ericsson.

com/

The
digital-services

Telco Cloud
report
Insights into Telco Cloud
transformation

May 2019
2 Ericsson  |  The Telco Cloud report

Context and definitions

This document closely examines the findings of our

Telco Cloud survey of operators, conducted between
November 2018 and January 2019.

22 participants from
16 countries across
3 market areas:
– Europe and Latin America
– The Middle East and Africa
– South East Asia, Oceania
and India

We have included a glossary at the end, users, such as introducing or incrementally were asked to select the one closest to
but the below definitions are important changing services or features. their current and preferred models.
in order to understand the findings. Business agility is the ability to Some operators reported
Telco Cloud is a cloud designed, built quickly and cost-effectively change multi-hardware with a common
and operated to run fixed, mobile operators’ business or operating models, Virtual Infrastructure Manager (VIM).
or converged core network payloads. e.g. outsourcing processes or allocating This and any models not listed were
This does not rule out the same cloud new resources for internal customers. recorded as “other”, as we provide
running Business Support Systems hardware options within our
(BSS) or other IT payloads. Telco Cloud architectural models verified solution; see Figure 1.
Service agility is the ability to quickly The following Telco Cloud architectural
and cost-effectively bring new value to end models were offered, and interviewees

Figure 1: The Telco Cloud architectural models offered

1 Single vendor 2 Multi-silo 3 One cloud 4 Multi-VIM 5 Multi-vendor 6 Multi-cloud

VNFs Multiple Multiple Multiple

Multiple
Virtualization Vendor X Multiple Vendor X Multiple
Vendor X
Hardware Vendor X Vendor X Vendor X
3 Ericsson  |  The Telco Cloud report

Executive summary

The current progression of Telco Cloud programs

3–4 years On track Dual-track

Telco Cloud is live in networks, Most programs are on track, Separate IT and network cloud
but takes 3–4 years to get there but tend to slow in years 3–4 programs are more likely to be on track

The importance of Telco Cloud to business and strategic drivers

5.5 years Until 80% of live

Cloud is fundamental to (from start) traffic on cloud
future competitiveness,
but this takes time. Business agility focus Service agility focus
(initially) (in years 3–4)

Thoughts on Telco Cloud architecture and whether there is a better solution

45%
VNF and orchestration Immaturity
technology hindering adoption

Almost half of interviewees

said Telco Cloud architecture
was better than their Multi-vendor strategies have made integration more complex,
current one. but all solution architecture is considered complex

What people have learned about deployment and ways of working

Deployment times VNF onboarding and network DevOps only partially

as expected service catalog will be critical accepted so far

Thoughts on predicted benefits and the barriers to service agility

E2E service quality and
performance management

80%
Four out of five people
Vendor
interoperability Organizational
silos

expect Telco Cloud Service

orchestration
Legacy process

to deliver. Service agility

4 Ericsson  |  The Telco Cloud report

Section A: The current status

of Telco Cloud programs

Telco Cloud is live in networks, but takes

three to four years to reach this point.

Where are you with your Figure 2: Where are you with your Telco Cloud transformation?
Telco Cloud transformation? 35%
The industry has reached an important
30%
adoption milestone, with over 46 percent
of interviewees confirming that they 25%
have live network functions operating on 20%
Telco Cloud. Only 17 percent were still 15%
in the requirements definition phase.
10%

5%
0%
Definition Have an Conducting Have defined Started Have Fully
stage – trying approved trials architecture implementation deployed cloud deployed
to understand business case and and testing infrastructure and
what cloud and budget approach, and first few operational
means and selected network
what we technologies functions
should do and vendors

3–4 years is the typical launch time Figure 3: Telco Cloud transformation split into years 1–2 and 3–4
The period of 3 to 4 years after
Started 1–2 years Started 3–4 years
adopting the technology was shown
as the typical launch time for live
service operation, with 55 percent Fully deployed
and operational
of operators reporting live network
functions. This is significantly ahead
of the 1–2 years group at 24 percent. Have deployed cloud infrastructure
and first few network functions

44%
Started implementation
and testing

44 percent of the Have defined architecture and

approach, selected technologies
3–4 years group and vendors

have deployed cloud

Definition stage – trying to
infrastructure and initial understand what cloud means and
what we should do
network functions.
0% 20% 40% 60%
5 Ericsson  |  The Telco Cloud report

Operators experience different issues

depending on their start time.

