ericsson.

com/
5g-core

Dual-mode
5G Cloud Core:
TCO benefits

The total cost of ownership

benefits of Ericsson‘s solution

TCO for dual-mode 5G Cloud Core report

June 2019
2 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits

Introduction

No journey to a future core will be alike. All communications

03 Unpacking the advantages
of Ericsson’s dual-mode 5G
service providers will have different needs, strategies and
Cloud Core solution priorities. But for all options, a holistic view on costs is key.
05 One platform for all EPC
and 5GC functionalities

06 Cloud native and microservices:
the future of smarter applications
07 Enhanced automation enables
simplified maintenance
09 High user plane performance
and scalability
10 5G peak rates up to 20Gbps per UE
11 More efficient allocation and control
of network resources
12 Significant configuration savings
Throughout all critical shifts in technology,
communications service providers (CSPs)
will share one key challenge: the need to
manage total cost of ownership (TCO).
During the period of migration, new
and existing systems need to co-exist side
by side in an effective way for many years,
while at the same time efficiencies need
to be improved in order to capture new
business opportunities.
A perilous journey
As seen in Figure 1, there is a lot to consider
on the journey towards a future core
network. On top of this, different carriers
may have different priorities, or even be
taking different approaches to overcoming
the various challenges. Managing capex
and opex is becoming more important
than ever, but CSPs also need to find new
growth opportunities and balance effective
management with network evolution.
Ericsson’s dual-mode 5G Cloud Core
solution sets out to address the various
journeys that today’s CSPs have already
embarked upon, in order to effectively
meet their shared needs.
As we saw with 4G, there is a definite
advantage to winning the race for new
technology. Everyone wants to be the first
to deliver 5G, and the first to leverage it to
the market. But the migration from 4G to 5G
will not be easy. To transition smoothly and
reap the benefits, the industry needs to be
prepared to completely reinvent traditional
ways of working.
Ericsson has applied 140 years’
experience in technological shifts, strong
global relationships and long-lasting
customer experiences to an innovative new
solution which enables CSPs to manage
migration in an effective and cost-efficient
way, at a speed that suits them.
Let us begin analysing this approach
to core design by more closely examining
each of its key elements, and how they
were originally named.

Figure 1: Service providers’ challenges on the path to 5G

Be first Protect early Manage traffic Improve network

with 5G investments growth needs efficiency
Capex
efficiency

Existing
Future
Core Core
network Opex
network efficiency

Support 5G Simplify Capture new Open up network

and legacy operations 5G business capabilities to
networks opportunities business partners Revenue
growth
3 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits

Unpacking the advantages

of Ericsson’s dual-mode
5G Cloud Core solution

The introduction of 5G opens up a new world

of opportunities, but also presents challenges.
New value can be created and captured, but
not without changing the way CSPs work.

Cloud native deployment Figure 2: Dual-mode 5G Cloud Core

Ericsson’s dual-mode 5G Cloud Core solution
delivers cloud native applications that
Cloud Core Data-Storage Manager Data layer
support EPC and 5GC 3GPP architectures.
The main areas where cloud native
implementation principles bring benefits
to CSPs, their customers and their vendors
Cloud Core Cloud Core Cloud Core Cloud Core
are speed, scale, efficient operations and Resource Subscription Policy Exposure
performance enhancements. Controller Manager Controller Server
The decomposition of software into
microservices facilitates a fast, low-cost
SBA interface
method of introducing new services on a
small scale. At the same time, it supports Packet Core Controller Control plane
easy and effective scaling of services from
hundreds of users to millions. This enables
CSPs to address new business opportunities
or pursue those that have been difficult to NR SA
address until now. LTE/NR NSA
LTE
GSM/W CD MA Packet Core Gateway User plane
5G Core with SBA
We are implementing Service Based
Architecture (SBA), which is the new
standard from 3GPP (Release 15) allowing,
among other things, to connect the new
5G Radio (NR) in a Standalone (SA) fashion
to the Core. With SBA, a new software
architecture based on IT principles is
introduced, allowing for faster service
creation. This architecture is also the
base for the evolution of all future
3GPP core standards.

