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October 6, 2023

Unleashing the Power of Cloud-Network Convergence

Digital cloud data storage digital concept. Cloudscape digital online service for global network. Database backup computer infrastructure technology solution
ZhongHua Chen, of China Telecom, explores key findings from the WBBA’s new working group whitepaper
In the last in a series of four World Broadband Association (WBBA) Working Group webinars, ZhongHua Chen, Senior Engineer and Project Manager, China Telecom, explores key findings from the WBBA’s new whitepaper Driving the Future: Understanding the Landscape of Cloud Network Convergence.

 

Service providers are strongly committed to supporting the digital transformation of enterprises by creating intelligent cloud network infrastructures. These infrastructures focus on achieving a seamless integration between cloud networks and the underlying transport networks. This determination is coupled with the need to modernize bearer networks to meet new requirements and challenges. In future, for example, cloud network convergence is expected to contribute to reduced costs and increased flexibility in meeting the needs of long tail applications.

Service providers are actively exploring various ways to synergize networks and cloud services. The transformation of IP and optical-based networks, combined with intelligent cloud network convergence, and driven by AI-enabled network automation, will play a crucial role in successfully implementing and accelerating enterprise digital transformation.

This transformation is expected to fuel growth across all services. However, traditional cloud networks struggle to meet the high-performance and ultra-low latency demands of digital services. Real-time cloud availability and cost-effective terminal edge performance need continuous enhancement through multi-cloud collaboration, cloud-edge partnerships, and even cloud-network-edge collaboration.

The development of cloud-network convergence has revolutionized the traditional three-layer network structure (access, aggregation, and core). This structure has evolved into a two-layer system that revolves around the fundamental resource layer of the network. This evolution extends from the cloud, encompassing intra-cloud, inter-cloud, cloud access, multi-cloud collaboration, and cloud-network-edge-terminal collaboration.

The initial phase of cloud-network convergence occurred within the intra-cloud network (within data centers). To address the need for rapid transmission of large volumes of data from cloud services, intra-cloud integration enables the automatic deployment, operations, and maintenance of virtual cloud networks within data centers. This is achieved through consistent security and network policies for containerized and virtualized service applications. For example, the Leaf-Spine/CLOS non-blocking architecture and extensive layer-2 network technology were introduced to seamlessly combine and operate network capabilities within data centers and cloud environments.

As the focus of cloud-network convergence shifts to inter-cloud networks, particularly Data Center Interconnection (DCI), the emphasis is placed on efficiently forwarding and carrying east-west traffic between data centers. This is achieved by deploying high-capacity, non-blocking, and low-latency Data Center Interconnection networks. Additionally, due to the surge in enterprise demand for accessing cloud and SaaS traffic, cloud access has emerged as a critical aspect of cloud-network convergence.

The evolving demand for 5G, gigabit fiber networks, and robust network performance is driven by applications in cloud and IoT. Moreover, as enterprise and vertical industries undergo digital transformation and adopt multi-cloud strategies, bearer networks must accommodate an increasing number of essential services. Cloud-network convergence is now expected to fulfil the diverse requirements stemming from various enterprise, government, individual, and family scenarios.

Cloud-network convergence must be flexible to adapt to an array of constantly evolving use cases and application scenarios. Network cloudification necessitates the continuous improvement of cloud capabilities. Similarly, the construction of digital platform capabilities relies on the ongoing upgrading of cloud network capabilities.

Access the WBBA Webinar here.

 

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Key Messages
Key Messages
Recommendations
Recommendations
The Importance of Greater Broadband Investment​
Download White Paper

Key Messages

Advanced cloud technology together with superior end-to-end connectivity can enable a wider and more sophisticated range of applications that can in turn drive greater innovation, efficiency, and wealth.
Both enterprises and broader industry ecosystems are actively looking at broadband’s role in enabling their digital transformation. Most respondents to the WBBA’s Thought Leadership Enterprise Survey stated that they need faster and more reliable internet to run their business applications.
Certainly, in the short to medium term, xDSL, cable modem, fixed-wireless access (FWA), and satellite are all expected to have a role in the delivery of broadband services. However, full-fiber access will always deliver the optimum experience and remains the most sustainable and cost-efficient option.
There is a danger therefore for governments to base their cost-benefit analysis on a national economic view. However, such analysis will miss all the social benefits, as well as the more local economic benefits, that advanced broadband networks can bring. Governments must take all benefits into account, including more localized ones, when creating national broadband policies.
However, future applications will not only need ultra-high-speed services but also ultra-low latency and jitter, with high levels of reliability and consistency if they are to function properly. Countries with networks that are not capable of meeting such criteria will be left behind as the world moves to the next phase of internet applications such as the “metaverse.”
Fiber networks are significantly more environmentally friendly than equivalent copper-based networks, and can help support other green initiatives such as greater working from home, the use of advanced videoconferencing, etc. Fiber-based networks also require less maintenance due to there being less active equipment in the field, and can therefore reduce operators’ operational costs.
With rollout of new access technologies like 5G and Fiber, IPv6 reached more than 30% penetration worldwide (APNIC) and is rapidly growing. IPv6 Enhanced technologies, including segment routing over IPv6, per flow monitoring and AI, enable a multitude of objects and people to be flexibly connected to the proper services, granting end-to-end quality of experience.
Based on the responses from the WBBA Thought Leadership Survey, respondents believed, on average, this coverage could be expanded to approximately 70% through private investment. It is clear that government support will be needed to get to 100%.
However, a lack of data on the available infrastructure, access to key infrastructure such as ducts and in-building networks, and a lack of understanding both internally and externally are also key barriers to further investment.
Respondents to the WBBA survey stated that a reduction in regulatory barriers, greater flexibility in partnership arrangements, copper switch-off regulations, and setting out minimum service standards for network installations, would all take priority over financial support.