When did you start to define Figure 4: When did you start to define your Telco Cloud plans?
your Telco Cloud plans?
Operators were separated fairly evenly 50%

between 1–2 and 3–4 years for their 40%

Telco Cloud journey so far. This is a
good baseline for identifying changing 30%
priorities and perspectives over time.
20%
Several correlations were identified
between how long the operator has 10%
been working on Telco Cloud and other
answers to the survey’s questions. 0%
5 years or more
Less than 1 year 1–2 years 3–4 years

Question Years 1–2 Years 3–4

How would you characterize the status

On track Behind track
of your Telco Cloud plans?

What are the primary business drivers for Generate new revenue
Capex reduction, service agility
your cloud transformation program? streams, business agility

How long will it take you to reach

3–4 years 1–2 years
80 percent of live traffic on Telco Cloud?

What have been the key drivers of complexity so far? Integration capabilities Technology maturity
6 Ericsson  |  The Telco Cloud report

Most programs are on track,

but slow in years 3–4.

How would you characterize the Figure 5: How would you characterize the status of your Telco Cloud plans?
status of your Telco Cloud plans?
60%
Overall, most Telco Cloud programs
are on track. No one reported being
“off track“, while 5 percent said they 50%

were “well ahead“ with their plans.

40%

30%

20%

10%

0
1 2 3 4 5
Off track Well ahead
of plan

The progress of programs Figure 6: The progress of programs against journey duration
against journey duration
1 and 2 – Off track 3 – On track 4 and 5 – Well ahead of plan
There is a clear switch from “on track”
to “behind plan” with operators in years
1–2 and 3–4 respectively. In the last
2 years, either cloud has become easier 5 years or more
to execute or the 3–4 years group is
starting to find more difficult challenges.

Note: the “ahead of plan” 3–4 years

group is very small.

1–2 years

Less than 1 year

0% 10% 20% 30% 40%

7 Ericsson  |  The Telco Cloud report

The survey was split into five sections to determine the Telco Cloud landscape

Separate IT and network cloud programs

are more likely to be on track.

How is your Telco Cloud Figure 7: How is your Telco Cloud transformation organized?
transformation organized?
With the convergence of network
and IT as a potential factor in program 4.6%
IT and networks are running separate,
parallel cloud programs
complexity, we wanted to understand 9.1%
how operators are organizing the One cloud transformation program for networks
and IT (led by networks)
transformation and its impact on results.
With this cohort, we clearly see A joint program between IT and networks
with shared responsibilities
two main organizational models:
1. Telco Cloud programs for 54.5% Other
network and IT (led by network)
31.8%
2. Network and IT running independent One cloud transformation program for networks
and IT (led by IT)
cloud programs (some operators
still coordinating aspects like Cloud transformation is led by a separate
hardware procurement team outside IT and networks

to optimize cost)

IT and network cloud Figure 8: Program progress against organizational approach

collaboration takes time
There is a striking correlation between Well ahead of plan On track Off track

the operators behind schedule and

ones with IT and network (led by
networks) programs. Responses suggest
One cloud
that separate IT and network cloud transformation
programs could prove a faster journey. program for
networks and IT
(led by networks)

IT and networks
are running
separate, parallel
cloud programs

0% 5% 10% 15% 20% 25% 30% 35% 40%

8 Ericsson  |  The Telco Cloud report

Section B: Strategic objectives

for Telco Cloud

Cloud is fundamental to future

competitiveness, but takes time.

