Strategies for Capturing Next Wave of Telco Opportunities Chia Tan chiatan@cisco.com Director of SP Engineering Asia Pacific Japan, Cisco Systems
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
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1. SP Opportunities (i) Efficient & Flexible Network Architecture
(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
(a) Virtualize Network Functions Static Dynamic Elastic Programmable
(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
(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
1. SP Opportunities (ii) Mobile Marketplace
Korea: Mobile Data Traffic Growth / Apps Video to account for 2/3 of Mobile Data Traffic by 2019 1,000 M2M (3%,9%) P2P (1%,2%) 6x (43% CAGR) 2014 2019 900 Audio (7%,5%) Petabytes per Month 800 700 600 500 Web (31%,15%) Video (58%,68%) * Figures (n) refer to 2014, 2019 mobile data traffic share 2020: 950PB/month Video 850PB/month 400 300 200 100 0 2014 2015 2016 2017 2018 2019 2020 Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014 2019
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
1. SP Opportunities (iii) Internet of Things
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
IOT $ CAPEX SPEND/POPULATION The Internet of Everything (IoE) Country Comparison 1,800.0 1,600.0 1,400.0 Japan 1,200.0 ANZ 1,000.0 800.0 Greater China 600.0 ASEAN South Korea 400.0 RoAP 200.0 India - (2.0) (200.0) - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 (400.0) IOT UNITS/POPULATION
The Internet of Everything World Population (Billion) 6.3 6.8 7.2 7.6 Connected Devices (Billion) 0.5 12.5 25 50 Connected Devices per Person Smallcells (Million) 0.1 1.8 3.5 6.6 More Devices than People More Small cells than Marcocells 4 14 40 3G 4G 5G 2003 2010 2015 2020
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
2. Strategy for SP (i) Knowing your Users
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
Wireless Traffic Analytics MWC 2015
2. Strategy for SP (ii) Experimenting new Models
Agile towards DevOps Value Curve plan code build test release deploy operate DevOps Continuous Delivery Continuous Integration Agile Development Value
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
Cloud Connected Services
2. Strategy for SP (iii) Partnering for Success
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
3. Summary
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
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