vCPE for Business Services utlizing OME

Todays Business Services Network Structure

While connecting businesses to service providers and operators infrastructures, todays customers are
usually choosing between two types of connectivity services either Layer 2 virtual private networks or Layer
3 virtual private networks (otherwise known as L2VPN and L3VPN).
The main differences between these connectivity methods are how much control and access each enterprise
wishes to provide to the service providers. L2VPN will assure that the enterprise routing scheme is maintained
within the enterprise network and solely managed by the enterprise IT, while L3VPN services will simplify the
connectivity configuration but will expose the enterprise routing scheme.
Alternatively, if the customer were to order L3VPN services today, the service provider would usually install a
small L3 router at the customer premises. This CPE (customer premises equipment) will be connected to the
demarcation device which acts as the access layer into the service provider network.

Motivation for Change

Owning, installing and managing this CPE is very troublesome for the service providers. It causes them heavy
CAPEX, but more importantly high OPEX and very little flexibility. Another important impact this solution has is
long time to market (TTM). In some cases, the equipment installation can be as long as 3 weeks.

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The Idea Behind Virtual Customer Premises Equipment vCPE

Network Functions Virtualization (NFV), and especially distributed NFV technology, has the potential for
dramatically changing this model. Since most of the functionality of the CPE runs different control protocols
and since the data processing rate is not very high, the same functionality can be virtualized using an Intel
X86 environment, and can be run from within the service provider network.

Next Generation Business Services Networks

For next generation business services, the service provider network will offer many information and
communications technology (ICT) functionalities as a service, in a virtualized manner, to the enterprises.
These different functionalities (or virtual network functions VNF in ETSI terminology) that we would like to
refer to as TelcoApps, will run on commercial off-the-shelf, or COTS, hardware and will be attached to the
business connectivity services. In the carrier networks, AdvancedTCA (ATCA) CPU blades and ComExpress
modules are considered COTS hardware.
The current leading use case for this next generation architecture is the vCPE since it is a clear use case
where the service providers can gain substantial TCO savings. The vCPE can save about 40% CAPEX and as
much as 80% OPEX.
Adapting this architecture can also enable service providers that today provide only L2 services to also
deliver L3 services without dramatically changing their infrastructures.

vCPE for Business Services utlizing OME

TelcoAppsTM

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vCPE at the Access Network

Our vCPE implementation is designed to target business services (which is a bit different than the residential
vCPE). Therefore, placing it in a distributed NFV environment closer to the enterprise has many advantages.
Telco Systems OME solution takes the vCPE concept one step further with an optimized network placement
concept. Telco Systems OME solution is a full carrier grade edge solution thats comprised of distributed NFV
demarcation and aggregation products, SDN support and multiple TelcoApps. By providing multiple hosting
points, service providers can optimize the vCPE services based on their customer needs. If the vCPE will be
virtualized in the demarcation, it can gain higher security and better network transport utilization. If virtualized
in the aggregation, the provider can gain better resource utilization as well as increased centralized
management capabilities.

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Feature Set Improvements

vCPE will have to include the traditional router functions on top of routing such as ARP, NAT, DHCP and DNS.
The vCPE supports the enterprise and network routing protocols like as RIP (Routing Information Protocol)
and OSPF (Open Shortest Path First). Lastly it has some L2-L3 filtering including policy-based filtering and
routing. Our vCPE solution, on the other hand, holds much more. Since it is tightly coupled with service
provider edge solutions, many of the L2 functionality of the demarcation can be utilized. For example, the
OAM tool kits that the L2 demarcation has is very comprehensive and can provide very important QoS and
QoE utilizing mechanisms like Y1731 for versions parameters like packet loss, delay and jitter measurements.
Another set of hardware capabilities we utilize are the ACL, shaping and rate limiting functionalities that
are embedded within the demarcation hardware. Therefore, our solution merges between the vCPE
implementation and the actual demarcation that starts and terminates the service at the customer premises.
Intl Headquarters
Tel: +972-9-866-2525
Fax: +972-9-866-2500
sales.emea@telco.com

US Headquarters
Tel: +1-800-221-2849
Fax: +1-781-551-0538
sales@telco.com

EMEA
FR: +33-95-314-7731
DE: +49-241-463-5490
sales.emea@telco.com

Asia Pacific
Tel: +65-6224-3112
Fax: +65-6220-5848
info.apac@telco.com

2014 Telco Systems Inc. All rights reserved. All trademarks are property of their respective owners. Specifications are subject to change without notice.

Latin America
Tel: +1-800-221-2849
Fax: +1-781-551-0538
sales.latam@telco.com
PN:SOL-vCPE-JUN14