Figure 9: Telco core transformation, based on cloud technologies,

“I had very good is fundamental to competitiveness

offers on hardware… 40%

to only virtualize 35%

legacy appliance
hardware.” 30%

25%
How important is telco core
transformation to competitiveness?
A total of 80 percent of respondents 20%
believed that moving the core onto
Telco Cloud was fundamental to
15%
future business competitiveness.
The majority of interviewees felt that,
in the long term, scalability and service
10%
agility would mean that Telco Cloud
transformation was very important to
future competitiveness. However, in the 5%
short term, due to commercial hardware
offers and poor Virtual Network Function
(VNF) maturity (cloud nativeness), they 0%
1 2 3 4 5
did not see significant capex benefits. Highly disagree Highly agree

The survey aims to leave no stone unturned on the Telco Cloud journey
9 Ericsson  |  The Telco Cloud report

Operators slightly favor service agility

over opex and capex reduction.

What are the primary business drivers Figure 10: What are the primary business drivers for your cloud
for your cloud transformation program? transformation program?
We asked interviewees to select
three only. Service agility, opex and Service agility
capex reduction were selected as the
primary drivers for transformation. Opex reduction

Service agility preferred by more Capex reduction

advanced deployments
Business agility
Operators in most cloud journey phases
are equally focused on business and service Generate new
agility. However, there are divergent operator revenue streams
focus trends between service agility and Improved operational
business agility as they move toward effectiveness
the live deployment phase. This could reflect Reduced vendor
lock in
a gradual shift from cost and efficiency to a
new value-creation focus as the service layer. 0% 10% 20% 30% 40% 50% 60%

Figure 11: Service and business agilities correlate with cloud journey stage
Operators in most cloud journey
Service agility focus Business agility focus phases are equally focused on
business and service agility.
100%

80%
50%
The “Definition“ stage
60% and “Have defined
architecture“ columns
gave similar results.
40%

20%

0%
Definition stage – Have defined Started Have deployed cloud Fully deployed
trying to understand architecture and implementation infrastructure and first and operational
what cloud means and approach, selected and testing few network functions
what we should do technologies and vendors
10 Ericsson  |  The Telco Cloud report

It takes 5.5 years from definition to

80 percent on Telco Cloud.

How long will it take you to reach Figure 12: How long will it take you to reach 80 percent?
80 percent of live traffic on Telco Cloud?
50%
This does not mean that every
service-chain network function has to be
40%
in the cloud. Converged operators were
keen to stress that the results reflect mobile 30%
network, not fixed network, traffic.
20%
Note: answers reflect when the survey
10%
was conducted and do not reflect
how long the operator had been 0%
defining and deploying cloud. Less than 1 year 1–2 years 3–4 years 5 years or more

Assess where you are Figure 13: Time to maturity against the current journey stage
Operators can see where they lie on
the grid and challenge the feasibility
Years to 80% of traffic on cloud
of being in the central diagonal
(from bottom left to top right). Less than 1 5 years or
1–2 years 3–4 years
year more
Defining 0% 10% 10% 0%
Deployment

Defined 0% 5% 5% 0%
phase

Started imp. 0% 0% 20% 0%

Have deployed 0% 20% 10% 5%
Fully deployed 10% 0% 5% 0%

Years to 80% of traffic on cloud

Less than 1 5 years or
1–2 years 3–4 years
year more
Less than 1
0% 5% 0% 5%
year
program time
Elapsed

1–2 years 0% 9% 27% 0%

3–4 years 9% 23% 18% 0%
5 years or
5% 0% 0% 0%
more
11 Ericsson  |  The Telco Cloud report

Most operators do not currently have plans to use public cloud services

There is strong resistance to core on public cloud,

but some interest in hybrid Telco Cloud.

How do you expect operators Figure 14: How do you expect operators to use public
to use public cloud services cloud services over the next three years?
over the next three years?
This was one of the few questions that 3%
5%
included IT cloud use. Examples we gave To host third-party content and applications
interviewees included Amazon Web
In a limited way, host non-critical IT and some
Services (AWS) and Microsoft Azure. network applications
Results reflected the common use 24% 38%
An extension of the Telco data center
of public cloud for IT use, but some for capacity as needed
interviewees noted that they have
Virtualized core network applications (e.g. EPC)
enterprise network functions hosted
will be hosted and run from public clouds
on public cloud. Others expressed
the desire to move to a hybrid cloud Other
model, where the public cloud could
provide burst resources on demand. 30%

