6/14/2005
Stephen Davids
Vice President of Sales EMEA
+44 1252 851 871
Solving The Network Planning Challenge
Presented to the Regional Seminar on Evolving Network Infrastructures to
NGN and related Planning Strategies and Tools for the CEE, CIS and Baltic States
Belgrade (Serbia and Montenegro), 20 – 24 June 2005
Copyright 2005, VPIsystems, Inc.
CONFIDENTIAL
The Vision/Mission of VPIsystems
VPIsystems is the leading provider of software
solutions that streamline network capacity
planning and network engineering
VPI provides:
Network Operators solutions that streamline the
processes of designing, deploying and optimizing their
networks, saving significant CapEx and OpEx;
Communications Equipment Vendors with solutions
that automatically design optimized equipment
configurations in response to customer proposals and
quotation requests, enabling a competitive sales
advantage;
Communications Equipment Vendors Subsystem
Vendors with software tools for optimizing engineering
design
June 2005
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
2 of 19
1
6/14/2005
VPIsystems
CUSTOMER BASE
40+ network operators
• Bell Canada
• Bell South
• AT&T Wireless
• Worldcom
• Vodafone
• Many European
Operators
90+ equipment vendors
• Cisco
• Fujitsu
• Siemens
• Alcatel
• Huawei
20+ component vendors
• JDS Uniphase
• Hewlett Packard
• Lasertron
• Hitachi
3 of 19
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
June 2005
The Network — Your most valuable asset
External Drivers
Competitive
Pressures
Technological
Advances
Customer
Demand
Current
Network (N)
Next Year’s
Network (N+1)
Plan
Reconfigure &
Deploy
Forecast
Internal Tools
& Processes
Do you have a defined process to manage the network
lifecycle, minimize CapEx and maximize profitability?
June 2005
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
4 of 19
2
6/14/2005
Inefficient Network Planning and Engineering
processes cost each carrier Millions in CapEx
and OpEx annually
• Network capacity over-engineering
• Poor design optimization
• Incorrect engineering plans, non-standard installations,
older equipment installs
• Poor consumption rules resulting in network hot
spots
• No data flow through and process automation
June 2005
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
5 of 19
The challenge of MPLS enabled IP network planning
Service Convergence
Service Convergence
Internet
IP VPN
VoIP, PSTN
FR, ATM, Ethernet
Circuit Emulation
IP/MPLS Core
Internet
IP VPN
VoIP, PSTN
FR, ATM, Ethernet
Circuit Emulation
• How does every service map across the core?
• What is the impact of services at each layer of the
network, including fiber, Sonet/SDH, WDM, and IP?
• How to do traffic engineering to off-load congested links?
June 2005
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
6 of 19
3
6/14/2005
VPIsystems is the only software vendor with a cross
domain view of network planning and engineering
Layer 2&3
VPIserviceMaker
VPIserviceMakerIP
IP
VPIserviceMaker
VPIserviceMakerATM
ATM
VPIserviceMaker
VPIserviceMakerSwitch
Switch
Transport
VPItransportMaker
VPItransportMakerRing
Ring
VPItransportMaker
VPItransportMakerMesh
Mesh
Access
• Vertical integration:
Layer 1, 2, & 3 Convergence
• Horizontal integration: Engineering Support Systems Domain
VPIaccessMaker
VPIaccessMaker
VPIlinkConfigurator
VPIlinkConfigurator
VPI/next-gen RLM
Strategic Planning
Tactical Planning
Engineering
7 of 19
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
June 2005
Consistent transport network design
Hybrid network design
Design
Designcases:
cases:
•• Hybrid
Hybridmesh/ring
mesh/ringnetwork
networkdesign
design
•• SONET/SDH
SONET/SDHring
ringoptimization
optimization
•• Equipment
Equipmentlibrary
librarydefinition
definition
•• Network
Networkanalyzing
analyzingand
andreporting
reporting
Mesh
Ring
ADM
ADM
ADM
ADM
ADM
ADM
ADM
ADM
Equipment library
Mux
June 2005
CC
Circuit
layers
Path
layers
Line/MS
layers
LSI
HSI
Network layer model
(according to ITU G.803)
ADM
A
A
A
A
Duct
A
B
D
E
C
A
Fiber
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
C
B
D
E
C
D
C
D
B
E
E
C
C
D
D
B
B
E
B
E
8 of 19
4
6/14/2005
BSS/OSS: How network resources are consumed
…unified, mature, efficient
Deliver and
Support Services
BSS
SELL
PROVISION
OSS
ACTIVATE
Physical
Logical
Network
Network
Inventory
Inventory
9 of 19
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
June 2005
How resources are created
…fragmented, underdeveloped, inefficient
BSS
FORECAST
SELL
PROVISION
Plan and Build
Network Resources
OSS
ACTIVATE
Vendors
Deman
d
Forecast
June 2005
Network Planning
and Engineering
Choose
Technology
P
Implem
en
Strategtation
y
ew B
lan N
Physical
Logical
Network
Network
Inventory
Inventory
Re
- Op
tim
iz
uild
Build
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
e
Decommission
Maintain
10 of 19
5
6/14/2005
VPI in the telecom landscape
Deliver and
Support Services
BSS
FORECAST
ACTIVATE
CONSUMPTION
RULES
Physical
Logical
Network
Network
Inventory
Inventory
VPI
PLAN
June 2005
PROVISION
OSS
Plan and Build
