What exactly is “cloud-network integration”?

Hello everyone, today I would like to talk to you about a hot topic - "cloud-network integration".

In recent years, with the rapid development of cloud computing and the full launch of 5G construction, the four words "cloud-network integration" have frequently appeared in front of us, attracting the attention of many people.

This year, the country has taken new infrastructure as its strategic development direction, and cloud-network integration has been elevated to a higher level, attracting more attention.

So, what exactly is cloud-network integration? What is the relationship between cloud-network integration and new digital infrastructure? What does cloud-network integration mean for our communications industry?

Next, let’s find the answer together.

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What is Cloud-Network Convergence?

The so-called "cloud-network integration" refers to cloud computing and network as communication network.

To be precise, cloud computing includes computing power, storage capacity, and related software and hardware, while the communication network includes all aspects of the telecommunications network, including the access network, bearer network, and core network.

In essence, cloud is computing and network is connection. From the perspective of corporate entities, cloud is cloud service providers (Amazon, Google, Alibaba, Tencent) and network is telecom operators (China Mobile, China Telecom, China Unicom).

From a technical perspective, cloud-network integration refers to the introduction of network technology into cloud computing and cloud computing technology into communication networks.

From the perspective of the industry, IT companies and communications companies are fighting each other and stealing jobs.

Xiaozaojun personally believes that although cloud-network integration seems to be fair competition and equal integration between the two sides, in fact, the cloud is stronger and the network is weaker, and the network is being infiltrated by the cloud. In other words, the network is gradually becoming cloud-based.

From the perspective of our traditional communications, the term cloud-network integration is a more euphemistic expression that can more or less save our face.

What is Network Cloudification?

So, how should we understand network cloudification?

Core network students have already raised their hands enthusiastically. Yes, that's right, the 5G core network is the most typical representative of network cloudification and the most thorough example of cloud-network integration.

As the core functional entity of the communication network, the core network has no proprietary hardware at all and is completely based on x86 general-purpose server hardware. If you only look at the appearance, you would not know it is a 5G core network.

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5G core network equipment

All services of the 5G core network are built on virtual machines and containers. Virtual machines and containers are all technologies from cloud computing. Containers are one of the cloud-native technologies.

Core Network Virtualization (NFV)

The core network has been fully cloudified, followed closely by the bearer network.

The bearer network has introduced SDN (software defined network) technology, which has split all routers and divided their functions into two halves.

SDN Architecture

The router is reduced to a simple forwarding node. Its management and control functions are stripped away and all are concentrated in the SDN controller.

Virtualization technology can also be introduced to build the SDN controller on the cloud platform to provide interface services to upper-level users.

The last access network also could not escape the disaster.

5G access network AAU, DU, CU, except AAU, DU and CU can all be built on a virtualized platform. In other words, everything can be cloudified.

5G Base Station

Sooner or later, all components of the mobile communication network, except for the RF antenna board, will be cloud-based.

The full cloudification of communication equipment makes communication equipment manufacturers tremble, but for operators, it is welcome. After all, open source equipment can further reduce the price of centralized procurement and network construction costs.

However, if operators think that cloud-network integration is a good thing, it would be a bit naive.

For operators, cloud is a double-edged sword that makes people love and hate it.

Yes, on the one hand, cloud computing can reduce equipment costs, and on the other hand, cloud computing can bring new businesses and new revenue growth points.

In recent years, the market size of cloud computing has increased year by year. From large enterprises to small and medium-sized enterprises, all are moving to the cloud and migrating their IT systems and business platforms to the cloud.

Compared with broadband networks or mobile networks such as 4G/5G, cloud computing as an infrastructure has a faster return on investment and a higher rate of return.

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Cloud Computing Center

What is the hate?

Operators hate their own inadequate cloud capabilities. Faced with a huge market pie, operators with inherent resource advantages simply cannot compete with private technology companies such as Alibaba and Tencent.

At first, following the routine of communication network construction, operators pulled Huawei to "cooperate" in building clouds. The so-called cooperation basically means that Huawei provides technology and operators provide markets and channels.

As a result, after a few years of operation, they found that the results were not satisfactory and the gap was getting bigger and bigger. Huawei saw that the situation was not right and ran to start a new business.

Seeing that they couldn’t get a piece of the pie, some operators chose to give up, while others chose to persist, eventually leading to the current situation.