What are your current plans for Figure 15: What are your current plans for public cloud platform use?
public cloud platform use?
Around 32 percent of operators are 60%

considering how they can use public

50%
cloud to run core network functions.
However, over 53 percent had no plans 40%
to use public cloud for core networks.
Many respondents who said “no 30%
plans” could not see how security and
availability challenges could be overcome. 20%
One interviewee clearly stated that
10%
“no plans” did not mean ruled out.
0%
No plans whatsoever Under We have decided to Already migrating some
consideration/ have a "public cloud first" network functions to
planning policy as technology and public cloud
business case allow
12 Ericsson  |  The Telco Cloud report

Section C: Telco Cloud

technology and architecture

Interoperability of components
undermines Telco Cloud maturity.

Please indicate your assessment of Figure 16: Please indicate your assessment of Telco Cloud technology maturity
Telco Cloud technology maturity
70%
A key pillar of our original hypothesis
asked whether there was a possible lack 60%
of maturity in Telco Cloud technology 50%
and supporting capabilities.
The survey showed that Telco Cloud 40%

technology is currently immature. The 30%

following questions aimed to understand
which components are the most immature. 20%

The lack of “very immature” responses 10%

could indicate that, while immature,
0%
the technology can be utilized. 1 2 3 4 5
Very immature Very mature

Maturity issues significant Figure 17: Immature evaluation considering deployment phase
during VNF phase
The data also shows that nearly all VNFs Virtualization layer Security Automation Interoperability of components
operators which have deployed a few
network functions are reporting them as
“immature”. This indicates that vendor 40%
maturity issues become significant
during the VNF migration phase.
30%

20%

10%

0%
Definition Defined Starting Have deployed Fully deployed
implementation
13 Ericsson  |  The Telco Cloud report

Component interoperability and automation

are currently the most immature.

Which of the following Telco Cloud Undesirable cohesion between NFVI and
stack components are the most VNF as well as a lack of orchestration It is clear that opex reduction needs
immature and need improving? interoperability were most often cited. automation. While predictable, the
Although operators consider that maturity One operator commented that there fact that 100 percent of operators
is low, there is a clear difference between is currently no real security between selected opex reduction as a
the Network Functions Virtualization NFVI and VNF, which rendered Telco primary business driver means that
Infrastructure (NFVI) and VNF stack layers. Cloud insecure. Whether the immaturity automation is one of the most
More than 80 percent of operators of Telco Cloud security is real, or only immature stack components.
considered that component perceived as such, requires following up.
interoperability is not mature enough.

Figure 18: Which of the following Telco Cloud stack components are the most immature and need improving?

Integration/interoperability Technology

35%

30%

25%

20%

15%

10%

5%

0%
Interoperability Automation Security VNFs Virtualization Other SDN cloud Hardware
of components layer networking infrastructure
14 Ericsson  |  The Telco Cloud report

The survey aims to help vendors enjoy a better journey to Telco Cloud

45 percent would have chosen differently but,

as yet, there is little appetite for change.

How likely are you to change your

Telco Cloud architecture approach?
Despite 45 percent of participants
“Whilst my Policy and Charging Rules
identifying a different preferred architecture
than their current one, only 14 percent
Function (PCRF) is implemented inside
are likely to change. Deeper analysis my Online Charging System (OCS), and my
reveals that multi-silo architecture
operators are most likely to change. OCS is on VMware, I have no option but
The survey clearly shows that
70 percent of interviewees have no plans
to be multi-cloud.”
to change their solution architecture.

Operators have faith that their Figure 19: How likely are you to change your Telco Cloud architecture approach?
current architecture will become 50%
sustainable eventually.
The lack of support for changing 40%
solution architecture suggests that,
30%
despite maturity and interoperability
challenges, operators believe their 20%
current approach will work in the end.
10%

0%
1 2 3 4 5 Not applicable
Highly unlikely Highly likely
15 Ericsson  |  The Telco Cloud report

Operational readiness joins automation, orchestration

and VNF interoperability as barriers to adoption.