Cloud native principles will improve efficiency and performance

4 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits

Dual-mode platform
Our implementation of cloud native and SBA
By leveraging innovative platforms, frameworks and architecture, the Ericsson
means that we have created one operational
dual-mode 5G Cloud Core solution can significantly improve TCO in future Core
platform for both EPC and the new 5GC.
networks by enabling previously unseen benefits to be realized in unique ways.
This makes things much more streamlined
by letting each CSP migrate towards 5GC
The result is the Core network capex and opex can be significantly reduced, user plane
either at the pace that the market demands,
footprint can be greatly mitigated and substantial cost savings can be seen on new
or according to a chosen strategy, or both.
network integration.
We’ll next dig deeper into each of the
individual TCO benefits, by exploring specific
examples of how each benefit works and
what exciting new capabilities it enables. For more information about dual-mode 5G Cloud Core,
read our Solution Description paper by clicking here.

Figure 3: Cost reduction opportunities with dual-mode

5G Cloud Core to be explored throughout this report

5G peak rates up to
Up to 20 percent savings Up to 15 percent savings in
20Gbps per UE
in infrastructure database infrastructure
avoiding over-dimensioning
with dual-mode cloud with flexible data storage, consequent
of user plane footprint,
native operations footprint and software efficiency
typically up to 30 percent

80 percent opex savings in

Cost reduction (Core network 30 percent less user plane footprint configuration of policies
capex and opex savings) with efficient service chaining when using a common
policy configuration tool

Up to 35 percent opex reduction and

Up to 90 percent reduced opex
Up to 75 percent cost savings in 15 percent infrastructure saving
for software upgrades
network integration with cloud native
with Ericsson CI/CD and cloud
when expanding with new NFs when bundling different
native applications
NFs in one VNF
5 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits

One platform for all EPC

and 5GC functionalities

Dual-mode cloud native operations can save up to 20 percent of capex in Core

network infrastructure. Ericsson 5GC introduces dynamic resource usage and
dynamic auto-scaling to the Core network, supercharging cloud native operations.

With dual-mode 5G Cloud Core, one NF can Figure 4: Dual-mode core – dynamic resource usage
handle both LTE/EPC and NR/5GC traffic
simultaneously. This eliminates the need
5GC Network Function EPC Network Function
to have two separate NFs – one for EPC
and one for 5GC – working separately
(e.g. 40 percent EPC and 60 percent 5GC).
In the event of a traffic fluctuation in Cloud Core Data-Storage Manager
EPC and/or 5GC due to new services, new
UDR
device capabilities, or mobility between
UDSF Data layer
LTE and NR coverage (e.g. 20 percent),
operators will need to over-dimension both
EPC and 5GC NFs to their peak busy hour
to manage. However, this will always vary
for different networks, therefore a detailed
analysis will be required. Cloud Core Cloud Core Cloud Core Cloud Core
F
With Ericsson’s solution, however, Resource Controller Subscription Manager Policy Controller Exposure Server
things are quite different. Thanks to its NSSF NRF UDM AUSF PCF NEF
dual-mode capability and common cloud
EPC NSSF HSS 5G-EIR PCRF SCEF
native design, our Core can automatically
rebalance the capacity of EPC and 5GC NFs
SBA architecture
within the Virtual Network Function (VNF) Packet Core Controller
without the need for extra capacity in
either domain. TDF-C AMF SMF SMSF
Put into figures, this means that a SGSN MME SGW-C PGW-C Control plane
fluctuation of +/- 20 percent can result in a
saving of 20 percent in network infrastructure
resources, with the additional consequence
of a 20 percent capex reduction.