Recommendations

All countries must look to maximize the potential of broadband. This means creating long-term national broadband plans that evolve around three basic phases of broadband adoption:

  • Phase 1: Fast deployment of basic connectivity (most likely focusing on wireless technologies)
  • Phase 2: Continued rollout of fixed-broadband access to 100% of premises
  • Phase 3: Continued investment in advanced broadband technologies to move to gigabit societies and beyond.

In order to help facilitate this evolution to advanced broadband networks, government organizations and regulators must consider:

  • Implementing regulatory flexibility, including the removal of outdated or non-essential regulation
  • Introducing flexibility in partnership arrangements; for example, allowing agreements between players, such as co-financing, collaborative models, public-private partnerships, etc.
  • Facilitating deployment through municipality approvals, using existing resources (government buildings, streetlights, ducts, etc.) and sharing infrastructure and facilities, including in-building networks. This should also include other types of utility infrastructure where possible
  • Providing financial assistance through investment support, incentives, and subsidies; e.g., universal service funds
  • Improving access to telecom facilities and physical infrastructure; improving procedures for rights of way and accessing public infrastructure, as well as broadband mapping.
Making the Recommendations a Reality

Operators, enterprises, vendors, regulators, and policy-makers should seek to create a collective voice, to evangelize, advocate, co-create, and partner in the drive toward the provision of ultra-broadband networks and services for all. Organizations such as the WBBA can help by influencing key stakeholders through discussion, education, and promotion. Specifically, the WBBA should aim to:

  • Set out the importance of greater broadband investment, not just for the good of the service provider but for countries as a whole
  • Promote regulatory, legislative, public relations agendas that help advance the interests of members through WBBA publications and live events, highlighting best-practice business models from around the world to remove any “lack of understanding at boardroom level”
  • Influence through research, discussion, and promotion of new potential marketing or naming concepts for fixed broadband to ease mass-market understanding of the different generations of broadband access – hiding technical jargon such as “Mbps,” “latency,” and “jitter” from the customer
  • Through thought leadership, media activity, and live events, continue to make the case for what governments need to recognize and do to close the industry innovation, socioeconomic, and environmental benefit gaps through infrastructure investment
  • Explore through new research the challenges and opportunities arising from changes in the industry structure, addressing its impact on the business and the standardization landscape. This includes aspects of fiber wholesale, the move toward horizontal industry structure with separation of infrastructure and services, and the change of customer relationship to digital
  • Work with stakeholder partners to understand and promote the potential of future applications that will bring new benefits to broadband customers and wider society
  • Develop in-depth thought-leadership research on the new revenue opportunities advanced networks can provide to service providers in both the consumer and enterprise markets
  • Develop and highlight best-practice investment models that show the true return on investment of a full-fiber rollout to both private companies and government organizations
  • Champion the needs of its members to highlight barriers to future investment, creating a platform to enable open discussion between different types of stakeholder to encourage greater cooperation and new partnerships.
Martin Creaner
Director General of the World Broadband Association

Martin Creaner is one of the leading strategic thinkers in the global communications industry with a successful career as an executive with Motorola and British Telecom, as well as over a decade as President and CEO of the TM Forum.

Martin currently advises the boards of a number of companies in the communications and high tech industries, ranging from up-and-coming digital economy companies, to market leaders.

Martin has been named among the 25 Most Influential People in Telecom Software by Billing World and has twice been named as one of Global Telecoms Business’ Top 100. Martin holds a Master of Business Administration from Cranfield University, Cranfield School of Management; a Master of Science in Telecommunications from the University of East Anglia; and Bachelor’s degrees in Engineering and Physics from Dublin City University and the University College Dublin, respectively.

Martin is also a recognized thought-leader on digital transformation and the trends of the emerging digital economy. His most recent book “Transforming the Telco” explains the opportunities and challenges that digital transformation presents and outlines how the Telco might navigate this difficult process.

Previous books include “Delivering the Digital Economy”, which outlines the dynamics of the digital economy, and “Frameworx Distilled” & “NGOSS Distilled”, which provide a detailed guidebook to the standards that underpin the Telecom software industry.

Martin was appointed unanimously to the role of Director General by WBBA members.

Martin lives in Cork, Ireland.

Li Zhengmao
Doctor of Engineering, Professor, WBBA Board Chairman

Li Zhengmao, Doctor of Engineering, Professor. He was awarded the title of “Chinese Doctors with Outstanding Contribution” by the Academic Degrees Committee of the State Council & the former State Education Commission, and granted the China Youth Science and Technology Award by the China Association for Science and Technology, and the 2017 Distinguished Industry Leader Award by IEEE; he was inducted into the 2020 IPv6 Internet Hall of Fame and enjoyed special government allowances.

Li served as Vice-Chairman of China Institute of Communications, Vice President of Internet Society of China, Vice-Chairman of the Association of Communications Across the Taiwan Straits, Vice-Chairman of All-China Environment Federation, Board member of GSM Association (GSMA), Board Director of Next Generation Mobile Networks (NGMN) Alliance, Executive Director of Global TD-LTE Initiative (GTI), Vice President of China United Communications Corporation Limited, Vice President of China Mobile Communications Corporation Limited, and President of China Telecommunications Corporation Limited.