Strategies for Capturing
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1 Strategies for Capturing Next Wave of Telco Opportunities Chia Tan Director of SP Engineering Asia Pacific Japan, Cisco Systems
2 AGENDA 1. ICT s 3 rd 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 2
3 3
4 1. SP Opportunities (i) Efficient & Flexible Network Architecture
5 (a) Virtualize Network Functions Static Dynamic Elastic Programmable Existing Hardware / Appliance based Network Functions (NFs) NFs running as on x86 Platform ddos SBC Firewall NAT Decouple software from underlying hard ware and port it as a on x86 platform running as a Network Function CGN DHCP WLC DPI DNS RaaS IPS PCRF SDN C ontrol Virus Scan Portal BRAS NMS Caching CDN WAAS Decouple from Physical Appliances that are inefficient to scale with SP s business Do More with Less Infrastructure Elastic use of Pooled Resources Enables Automation and Programming of Resources
6 (a) Virtualize Network Functions Static Dynamic Elastic Programmable
7 (b) Optimized Planning through Predictive Traffic Analysis Planning Engineering/ Architecture Operations 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 Congestion Mitigation
8 (c) Optimizing the Network through Intelligent Workload Placement Network unaware workload placement requires 30-35% more bandwidth provisioned than with network aware workload placement Avg. Network Worst-Case Utilisation 200% 150% 135% 130% 130% ~30% effective bandwidth gain 100% 100% 50% 0% Random WRR Lowest latency Demand eng
9 1. SP Opportunities (ii) Mobile Marketplace
10 Korea: Mobile Data Traffic Growth / Apps Video to account for 2/3 of Mobile Data Traffic by ,000 M2M (3%,9%) P2P (1%,2%) 6x (43% CAGR) Audio (7%,5%) Petabytes per Month Web (31%,15%) Video (58%,68%) * Figures (n) refer to 2014, 2019 mobile data traffic share 2020: 950PB/month Video 850PB/month Source: Cisco VNI Global Mobile Data Traffic Forecast,
11 IDC 2014 Innovation in OTT Strategies Compete 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 Partner Free Zone Google Search, Gmail, G+ year free access to Evernote FB free in 18 SPs in 14 countries 3-months free twitter without data plan Unicomm offers OTT WeChat plans Plan add-ons for unlimited OTT messaging Gain Subscribers Increase APRU Enable Direct operator billing for Skype credits Network APIs for apps to manage QoS Cloud based RCS app Jibe with network QoS GSMA OneAPI initiative to expose network APIs to developer programs New Revenue
12 1. SP Opportunities (iii) Internet of Things
13 The Internet of Everything (IoE) People Connecting People in More Relevant, Valuable Ways Process Delivering the Right Information to the Right Person (or Machine) at the Right Time Data Leveraging Data into More Useful Information for Decision Making Things Physical Devices and Objects Connected to the Internet and Each Other for Intelligent Decision Making (IoT) Source: The Internet of Everything: A $19 Trillion Opportunity, Cisco Consulting Services, 2014
14 IOT $ CAPEX SPEND/POPULATION The Internet of Everything (IoE) Country Comparison 1, , ,400.0 Japan 1,200.0 ANZ 1, Greater China ASEAN South Korea RoAP India - (2.0) (200.0) (400.0) IOT UNITS/POPULATION
15 The Internet of Everything World Population (Billion) Connected Devices (Billion) Connected Devices per Person Smallcells (Million) More Devices than People More Small cells than Marcocells G 4G 5G
16 Emerging Established Increased Network Events (Global) Smart Offices Smart Industry Smart Homes 3.6T 9.8T 4.5T 12.7T 1.5T 47.8T Smart Agriculture Smart Car Smart Health 1.3B 24.1B 102.9B 7.2T 12.5B 971.8B
17 2. Strategy for SP (i) Knowing your Users
18 Know your users and Requirements Turning Data in to Intelligence Telemetry Location REAL-TIME NEAR REAL-TIME DATA Traffic Patterns Resource Planning Geofencing Automated Decisions PREDICTIVE DATA Expected Outcomes Targeted Promotion Object Correlation HISTORICAL (BIG) DATA Time of Day Dwell Time
19 Wireless Traffic Analytics MWC 2015
20 2. Strategy for SP (ii) Experimenting new Models
21 Agile towards DevOps Value Curve plan code build test release deploy operate DevOps Continuous Delivery Continuous Integration Agile Development Value
22 vcpe - Virtualized Managed Services Cross-Domain Orchestration CPE Control EMS POP WAN Orchestration Data Centre vcpe Web DB L2 NID / L2 Backhaul vfw, vipsec vwaas PE DCI DCI WAAS FW PODs at POP PODs at DC
23 Cloud Connected Services
24 2. Strategy for SP (iii) Partnering for Success
25 Strategic Engagement through Partnering Customer wants to innovate and disrupt their business through technology CUSTOMER Complex co-creation solution development SOLUTION CISCO Strategic for Cisco with significant Executive sponsorship
26 3. Summary
27 Summary 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 27
28 28
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