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Next-Generation Intelligent Networks:An Innovative and Market Tested Approach to Migratingto an IP-Based Intelligent Network Environment
By Gianluca Noya and Angelo Morelli
Communications & High Tech
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Gianluca Noyais the Accenture lead of next-
generation network and fixed
mobile convergence service projects,
Communications & High Tech.
Angelo Morelliis a senior executive and
global lead for the Accenture
Product Innovation service line,
Communications & High Tech.
Challenges to legacy intelligent networks
The transition to an all-IP network environment poses
several challenges to an operator’s intelligent network. In
many cases, the legacy technology platform is approaching
the end of its useful life, even though the services supported
by the legacy IN are important revenue generators for the
company. The platforms are expensive to maintain, and do
not support the requirements for new, IP-based services.
Operators also often find that they are locked into expensive
maintenance agreements with vendors who are the only
ones able to work with the proprietary interfaces involved.
Without competition, maintenance costs charged by a
vendor can be higher than desired. In other cases, vendors
no longer wish to support an older platform, so operators
find themselves with an obsolete technology that cannot be
cost-effectively supported. The proliferation of closed
platforms and technologies also increases the cost of
development and delays time to market for new services.
Companies are looking for ways to increase margins and
stay competitive by reducing their operating expenses.
The need to create differentiated services is another
important driver today. Today’s vertical network environment
is a constraint, resulting in numerous single services based
on separate networks—mobile, fixed telephony, fixed
broadband and WLAN. That network environment is gradually
evolving to a more horizontal one, where services can be
delivered on multiple networks, enabled by a service delivery
platform. But a legacy intelligent network cannot adequately
support that kind of horizontal network environment.
Intelligent networks are critical to the cost-effective provisioning of
network services by today’s global communications operators. The
intelligent network (IN) is a service-independent telecommunications
network that enables intelligence to be taken out of the switch and
placed in the computer nodes distributed throughout the network.
The IN enables the operator to develop and control services more
efficiently. New capabilities can be introduced rapidly and also
customized to meet customers’ needs. As legacy intelligent network
platforms are becoming obsolete, operators must act quickly to
implement a next-generation intelligent network solution that enables
a smooth and cost-effective migration to the all-IP networks that will
be critical to driving high performance in the future.
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A better option: Transitioning to an open platform
Is the replacement of the legacy intelligent network with
another closed platform the only option available? No.
Accenture believes that often a better option is what we
call a “next-generation intelligent network” solution—
transitioning a legacy environment to an IP-based service
using an open platform.
We see companies taking two approaches to that transition.
One is “cap and grow”—that is, companies cap their
investment in the legacy platform and decide to grow new
intelligent network services on a next-generation platform
in the hope of eventually transitioning the IN to a pure IP
infrastructure. A second option, which we see being pursued
by a number of smaller operators around the world, is a
total replacement of their legacy IN with an open platform.
With either approach, operators end up with more options
at less cost when it comes to maintaining IN-based services
or creating additional applications or functionality on the
platform. The solution can also support technology
consolidation and standardization in service creation and
maintenance, which helps simplify the environment and also
helps drive down cost.
Operators can realize several significant benefits through
the next-generation intelligent network. The next-
generation intelligent network solution helps operators
leverage and expand existing services across networks
without re-implementation. It also supports the ability to
combine new services out of existing services without
changing the implementation. Companies can create
innovative, blended solutions—combining prepaid with
calling features, for example, or blending video with do-not-
disturb functionality.
The next-generation intelligent network also supports more
innovative solutions to a broader range of customers. For
example, operators see a growing demand for unified
communications and collaboration services. A next-
generation intelligent network solution enables companies
to target a larger customer base, without having to limit the
offer to IMS and VoIP customers only. The solution gives
operators the opportunity to grow and scale for future
subscriber needs and network evolution to next-generation
network/IMS.
The open platform of the next-generation intelligent
network can lead to cost advantages, as well. There are
opportunities for both capex and opex savings by
eliminating the need for major investments in service layer
infrastructure. As much as 50 percent reductions in
operating expenses are possible, based on our
implementations of next-generation intelligent networks
with global operators. Companies also avoid vendor lock-in
for their intelligent network and the more competitive
nature of the open environment can help reduce
maintenance costs. Furthermore, operators can realize a
faster transition to an all-IP environment, as well as faster
(and lower-cost) development of new services or
enhancements.