Network Resources
Vendors
SELL
BUILD
RUN
DECOMMISSION
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
11 of 19
VPI's Value Proposition
VPI automates your network infrastructure planning processes to
improve planning process efficiency
achieve higher asset utilization
>20% CapEx savings and accompanying OpEx savings
June 2005
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
12 of 19
6
6/14/2005
Top 20 Carrier predicted savings using VPIsystems
Results from actual Proof of Concept
1. New Build
2. Re-optimization of existing rings
CapEx Saving
~39 %*
CapEx Saving
~19 %*
Determined the cost of top 50 COs
while applying 3 user defined routing
rules :
# of Modular Rings
Ring Technology
# of Nodes
Time Slot Assignment
Design Methodology
# of ADMs
# of Pass Thru Nodes
# of Networkwide Wavelengths
Avg. Ring Utilization
ADM Fixed Cost
ADM Port Cost
Pass Thru Node Cost
Fiber Cost
Total Ring Layer Cost
n
ail o
Det
• Least Hop Routing
• Shortest Path Routing
• Minimum Cost Routing
June 2005
Existing Network Optimized Network
19
14
2F-BLSR
2F-BLSR
27
25
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
e
slid
t
x
ne
Ring validation
71
45
116
39.64%
4,896,000
290,200
45,000
717
5,231,917
Just ring deloading
54
38
92
64.27%
3,888,000
316,600
38,000
589
4,243,189
13 of 19
Detail from previous slide:
# of Modular Rings
Ring Technology
# of Nodes
Time Slot Assignment
Design Methodology
# of ADMs
# of Pass Thru Nodes
# of Networkwide Wavelengths
Avg. Ring Utilization
ADM Fixed Cost
ADM Port Cost
Pass Thru Node Cost
Fiber Cost
Total Ring Layer Cost
June 2005
Existing Network Optimized Network
19
14
2F-BLSR
2F-BLSR
27
25
Ring validation
71
45
116
39.64%
4,896,000
290,200
45,000
717
5,231,917
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
Just ring deloading
54
38
92
64.27%
3,888,000
316,600
38,000
589
4,243,189
14 of 19
7
6/14/2005
Actual Top 20 carrier business case for VPIsystems
• IRR = 115%
• Payback in under 12 months
• 7% recurring CapEx savings for optimized new
builds
• 1% annual realizable CapEx savings on
embedded network optimization
15 of 19
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
June 2005
Carrier savings @ 1 Billion annual CapEx budget
CUMULATIVE CAPEX
CUMULATIVE OPEX
400
5%Capex; 2%Opex
350
10%Capex; 2%Opex
200
150
600
400
500
300
400
300
200
100
200
100
50
0
YEAR 1
YEAR 2
YEAR 3
YEAR 4
340 Million
June 2005
100
0
YEAR 5 YEAR 1
5 Year Cumulative Savings
15%Capex; 2%Opex
700
500
250
900
800
600
300
Millions
700
YEAR 2
YEAR 3
YEAR 4
0
YEAR 5 YEAR 1
5 Year Cumulative Savings
595 Million
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
YEAR 2
YEAR 3
YEAR 4
YEAR 5
5 Year Cumulative Savings
850 Million
16 of 19
8
6/14/2005
Some typical problems solved by VPIsystems
• How can I free up additional network capacity due to
inefficient provisioning and gain more revenue?
• How can I be sure that the network is not “over
built” and minimize my new CapEx investment?
• How can I more efficiently plan a migration to VoIP
and advanced IP services?
• How can I plan my network migration to IP/MPLS,
including true service redundancy and QoS?
• How can I anticipate and eliminate network hot-spots,
and enforce network planning standards?
• How can I reduce the cost of backhaul for my
mobile network?
• How can I minimize the cost of my tariffed enterprise
network designs?
June 2005
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
17 of 19
Recent successes
•
•
•
•
•
Enabling a tier one carrier to implement their next
generation initiative to migrate TDM/ATM network to IP and
optimize their core transport layer
Enabled a tier one carrier to optimize infrastructure
cost at the transport layer and save 20% CapEx for a 1
billion+ transport network
Saved a wireless carrier 80 million annually by enabling
them to selectively arbitrage selected long-haul traffic over
owned facilities versus third party facilities
Enabled a tier one carrier to retain key enterprise
customers by optimizing network designs to lower
costs within existing tariff constraints
Enabled a major IP network vendor to transform their 6,000
sales force into design experts, providing 20% lower price
quotations for major RFPs and improving profit margins
June 2005
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
18 of 19
9
6/14/2005
In summary
• We offer the only solutions for planning and
optimizing network resources across all network
layers
• We are the leading vendor of Engineering
Support Software solutions that streamline
network planning and engineering
• Our solutions are business case proven - in both
the carrier and equipment vendor markets,
providing strong CapEx and OpEx benefits, high
IRR and short payback periods
• We offer the most comprehensive portfolio of
network planning tools in the industry
June 2005
19 of 19
Copyright 2005 VPIsystems, Inc.
All Rights Reserved
Stephen Davids
Vice President of Sales EMEA
+44 1252 851 871
Thank you
Stephen.Davids@Vpisystems.com
www.VPIsystems.com
Copyright 2005, VPIsystems, Inc.
CONFIDENTIAL
10