The most significant barriers to Telco Cloud adoption increasing integration complexity, underpinned by a lack
Automation and orchestration were identified of interoperable orchestration. Operational readiness has
as the main barriers to Telco Cloud adoption, closely now reached a significant position in the operator risk
followed by integration complexity and VNF maturity. register, in terms of being able to fully utilize Telco Cloud.
These issues are interrelated, with VNF interoperability

Figure 20: The most significant barriers to Telco Cloud adoption

Technology Integration/interoperability Operating model Other

50%

40%

30%

20%

10%

0%
Automation and Complexity of VNF Operational Availability VNF maturity Commercial Security Legacy Cloud stack
orchestration integration interoperability readiness of skills model migration stability
software

Increased concerns over operational The disproportionately large result for operational
readiness for multi-vendor and VNF readiness on multi-vendor should be explored
interoperability for multi-cloud deployments further. Conversely, multi-vendor was statistically
less concerned about VNF interoperability.

Figure 21: Adoption barriers versus cloud architecture

Multi-vendor One cloud Multi-cloud Multi-VIM Multi-silo Other

50%

40%

30%

20%

10%

0%
Automation and Complexity of VNF Operational Availability VNF maturity Commercial Security Legacy Cloud stack
orchestration integration interoperability readiness of skills model migration stability
software
16 Ericsson  |  The Telco Cloud report

End-to-end service quality and performance

management are challenged.

Which non-cloud systems are most the most impacted capabilities. Figure 23 allows you to cross-reference
impacted by Telco Cloud deployment? Reasons included organizational silos, support system impact with service
With this question, we wanted to legacy processes and service orchestration. agility. There is a clear link between
understand the impact of deploying Telco Element management, and fault and delivering service quality and performance
Cloud inside the wider network. We asked alarm management came a significantly management with legacy processes,
interviewees to select just three options. lower second and third respectively. service orchestration interoperability
Over 60 percent selected service quality and organizational silos.
and performance management as

Figure 22: Which non-cloud systems are most impacted by Telco Cloud deployment?

80%

60%

40%

20%

0%
Service quality Element Fault and alarm Analytics Service inventory Security Inter-data center Other
and performance management layer management transport
management

Figure 23: Cross-referencing support system impact with service agility challenges

Support system impact

Lack of Lack of
Interoperability
Legacy network Organizational OSS/BSS Vendor digital service
in service
processes service silos integration roadmaps creation tools
orchestration
catalog and workflow
Element management
18% 14% 18% 9% 9% 9% 0%
layer
Service inventory 9% 14% 14% 9% 5% 0% 5%
Barriers to service agility

Fault and alarm

18% 9% 18% 23% 18% 18% 5%
management
Service quality and
41% 14% 41% 45% 18% 32% 9%
performance management
Analytics 5% 9% 27% 23% 23% 18% 5%
Charging and billing 5% 0% 0% 5% 0% 5% 0%
Other 27% 9% 32% 32% 18% 14% 5%
17 Ericsson  |  The Telco Cloud report

Section D: Telco Cloud

deployment progress

Deployment times are as expected, with multi-vendor

and multi-cloud stacks on time.

How much longer has your Telco Cloud Figure 24: How much longer has your Telco Cloud deployment
deployment and implementation and implementation taken than originally expected?
taken than originally expected?
There is a very clear trend that Telco 60%
Cloud implementation is typically
less than a year behind schedule.
50%

Multi-vendor and multi-cloud follow

similar implementation periods 40%
The two major architectural models were
reported to be implemented as fast as or
30%
faster than expected. However, the one
cloud model could be slower to implement.
20%

10%

0%
Faster than Just as long as Less than 1 year 1–2 years 3 or more years Not applicable
planned planned/expected longer so far longer so far longer so far

Telco Cloud deployment is typically less than a year behind schedule.

18 Ericsson  |  The Telco Cloud report

The survey had 22 participants from 16 countries

All cloud architecture was reported

as complex to implement.