Packet Core Gateway

NR SA
LTE/NR NSA
LTE TDF-U UPF SGW-U PGW-U
GSM/WCDMA User plane
6 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits
Cloud native and microservices:
the future of smarter applications
Combining different NFs into a single VNF bundle could
see up to 15 percent capex and 35 percent opex
savings in the Core network.
As our solution’s cloud native architecture
is based on microservices, it has the unique
capability to bundle multiple NFs into
one single VNF bundle in a flexible and
optimized way. Due to this, it is possible
to share common microservices across
different NFs with consequent capex
reduction in the bundled VNF.
Figure 5: VNF infrastructure savings thanks to bundling
Resource Controller
without bundling
NRF NSSF
Up to 35 percent opex savings can be achieved in Core
networks when bundling different NFs into one VNF.
The capability to bundle different NFs
together within one single VNF bundle, as
described earlier, can also create significant
advantages in the Core network’s operation
and maintenance, with consequent
opex reduction.
One key benefit is driven by the fact
that up to 22 percent of mutual operations
between different NFs triggered by most
5G test cases tend to occur within the
bundle. This means that by leveraging on
pre-integration tests it is possible to skip
1
These numbers can change significantly based on the various kinds of bundling used
In the example in Figure 5, we have
compared two scenarios – one that takes
this bundling approach and one that does
not – addressing the Resource Control area
in 5GC (NRF and NSSF NFs).
Resource Controller
with bundling
NRF
mid-integration test activities between NFs
within a bundled VNF. If we consider that,
in Ericsson‘s experience, integration testing
activities in 5GC typically make up around
70 percent of a total integration effort,
we can easily deduct an opex saving of
15 percent from the overall effort expelled.
A second significant benefit materializes
thanks to the new possibilities enabled
by Ericsson’s solution. One of these is
the ability to unify certain key life cycle
management activities (e.g. configuration,
The sharing of common microservices in
the bundled scenario allows for savings of
14 percent on virtual central processing
units (CPU), 32 percent on memory and
21 percent on disk capacity.1 Total capex
savings driven by this at VNF level are
estimated at around 15 percent.
Cloud Core Resource
Controller (CCRC)
NSSF
Common
microservices
troubleshooting and software upgrades)
toward the different NFs inside the bundle.
Our research estimates that 35 percent
of staff hours usually dedicated to integration
activities can be saved thanks to this unified
operation and maintenance (O&M). This
approximation is based on a 5GC scenario
where the 25 main NFs are bundled in 5GC
within 7 different VNFs, as seen in Figure 5.
7 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits

Enhanced automation enables

simplified maintenance

Up to 90 percent of software upgrades related

to opex can be saved with CI/CD (ISSU).

Today, a typical upgrade can take anywhere Figure 6: Up to 90 percent reduced opex for software upgrades with Ericsson‘s
from 80 to 400 hours/VNF to complete. continuous integration and continuous delivery (CI/CD) and cloud native applications
Evidently, this represents a massive variation
in timescales, which mainly depend on
the level of testing the operator chooses Continuous Software Software
to undertake before the solution goes live, releases distribution upgrades
balanced with the level of automation that
their PNF/VNF currently supports.
In comparison, Ericsson’s
Acceptance
microservice-based cloud native software Service
Ericsson tests
enables operators to automate this process. provider
By doing so, we calculate that savings of up
to 90 percent (in terms of reduced opex)
can be achieved via our software upgrades. Dev. team Feedback Data
Our research tells us that a typical collection
upgrade time of 100 hours/VNF can be
reduced to just 10 hours – and conducted in
just 1 working day – by focusing on network
impact review and automatic canary testing
processes at the same time, and performing Figure 7: In-service SW upgrade (ISSU) with canary testing enabled by cloud native
manual KPIs and back-up restoring
activities while these reviews take place.
Nevertheless, this level of efficiency can
only be accomplished if CSPs are prepared μService A μService B Before
to change their ways of working within Version x.0 Version y.z

carriers and wait for such TCO benefits

to mature over time. Fallback

μService A μService B During

Version x.1 Version y.z

90%
Along with enhanced simplification,
90 percent savings on software μService A μService B After
upgrades can be achieved. Version x.1 Version y.z
8 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits

Up to 75 percent savings in integration costs

can be seen when introducing new NFs.

