Shepherding the 5G and Edge Computing
Era with Open, Software-powered
Networking Infrastructure Solutions
Tetsuya Murakami
tetsuya@arrcus.com

Agenda▪ Service Provider Challenges Moving to 5G▪ Networking Trends▪ Scaling 5G Networks▪ Virtualized Distributed Router

2Arrcus, Inc Confidential - Light Reading Webinar

Service Providers Face Revenue Crunch
Communications Service Provider Revenue and Capital Intensity, 2019-2024
18.0%

2500

• Global CSP Revenue:

17.8%– 1.5% CAGR 2019-2024

2000

US$ Billion

17.6%• Global CSP Capex:

17.4%

1500

17.2%Capex
Cpital Intensity

1000

17.0%

– 2.5% CAGR 2019-2024Revenue• Capital Intensity:

16.8%
500

– 2019: 16.9%– 2024: 17.8%

16.6%

16.4%

02019

2020

2021

2022

2023

2024

Note: Includes fixed and mobile operators. Excludes Internet content providers and content neutral providers.
Source: Omdia Communications Provider Revenue & Capex Forecast Highlights: 2019−2024, August 20193

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What Keeps Operators Up at night?
Operator Network Priorities (Mobile and Converged Only)
Network Priority

Overall Rank

Adding to top-line revenue

1

Meeting demand for bandwidth growth2

Preparing my network for 5G

3Protecting network infrastructure

4

Reducing opex via automation

5Preparing my network for edge compute

6N=58Source: Heavy Reading Future of IP Networking Survey, Sponsored by Cisco, 20194Arrcus, Inc Confidential - Light Reading WebinarMobile Revolution Also Poses Challenges• Internet traffic: 29% CAGR
• Mobility impacts cannot be ignored
Global Internet Traffic and Mobile Share, 2017-2022
400350EB/Month

0.9
15%
Total

200
10%

150

Mobile Share%

0.8
2019

2020

2021

Mobile Capex

1005%502017 2018 2019 2020 2021 2022

0%

Note: Excludes Managed IP Traffic, Source: Cisco VNI, 2019
51.2

120%

250

01.3

1.1

25%

300

Growth in global mobile revenue,ARPU, and capex: 2019–24

ARPU

2022

2023

2024

Mobile Revenue

Source: Omdia, March 2020

• Mobile capex rising faster than revenue• Global ARPUs on the decline
Arrcus, Inc Confidential - Light Reading Webinar

5G Network Challenges : Transport Perspective• Meeting ultra-low latency requirements (network + edge strategy)• Extending wireline connectivity to new cells sites (cell site densification)• Achieving RAN capacity requirements• Meeting network synchronization requirements• Maintaining 4G networks while also adding 5G networks• And doing all the above with minimal increase to capex!

6Arrcus, Inc Confidential - Light Reading Webinar

Operators Look to Disaggregation at the IP Layer
Importance of White Box Switches/Routers in 5G

Disaggregation Definition• The separation of networking equipment
into functional components and allowing
each component to be individuallydeployed:• Encompasses separation of software OS
from underlying hardware• Requires open APIs to enable SDN control• Degrees of disaggregation exist• Not one size fits all in the market• White Box is a specific subset of
disaggregation that requires open spec
hardware produced by contract
manufacturers• White box has its own benefits andchallenges
7

Marginally
important white box
switches androuters will be
used in nicheapplications
32%

Not importantat all - noneed for whitebox in ournetwork
3%

Critical - won’t
deploy 5G
transport
without them
21%

Very
important white box
switches androuters will be
usedextensively
44%

N=103
Source: Heavy Reading

Arrcus, Inc Confidential - Light Reading Webinar

“Getting into the Groove”

Legacy Solutions Yet Ever-Increasing Challenges
INTERNETUSERS

NETWORKEDDEVICES

M2M
CONNECTIONSMOBILE DATA
TRAFFIC

92023: 5.3B

+36%

2023: 29.3B

+60%

~$60B

2023: 14.7B+141%2023: 100EB/Mo.