How complex has your Telco Cloud Figure 25: How complex has your Telco Cloud integration and implementation been?
integration and implementation been?
Clearly most operators expect Telco 40%
Cloud integration and implementation
35%
to be complex from the very
beginning. However, despite initial 30%
awareness, 55 percent still found the 25%
complexity greater than expected.
There is a call for greater 20%

standardization, more vendor 15%

interoperability and, from one interviewee,
10%
a more “3GPP-like” cloud experience.
5%
Implementation pain is potentially 0%
a strong incentive against change 1 2 3 4 5 Not applicable
Not at all complex Much more
The data shows a broadly common complicated than
response across cloud architectural expected
models. Implementation pain is potentially
a strong incentive not to change the
Figure 26: The complexity of cloud architectural models
architectural model, even if it might
prove beneficial in the long term.
Multi-cloud Multi-vendor Multi-VIM One cloud Multi-silo Other

100%

55%
55 percent of respondents
80%

found the complexity 60%

of Telco Cloud greater
than expected. 40%

20%

0%
3 4 5
Much more
complicated than
expected
19 Ericsson  |  The Telco Cloud report

Multi-vendor integration and technology maturity

have been named the main drivers of complexity.

What have been the key drivers drivers of complexity. It is interesting that of this can be attributed to IT and
of complexity so far? some interviewees said they felt no option network collaboration, as well as
Interviewees were asked to select three. but to choose a multi-vendor stack. running horizontal process changes
Multi-vendor integration and technology Organizational readiness came across engineering and operations.
maturity were identified as the main third, but it is unclear how much

Figure 27: What have been the key drivers of complexity so far?

Integration/interoperability Technology Operating model

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Multi-vendor Technology Operator Vendor Operator Openness Automation Product Standardization Capabilities
integration maturity organizational integration capabilities of vendor tools supply/timely of systems
readiness capabilities technology availability integrators

Joint IT and network cloud Figure 28: Multi-vendor integration in closer detail
seems to find multi-vendor
integration less challenging 70% IT and networks are running separate,
Operators running a joint Telco Cloud parallel cloud programs
60%
program with IT (led by the network)
One cloud transformation program for
were far less likely to cite multi-vendor 50% networks and IT (led by networks)
integration as a key driver of complexity.
40%
The reason is unclear, but contrasts A joint program between IT and networks,
sharply when compared to the with shared responsibilities
30%
distribution observed in other
20%
complexity drivers.
10%

0%
Multi-vendor integration
20 Ericsson  |  The Telco Cloud report

Automated VNF onboarding and network service

catalog-driven change are important.

Which operating model capabilities to support new Continuous Integration/ Furthermore, the few operators that
will be critical to delivering the Continuous Delivery (CI/CD) vendor saw public cloud service management
Telco Cloud business case? delivery models was already accepted. as important either had enterprise
With this question, we looked at which Reducing manual change and network functions in public cloud or
needs of the operating model fully enabling new digital service creation were considering hybrid cloud models.
enable the potential expected in the through a network service catalog
business case. Most interviewees were were also seen as important.
clear that automated VNF onboarding

Figure 29: Which operating model capabilities will be critical to delivering the Telco Cloud business case?

1 Strongly disagree 2 3 4 5 Strongly agree

A single organization
for VNF hardware

Public cloud service

management governance

Mixed engineering and

operations organizations

Network service
catalog-driven change

Automated VNF onboarding

and acceptance

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DevOps still not a priority Figure 30: No clear correlation between service agility,
While about half of interviewees mixed engineering and operation organization
said that mixed organizations were
important, the survey showed that Service agility focus No service agility focus

there was no clear correlation between

50%
the need for mixed engineering and
operations’ organizations (a DevOps 40%
enabler), and those operators which 30%
chose service agility as a business
20%
objective. No other correlation,
such as start time, was observed. 10%

0%
2 3 4 5
Strongly agree
21 Ericsson  |  The Telco Cloud report

Section E: Realizing the

benefits of Telco Cloud

Telco Cloud is expected to return

the projected business benefits.

