Telstra PEN customer programmable networks to connect to

Telstra PEN: customer programmable networks to connect to dynamic clouds CASE STUDY TELSTRA PEN: CUSTOMER PROGRAMMABLE NETWORKS TO CONNECT TO DYNAMIC CLOUDS GORKEM YIGIT analysysmason. com © Analysys Mason Limited 2016

Telstra PEN: customer programmable networks to connect to dynamic clouds Executive summary: Telstra aims to increase customer adoption of its programmable network by giving customers complete control of services Figure 1: Summary of the benefits achieved by Telstra through the implementation of PEN platform and features Telstra’s PEN platform provides elastic connectivity between data centres, clouds and customers and offers scaling within multiple public clouds. A pricing engine computes the pricing based on real-time service levels. Zero-touch provisioning Telstra provides global connectivity, cloud, data centres, managed services and applications internationally. It offers dynamic network services through its PEN Platform (PEN)1. PEN is Asia’s first global SDN/NFV platform that delivers services across Telstra’s 32 PEN-enabled Po. Ps in 14 cities and 8 countries in Europe, North America and Asia-Pacific. DC to DC provisioning and activation time reduced from 8 weeks to minutes Cost efficiencies for the customer through usage based billing For PEN, Telstra has deployed Open. Flow-enabled platforms in its APAC network of data centres and has developed software to control and configure these platforms. This allowed PEN to provide intelligent application optimised networks with end to end visibility and control, supporting hybrid clouds. It is possible to connect to multiple cloud services with PEN and scale within the clouds, matching the best cloud service with the right application and managing bandwidth for applications through a single service. Workloads can be transferred easily with a fully assured network. NFV appliances like routers and firewalls can be deployed from the PEN marketplace. Improved customer experience with self-provisioning The diagram should fit in this area. Use this grey box as a and cloud like consumption and pricing model guide. Responsive to customers’ capacity and service demands Provides platform for launching new services in the future PEN’s SDN-enabled automation provided several key benefits to Telstra (figure 1) including zero-touch provisioning that reduced service activation time drastically from weeks to few 1 The platform was called Pacnet Enabled Network prior to Telstra’s acquisition of Pacnet in minutes. 2015. © Analysys Mason Limited 2016 Source: Telstra and Analysys Mason 2

Telstra PEN: customer programmable networks to connect to dynamic clouds Telstra aims to sustain growth in global business services market with a completely programmable network to support elastic access to clouds Figure 2: PEN platform global coverage – 32 Po. Ps in 14 cities and 8 countries Telstra is headquartered in Australia and provides global connectivity, cloud, managed services and applications internationally. It owns the largest subsea cable network in Asia Pacific with licences in Asia, Europe and the Americas and has acccess to more than 2, 000 Points of Presence (Po. Ps) in 230 countries and territories. It provides global connectivity, cloud, managed services and applications London internationally. In 2015, Telstra acquired Pacnet Limited that extended its reach and also gave it access to the PEN Seattle Beijing* Platform. As of 2 Q 2016, Telstra has 32 PEN-enabled Po. Ps San Jose New York Tokyo Tianjin* across the world, as illustrated in figure 2. Taipei Los Angeles New Jersey Hong Kong In 2015, Telstra also announced the Symphony initiative with Cisco Systems as the framework for its SDN/NFV solutions. In ‘The 2020 Network – a new telecom vision’, Telstra’s CTO articulated the need for infrastructure to automatically orchestrate applications and for Telstra to become more customer-centric. Telstra operates multi-layer, multi-vendor, multi-domain networks, where it is possible to separate and centralize the control plane to obtain dynamic transport bandwidth that can be used by different applications in the network. Singapore Sydney Melbourne Internet architecture has become more flat and most of the traffic is directed to the massive cloud and content providers. Elastic bandwidth and the ability to move workloads around becomes critical. © Analysys Mason Limited 2016 PEN Point of Presence *Connectivity for Beijing and Tianjin is only available between these two Po. Ps, as of 2 Q 2016. Source: Telstra 3

Telstra PEN: customer programmable networks to connect to dynamic clouds Telstra PEN was built to power self-provisioned dynamic network services Figure 3: PEN Customer UI and provisioning Source: Telstra SDN technology within data centres is rapidly gaining acceptance. PEN represents one of the first implementations of an SDN platform for commercially available domestic and international wide area network services. For PEN, Telstra has deployed Open. Flowenabled platforms in its APAC network of data centres and has developed software to control and configure these platforms. Telstra customers can provision network services in PEN-enabled locations, specifying bandwidth from 1 Mbps - 100 Gbps and durations ranging from hourly to yearly. Customers customise circuits In real-time through the GUI, dragging and dropping flows and adjusting parameters like latency and tuning them to applications needs in real-time, with pricing granularity to the hour. Application Programming Interfaces (APIs) are available to enable the same instructions to be embedded into software. Customers can match network performance and latency characteristics to application needs. Pricing is displayed in real time 1 and the requested circuit is activated within minutes. 1 For more details on PEN services and PEN pricing calculator , see http: //www. telstraglobal. com/products/global-connectivity/pen © Analysys Mason Limited 2016 4