+233%

LEGACY OEM~ANNUAL REVENUES

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WHY USE THE
SAME OLD SOLUTIONS?

Demand of the Hyperscale Networking Software
Multi-Cloud

AnyService

AnyTime

Data Center

Edge
Edge Cloud
W AN

AnyWhereEnterprise. CSPs. Multi-Cloud.
10Arrcus, Inc Confidential - Light Reading Webinar

IP Networking Fuels Scale, Performance, & Resilience Of Mobile Infrastructure

IP/MPLS Transport Driven Scale & Convergence

11ANALOG VOICEKb/s

DIGITAL VOICEMESSAGING<1 Mb/s

VOICE, MOBILE DATA
LIMITED INTERNET
5-15Mb/s

VOICE, DATA, HD VIDEOCONVERGED IP N/W
MOBILE BROADBAND
100Mb/s

1G2G

3G

4G/LTE

Arrcus, Inc Confidential - Light Reading Webinar

AR/VR, IOT, OTHER APPSULTRA-HD VIDEO,VOICE, DATAALL IP N/W
1Gb/s+5G

5G, Multi-Cloud & Edge Requires Routing Intelligence
2020+
Massively Scalable; Hyperconnected; Distributed
IP Clos Routing Fabrics“Route When You Can: Switch if You Must”

 Intelligent connectivity, centralized policy &control, distributed data plane Multi-Cloud, 5G Edge, EPC, CO, Store Fronts…

2018
Programmable Routing-Centric
IP Clos DC Fabrics

 SDN Multi-Tenant Routing to ToR (EVPN, SR) Primarily DC, switching-routing convergence

2015
Data Center IP Clos

 Routing to ToR
 Still largely limited to Cloud Titans

Pre-2015
Legacy Networking

 Layer 2-centric Small control plane PoDs

The Control Plane is the Brains of Your Network
12Arrcus, Inc Confidential - Light Reading Webinar

Software is Eating Networking
5G, Multi-Cloud & Edge
Market Trends

Digital NetworkTransformation

Continuous Next
Business Drivers

EnhancedExperiences

Networking Imperatives

New Monetization
ModelsControlCosts

SRv6, SR-MPLS,
VPN Hybrid

Five 9s SLA,
Scale-Up; Scale-Out,
Resilient, Secure
Composable Software
Low-Latency
Programmable; HW Agnostic

AnyService. AnyTime. AnyWhere
13Arrcus, Inc Confidential - Light Reading Webinar

Networking Innovations are Driving 5G Infrastructures

145G Tenets

Networking Enablers

HYPERSCALE ECONOMICS

Lean, Scalable, & Composable
Networking SW; Hardware Agnostic

TECHNOLOGICAL SCALE

1G/10G/100G/400G/800G speeds,
Hyperscale Control Plane

LOW LATENCY

Virtualized Distributed Routing,
CUPS (No Network Tromboning)

NETWORK SLICING

SR (MPLS,v6);
End-to-End Logical VPN Topologies

FLEXIBILITY

Converged SDN Programming,
Automated Path Computation

RELIABILITY

End-to-End QoS, PTPv2 / IEEE 1588

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5G: Towards a Simple, Scalable, & Seamless Network

SimplifiedRouting

Scalable
Infrastructure

Seamless
Deployment

 EVPN w/L2VPN & L3VPN

 Lean, Resilient, Composable Software Across DCs, Multi-Cloud & Mobile Edge

 SR w/MPLS/v6 Data Planes

 SDN-Programmable Infra, NFV Automated Control-Plane Policy Functions

 Standards-based APIs White Box Economics

 Distributed User-Plane Functions

15Arrcus, Inc Confidential - Light Reading Webinar

Traditional Approaches Cannot Meet the Needs of Modern Networks

RigidBrittle

Flexible

Resilient

Expensive

Limited Scale

Pay-as-you-growHyperscale

OpaqueProprietary/Lock-in

Deep Visibility

Open

LEGACY
16MODERN
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Drive Massive Flexibility & Scale of Network Services
Traditional Approach: Vertical Scaling

Horizontal Auto-Scaling

VPN(L2VPN/L3VPN…)

Core, PeeringVPNDC Core/Edge(L2VPN/L3VPN)

CorePeering

DCCore/Edge…..

