opex reductionthroughgmpls/asoncontent.ikr.uni-stuttgart.de/content/...ason_36676.pdf · opex...
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OPEX reduction through GMPLS/ASON- a business case study
Andreas Iselt, Sandrine Pasqualini, Andreas KirstädterSiemens AG, Corporate Technology, Information & Communication, Munich, Germany
Sofie Verbrugge, Didier Colle, Mario Pickavet, Piet DemeesterDept. of Information Technology (INTEC), Ghent University – IMEC – IBBT, Ghent, Belgium
Monika Jäger, Ralf Huelsermann, Fritz-Joachim WestphalTechnologiezentrum, T-Systems International, Berlin, Germany
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2Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Motivation
q ASON/GMPLS often promoted as a key technology to reduce OPEX and CAPEX
q Few studies on OPEX so far
q We quantify the cost reduction potential of ASON/GMPLS
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3Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Outline
q Defining OPEX
q Process-based OPEX modelling– Approach
– Typical processes
– ASON/GMPLS modified processes
q Quantitative results– Service provisioning
– Overall OPEX
q Analysis and conclusions
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4Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Defining OPEX
q Capital expenditures: CAPEX– Contribute to fixed company
infrastructure
– Depreciated over time
– Purchase of land and buildings
– Network infrastructure
– Software
q Operational expenditures: OPEX– Cost to keep company operational
– Do not contribute to infrastructureitself, not subject to depreciation
– Rented and leased infrastructure
– Personnel wages
Total expenditures of a company
Network operator
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5Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
OPEX subparts
q Network operation– For a network which is up and running
– Maintenance, service provisioning,etc.
q Equipment installation– First time installation costs
– Up-front planning
q General OPEX– Non-telco specific infrastructure and administration
Strong impactof technology
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6Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Outline
q Defining OPEX
q Process-based OPEX modelling– Approach
– Typical processes
– ASON/GMPLS modified processes
q Quantitative results– Service provisioning
– Overall OPEX
q Analysis and conclusions
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7Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Approach
q Formal description of network operations– Identify generic processes
– Modelling
q Changes expected with ASON/GMPLS– Qualitative and quantitative variation
q Relate to total OPEX– Network scenario
– Relative weight of each OPEX category
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8Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Operational processes
q Continuous and recurringprocesses– Continuous cost of
infrastructure
– Routine operations, maintenance
– Reparation
– Operational network planning
– Marketing
q Service management processes– Service offer
– Service provisioning
– Service cessation
– Service move or change
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9Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Service management processes
q Service offer– The operator makes an offer at the customer’s request
q Service provisioning– According to the terms of the contract, physical delivery of the
service is carried out
q Service cessation– Contract update, coordination between new service setup and
release of the previous service.
q Service move or change– End of the contract, release of the connection and recovery of
equipement
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10Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Service offer
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11Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Service provisioning
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12Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Service cessation
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13Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Service move or change
q Combination of services– Prepare offer for „new“ service
– provisioning of new service
– Cessation of previous service
q Requires additionnal coordination– Common resources
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14Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Outline
q Defining OPEX
q Process-based OPEX modelling– Approach
– Typical processes
– ASON/GMPLS modified processes
q Quantitative results– Service provisioning
– Overall OPEX
q Analysis and conclusions
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15Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
NMS: Current Limitations
q OTN currently operated by NMS– Administration & maintenance
– Centralized provisioning
q NMS are widespread but– Manual configuration
– Human communication
– Limited to a domain
– Lack of standardized interfaces
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16Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
GMPLS/ASON: Expected improvements
q Compatibility between different domains– Standardized interfaces (UNI, NNI)
q Automatic configuration of connections– Call control, connection control
q Service Level Agreement (SLA)– Unified set of service classes
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17Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Automated service provisioning
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18Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Automated service cessation
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19Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
SLA negociations
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20Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Outline
q Defining OPEX
q Process-based OPEX modelling– Approach
– Typical processes
– ASON/GMPLS modified processes
q Quantitative results– Service provisioning
– Overall OPEX
q Analysis and conclusions
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21Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Quantitative Results
q Focus on labour costs
q Assign duration (hours) to the activities, and probabilitiesto the decisions
q Estimate hourly wages for each employee category
q Sum up costs for all steps– Gives an upper bound estimate of a given process
q Figures obtained by means of surveys and interviews
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22Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
First analysis
q Reveals two types of operators– „Incumbent“
• More hours for sales, administration and management
– And so called „new entrant“• Lower figures for these, the rest remaining in the same range
• Due to – smaller network to maintain
– Fewer types of services offered
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23Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Incumbent
0,0010,0020,0030,0040,0050,0060,0070,0080,0090,00
100,00
tradit
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servi
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fer
SLA ne
gocia
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GMPLS se
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Cos
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Sales Administration Project management NOC
q Service offer– Nearly as expensive as service
delivery
q Service cessation– Less management and
operations
q ASON processes– SLA negociations more
expensive
– Consider offer+delivery
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24Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
New Entrant
q Processes are cheaper– Less administration and
management (smaller network)
– But less types of services
– Need for external supplier• Rental costs
• Tests at interconnection point
q ASON processes– Cheaper
– In the same proportion
0,00
10,00
20,00
30,00
40,00
50,00
60,00
70,00
tradit
ional
serv
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SLA ne
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Sales Administration Project management NOC
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25Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Overall OPEX
q Significant impact on OPEX related to servicemanagement
q How does it relate to other OPEX subparts?
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26Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Estimating yearly OPEX – input data
q Reference network– WDM network
– 2.5 Gbps leased lines
q Traffic– Figures of reference network for 2004
– Leads to a total of 1214 services in one year
– 80% of services are standard
q Equipment– MTBF, life time
q Failure probabilities– Alarm types: preventive alarms, failure alarms
– Failure types: external, hardware, misconfiguration/software, etc.
Hamburg
BerlinHannoverBremen
Norden
Essen
Dortmund
Köln
Düsseldorf
Frankfurt
NürnbergMannheim
Karlsruhe
Stuttgart
UlmMünchen
Leipzig
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27Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Estimated number of failures
Dimensioning
Failure probabilities
Equipment MTBF
1171 failures
749 preventive alarms
TopologyTraffic
ArchitectureRepair process
Routine operationprocess
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28Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Yearly OPEX
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29Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Outline
q Defining OPEX
q Process-based OPEX modelling– Approach
– Typical processes
– ASON/GMPLS modified processes
q Quantitative results– Service provisioning
– Overall OPEX
q Analysis and conclusions
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30Dr. Andreas Iselt (Siemens AG) – IST project NOBEL
Conclusion
q Most network operator‘s processes are similar and can bemodelled quite generically
q When looking at typical effort– Major differences between incumbent and „new entrants“
– Lighter business processes, but interactions with external suppliers
q OPEX effort and cost reduction in the order of 50% for bothtypes