Telstra PEN: customer programmable networks to connect to dynamic clouds PEN facilitates access to multiple clouds and on-demand connectivity among the PEN customers Figure 4: PEN Functional architecture PEN enables network as a service (Naa. S) capabilities. It is an Open. Stack, Open. Flow, and Open. Daylight based implementation that can orchestrate multi-region application services in real-time. It gives customers tools to provision their own circuits in seconds through the customer management portal. Customers can provision layer two connectivity between any of Telstra PEN’s 32 Po. Ps globally and designate three different real-time latency parameters to serve various enterprise application needs such as "low, " "standard" and "best effort. " The Telstra in-house Dev. Ops team led the platform development using agile techniques for continuous integration and delivery. Telstra also works with a variety of vendors for data plane switching, orchestration and inventory systems, customised Open. Stack implementation and UI development. In addition to elastic connectivity based on virtualised routers at the endpoints, PEN also offers on-demand connectivity and scaling in public clouds, with direct connectivity to AWS availability zones as well as other cloud operators and exchanges including Microsoft Azure, Softlayer (IBM) and Google. Source: Telstra has also launched PEN Exchange for dynamically connecting between its customers (see slide 6) and PEN Marketplace for self-service, on-demand ordering of VNFs like firewalls and routers from various vendors. © Analysys Mason Limited 2016 5

Telstra PEN: customer programmable networks to connect to dynamic clouds Telstra enhanced the capabilities of PEN platform with the PEN Exchange Figure 5: Telsta PEN exchange architecture [Source: Telstra, 2016] Source: Telstra In January 2016, Telstra announced the PEN Exchange, which allows organisations to identify and connect their network circuits ondemand with other PEN customers, driving faster, easier and more secure digital partnerships. PEN Exchange is a natural progression in the PEN strategy, as it means customers now have the unique capability to dynamically connect network circuits through PEN Exchange to each other, linking different people and business sites easily and cost effectively. PEN Exchange is a differentiated offering in the market in that it allows business partners to choose whether to connect in an automated (API driven) or non-automated (manual) fashion. © Analysys Mason Limited 2016 6

Telstra PEN: customer programmable networks to connect to dynamic clouds SDN-enabled automation improved customer experience and reduced costs thanks to customer self-provisioning and rapid service activation Figure 6: Summary of the benefits achieved by Telstra through the implementation of PEN platform and features PEN has changed the way customers do long distance bandwidth provisioning. PEN reduces costs by limiting stranded capacity and makes services more affordable by closely coupling application capacity and pricing. This also links closely to the cloud consumption models that enterprise customers now use with their hybrid cloud solutions. Zero-touch provisioning DC to DC provisioning and activation time reduced from weeks to minutes Telstra recognises that organisational structure and business processes also need to change. Telstra has chosen vendors that aligned with its vision and has created a fail-fast environment where it can deploy features faster than it could using its traditional service launch process. Cost efficiencies for the customer through usage based billing Improved customer experience with self-provisioning The diagram should fit in this area. Use this grey box as a and cloud like consumption and pricing model guide. PEN is just one initiative under Telstra’s portfolio of SDN/NFV related services. In March 2016, it also announced the availability of three additional offerings – Cloud Gateway Protection, Internet VPN and Data Centre Interconnect. It also provides global customers with a Managed SD-WAN (Software Defined Wide Area Network) service based on Cisco’s IWAN offering. Responsiveness to customers’ capacity and service demands Platform for launching new services in the future Source: Telstra and Analysys Mason © Analysys Mason Limited 2016 7

Telstra PEN: customer programmable networks to connect to dynamic clouds Further reading Type Title Author(s) Link Market share & forecast Software-controlled networking: worldwide forecast 2015– 2019 Gorkem Yigit http: //www. analysysmason. com/Research/Con tent/Reports/SCN-forecast-Sept 2015 -RMA 16 Strategic report v. NGN-OSS: an architectural framework for virtual network management and orchestration Dana Cooperson http: //www. analysysmason. com/Research/Con tent/Reports/v. NGN-OSS-framework-Sep 2015 RMA 16 -RMA 07/#10%20 September%202015 Strategic report Orchestration and automated control of hybrid networks: NMS for the virtual era Dana Cooperson http: //www. analysysmason. com/Research/Con tent/Reports/Orchestration-automated-virtual. Mar 2016 -RMA 07 Strategic report NFV/SDN business cases: prioritise v. CPE-enabled services and Vo. LTE/v. IMS; then video and Io. T services Gorkem Yigit http: //www. analysysmason. com/Research/Con tent/Reports/NFV-SDN-business-cases-Feb 2016 RMA 16 Case study Equinix uses 'Cisco NSO enabled by Tail-f' to augment the orchestration of its cloud exchange service Gorkem Yigit http: //www. analysysmason. com/Research/Con tent/Case-studies/Equinix-orchestration-casestudy-May 2015 -RMA 16 -RMA 07 © Analysys Mason Limited 2016 8

Telstra PEN: customer programmable networks to connect to dynamic clouds About the author Gorkem Yigit (Analyst) is an Analyst within the Telecoms Software research team at Analysys Mason. He is the lead analyst for the Service Delivery Platforms programme and a key contributor to the Software Controlled Networking programme, focusing on producing market share, forecast and research collateral. He started his career in the telecoms industry with a graduate role at a leading telecoms operator, before joining Analysys Mason in late 2013. He earned a cum laude MSc degree in Economics and Management of Innovation and Technology from Bocconi University (Milan, Italy). © Analysys Mason Limited 2016 9

Telstra PEN: customer programmable networks to connect to dynamic clouds About Analysys Mason Knowing what’s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research. Consulting Research We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services. Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts. Our dedicated Custom Research team undertakes specialised and bespoke projects for clients. For more information, please visit www. analysysmason. com/research © Analysys Mason Limited 2016 Our focus is exclusively on TMT. Consumer and SME services Digital economy Regulation and policy Regional markets Performance improvement Network technologies Telecoms software We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy. We have developed rigorous methodologies that deliver tangible results for clients around the world. Transaction support Strategy and planning 10 For more information, please visit www. analysysmason. com/consulting

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