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HP Helps Telcos Deploy New Offerings in Minutes, Rather Than Months, With Network Functions Virtualization

HP's Open Architecture, Ecosystem and Lab Accelerate Time to Market and Help Drive New Revenue

BARCELONA, SPAIN -- (Marketwired) -- 02/24/14 -- HP (NYSE: HPQ) today introduced OpenNFV, a comprehensive Network Functions Virtualization (NFV) program designed to help the telecommunications industry accelerate innovation and launch new services faster, easier and with less expense through the virtualization of telecommunications core networks and network functions.

The telecommunications industry is facing competitive pressure from over-the-top (OTT) players who are more agile, flexible and able to roll out revenue-generating services and appliances much faster than the communications service providers (CSPs). Additionally, CSPs are faced with the rapid growth of rich media applications, which is slowing voice revenue and exploding network traffic.

"NFV represents one of the most significant shifts the telecommunications industry has experienced in 20 years," said Martin Fink, executive vice president and chief technology officer, HP. "HP's OpenNFV Program combines HP's technology leadership with a strong partner ecosystem to enable our customers to leverage new market opportunities faster while managing spiraling costs."

According to Ovum, OTT social messaging applications cost CSPs $32.5 billion in lost SMS revenues in 2013, which is predicted to reach $54 billion by 2016.(1) Additionally, in 2018, OTT VoIP providers will have cost the global telecoms industry $63 billion in lost revenues.(2)

The HP OpenNFV Program enables CSPs to accelerate time to market and drive new revenue. Prior to adopting NFV, CSPs managed cumbersome, individual network hardware appliances. With HP OpenNFV, they can leverage commercial off-the-shelf hardware with virtualization to test and deploy new offerings in minutes rather than months,(3) opening the door for CSPs to be the industry innovators.

To fuel this adoption, HP has dedicated Bethany Mayer, currently senior vice president and general manager, HP Networking, to assume responsibility for leading HP's NFV strategy. Mayer was chosen based on her experience working across HP, her start-up experience and her deep knowledge in the networking space.

This companywide effort leverages the breadth and depth of HP's innovation portfolio to launch an open standards-based NFV Reference Architecture, HP OpenNFV Labs, and a partner ecosystem of best-in-class NFV applications and services. HP also brings more than 30 years of telco-specific experience, along with more than 5,000 telco professionals to this new offering, ensuring that carriers have a tried and tested partner supporting them on their NFV journey.

"HP has been a key partner in BT's research and industry collaboration on NFV over the past two years," said Peter Willis, chief data networks strategist, BT. "HP has contributed technical resources, technologies and lab facilities to enable a range of proofs of concept, including: content delivery network, Wi-Fi IPsec termination, virtualized customer premises equipment and routers. The activities have been executed in an open, collaborative forum with other technology partners and have delivered valuable results to BT and the industry."

Accelerating industry transition to NFV
At the heart of the HP OpenNFV Program is the HP OpenNFV Reference Architecture (NFV RA), which provides a complete architectural ecosystem covering physical servers, storage and networking, virtualization, controllers for software-defined networking (SDN), resource management and orchestration, analytics, telco applications, and a complete operations support system (OSS).

"An open ecosystem that accelerates testing, integration and, ultimately, innovation is what will enable CSPs to better compete and address new revenue opportunities for value-added virtualized service and application-based offerings," said Nav Chander, analyst and research manager, IDC. "HP's approach to partnering, labs and their experience in IT-based cost models, is one that will accelerate CSPs transition to NFV."

The HP NFV RA is based on open standards, and brings a set of HP's industry-standard products and capabilities to easily build and deploy the architecture.

The HP NFV RA incorporates the HP Virtual Services Router, which is designed to support various virtualized appliances such as multitenant hosted public clouds and virtualized branch Customer Premise Equipment deployments. The HP NFV RA also incorporates SDN capabilities to complement NFV, including the HP Virtual Application Networks, SDN Controller and HP Open SDN Ecosystem.

These combined solutions offer CSPs a ready-to-be-deployed architecture that can enable the transformation from legacy networks to NFV- and SDN-enabled infrastructure. Working together, SDN and NFV can provide synergies for creating a complete ecosystem that can help CSPs become more agile, innovative and competitive.

