage
Network Monetization Based On Personalized Services
In most market areas, the fixed broadband market is either saturated or adding subscribers at a low rate. Therefore,
revenue growth can no longer rely on growing the subscriber base and service providers need to find ways to increase
ARPU.
The challenge is that subscribers perceive value creation in the OTT space. Examples include Google, iTunes,
Facebook, YouTube, Netflix, and so on. Service providers need to insert themselves into the value chain, otherwise
they could end up being in the commodity business where the network is considered just a “dumb pipe”. The “dumb
pipe” model will only lead to growing costs to match bandwidth growth, while revenues will erode as value shifts
toward content providers.
A key element for service providers is to personalize their broadband services in order to better capture the
willingness of subscribers to pay for broadband services.
The chart on the left of the slide displays a typical price versus demand curve. The curved line shows how many
subscribers (represented by the Y axis) are willing to purchase broadband at a given price (represented by the P axis).
The higher the price, the less likely subscribers are willing to purchase the offering. By having a “one-size-fits-all”
broadband offer (some service providers might have two or three offers, but this is still a very limited segmentation),
service providers are not reaching two pools of subscribers (represented by the red X on the diagram) as follows:
• Lower end users: people who would want to purchase broadband, but not at the existing price, and
• Higher end users: people who want more from their broadband access
The chart on the right of the slide represents creating new bundles as well as incremental service offerings that match
more closely to the willingness of subscribers to get what they want at the right price, based on their own individual
needs. This approach significantly grows the revenue opportunity. Personalization is a key requirement to monetize
the network.
On the other hand, personalization should not create an elastic cost model. Therefore it is critical that personalization
does not create massive bandwidth costs and capital expenditures (CapEx) nor huge OpEx such as the manpower to
provision and operate customized network configurations.
The identity and policy control layer is meant to offer this monetization based on personalization, while optimizing the
resources required to deploy this personalized service model.

Slide 33
Mediation Between the Services Layer and

the Network Layer
Contents and Services
Web Pages Triple Play Gaming, Video, etc.

Subscriber Billing and
Directory Reporting
Identity and Policy Control Layer
Network
Subscriber Edge
Mediation Between the Services Layer and the Network Layer
Personalization is first an attribute of the service layer. Personalization requires specific knowledge about subscribers,
typically their profile as well as a few specific attributes, as well as the applications and content that are part of the
service model offered by the service provider.
Therefore, in order to bring personalization to the network, there needs to be a level of mediation between the service
layer and the network transport layer. This is the role of the identity and policy control layer, which is typically
composed of the following:
• An authentication, authorization, and accounting (AAA) server (also known as a RADIUS server); and
• A policy server.
The two components can work together or individually (some service providers might have just a AAA server, or just a
policy server, or they might have both connecting to the same edge device).
The identity and policy control layer features both northbound (facing the service layer) and southbound (facing the
network layer) interfaces. For example, a AAA server can receive a RADIUS request from a Broadband Network
Gateway (BNG) and query a subscriber database using Lightweight Directory Access Protocol (LDAP) or Structured
Query Language (SQL) to authenticate the user and retrieve its profile. A policy server can receive a Simple Object
Access Protocol (SOAP) request from a high definition (HD) videoconferencing system and then push a bandwidth
and QoS change over Diameter (a AAA protocol) to the BNG.
Since subscriber specific processing is done at the edge of the network, the AAA and policy servers will peer with the
network layer at the edge. For example, on the BNG in the case of fixed residential services.