In traditional Core networks, all the
activities involved in integrating a new NF,
such as HSS-Front End, must be carefully
orchestrated so as not to disrupt vital
interfaces (e.g. Cx, Sh, S6a, Ud, MAP) or
protocols (e.g. LDAP/SOAP, Diameter, MAP).
They must also not disrupt the various
intricate ways in which these interfaces and
protocols interact with surrounding nodes
or domains (e.g. UDB, HLR/AUC, EPC, IMS).
CSPs need to take great care to ensure
that any integration activities are always
properly tested and reconfigured, which
can be challenging and time-consuming.
If we compare this scenario with a
similar one seen in 5GC, using the
Network Resource Function (NRF) and
SBA, the integration of a new NF involves
very few interfaces (e.g. Nudm and Nausf
for UDM/AUSF), only one surrounding node
(just the NRF) and just one integration
protocol (REST). Our estimations show that
this kind of simplification can result in an
opex reduction of 75 percent in terms of
staff hours spent on the integration activity.

Figure 8: Common control of NF resources for system integration savings

4G scenario (EPC): vHSS-FE integrated 5G Core scenario: UDM and AUSF 5G NFs integrated into an
into a vUDC solution based on Ericsson NFVI existing cloud native 5G Core with SBA

CUDB EPC IMS SCEF HLR/AUC NRF NSSF PCF UDR UDSF

SBA

DSC SLF DNS

UDM AUSF SMF AMF

LDAP/SOAP Diameter MAP

Key activities for network integration of a new NF

HSS Integration interfaces toward different Core NFs
Integration test of protocols to be handled for communication between NFs
Configuration activities to be done in the
existing peer NFs to introduce the new NF
Configuration activities in other signalling and
network configuration nodes to introduce the new NF
Configuration activities related to the new NF to be integrated in the network
9 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits
High user plane performance
and scalability
Up to 30 percent capex savings in user plane infrastructure
can be achieved with more efficient service chaining.
Today, there are several added value service
functions (SFs) that are traditionally placed
after the gateway. These cover functionality
ranging from traffic optimization and
content optimization to, for example,
security, NAT and Firewall.
As routers, load balancers are neither
subscriber nor service aware, making
it challenging to steer traffic just to the
SFs required by a specific use case. In
a worst-case scenario, all flows will be
sent to all SFs, even if only a fraction
of the traffic is using the service.
Service chaining with External SF
For existing SFs, the Packet Core Gateway
(PCG) provides built-in service chaining,
orchestrating traffic through the different
SFs. The service logic and built-in load
balancers then steer and distribute the
traffic, coordinating the uplink and downlink
sessions, while also monitoring the SFs
to ensure they are up and running.
In the case of an SF failure, failover
Figure 9: Service chaining saves footprint and integration costs
SFs are usually added after the gateway,
alongside LAN equipment
– All traffic routed to SFs
– Requires external LAN/extra footprint
External service chaining only
steers required traffic flows
– Removes need for external balancers/routers
– Reduces SF footprint
Internal service chaining for Ericsson and 3PP Value
Added Services, enabling flexible function selection
– 40 percent less integration costs
– 30 percent less footprint
mechanisms will redirect the traffic.
With integrated Service Chaining, PCG
provides on average a 30 percent footprint
reduction compared to traditional
Gi-LAN deployments. There is no need
to deploy load balancers or routers.
Integrated Service Chaining is service
and subscriber aware, meaning that
it steers traffic to integrated SFs only
when needed by that specific use case.