Fueling ecosystem innovation
NFV-based applications will create new opportunities for CSPs while opening new markets for independent software vendors (ISVs). To fuel this innovation, HP plans to establish the HP OpenNFV Labs and an HP OpenNFV Partner Program, the industry's first effort to systematically assemble a multivendor portfolio that can test, validate and manage the coexistence of network applications.

"In the environments we work in, it's key that we have agility and flexibility in what we offer our customers," said Roy Kaser, chief technology officer and vice president, IP Platforms, Alcatel Lucent. "We partnered with HP because they are a leader in both open systems and in virtualization, which is an important strategy for us going forward. We can rely on HP for their expertise in NFV and in x86 technology, which enables us to free up R&D investment dollars to focus more on innovative software technology."

HP's partner ecosystem gives application partners a broad choice of NFV-specific environments to quickly onboard their specific applications and reduce deployment time. Current efforts with HP partners include developing proofs of concept for turnkey NFV deployments, including infrastructure as a service, virtual network platform as a service and core network virtualization.

"HP's OpenNFV program and architecture is perfectly aligned to NSN's recently announced Telco Cloud strategy," said Michael Clever, senior vice president, Core Cluster, NSN. "NSN and HP have been business partners for over 20 years, and we are delighted that this partnership is extended to a deeper level addressing commercial readiness of the Telco Cloud. Operators can benefit from HP's leadership position in IT platform technologies and solutions and NSN's excellence in virtualized NFV applications, together with tailored expert services from both NSN and HP."

Supporting the NFV rollout
The HP OpenNFV Program encompasses carrier-grade solutions for ISVs and network equipment providers (NEPs) to increase agility and simplify network management. It enables the reuse of a shared pool of infrastructure resources, while allowing CSPs to quickly integrate new applications and services, meeting demands without a long network appliance procurement process.

Several updated telco applications and offerings are being launched as part of the HP OpenNFV Program, including:

  • HP NFV Director provides NFV orchestration and an embedded virtualized network functions manager.
  • HP Virtual Home Subscriber Server allows operators to scale and manage their subscribers' identities across multiple networks.
  • HP Multimedia Services Environment consolidates operators' network applications on a common infrastructure and seamlessly launches new multimedia applications for customers.
  • HP Virtual Content Delivery Network Software handles the physical delivery of media assets to the end user for any content-based internet service.
  • NFV Consulting Services, provided by HP Enterprise Services and HP Technology Services, help CSPs assess the opportunities, risks and business case associated with the emerging drive of NFV functionality.
  • HP Financial Services enable on-demand infrastructure by providing asset management capabilities for customers.

HP at Mobile World Congress
HP is exhibiting its OpenNFV Program solutions featuring proof-of-concept demonstrations at Mobile World Congress, Feb. 24-27, at the Fira Gran Via in Barcelona, Spain, hall 3 stand 3A20.

Demonstrations include a comprehensive set of use cases defined by ETSI NFV ISG such as HP NFV Infrastructure as a Service, HP Virtual Network Function as a Service, HP Virtual Network Platform as a Service, virtualization of a mobile core network, HP Virtualized Content Delivery Network Orchestration and virtualization of a mobile base station.

Pricing and availability
HP OpenNFV Program is available worldwide. Pricing varies depending on client need and customization.

The HP OpenNFV Labs will be located in existing HP facilities around the world, with a scheduled open date in early spring. Information about how interested NEPs, ISVs, original equipment manufacturers, CSPs and carriers can learn how to participate is available here.

HP's premier America's client event, HP Discover, takes place June 10-12 in Las Vegas.

About HP
HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. With the broadest technology portfolio spanning printing, personal systems, software, services and IT infrastructure, HP delivers solutions for customers' most complex challenges in every region of the world. More information about HP is available at http://www.hp.com.

(1) "Counteracting the Social Messaging Threat," Ovum, July 2012.
(2) "Consumer OTT VoIP Outlook 20013-18," Ovum, November 2013
(3) Based on an HP customer POC, the HP virtual Home Subscriber Server (HSS) platform has demonstrated to be deployable in 16 minutes vs. six months for traditional physical HSS deployments.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance, market share or competitive performance relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy and plans for future operations; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers, clients and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2013, and that are otherwise described or updated from time to time in HP's Securities and Exchange Commission reports. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

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