Is your cloud transformation on track to Figure 31: Your cloud transformation is on track to deliver the expected business benefits
deliver the expected business benefits? 50%
Over 80 percent of interviewees predicted
45%
that their Telco Cloud program was on
track to deliver the anticipated business 40%
benefits. We also explored the potential 35%
cost and agility hindrances that could
30%
undermine net business benefit.
25%

20%

15%

10%

5%

0%
1 2 3 4 5 Not applicable
Strongly disagree Strongly agree

The positive outlook covers Figure 32: The positive outlook covers most business benefits
most business benefits
With such a positive perspective, 1 – strongly 5 – strongly
it is hard to break down which 2 3 4
disagree agree
benefits are being realized Capex
more strongly than others. 0% 4% 6% 9% 2%
reduction
A slightly weaker outlook on Opex
opex reduction could be indicated, 0% 2% 8% 6% 4%
reduction
but requires further study.
Generate
new revenue 0% 0% 4% 6% 2%
streams
Service
0% 4% 6% 9% 0%
agility
Business
0% 0% 2% 9% 2%
agility
Improved
operational 0% 0% 2% 8% 0%
effectiveness
Reduce
0% 2% 2% 2% 2%
vendor lock in
Other 0% 0% 0% 0% 0%
22 Ericsson  |  The Telco Cloud report

Vendor interoperability in service orchestration

has been named the main threat to service agility.

What is likely to hinder your business goals? achieving Telco Cloud business goals. Process change was
This question asked interviewees to select up to three cited as a key secondary area outside of the technology that
answers. Integration complexity, lack of process change could limit expected service agility and cost reduction.
and technology immaturity are currently the main threats to

Figure 33: What is likely to hinder your business goals?

Operating model Integration/interoperability Technology Other

60%

40%

20%

0%
Lack of process Unexpected Lack of A slower Insufficient Unexpected Unexpected Other Skills
change integration costs capability in transition from reorganization operational costs hardware and
the technology legacy than software costs
expected

Key barriers to overcome in order to orchestration was named the main threat to service agility.
achieve faster service agility Organizational silos and legacy processes came second and third
We asked interviewees to choose their top three barriers. respectively, again showing how critical the operating model is to
While service orchestration is considered complex, the releasing Telco Cloud’s potential for digital network service agility.
additional challenge of vendor interoperability in service

Figure 34: Please select the top three barriers to overcome in order to achieve faster service agility

Technology Operating model Integration/interoperability

80%

60%

40%

20%

0%
Interoperability Organizational Legacy OSS/BSS Vendor Lack of network Lack of digital
in service silos processes integration roadmaps service catalog service creation
orchestration tools and
workflow
23 Ericsson  |  The Telco Cloud report

Glossary of Telco Cloud

acronyms and terms

Acronym/Term Meaning

The operation of software on virtual machines.

Virtualization
The virtual machine decouples software from specific hardware.

Closed-loop Policy or artificial intelligence-driven changes in network configuration

automation or scale, managed within the software controlling the system.

Hypervisor layer The software which abstracts software from actual specific hardware.

Virtual Network Functions. Network function software designed

VNF
to run in a virtualized environment.

The capability to deploy, scale or configure cloud resources, network functions

Orchestration
and network services through software control.

The capability to execute tasks without manual intervention,

Automation
often based on digital policy and digital network context.

The software layers that enable virtualization, automation, orchestration,

Cloud stack
application deployment and execution, and monitoring and management.

The software, human and operating-model capabilities to process data,

Analytics identify correlations and propose insights. This provides the network context
data used to execute policy in automation and orchestration systems.

Operational The necessary activities to ensure safe and stable operation of

readiness a new or changed cloud, network or service capability.

The various aspects of program contracts that define price,

Commercial model
delivery, payment and warranty of goods and services.

Virtualized Infrastructure Manager. This controls and manages the virtual computer,
VIM
storage and network resources of the cloud infrastructure.

A development, security and operational methodology concept designed

DevOps/DevSecOps
to increase the quality of service delivery in shorter delivery times.

Continuous Integration/Continuous Delivery is where software is delivered in a more granular

and frequent way, with smaller increments of change to reduce risk, so that every delivery
CI/CD
is a full incremental release, and there is no patching. CI also allows for the integration of code
from a large number of developers without blocking each other’s progress.
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