Service chaining with Tight Integration
A framework is also provided for 3PP
SFs to be integrated within the PCG.
This means lower opex through minimizing
integration points and reducing the number
of entities needed to manage operations.
Tight Integration does not put undue
requirements on Cloud Infrastructure, nor
on SFs. This architecture, based on cloud
native principles, enables SFs to have
an independent life cycle.
Today, it is difficult to optimize footprint
when SFs are deployed in the same host.
PCG
SF1 SF2
Service chaining logic
PCG
SF1 SF2
Service chaining logic
PCG
Each SF requires independent CPU and
memory allocation. Therefore, they cannot
share resources in instances where one is
overloaded but the others, in the same host,
have available resources.
The PCG approach creates a host level
complete user plane, which is ideal for
distribution and scaling. Communication
between the different functions happens
in the user space without using up IO
resources. PCG maximizes vCPU and
memory utilization, as SFs can scale up or
down dynamically, taking or releasing vCPU
and memory when needed. This solution
also provides fast time-to-market and
short latency, as all SFs share a single IO
interworking with Cloud Infrastructure.
Since the PCG gets session and
subscription data from Packet Core Controller
and conveys that information internally, this
also reduces the opex cost for integrating
several Gi-LAN SFs with the control plane.
SF1 SF2
Load balancers, routers
10
5G peak rates up to
20Gbps per UE
Peak rates of 20/10Gbps (DL/UL) per UE are
possible thanks to Ericsson’s unique solution.
5G NR provides individual high throughput
reaching around 20/10Gbps for a single
user. Typically, enforcement of DPI, charging
and QoS require that all flows belonging to
the user run on the same CPU. Therefore,
the support of very high throughput will
usually require an over-dimensioning in
the user plane (typically of anywhere up to
30 percent) to ensure there is enough space
available in the CPU, where the high peak
user ends up.
However, Ericsson’s unique solution,
which includes some patents, allows
operators to use all available CPU in the
user plane host to handle user IP flows,
whilst at the same time enforcing DPI,
Figure 10: A high-performance user plane meeting 5G demands
Bursty High capacity and
network load traffic spraying
+ PCG
SF1
Service chaining logic
PCG
Only the Value Added Service flows requiring certain SFs
are routed to these, resulting in zero need for packet copying
Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits
charging and QoS. Crucially, this means that
no special over-dimensioning is required.
Our solution also provides a smooth
traffic distribution among all CPUs,
avoiding any peaks that might increase
latency or jitter. In addition, our user plane
was measured to be processing 193Gbps
subscriber traffic on a standard dual-socket
x86 server (Skylake), with a scalable user
plane implementation capable of leveraging
the complete set of Cores available in the
latest CPU generations. This number applies
to non-DPI traffic and can also be applied to
fixed wireless access, assuming a capacity
of 2x100GE NIC in the servers.
Figure 11: 5G peak rates up to 20Gbps per UE
avoiding over-dimensioning of user plane footprint
Mobile broadband background load A peak rate user
20/10Gbps
DL/UL per UE
20 cores and 10 flows are examples only
Software with no support for high UE peak rate
= Users are distributed over available cores
Gbps
100%
80%
X Gbps
#Cores
SF2 1 20
Software with support for high UE peak rate
Flows are uniformly distributed over available cores
Gbps
100%
80%
X Gbps
#Cores
1 20
11 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits

More efficient allocation and

control of network resources

Flexible data storage enables up to 15 percent

capex savings in database infrastructure.