In fact, for operators, cloud computing cannot be abandoned.

There are two reasons for this. First, in the future, without the support of the cloud, the Internet will be more difficult to sell.

The operator market is divided into two parts: one is the C-end, which is our ordinary mobile phone users, and the other is the B-end, which is government and enterprise users.

In the B-end market, operators used to be accustomed to selling dedicated lines, and it can be said that they made money without doing anything.

However, with the arrival of 5G, what the industry market needs is scenario applications and overall solutions centered around the cloud and the network, not just a single network.

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The cloud and the Internet are like a pot and its lid. Without the cloud, it is difficult to sell the Internet.

Today's government and enterprise users actually need both cloud (cloud computing, cloud storage) and network (dedicated line). Originally, it was a good thing for operators to rely on the advantages of the network and sell them together with the cloud.

As a result, their own cloud was not strong enough, and neither was their marketing department, so they ruined a good hand.

On the contrary, the rise of new technologies such as SD-WAN (Software Defined Wide Area Network) has snatched away the existing cake of operators' dedicated lines, making the situation of operators more passive.

The second reason why operators cannot give up cloud computing is their own demand for cloud computing services.

In other words, operators themselves are also users of the cloud.

The operators currently manage the operation and maintenance networks of communication function network elements, including OSS (operation support system), BSS (business support system), MSS (management support system), etc., which seem powerful, but in fact many of them are fragmented. They are fragmented between provinces, and between access networks and bearer networks, making it impossible to achieve unified scheduling and management.

Without the support of a unified platform, new services will be launched slowly, customer services will be activated slowly, and service guarantees will also be affected.

The best way to solve the problem is to connect various platforms, eliminate the chimney effect, and build all services on the cloud.

If the status quo is maintained, it will mean huge cost investment and missed business opportunities, which will be unbearable in the fierce market competition in the future.

Therefore, although it is difficult, operators have no way back on the cloud path.

How does the cloud view the Internet?

Previously we looked at the cloud from the perspective of the network. Next, we will look at the network from the perspective of the cloud.

The situation is very favorable for cloud service providers represented by Amazon, Microsoft, Google, Alibaba, Tencent, and Huawei.

These companies have an absolute advantage in cloud technology, and many of them have developed their own cloud technology. As time goes by, the technological advantages will become more and more obvious, and the entry threshold of the industry will become higher and higher. It will be impossible for new people to join in the future.

For cloud service providers, the Internet is a tool to improve their service capabilities and quality.

The core asset of cloud service providers is DC (Data Center). They will try every means to improve the network capabilities within the data center, the network capabilities between data centers, and the network capabilities between data centers and users.

Therefore, SD-WAN, the currently popular DCI (Data Center Interconnection), and the most critical 400G optical module in the optical transmission network are all network technologies that cloud service providers are very concerned about.

400G optical module technology demonstrated by Alibaba

Although cloud service providers are strong in technology, they are weak in one area: resources. This is particularly evident in the field of edge computing.

Edge computing is actually a branch of cloud computing. It is the process of removing some computing power from cloud computing and moving it closer to users.

Who is closest to the user? Of course, the network. The network extends all the way to the user and is the role closest to the user.

Edge computing can be deployed in prefecture-level cities, county-level cities, residential areas, buildings, and even at your doorstep.

In the base station room, you can put a small x86 server rack, which is an edge computing node. In the fiber-optic broadband modem, adding an edge computing chip or subcard is also an edge computing node.

If cloud service providers want to enter this field, they must rely on operators, obtain operators' permission, or cooperate with operators in exchange for communication network resources.

The large amount of basic site space resources of operators is what cloud service providers dream of. This is an advantage for operators. If they can make good use of this advantage, there will be a huge market space in the future.

Okay, I have said so much, let me summarize it at the end.

The ultimate goal of cloud-network integration is to have the network in the cloud and the cloud in the network. But in reality, the final result is likely to be that the cloud merges with the network. This is an irreversible trend.

At present, it is a long process to reach the final goal, which requires both the continuous improvement of cloud capabilities and the continuous transformation of network resources. In the short term, cloud-network collaboration should be achieved first, and then true cloud-network integration will be achieved when the time is right.

For communications people, how to find their new position in this wave is a question worth pondering.