Deep Visibility Cluster….

Services&Applications

Control Plane Cluster….

17

Limited Scale

Massive Scale

Monolithic

Virtualized, Distributed

OpaqueDeep Visibility

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New/CustomServices

5G Innovations Drive Hyperscale Architectures to IP/MPLS Transport Networks
Elastic Scale
Horizontally
ScaledStatic Silos
Vertically
ScaledFixed….

….

18

Arrcus, Inc Confidential - Light Reading Webinar

Segment Routing is a Key Building Block of 5G
High-Performance,
Resilient Networks

Application-Centric
Multi-Service Networks

Software-Defined,Adaptive Networks



Sub 50 msec Fast Re-routeNo Extra Protocol Overhead: LDP or RSVP-TE



Significantly Reduced State/Tunnels w/Scale(vs. GTP)

App SLAs Dictate Slice Composition

Enables Application Engineered Routing (AER)

AER Facilitates 5G Use Cases/Business Models



SR-TE Drives Dynamic Traffic Re-RoutingMaximum, Efficient Network Utilization

Only SR Delivers TE at Massive Scale

SR-MPLS / SRv6
19Arrcus, Inc Confidential - Light Reading Webinar

SDN-Centric, Virtualized, Distributed Routing Enables 5G Control & User Plane
Separation (CUPS)

PublicCloud A

Private Cloud DC(s)Private Cloud DC(s)PublicCloud B

Edge

InternetWAN

HomeEdge
Custom er HQEdge

Remote Office

AirportRetail Store
SmartFactory
Factory
Smart

20Arrcus, Inc Confidential - Light Reading Webinar

HomeSDN-Centric, Virtualized, Distributed Routing Enables 5G Control & User Plane
Separation (CUPS)

Private Cloud DC(s)
CPF

MEC

RAN

PublicCloud A

Private Cloud DC(s)CPF

PublicCloud BUPF

CUPS Drives End-User Experience Through: Low-Latency of App Services
WAN
Massive Data TrafficInternet Independent Scale of UPF & CPF

more MECs

HomeUPF

MECCustom er HQ

more MECs
UPFRAN

Remote Office

MEC

AirportRAN
Retail Store
SmartFactory
Factory
Smart21

Arrcus, Inc Confidential - Light Reading Webinar

HomeReferences: MEC = Multi-Access Edge Computing
 UPF = User Plane Functions
 CPF = Control Plane Functions

Reduced Complexity of 5G Networks using Segment Routing
Control Plane Functions (CPF)

GTP User Plane
Tunnels and State Increase 1:1 w/ Sessions

Data
Network

No Path Differentiation

CPF + SR Controller

SRv6 User Plane
SID 1
SID 2

SID 1

Reduced Tunnels and Complex StateSDN Traffic Engineered Paths
Eliminates Need for Custom Silicon!

SID 2

SID 1
SID 2
22Arrcus, Inc Confidential - Light Reading Webinar

DataNetworkScale 5G Services with End-to-End Multi-Tenant Logical Networks
END-TO-END, LOW-LATENCY LOGICAL NETWORK SLICES

Smart Retail Slice
Smart Factory SliceEnterprise SliceStandards-based Open API
NETWORK RESOURCES ABSTRACTIONc
SDN ControllerscPublic Cloud(s)

WAN/
Core

Generalized
App Services

cDevices
23

VNF, PNF

Low-Latency
App Services

RAN, Small Cell

Edge Clouds (MEC)

Private Cloud
Data Center(s)WAN/CoreArrcus, Inc Confidential - Light Reading Webinar