Ericsson’s dual-mode 5G Cloud Core Picture a traditional 4G EPC scenario A similar situation in a 5GC would greatly
solution is capable of allocating data with three different network slices: benefit from the flexible allocation of data
storage resources across multiple slices 1. Addressing mobile broadband storage, which would be capable of offering
in incredibly flexible ways. This capability (MBB) services a much more granular distribution of data
enables an optimization of the total 2. Addressing Massive IoT services, storage resources, based on the unique
database capacity in the network, in each towards 10 different enterprises needs of different enterprises. For example,
instances where there are various slices, 3. In this scenario, each of these we might see the following scenario:
each featuring different kinds of data big network slices would have a –– The MBB slice could contain three
storage services (e.g. data isolation, dedicated data storage solution with, different service slices (e.g. VR, AR and
data redundancy). for example, 1+1+1 redundancy video streaming). All subscription data
using the three service-slices would be
stowed in a shared data storage with
Figure 12: Data storage allocation across multiple network slices 1+1+1 redundancy.
–– The first IoT slice (Massive IoT) could
4G scenario (EPC): 3 network slices 5G scenario (5G Core): different redundancy
with same database (DB) and software levels for different types of enterprises have 10 different service-slices, one for
redundancy and software level each different enterprise. Four would
share the same data storage with 1+1
1. basic redundancy. Three enterprises
would then have dedicated data storage
(using a data isolation service), with 1+1
MBB MBB (20m) Shared DB (100%)
basic redundancy. The remaining three
enterprises would then benefit from
dedicated data storage and 1+1+1
high redundancy.
Shared DB (40%) –– The second IoT slice (Critical IoT) could
2. also have 10 different service-slices,
one for each different enterprise. Three
enterprises would share the same data
mIoT1 mIoT1 Dedicated DB
storage with 1+1+1 high redundancy,
(10 enterprises) (10 enterprises) with extra 1+1+1
redundancy (30%) and seven enterprises would have
dedicated data storage (data isolation
service) with 1+1+1 high redundancy.
Dedicated DB
with extra 1+1+1
The flexible distribution of data storage
redundancy (30%)
resources in the above 5GC scenario
generates a 15 percent capex saving in
3. the total database hardware and software
Shared DB (30%) capacity required to serve each of the
different slices. Using this approach, CSPs
mIoT2 cIoT2 can also monetize the differentiation of data
(10 enterprises) (10 enterprises) storage services used by each enterprise,
Dedicated DB with applying an extra fee for data isolation
extra 1+1+1
redundancy (70%)
and higher 1+1+1 data redundancy.
12 Ericsson  |  Dual-mode 5G Cloud Core: TCO benefits

Significant configuration savings

Common policy configuration tools pave the

way for opex savings of up to 80 percent.

The adoption of an entirely new 5G Figure 13: Traditional EPC scenario and policy configuration
paradigm radically expands the overall
diversity of policies that can be configured
Policy configuration tool
and controlled in the Core network.
Traditional EPC scenarios tend to
configure just a few sets of policies for
IP Session Establishment (e.g. QoS,
quota, charging, session and service PRD
authorization). In the new 5GC context, MBB
however, we see entirely new policies for PRCF

access and mobility, user equipment and

network resource control. We also see an
expansion of existing policies specifically RAN PGW
for IP session establishment (e.g. latency).
This technology shift creates a
huge opportunity in terms of service
differentiation, but also introduces a
whole new kind of complexity – a need Figure 14: Adopting a new policy configuration tool in a 5GC context
to configure around 100 times more 4G
network policies towards many different
policy decision points spread out across Policy configuration tool
different slices in the network.
The adoption of a common policy
configuration tool allows CSPs to execute
just one main policy configuration task for PRD PRD PRD PRD
each business slice, addressing all policy
decision points needed to update and NSSF PCF NRF PCF
secure the service level for that specific UE authentication Session
business slice simultaneously. Network
and registration establishment
Considering a 5GC scenario based on
40 different network slices with different SMF
policy configurations, we estimate around
80 percent of opex savings in terms of RAN AMF UPF eMBB1
staff-hours can be achieved when using eMBB eMBBn
UPF
this common tool for policy configuration.

Conclusion
The road ahead is rocky. CSPs need to
balance management, evolution and TCO
– and we are helping them overcome this.
Ericsson’s dual-mode 5G Cloud Core PRD PRD
solution can help CSPs get the most out SMF
of cloud native, microservices, user plane NRF PCF
UPF mIoT1
performance and more. However, CSPs must
mIoT Session
be prepared to re-examine their existing UPF mIoTn Network
establishment
processes to maximize the benefits.

Ericsson
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Telephone +46 10 719 0000
www.ericsson.com
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