Light Reading

Policy Control: Preparing for a Virtual Makeover?

Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
5/10/2013
50%
50%

Our updated forecast for the network operator policy control and DPI market is out, and the very strong growth we reported previously continues apace. We measured the market in 2012 at US$1.24 billion, slightly ahead of our previous projection, as many vendors enjoyed a buoyant second half; that seems to be continuing into the first half of this year, as well, boding well for 2013.

On the face of it, the market is now approaching saturation: Already in mid-2012, our survey work with operators showed that almost 70 percent had deployed a policy server of some kind, and it's now likely at least 80 percent. So why are we expecting the market to more than double to $2.85 billion by 2017? Primarily because we're anticipating that operators will deploy more and more sophisticated solutions, handling more and more use cases, putting policy at the heart of their strategic thinking.

This trend is already driving a round of replacements of first-generation gear, as well as enhancements to deployed products to add new applications and connect more network and BSS gear into the policy architecture. In emerging markets, some policy servers are now handling dozens of use cases as operators fight to differentiate and improve the yield from spectrum and bandwidth.

In other words, the already high penetration of policy servers we uncovered conceals the wider truth that many initial deployments are relatively rudimentary, and often still in the deployment phase. It's revealing that one vendor in our Tracker research interviews told us that it had signed nearly 50 contracts over the past four years, but only 60 percent are carrying commercial traffic. Deployment cycles can be painful, with some operators saying that it's taken two years to get from order to traffic.

The bottlenecks center on difficulties interoperating with other network and IT elements, inflexible policy creation tools, and concerns about scaling, and that's led most vendors to try to improve their offers in all these areas, with measurable improvements in product sets in some cases. But it's also helping to stoke interest in virtualization of policy control, as well as SDN; in interviews with operators, we've found that there is strong interest in starting virtualization initiatives in the control layer, and most of the policy vendors we've spoken to now are responding, and have active programs to add virtualized versions. Many policy servers already use COTS hardware and x86 processors, and some vendors already offer virtualization of their own applications on those platforms.

There are, of course, plenty of open issues here. One of the biggest is the relationship between the ONF's de facto standard for SDN control, and the 3GPP's PCRF Policy Controller. This is an issue we discuss in a paper to be published next week by Sandvine Inc., and while the two standards are in some ways well matched, there are plenty of technical challenges to be resolved.

But though immature, these initiatives have great promise, carriers suggest. At the recent Policy Control event in Berlin, Alex Harmand, head of service platforms at Telefónica SA's Spanish unit, describing his company as "strong believers" in cloud and SDN, said they could help improve interoperability across the IT/network and OCS/PCRF barrier. More broadly, SDN could help improve the whole process and engineering environment, he said. But the relationship between policy and SDN remains to be defined.

The promise, then, is that virtualization could help telcos to bridge the still-wide gap between networks and IT -- a gap that is contributing to the difficulties that many have had in deploying conventional policy solutions. Yet technology fixes alone are no panacea; fundamental changes in the internal organization of network operators will be required if the promise is to be fulfilled.

I'll be at Management World in Nice next week, looking for answers to some of those questions, and look forward to reporting back on progress in a future column.

— Graham Finnie, Chief Analyst, Heavy Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
More Blogs from Heavy Lifting Analyst Notes
Join our fireside chat at Mobile World Congress in Barcelona as we discuss the operational implications of NFV with Justin Paul, head of OSS marketing at Amdocs.
The race to deliver gigabit broadband services is accelerating, and G.fast is a key technology that telecom service providers can deploy to compete successfully.
If NFV is to progress, proofs of concept and trials need to come out of the lab and into live networks in 2015.
This year is expected to be a year of great market evolution across most telecom sectors, specifically in virtualization and Long Term Evolution (LTE).
Bring your own device (BYOD) is flourishing, creating the need for better security on shared personal/workplace mobile devices.
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
New Ways of Working

3|5|15   |   4:24   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Hong Kong Telecom's Michael Yue explains how the transformation in its business has changed its customer relationships.
LRTV Huawei Video Resource Center
Bridging the Digital Gap

3|5|15   |   4:03   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Boingo's Dr. Derek Peterson explains how ICT can help telcos bring the physical and virtual worlds closer together.
LRTV Huawei Video Resource Center
Making the Internet of Things Affordable

3|5|15   |   2:42   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Telefonica's Dr. Mike Short explains how the Internet of Things demands a new low-cost approach to connectivity from telcos.
LRTV Huawei Video Resource Center
Evolution, Not Revolution

3|5|15   |   2:00   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Heavy Reading's Patrick Donegan explains why telcos can't be too hasty in their efforts to transform themselves.
LRTV Custom TV
Management & Orchestration Enablement Strategies Required for NFV Commercial Success

3|5|15   |   6:22   |   (0) comments


NFV commercial success rests on successful service orchestration strategies which can span heterogeneous physical, virtual, legacy and next-gen networks. Network data and security integrity are additional key aspects. Nakina provides a suite of orchestratable network integrity applications built on an open, scalable MANO enablement platform.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
LRTV Interviews
DT's Virtualization Vision for Europe

3|4|15   |   10:23   |   (0) comments


Light Reading CEO Steve Saunders talks virtualization, cloudification and standards with Deutsche Telekom's Axel Clauberg at Mobile World Congress.
LRTV Custom TV
ZTE's Wireline at MWC 2015

3|4|15   |   6:35   |   (0) comments


Light Reading speaks with Jane Chen, ZTE's Senior VP of Wireline Business, about innovations in her product line at Mobile World Congress.
LRTV Custom TV
ZTE at MWC 2015

3|4|15   |   4:24   |   (0) comments


Dr. Dick Chen of ZTE USA gives Light Reading an overview of what's new at ZTE's pavilion at Mobile World Congress 2015.
LRTV Interviews
Ericsson CEO Talks Telco Data Center Tech

3|4|15   |   05:45   |   (0) comments


At Mobile World Congress, Ericsson CEO Hans Vestberg discusses telco data center technology, business models, small cells and more.
Between the CEOs
EXCLUSIVE: Cisco's Chambers on Reinvention

3|3|15   |   8:24   |   (1) comment


Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.