Multi-CloudOpen Integration: The Freedom to Thrive
HIGH CAPEX + OPEXHIGH CAPEX + OPEXOPEN INTEGRATIONNETWORKINGSOFTWARE SOLUTION

CLOSED OS

CLOSED OS

CUSTOM HARDWAREs

CUSTOM HARDWAREs

CUSTOM SILICON

MERCHANT SILICONANY SWITCH & ANY
ROUTER HARDWAREANY PROCESSOR &ANY NETWORKING SILICON

Networking 1.024

Networking 2.0

Arrcus, Inc Confidential - Light Reading Webinar

Networking 3.0

Powering the Broadest Range of State-of-the-Art Solutions

Telemetry
EngineCOGNITIVE
INSIGHTSNETWORKINSIGHTS

3RD PARTY/OSS
PLATFORMSNSO

INDUSTRY-STANDARD APIs
(NETCONF/RESTCONF/SNMP/CLI)

REAL-TIME STREAMING
TELEMETRYNETWORK OPERATING SYSTEM+25

TRIDENT 3 (TD3)JERICHO+ (J+)

TOMAHAWK 3 (TH3)JERICHO2 (J2)

J2 & RAMON;QUMRANAUG 2018

OCT 2018

JAN 2019

JUL 2019

JUL 2020

Arrcus, Inc Confidential - Light Reading Webinar

Virtualized Distributed Routing Solution
Virtualized, Distributed, Massively Scalable Router (VDR)
Highly Available Control Plane at Internet ScaleNSO

3RD PARTY/OSS
PLATFORMS/TOOLS

Single Point of Management & K8s-based Orchestration

Deep Visibility Cluster
VisibilityControl

TelemetryEngine

Massively scalable with 7680 100G ports

Securityz

Control Plane Cluster

ControlPlane

Open, Standards-based Data Model: OpenConfig, CLI

Deep Visibility & Analytics
DataPlane….

26

Lowest TCO: Pay-as-you-Grow

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One Architecture: Limitless Possibilities
Deep VisibilityCluster

Super Spine(J2)

Analytics

Deep Visibility Cluster

Insights

TelemetryEngine

Security

100G / 400GSpine(TD3, TH3, J2)

Control Plane
Cluster

100G / 400G

ControlPlanezK8s….

Leaf(TD3, J2)

DataPlane

10G / 25G….
Distributed IP Clos

VDR

Distributed Control Plane, Distributed Data Plane

Virtualized Off-Box Control Plane, Distributed Data Plane

Single Architecture/Software27Arrcus, Inc Confidential - Light Reading Webinar

AnyService. AnyTime. AnyWhere
Telemetry
EngineCOGNITIVE
INSIGHTSNETWORKINSIGHTS

3RD PARTY/OSS
PLATFORMSNSO

INDUSTRY-STANDARD APIs
(NETCONF/RESTCONF/SNMP/CLI)

REAL-TIME STREAMING
TELEMETRYNETWORK OPERATING SYSTEM
BEST-IN-CLASS SOFTWARE: SIMPLE. SCALABLE. SEAMLESSIP CLOS (ToR, LEAF, SPINE, SPLINE)PEERING / EDGEEdge

VIRTUALIZED DISTRIBUT ED ROUTING
Virtualized, Scale-Out
Control PlaneWAN

MULTI-CLOUD NETWORKING

1SERVER

NStackable Data
Plane Instances

Highly Av ailable
Secure Workload & Data Connectiv ity

ANY HARDWARE: ROUTERS. SWITCHES. SMART SERVERS; ANY DEPLOYMENT: ON-PREM. CONTAINER. CLOUDFLEXIBLE CONSUMPTION MODEL. LOWEST TCO

28Arrcus, Inc Confidential - Light Reading Webinar

The Power of One

 One simple network
 One scalable architecture One seamless experience

to connect billions

29Arrcus, Inc Confidential - Light Reading Webinar

Thank You!
www.arrcus.com