Mobile Packet Core — Ready to Take off
Rajan VaradarajanWednesday, February 10th, 2010
Renewed interest in packet core networks over the past several months has generated new product announcements from infrastructure equipment vendors and touched off a round of acquisitions in the space as well.
I should say that packet core networks are not new. They’ve been used to backhaul IP data traffic to servers and other nodes on the Internet since the days of 2.5 G/GPRS networks. The central player in the packet core network is the Gateway GPRS support node (GGSN) in GSM/UMTS networks — a powerful router that performs multiple functions including user authentication, traffic forwarding and management, support for thousands of sessions, data records/billing, tunneling across multiple GGSNs, etc.
That said, the packet core network’s new prominence is the result of a phenomenal increase in mobile data applications and traffic driven largely the result of a multitude of all-you-can-eat data plans from carriers. Another significant factor driving demand for packet core routers is WiMAX, which is being adopted at a great rate for fixed and nomadic IP data applications, especially in developing nations. The ASN gateway packet node is the key component of WiMAX’s core and, although not a cellular network substitution or replacement, there is a sizeable overlap in the functionality of the ASN gateway and cellular networks’ packet core nodes.
Looking ahead, as the industry moves through the transition to Long Term Evolution (LTE), often categorized as 4G technology, the packet core needs equipment that not only meets today’s amped-up capability requirements but must accommodate future expansion as well. Interestingly, several packet core node vendors are targeting sales to the LTE core network, also known as the Evolved Packet Core (EPC). Unlike today’s 3G networks, EPC provides an “all-IP” aspect that carries voice traffic over IP.
Girding up for what’s next
Packet core equipment vendors include the traditional mobile infrastructure market leaders, among them Ericsson, Nokia, Siemens, Alcatel-Lucent, Hitachi (which recently acquired Nortel), Huawei and ZTE. But smaller startup companies are also making their presence known. For example, WiChorus saw initial success in the WiMAX space and enhanced its product line with offerings for the LTE Market. Tellabs recently acquired WiChorus and will integrate its product into the highly successful 8800 Multiservice Router.
Cisco also acquired a small startup, Starent, in response to its recent success with Verizon. Starent’s ST-series Multimedia Core Platforms connect to multiple types of access networks, including UMTS, WiMAX and LTE EPC. The core software runs StarOS, a variant on Linux, and the platforms incorporate hot swap capability, redundancy, and a variety of other carrier class features. Unlike the larger vendors, Starent and WiChorus offer software systems that are easier to scale for various uses and capacities. Their core products are purpose built and designed from the ground up.
A number of equipment vendors, including Hitachi, NEC, NSN and ZTE, offer modified Advanced Telecommunications Computing Architecture (ATCA) platforms as the basis for their packet core nodes. These “Big Iron” packet core nodes have a multi slot chassis populated with high capacity cards and often have network processors/ASICs/switching devices. The network processors/ASICs are useful for deep packet inspection (DPI) that, allows the node to shape/police/report traffic based on embedded content although no operator will publicly admit it. Companies such as Ericsson and Starent rely on custom-built platforms to address this market.
Ready and not
It will be interesting to see Juniper’s roadmap for the packet core network as it is fleshed out over the next few months. Juniper was supposed to partner with Starent, but instead was acquired by Cisco. Juniper also partnered with Ericsson for the 3G packet core (GGSN), but won’t be involved on 4G equipment. And Ericsson’s 2006 acquisition of Redback appears prescient as it provides credibility for the company’s IP technology with the service provider network.
Some reports have Alcatel-Lucent addressing the packet core by adding functions to the 7750 service router platform, which they gained in the TiMetra acquisition and saw significant success with in the metro Ethernet space. This also has high credibility with service providers.
Lastly, Huawei’s success in Europe and Asia does not make it a major player in the North American market. Observers indicate Huawei’s presence depressed bids and profits of European manufacturers of next generation packet cores.
Tags: Alcatel-Lucent, Ericsson, Hitachi, Huawei, Juniper, NEC, Nokia, Nortel, Siemens, Starent, WiChorus, WiMAX, ZTE
Posted in Author, Networking, Rajan Varadarajan, Telco | No Comments »
Convergence in the Data Center’s Future
Unni NarayananTuesday, February 2nd, 2010
We are at the forefront of an exciting period for data center design and innovation driven by what is occurring in three separate-but-fast-converging market segments: co-location businesses, managed services vendors and cloud providers.
Our view today is that the future, and fortunes, of each segment is inextricably linked and that the relationship of key conditions in each segment — capacity for co-lo, profit margin for managed services and technology innovation for cloud providers — will meaningfully define the opportunities, challenges and performance of what we see as a truly amalgamated marketplace in the next 10 years. Briefly, here is what PGR’s network is reporting:
Capacity — Enterprises suffer a data center capacity shortage brought on by a dearth of viable real estate, a state of affairs that PGR’s network consistently characterizes as fundamental rather than temporary. The capacity squeeze is made worse by growing demand from SMBs among others that want to get out of the data center business with its acute heat/power problems.
Margin — Right now, SMBs and enterprises are willing to pay a premium for the value added by managed services providers. We believe this will result in continued high margins for managed services providers over the foreseeable future.
Technology innovation — While it is clear that elements like SAAS are accelerating, all of the technologies related to bill-back, security and private clouds and back-end support for performance enhancement among others are immature. A lot of heads are “in the clouds” right now and speculation about what is coming and what will occur as a result is intense.
Looking at the three segment reports above, it is clear that developments and conditions in one segment weigh strongly on the others. Thus, factors that impact co-location vendors inevitably affect the prices enterprises are willing to pay managed services providers and create opportunities for cloud providers to innovate to solve IT challenges.
More to come.
Tags: Co-location, Enterprise computing, managed services, SAAS, SMBs
Posted in Cloud Computing, Data Center, Unni Narayanan | No Comments »