Slide 34
How AAA and Policy Management Can Help

Need to know to “whom” you are delivering a service
• Identify user and devices; retrieve profile
• Adapt network attachment to user specifics
Need to know “what” service you are delivering

AAA Server • Experience for the same application can vary for users
• Check entitlements and resources
Goal is to create a real-time SLA between the

application and the user (“when and where”)
Policy Server • Dynamic network resource control
• Adapt network delivery to application specifics
Need to know “how” many services and network

resources are being used by the subscriber
How AAA and Policy Management Can Help
Personalization requires gathering the answer to four questions—who?, what?, when and where?, and how?—and
make the answers understandable for network elements such as the BNG.
The AAA server and the policy server are focused on different questions and different types of answers.
AAA servers focus on the “who” question by being able to parse network information sent by the BNG (for example,
user name, line identifiers, and device type) and matching this information against a subscriber entry in a database.
The “what” question is focused on identifying the service, applications and contents that can be accessed in a
personalized way. Both AAA and policy servers might access subscription profiles.
The “when and where” question is about real-time understanding of changing subscriber requirements. For example, a
subscriber might initiate turbo boost, a video communication session might be started, or a quota threshold is reached.
All of these events can require an immediate network configuration change. Making these configuration changes is a
key function of policy servers.
The last question is “how much”. In order to bill these personalized services, usage must be collected and sent to
billing servers. Usage can be based on different metrics—service activation, time-of-day, duration, volumes, and so
forth. Both AAA and policy servers can measure usage, but they have a different focus. AAA servers provide per
subscriber session accounting. Policy servers collect accounting on a per service basis, so a subscriber can have
different service sessions. As a benefit, subscribers might be billed on a subset of their traffic. For example, on-net or
walled-garden traffic might be free (zero rated traffic) while the rest of their traffic is tracked and billed.

Slide 35
Key Building Blocks

DYNAMIC BEHAVIORS
• Interaction with applications

• Contextual decisions
• Control (policy server) and
USER INTERACTION enforcement (router)
• Authenticate user
• Customize
parameters
• Self-care
• Automated
RESOURCE CONTROL
• Incremental revenues at
no or low incremental
USAGE TRACKING network costs
• Track volume and time • Intelligent oversubscription
• Track events
• Per service or per subscriber
Monetize and Optimize
Key Building Blocks
Personalization requires the identity and policy control layer to provide the following four core components:
• User interaction: In order to identify a user properly and interface with them.
• Dynamic configuration: In order to translate subscriber and application requirements into network configuration in
real-time.
• Network resource control: In order to ensure that services can be delivered. For example, if there is not enough
bandwidth, it is better to default back to a lower quality such as standard definition instead of high definition, or
even refuse the service activation. Another example is to produce a busy tone rather than degrade quality for all
users. If this type of resource management is not available, service providers are forced to over-dimension their
network, basing their dimensioning on a worst case scenario. Service provider business models for
telecommunication leverage oversubscription and it is critical to manage bandwidth as efficiently as possible.
• Usage tracking: Provides tracking of all enforcements and activations, in order to feed charging servers.

Slide 36
Understanding Policy Decision
1. Triggers
Profile
Portal Application Updates Time of Day
Subscriber information (IP address, interface name, VPN, and so on),
Three Step Process
and service information (name, profile, 5-tuple, parameters, and so on)
Relay request to the policy server managing the session
Check acceptance of the request (compare request to site profile)

2. Decision
Query plug-ins if configured so (external authentication, admission controll, and so on)
Convert request in parameterized service activation, modification, or deactivation
Based on relevant router driver, convert service activation in proper policy push message
toward the router, with proper policy objects and parameters
Filtering Rate-Limiting •Per Site

3. Enforcement Accounting
•Per 5-Tuples
Policy Routing QoS •Per Application
Understanding Policy Decision
While RADIUS and AAA servers are well known—having been deployed at most of the service providers in the world
these past 20 years, first for narrow band access and then broadband access—dynamic policy management is less
known.
This slide intends to explain how dynamic policy management works so that the use cases and the value brought by
policy servers can be understood.
Policy management follows a three step process:

Step 1: Triggers — Specific events will trigger a decision request. Triggers can be categorized in the following ways:
• User action: A subscriber selects a new service or modified service on a portal page, or a subscriber enters a new
or updated profile in the database;
• Application activation: A subscriber accesses a service, such as video, VOIP, or gaming and
• Context: Based on time-of-day, congestion levels, a volume threshold, and so forth.
Step 2: Decision — The trigger relates to a specific subscriber and has further details on the service that needs to be
activated, modified, or deactivated. For example, a subscriber with IP address 10.1.0.100 in virtual routing and
forwarding (VRF) table Acme wants to activate a 5Mbps videoconference service with end point 10.2.0.100 on port
1234. With this request, the policy server goes through a decision algorithm that might include verifying whether the
subscriber is entitled to activate this service, checking resource availability, and translating the service request into a
network request. Eventually, the policy server will decide on the policy rules that need to be activated. The change
might be permanent or temporary (for a limited time or subject to time-of-day and so forth).
Step 3: Enforcement — Depending on which edge device needs to be accessed by the policy server, the abstract
policy decision needs to be translated into messages that are understood by a specific edge device model. Devices
might support a variety of protocols such as Diameter, RADIUS, and so on.
The policy rules enforced on the router might include the following:
• Forward or filter;
• Rate-limit;
• QoS;
• Policy routing; and
• Hypertext Transfer Protocol (HTTP) redirect.

These rules can be applied with regards to a specific subscriber interface, a 5-tuple (Layer 3 and Layer 4 information),
or even on a per-application basis (Layer 5 to Layer 7 if the network device supports application identification).
One specific policy action that can be attached to these rules is accounting. This is an optional attribute for all policy
rules. Zero-rated traffic does not require accounting, while traffic subject to billing will use accounting.

Slide 37
SDN is an Architectural Paradigm
SDN Overlays SDN SW Integrations

SDN APIs, Tools, Protocols or
SDN’s definition encompasses 3 elements:
Abstract north-
3 bound interfaces Programmable workflows
Centralized and
2 virtualized software
Logically centralized wherever possible
Separation of software
1 and data planes
4 planes connected with open standards
SDN is an Architectural Paradigm
SDN (software-defined networking) is not a singular product. SDN is an approach to computer networking that uses
methods of network abstraction, such as virtualization, to simplify and scale network components and uses software to
define and manage network components. SDN separates the data plane, which forwards traffic, from the control
plane, which manages traffic flow, and enables users to program network layers.
SDN’s definition encompasses the following three elements:

• Separation of the software and data planes: You can separate the software inside every networking and security
device into four layers or planes—management, services, control, and forwarding. As we move towards SDN,
these planes need to be clearly understood and cleanly separated. This is absolutely essential to build the next-
generation, highly scalable network.
• Centralized and virtualized software: Unlike most cloud applications, networks are inherently decentralized. That’s
really what networks are all about—moving data from one place to another. But centralization is powerful—it is a
key principle for SDN and it is very appropriate to apply centralization to networking software wherever possible.
• Abstract north-bound interfaces: To provide a high level of automation and flexible orchestration the controller
needs to interact with higher layer control programs. This can be achieved by well-defined APIs and protocols as
leveraged in standardized reference architectures such as ETSI MANO, OpenStack, and OPNVF.

Slide 38
Contrail Architecture:
A General Purpose SDN Platform
Orchestration, Automation, and Analytics
• Open source and partner eco system of orchestrators
• Api and sdk for integration with OSS / BSS OSS
Control Plane — Physical and Virtual

Configuration manager Automation
• Open, standards-based, federated controller
• Scalable and resilient
Control Plane Control Plane Control Plane
Virtual Network Overlay