In addition, the next-generation intelligent network also
supports the critical migration that must take place
between a legacy environment and an IP-based system,
since operators cannot afford to shut down revenue-
generating services during a cutover to a new platform.
Looking ahead, an open and standardized platform also
gives operators a more nimble and responsive network
environment, reducing the risks of technology change.
All told, the economic benefits of a next-generation
intelligent network can be considerable. A recent paper from
the Yankee Group suggests that a next-generation
intelligent network platform costs only 24 percent of the
price of buying a new application platform for IMS. Service
providers can cut the cost of application deployment to
approximately $3 million per application. “With a potential
cost savings of more than $7 million per application,” the
paper notes, “the business case for moving to IMS becomes
significantly more attractive.” i
How the next-generation intelligentnetwork helps improve the serviceexecution environment
In today’s economic environment, the ability to re-use
services is important to driving growth and improving
average revenue per user. Such re-use, however requires a
service creation and delivery architecture that supports the
creation of new products and services from reusable service
components. Operators have invested in service delivery
platforms and IP Multimedia Subsystems (IMS) to support
that kind of reuse—components that can be readily
composed into new products.
However, when it comes to intelligent services—services
where intelligence is located in network nodes—operators
have several challenges on their hands, especially as they
transition to an all-IP environment. Current core networks
are not able in many cases to interface with different
intelligent network nodes and are limited in their ability to
do that kind of triggering. Operators must also accommodate
multiple technologies in their infrastructures.
i “Service Broker Network Element Helps Bridge the Gap Between Legacy
and NGN Apps,” by Brian Partridge, Yankee Group, December 2008.
As shown in Figure 1, the next-generation intelligent
network serves as a connecting layer or a “service mediation
and orchestration” capability to enable the service creation
environment to interact with different intelligent network
technologies, and to interface with different core networks
in a way that is transparent for the operator when it comes
to developing the services. This mediation capability—
sometimes also called “service brokering”— is a key benefit
of the intelligent network solution.
The solution abstracts different core network technologies
to expose a comprehensive set of network-enabled
capabilities to a service layer. It helps create a common
service execution environment to offer services
homogenously to users, independent of their enabling
technology.
The result is a service creation environment that enables
software developers to create new services and to extend
existing ones faster and more cost effectively, enabled by a
set of libraries, software development kits and configuration
tools. Innovative services can be more easily created by
reconfiguring and combining composite services.
The next-generation intelligent network provides support for
different kinds of interactions:
• The service execution environment triggered by the next-
generation network platform
• Service composition through network-based orchestration
• Service composition through SOA-based orchestration
The availability of pre-built applications
With this background on how the mediation layer works,
one can then begin to see how new services can be created
or blended more rapidly, in a modular way. They can also
take advantage of a catalog of pre-built applications, or
services provided by third parties. Pre-built applications can
include such services as online charging, personal call
manager, convergent VPN, mobile facilities, local number
portability and much more.
By building new services or taking advantage of a service
catalog, operators can lower their operations costs and can
be much more flexible in blending their capabilities than
they were in their legacy IN environment.
5
SCP
Services
Network
INAP /CAMEL
INAP
2G/3G
SCP
PSTN
SIP AS
SIP
IP/IMS
SCPNG-INService
Execution
ServicesService Migration
NewServices
Network
2G/3G/4G
SCP
PSTN
SIP
IP/IMS
NG-IN Service Mediation and Orchestration
Figure 1: The Next-Generation Intelligent Network: Overcoming legacy limitations
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A major European operator has discovered thebenefits of implementing a next-generationintelligent network, rather than proceeding with a traditional approach of wholesale replacement of its legacy platform.
The company had multiple legacy intelligent network
platforms in place to execute the logic in its telephony
network. Several of the services provided by the operator were
on aging platforms where the original vendor was intending to
discontinue support. In considering how to address this
challenge, the operator had originally decided to put out a
bid for total replacement of its IN with a new system.
The difficulty with this kind of approach at this stage in the
evolution of network technology is twofold. First, the
network equipment providers have not yet developed
solutions robust enough for an IP environment. Second, to
choose another closed, proprietary platform simply locked
the operator into a single vendor once again, where cost
competition would be minimal.
Accenture and Oracle proposed to the operator a different
approach: transitioning the company’s legacy services to an
open platform—a next-generation intelligent network. The
solution is based on Oracle Communications Converged
Application Server and also leverages Accenture’s global
delivery capabilities, including the network innovation center
in Rome.
