Strategies for Capturing

Strategies for Capturing

Next Wave of Telco Opportunities

Chia Tan [email protected]

Director of SP Engineering Asia Pacific Japan, Cisco Systems

AGENDA

1. ICT’s 3rd _{Platform creates a Hyper-disruptive Era}

2. Opportunities for Service Providers

• Network Efficiency

• Mobile Marketplace

• Internet of Things

3. Strategy for Service Providers

• Knowing your users - Analytics

• Experiment with new Business Models

• Partner for Success 4. Summary

1. SP Opportunities

(i) Efficient & Flexible Network Architecture

(a) Virtualize Network Functions

Static Dynamic Elastic Programmable

Existing Hardware / Appliance based Network Functions (NFs)

Decouple software from underlying hard ware and port it as a VM on x86 platform

running as a Network Function

NAT VM Firewall VM SBC VM dDOS VM Virus Scan VM IPS VM DPI VM CGN VM Portal VM PCRF VM DNS VM DHCP VM BRAS VM SDN C ontrol VM RaaS VM WLC VM WAAS VM CDN VM Caching VM NMS VM NFs running as VM on x86 Platform

• Decouple from Physical Appliances that are inefficient to scale with SP’s business • Do More with Less Infrastructure

• Elastic use of Pooled Resources

(a) Virtualize Network Functions

(b) Optimized Planning through Predictive Traffic Analysis

Engineering/

Architecture Operations

Planning

• Growth Forecasts • Upgrade Analysis • New Service Impact

• SLA planning

• Failure Analysis • Balancing Traffic • Topology Design

• RSVP, QoS, Multicast Design

• Network Health

and Traffic Trends

• Maintenance Planning

• Troubleshooting

Network unaware workload placement requires 30-35% more bandwidth provisioned than with network aware workload placement

(c) Optimizing the Network through Intelligent Workload Placement

135% 130% 130% 100% 0% 50% 100% 150% 200%

Random WRR Lowest latency Demand eng

Avg. Network Worst-Case Utilisation

~30% effective bandwidth gain

1. SP Opportunities

0 100 200 300 400 500 600 700 800 900 1,000 2014 2015 2016 2017 2018 2019 2020 M2M (3%,9%) P2P (1%,2%) Audio (7%,5%) Web (31%,15%) Video (58%,68%)

Korea: Mobile Data Traffic Growth / Apps

Video to account for 2/3 of Mobile Data Traffic by 2019

6x (43% CAGR) 2014–2019

Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019

Petabytes per Month

* Figures (n) refer to 2014, 2019 mobile data traffic share

2020:

• 950PB/month

Innovation in OTT Strategies

• GSMA OneAPI initiative to expose network APIs to developer programs

Enable

• Network APIs for apps to manage QoS

New Revenue

• Direct operator billing for Skype credits

• Cloud based RCS app Jibe with

network QoS

• China Mobile Jego App provides free calls, messages and cheap international calls.

• European operators offer Rich

Communication Services for messaging

• EU regulator: “Mobile companies regularly block VoIP and prevent services such as Skype from

functioning on their networks”

Compete

Partner

• ‘Free Zone‘ Google

Search, Gmail, G+ • Unicomm offers OTT WeChat plans • Plan add-ons for unlimited OTT messaging

• year free access to Evernote

Increase APRU

Gain Subscribers

• 3-months free twitter

without data plan

• FB free in 18 SPs

in 14 countries

1. SP Opportunities

Source: “The Internet of Everything: A $19 Trillion Opportunity,” Cisco Consulting Services, 2014 The Internet of Everything (IoE)

Leveraging Data into More Useful Information

for Decision Making

Data

Delivering the Right Information to the Right Person (or Machine) at the Right Time Process Connecting People in More Relevant, Valuable Ways People

Physical Devices and Objects Connected to the Internet and Each Other for Intelligent Decision Making (IoT)

The Internet of Everything (IoE) ANZ ASEAN India Greater China Japan South Korea RoAP (400.0) (200.0) 200.0 400.0 600.0 800.0 1,000.0 1,200.0 1,400.0 1,600.0 1,800.0 (2.0)IOT $ C - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 A PE X S PE N D /PO PUL A TION IOT UNITS/POPULATION Country Comparison

World Population (Billion) 6.3 6.8 7.2 7.6 Connected Devices (Billion) 0.5 12.5 25 50

Connected Devices per

Person 0.1 1.8 3.5 6.6

Smallcells

(Million) 4 14 40

2003 2010 2015 2020

The Internet of Everything

3G 4G 5G More Small cells than Marcocells More Devices than People

Increased Network Events (Global)

Smart Homes

Smart Car

Smart Agriculture Smart Health

Em ergin g 1.3B  24.1B 102.9B  7.2T 12.5B  971.8B Smart Industry Estab lish ed Smart Offices 3.6T  9.8T 4.5T  12.7T 1.5T  47.8T

2. Strategy for SP

Know your users and Requirements

Turning Data in to Intelligence

PREDICTIVE DATA Automated Decisions Resource Planning Targeted Promotion Geofencing Object Correlation Expected Outcomes REAL-TIME NEAR REAL-TIME DATA Time of Day Dwell Time Telemetry Traffic Patterns Location HISTORICAL (BIG) DATA

Wireless Traffic Analytics

2. Strategy for SP

Agile towards DevOps Value Curve

plan code build test release deploy operate

DevOps

Continuous Delivery

Continuous Integration

Agile Development

vCPE - Virtualized Managed Services

POP WAN Orchestration

EMS

Cross-Domain Orchestration CPE Control

PODs at DC PODs at POP

2. Strategy for SP

Strategic Engagement through Partnering

CISCO

Strategic for Cisco with significant Executive sponsorship

CUSTOMER

Customer wants to innovate and disrupt their business through technology

SOLUTION

Complex co-creation solution development

27

1. Third Platform in Hyper-Disruptive Era

2. Opportunities for Service Providers through

i. Network Efficiency ii. Mobile Marketplace iii. Internet of Things

3. Strategy for Service Providers

i. Knowing your users - Analytics

ii. Experiment with new Business Models iii. Partner for Success