• Multi-tenancy for private and virtual public clouds Finance HR Marketing
• Gateway functions — connect virtual to physical network
• Service chaining (physical and virtual)
Physical Network
• Interoperability with traditional network devices
• Any-to-any non-blocking low-latency fabric: Q-Fabric or Clos
Contrail Architecture: A General Purpose SDN Platform
The foundation of Contrail is network virtualization. It adopts a software overlay model to dynamically set up and tear
down overlay tunnels with end points as virtual routers running along with server hypervisors. The overlay virtual
networks can ride on top of any physical network fabric from any vendor as long as the fabric provides IP connectivity.
This protects customers’ current investments while allowing them to enjoy the agility and scalability provided by SDN.
Equally important, this “cloud network” allows a service provider or enterprise to automatically and dynamically change
the resources of the network, direct data flows to virtual services like security, or perform packet inspection and
analytics to provide automatic feedback to the network. Contrail virtualizes services and runs them on virtual machines
dynamically as applications, enabling network and security services to independently scale using industry-standard,
x86 hardware based on the needs of the solution.
Contrail also extracts network control and management planes from forwarding hardware, and runs them in the cloud
in a logically centralized fashion. Instead of manual configuration and control of individual hardware elements in a
network, the extraction and centralization allows control at the network level through APIs instead of CLIs.
The Contrail SDN Controller functions as a compiler that translates high-level network configuration from applications
to low-level configuration that the individual network elements can understand. Contrail is designed with a scale-out
architecture and uses proven, open standards to federate between control nodes in a controller cluster, or between
controller clusters, reaching unprecedented scale for the cloud.
In a dynamic cloud environment, the various resources are not in silos any more. Workload movement can cause
virtual machine (VM) migration, potential data movement for lookup efficiency, virtual network reconfiguration, and so
forth. All of these activities need to be meticulously orchestrated with centralized intelligence for policy control and
resource provisioning. Contrail can integrate with cloud orchestration platforms such as OpenStack and CloudStack,
and also the operations support systems/business support systems (OSS/BSS) platforms that customers are using
already. Contrail is also a scale-out, Big Data for the infrastructure engine that can improve monitoring, compliance,
diagnostics, and networking applications by providing system-wide views across both physical and virtual
environments and can integrate with Big Data analytics applications such as Hadoop.

Slide 39
Section Summary

•Discussed the challenges service providers face
•Described how quality of experience requirements affect
edge design
•Described quality of service and policy management
challenges

• Discussed the challenges service providers face;
• Described how quality of experience requirements affect edge design; and
• Described quality of service and policy management challenges.

Slide 40

To ease the transition from ATM to Ethernet, BNGs
will need to comply with which Broadband Forum
Technical Report?
A) TR-10A
B) TR-ATME
C) TR-101
D) TR-BSR

Slide 40

The identity and policy control layer is comprised of
which two of the following elements? (Select two.)
A) Application server
B) Policy server
C) AAA server
D) Web server

Slide 41
Course Summary
In this course, we:

•Described the various types of service providers and the
trends and challenges they face
•Discussed some of the factors and requirements affecting
edge design
•Described the requirements needed to enhance the quality
of experience for a service provider customer
•Described the challenges associated with policy
management
In this course, we:

• Described the various types of service providers and the trends and challenges they face;
• Discussed some of the factors and requirements affecting edge design;
• Described the requirements needed to enhance the quality of experience for a service provider customer; and
• Described the challenges associated with policy management.

Slide 42
Additional Resources
Education Services training classes

•http://www.juniper.net/training/technical_education/
Juniper Networks Certification Program Web site
•www.juniper.net/certification
Juniper Networks documentation and white papers
•www.juniper.net/techpubs
To submit errata or for general questions
•elearning@juniper.net
For additional resources or to contact the Juniper Networks eLearning team, click the links on the screen.

Slide 43
Evaluation and Survey
You have reached the end of this Juniper Networks

eLearning module
You should now return to your Juniper Learning
Center to take the assessment and the student
survey
•After successfully completing the assessment, you will earn
credits that will be recognized through certificates and non-
monetary rewards
•The survey will allow you to give feedback on the quality and
usefulness of the course
You have reached the end of this Juniper Networks eLearning module. You should now return to your Juniper
Learning Center to take the assessment and the student survey. After successfully completing the assessment, you
will earn credits that will be recognized through certificates and non-monetary rewards. The survey will allow you to
give feedback on the quality and usefulness of the course.