The next-generation intelligent network can help provide more
flexibility and lower costs moving forward. In theory, one
group of companies can develop the platform and the original
set of services, while another company could maintain the
system and build future services.
The operator will be able to roll out its first service on the
new, open IN platform in only seven months, with four
additional services following approximately six months later.
The reduced time to market is a result of making it easier for
services to have multiple interactions with external platforms
other than the core network. Open interfaces, protocols and
technologies make the integration more cost- and time-
effective than dealing with proprietary and closed solutions.
Cost savings have also been impressive. The provider has
realized costs approximately 20 percent less than is typical for
such a program by being able to negotiate product software
licenses and delivery separately—a result of the open platform
and development approach.
Another European wireless communicationsnetwork operator, one with more than 5 millionwireless subscribers, sought to replace its legacyIN infrastructure which was approaching end oflife. The platform was running key revenue-generating services including prepaid, VPN andclosed calling groups. The operator’s goal was toreplace its legacy IN to achieve a goal of reducingoperating expenses for key revenue-generatingservices by 50 percent or more.
A program to create a next-generation intelligent network is
now in place at the company, which is on track to realize its
target cost benefits. The company is able to move to an all-
IP environment without stopping the revenue flow from
existing services. It can also more easily create new, blended
services because of the open platform and modular service
creation capabilities. This latter benefit was especially
important to the company, as creating more tailored
services and a unique customer experience is important to
its ongoing business strategy.
One executive for this operator commented that, over the
next 10 years, his organization’s competitive battle will be
fought with Internet companies, not just with other carriers.
So he knew the company could not afford to be locked into
proprietary, inflexible and costly network equipment. The
open platform of a next-generation intelligent network was
a better option.
Case study
A next-generation intelligent networkimplementation for legacy replacement
Case study
A next-generation intelligent network toreduce operating expenses
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Operators must move forward with some urgency in
replacing their legacy intelligent network. As IP-enabled
services become the dominant offerings in the
communications industry, operators must be able to migrate
to this environment in a way that can reduce business risk,
help reduce costs and encourage collaboration and
innovation in service creation.
Here are a few practical points to consider as operators
create an intelligent network strategy capable of driving
high performance in the IP era:
1. Conduct a business case analysis of different optionsfor replacement of the intelligent network. What are both the short-term and long-term implications of
various options? What are the implementation costs for
total replacement as well as the ongoing maintenance costs
involved with a single-vendor environment? What are the
target operating expense reductions?
2. Identify applications for migration. Although abundant potential applications exist, an operator
should focus on a limited set of critical ones that are most
important to profitable growth.
3. Create a schedule and migration roadmap.One of the advantages of a next-generation intelligent
network is that a “big bang” approach to migration to an
IP-based intelligent network is not required. A controlled
migration can be planned that helps reduce risk and service
interruption while moving to the new environment.
4. Assess required resources.Most operators are resource constrained today—in terms of
numbers and skills. Assess the capabilities needed to put in
place an intelligent network capable of supporting IP-based
service creation and maintenance.
The technical and business challenges facing global
communications operators today are formidable. Efficiency
and cost effectiveness are more important than ever as
operators try to squeeze as much value as they can from
their legacy services, even as they migrate to an all-IP
environment enabled by today’s high-speed broadband
networks.
Network optimization and consolidation are on the minds of
all operators today. Such programs can benefit from the
next-generation intelligent network and its ability to
combine legacy and IP-based intelligent network services
running on different platforms and technology. The open-
platform approach can help operators preserve their
investments in legacy intelligent network platforms while
extending existing services with innovative and convergent
next-generation capabilities.
Legacy intelligent network platforms must be replaced, and
soon. But simply substituting one closed platform for
another cannot address the deeper challenges of intelligent
networks, nor create a development environment
appropriate for the IP era. The open platform of a next-
generation intelligent network—one not tied to proprietary
protocols—can interface with both legacy and new systems
in a simple and cost-effective way.
Because it can help provide a faster and less-risky migration
to an all-IP network, the next-generation intelligent
network is a key to achieving sustainable advantage and
high performance in the coming years.
Moving forward with a next-generationintelligent network
Conclusion: Profitable growth andinnovation through the intelligent network
Copyright ©2009 Accenture.
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