Dynamic Pricing Solutions for Data Center Digital Services.

Transcription

1 Dynamic Pricing Solutions for Data Center Digital Services 1

2 Introduction This TMForum Catalyst Project sponsored by Verizon sought to demonstrate how the increasingly influential network technologies of NFV and SDN can drive not only the automation of network and system functions but also the creation of targeted new services that enrich the customer experience. It is now widely accepted that Network Functions Virtualization (NFV) and Software-Defined Networking (SDN) give Communications Service Providers the ability to shape demand and drive margins in ways that were not previously possible using traditional equipment. Goals The Dynamic Pricing Solutions for Data Center Digital Services Catalyst sought to answer the question, what if service providers could leverage these technologies to create fluid product offerings directly at the point-of-purchase? To do this, TM Forum s Digital Services Reference Architecture (DSRA) was used to provide both an overall framework and the collection of the rich application program interfaces (APIs) needed to leverage NFV and SDN in ways never before imaginable. Part of the Open Digital Ecosystem, the DSRA provides a set of standards and functions to help service providers and their suppliers configure, fulfill and monitor services in a multi-partner environment. 2

3 Participants and Outcome Accrued Benefits The Catalyst leveraged a multi-vendor approach. DigitalRoute s market-leading Data Integration NFV/SDN fabric fronted the customer intelligence of Sigma Systems Catalog to help Verizon build innovative new service offerings directly within Microsoft Dynamics or Sigma Configure Price Quote (CPQ). This infrastructure gives Verizon (and other providers using the approach) the ability to price, package and promote new offers directly at the point-ofpurchase. utilization / capacity Catalog price / promotion / package offers CSRs Direct / Indirect Customers NFV/SDN Fabric Channels to Market More specifically, the Reactive Data Center Catalyst demonstrates how utilization of various NFV/SDN fabrics across numerous data centers can:» Play a critical part in driving price and promotion;» Increase demand in underutilized facilities; and» Maximize margin in locations that are approaching the need for additional build-out. Source image: Sigma Systems» Drive Margin» Maximize utilization» Minimize truck-rolls & excess capacity 3

4 The Catalyst project enables Verizon to leverage a virtualised data centre environment in a way that pushes highly targeted service offerings (based on price, promotion, and package) to its subscribers. This results in higher than usual uptake of inherently appealing products and, thus, increased revenues through an ability to exploit highly focused upsell and cross sell opportunities as well as bring able to maximise the revenue-generating potential of multiple different pricing options. It also enables Verizon to maximise the value of available resources in its own infrastructure. In essence, the project creates a causal relationship between an initial customer action, the data record from which (when processed) is used to drive subsequent downstream buying behaviour and, thus, revenues. Why is this important? By utilizing real-time Business Intelligence to provide customer insights in this way, not only are upsell opportunities enhanced but customer retention is also improved. This is, in part, because the online customer experience becomes personalized. Furthermore, Verizon s in-store sales and operational efficiencies are enhanced by the use of more intelligent retail solutions. Predictive analytics enable differentiated device and service offerings as well as omnichannel lead nurturing and these have the potential to significantly improve a carrier s operational approach. Such rapid service delivery through a hybrid Cloud data centre platform results not only in the availability of far more targeted services but also in their more rapid provision. Additionally, the cost benefits traditionally associated with virtualised infrastructures are also exploited. New revenues can be tapped via the repurposing of existing assets and business services as well as new opportunities such as offering business functions, like billing, as a service. 4

5 A fast response to customer needs is axiomatic in the modern telco environment. Customer Service is re-invented by the enablement of seamless collaboration driven by the harnessing of all available insights. Architecture MICROSOFT DYNAMICS Execution In Microsoft Dynamics, the Verizon CSR is able to see a tiled view of products that are specific to pre-identified criteria. These criteria s can be based on any parameter that Verizon chooses channel, geography, product line, etc. and are derived from Customer information already available. Key underlying capabilities are: Customer SIGMA CPQ KPI Logic DATA CENTER DigitalRoute» That data center analytics are used to alter the products presented in the catalog.» Statistics from the Data Center are interpreted and pushed into the catalog - items can be promoted and/or have discounts applied based on the desire to consume underutilised resources in the data center.» Cross-sell/Up-sell and Add-on options can also be adjusted to reflect data center information This is achieved via an architecture wherein DigitalRoute s MediationZone captures and pre-processes raw data, normalizing it and building KPIs before outputting through an API for use by either Microsoft Dynamics or Sigma s Catalog. SIGMA CATALOG Products Services Resources Virtual Computer Virtual Network Virtual Storage Source image: Sigma Systems 5

6 Use Cases The Catalyst Project demonstrated three Use Cases: 1: Time-Based Usage For Verizon s Video Processing Lab Product, which includes a virtual network, firewall, a set of Virtual Machines (determined by product option), and a Controller application (a separate VM) to orchestrate batch processing for transcoding video within the farm, a CSR browses products in the catalog and when selecting the Video Processing Lab, an option is presented showing that a discount is available if the lab is operated between 1am and 5am. For example, when spinning up a scaled farm of video processing VMs to transcode large amounts of video, VMs can be created only when the data center is known to have free capacity. When this option is selected, the customer gets a discount. A web page can be brought up to show the raw data retrieved from DigitalRoute s MediationZone API, showing the KPIs that are retrieved. This drives a specific offer, for instance a 40% discount for Quiet Hour +/- 2 hours VM operation. It enables CPU Utilization of daily Quiet Hour averages for weeks (or any other chosen metric) and a discount can be applied for restricting operation to between 1am and 5am. During Configure/Price/Quote, if a product being configured is known to consume a specific type of resource (e.g. CPU intensive, Memory intensive, Network intensive), the data center analytics can be used to offer better prices for off-peak execution. 2: Analytics API The Catalyst demonstrates how any number of different metrics, can be exploited as the basis for driving revenues driven in a focused way by the aggregation/correlation abilities of DigitalRoute s MediationZone. New metrics are easily added as required. 6

7 3: SAN Utilization/Remote Storage The deployment of Verizon s Online Backup/Cold Storage Archive is enhanced. In this scenario, two customers are in different locations, one on the East Coast and one on the West. KPIs show that the East data center has a 75% Host Occupancy and a total SAN disk utilization of 70%. Meanwhile the West data center has a 35% Host Occupancy and a total SAN utilization of 23%. The Catalyst demonstrates how when a CSR selects Customer one, CPQ presents data center products based on western customer location. Online Backup and Cold Storage are presented as products but at regular prices with no sales or discounts on SLAs offered. The CSR then selects Customer and is presented with relevant data center products (based on eastern customer location.) Now, the Cold Storage Archive is presented as a high priority Sale item. The CSR selects the Online Backup and starts to configure and an option is presented for 2 different SLAs, a lower latency SLA for the regular price and a higher latency SLA that permits hosting in the West Data Center which is given a 30% discount. CUSTOMER 1 70% 75% Catalog CUSTOMER 2 23% 35% Again, a web page can be brought up to show the raw data retrieved from the MediationZone API, showing the KPIs that are retrieved. These are: Host Occupancy how many VMs are running as a percentage of maximum number, averaged over a week and SAN Utilization average disk utilization of SAN as a percentage of total, averaged over a week. West Coast Data Center SAN Utilization East Coast Data Center Host Occupancy 7