Slide 44
Copyright © 2015 Juniper Networks, Inc.
All rights reserved. JUNIPER NETWORKS, the Juniper Networks logo,

JUNOS, QFABRIC, NETSCREEN, and SCREENOS are registered
trademarks of Juniper Networks, Inc. in the United States and other
countries. All other trademarks, service marks, registered
trademarks, or registered service marks are the property of their
respective owners.
Copyright © 2015 Juniper Networks, Inc.
All rights reserved. JUNIPER NETWORKS, the Juniper Networks logo, JUNOS, QFABRIC, NETSCREEN, and
SCREENOS are registered trademarks of Juniper Networks, Inc. in the United States and other countries. All other
trademarks, service marks, registered trademarks, or registered service marks are the property of their respective
owners. Juniper Networks reserves the right to change, modify, transfer or otherwise revise this publication without
notice.

Slide 45
CONFIDENTIAL

e d u c a t io n se r v ic e s c o u rse w a re
Co rp o rat e and Sales Head q uart ers APAC Head q uart ers EM EA Head q ua rt ers Copyright 20 10 Junip er Net w orks, Inc.
All right s reserved. Junip er Net w o rks,
Junip er Net w orks, Inc. Junip er Net w orks ( Ho ng Kong) Junip er Net w orks Ireland t he Junip er Net w orks lo go, Juno s,
119 4 Nort h Mat hild a Avenue 26 / F, Cit yp laza One Airsid e Business Park Net Screen, and ScreenOS are regist ered
Sunnyvale, CA 9 4 0 8 9 USA 1111 King’s Ro ad Sw ord s, Co unt y Dub l in, Ireland t rad em arks of Junip er Net w o rks, Inc. in
Phone: 8 8 8 .JUNIPER Taikoo Shing, Ho ng Kong Phone: 35 .31.8 9 0 3.6 0 0 t he Unit ed St at es and ot her count ries.
( 8 8 8 .5 8 6 .4737) Phone: 8 5 2.2332.36 36 EMEA Sales: 0 0 8 0 0 .4 58 6 .4737 All o t her t rad em arks, service m arks,
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Fax: 4 0 8 .74 5.210 0 m arks are t he p ro p ert y of t heir
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inaccuracies in t his d o cum ent . Junip er
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p ub l icat ion w it hout not ice.

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e d u c a t io n se rv ic e s c o u rse w a re

Market Description, Trends,

Build the Best

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 2

Market Description, Trends,

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 3

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 4

After successfully completing this course, you will be

After successfully completing this course, you will be able to:

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 5

Agenda: Market Description, Trends, and

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 6

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 7

After successfully completing this section, you will be

After successfully completing this section, you will be able to:

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 8

Service Provider Tiers

Service Provider Tiers

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 9

Service Provider Segments

Service Provider Segments

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 10

Disintermediation New Applications

Moving Resources and

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 11

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 12

In this section, we:

In this section, we:

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 13

Learning Activity 1: Question 1

Learning Activity 1: Question 1

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 14

Trends and Challenges

Trends and Challenges

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 15

After successfully completing this section, you will be

After successfully completing this section, you will be able to:

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 16

Drivers and Challenges

Better, more engaging Market 2 Open, accelerated

Drivers and Challenges

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 17

Other Areas of Concern

Transition from IPv4 to IPv6

Other Areas of Concern

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 18

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 19

The Need for a New Network Equation

High Performance Partner Solutions Extend Accelerated Innovation

Fast Profitable New, Better Experiences

The Need for a New Network Equation

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 20

Simplifying Service Architecture with

Load Network Firewall VPN DPI/TDF

Parental CACHING and

Simplifying Service Architecture with MX Series as Service Control Gateway

Course SOT-SPED01B-ML5 © Juniper Networks, Inc. 21

Virtualize the Appliances