This document summarizes updates in the enterprise networking market in 2020. It discusses trends like the growing adoption of universal customer premise equipment (uCPE) and network functions virtualization (NFV) among enterprises and service providers. Specifically, it notes that (1) customer applications have become the leading use of uCPE, (2) enterprises are actively pursuing managed compute platforms through multiple service providers to reduce costs and improve management, and (3) hardware acceleration and cloud-native technologies are being incorporated into uCPE solutions to improve performance.

1. Postcards from the (far) edge
The Internet, October 2020
2020 update

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Enterprise
• Taking the lead
Service providers
• Competition
• Typical deployment
Technology
• Cloud native
• Hardware acceleration
• Mobility deployments
Model is set, adoption is accelerating …
Market and technology
2020 update

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Customer applications have become the leader
uCPE typical deployment
uCPE designed white boxes from open vendors
NFVI
hardware
NFVI
software
Firewall #1
Firewall
Firewall #1
SD-WANVNFs
Firewall #1Customer
app
Customer app
• Tenancy is a must have
• Typical “app” is containerized
SD-WAN
• Major vendors will take
appliance sales where possible
• A few will fight for it
• All will play open if forced
Firewall
• Low end of market is flexible
• High end is rigid
• Some blurring of lines with SD-
WAN
…

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CIO value proposition
• Appliances are lock-in
• Maintenance schedules are murder
• A managed compute platform is a win
Enterprises are actively closing deals
• Appear through multiple operators
• Appear through SIs and resellers
Distribution model is the key topic today
Enterprise (and government) demand is growing

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• Enterprises can now find multiple service
providers per market
• uCPE is being taken to single VNF
deployments
• Three key drivers
• Logistics/inventory savings
• Management consistency
• NFVi functionality
• Hardware cost opening up new markets
• DRAM prices have dropped
• Volume benefits flowing
The model is established in all major markets
Service provider: multiple providers per market

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• Commercial uCPE VNFs are not currently
container-friendly
• Demand exists for two different container
operational models:
• Native container applications hosted within NFVI
• Guest containers hosted by a VM running on NFVI
• Both models have unique value propositions
• These operational models can be service
chained with each other, and with traditional
VNFs, and orchestrated with OpenStack or
Kubernetes
Cloud native at the far edge is a hybrid story
Cloud native at the far edge
Guest VM
SD-WAN
NG-FW
NFV Orchestrator

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Provides secure, direct access to enterprise SaaS applications
Ensemble use case
Secure access service edge (SASE)
Drivers for SASE
• Most enterprise workers access applications
outside of the corporate data center
• Inefficient to require corporate VPN to access
SaaS applications
• Forces all traffic to be routed into a corporate data
center for inspection and security treatment
Benefits of SASE + uCPE
• SASE combines network security functions (SWG,
CASB, FWaaS and ZTNA), with SD-WAN
capabilities
• SASE does not eliminate need for non-
networking IT workloads at customer premises
• uCPE and virtualization infrastructure can host
virtualized SASE endpoints or become a SASE
endpoint itself
Access
network
Management cloud
Thin
branch
vSASE endpoint SASE connector
SaaS applications
SASE
interconnect
points
Transport
network
SASE
PoP
SASE
PoP
MANO
SASE
policy

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• Hardware acceleration now
appearing in uCPE solution
• Applicable to N-S and E-W
traffic
• Adoption by VNF vendors is
the current wave
• 3-5x throughput improvements
visible
Improves end-to-end throughput without increasing platform footprint
SR-IOV support
Hardware acceleration
SD-WAN
virtio virtio
WAN LAN
chain segment
Firewall
virtio virtio
vport vport
NIC hardware
OS and virtual switch
SD-WAN
SRIOV
driver
virtio
WAN LAN
chain segment
Virtual Ethernet bridge Virtual Ethernet bridge
Firewall
virtio
SRIOV
driver

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Evolution of mobile network: neutral host
Access &
aggregation
BBU4G
5G
Access bandwidth
1 / 10 / 25 Gbit/s
Latency
<10ms
Synchronization
<<1.5us (65ns)
Mass small cell deployments
drives BBU consolidation
Backhaul economics and application
latency drive EPC distribution
Centralised/virtualised RAN &
distributed EPC (UPF)
Wholesale mobile services
Local breakout
SGi
CU
New footprint / cloud environment
RAN densification
Centralised-RAN
Cell siteDistributed RAN
DU
L2
DU
UL1
DU
LL1
RIC
UPF
MEC

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Round 1 is over
• Operators are past the questions and winning deals
• Gray box solutions are net negatives in the end market
• Architecture matters
Round 2 is underway
• Enterprise adoption is rivalling service providers
• Multiple SPs per region are offering uCPE solutions
• Technology innovation accelerating
Model is set, market is moving …
Summary

11. Thank you
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