Transcript
Page 1: © 2014 IBM Corporation Cloud in Telecommunications Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM Corporation

Cloud in TelecommunicationsPoint of View IBM Institute for Business Value

Partner’s Name, Partner’s TitleDD Month YYYY

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© 2014 IBM CorporationIBM Institute for Business Value2

Executive summary

The telecommunications Industry is the backbone of Cloud Technology, enabling all industries to realize the potential of enhanced efficiency with guaranteed reduction in TCO.

Data has become the dominant segment in the Telco industry. The industry has remained at the lower end of the value chain, viz. as a provider of basic data communication. Cloud, however, can radically change this value chain positioning and create new monetization avenues.

Cloud deployments are beneficial in the Telecom industry because they 1) help in transforming the internal operations, and 2) help other industries translate capital expense into operating expense, reducing TCO significantly and enhancing performance.

IBM is uniquely positioned to help Telecommunication companies envision, strategize and implement innovative cloud-based solutions.

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3 IBM and cloud

2 Charting the path for cloud adoption

1Cloud will transform the Telecom Industry - Generating Revenue as well as Improving Efficiency

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Market and technology trends are forcing communications service providers to make fundamental changes in the way they do business

Intense competition including non-traditional entrants

Legacy infrastructure

Rapidly evolving consumer expectations

$ Decreasing returns, declining ARPU

New technology that may be risky for incumbents

Eroding customer trust due to performance and privacy issues

Change in Telecom Spending - Worldwide

Telecom Services Revenue Trend - Worldwide

Source: Gartner Report Aug 2014

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Cloud is a key capability for reducing costs, improving customer experience, and creating new revenue sources and business models

The Lean Digital Telco

Drastically simplified

Rationali-zed IT

Digital and real-

time

Analytics- driven

Cloud-powered

Globally Integrated

Three differentiating capabilitiescore to telecom providers

Traffic vs Revenue

New Revenues Sources

Cost Reduction

CustomerExperience

“Lean Digital Telco” will be the key to

succeed in today’s tough telecoms

markets

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Cloud helps CSPs to realize both efficiency improvements and growth in revenue and profit.

Providing cloud services to enterprise customers

(B2B)

Exploiting cloud technologies for internal

workloads

Small & medium

enterprises

Large enterprises

IaaS, PaaS, SaaS, BPaaS, vertical solutions, managed

private cloud

ISVs,born

in cloud

Churn prevention (B2B) Additional revenues from

adjacent services New enterprise customers

Agility, faster TTM Elasticity Cost take-out Network monetization

Software Defined Environment Compute, Storage, Network.

Network Function Virtualization (NFV)

Enterpriseapps

IT & infrastructure

Carrier network

Providing cloud-based services to consumers

(B2C, B2B2C)

Consumers

Cloud eco-system, developer communities, APIs

Apps developers

Churn prevention (B2C) Additional revenues from

adjacent services New customers

Business partners

Efficiency Improvement

Revenue Generation1 2

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CSPs have a unique opportunity to take a central position in the Cloud that differentiates them from other potential Cloud parties

1 2

CSP’s differentiated capabilities bring them in a central position

End-to-end Quality of Service

1

Trust, Security & reliability

2

Customer Insight

3

Local presence to deal with

regulatory issues

4

Aggregator expertise

5

Existing relationships

with customers

6

IaaS

PaaS

BPaaS

PaaS

SaaS

Cloud based Solutions

Cloud Service Models

The three most important characteristics of Cloud

Pay per UseCloud Computing provide metered service usage, i.e. pay for what you use.

Elastic ResourcesCloud Computing allows users to scale up or down quickly and as needed.

Self ServiceCloud Computing provides the IT resources you need with self-service access

Business processes and

users

Customer interaction

Technology enablement

Impact on

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Client diversity and local market requirements drive the need for Cloud Service Brokering …and provides a differentiation opportunity for CSPs

1 2

White LabelResale

Data CenterInfrastructure

Born-in-the-Cloud Applications

AGGREGATIONPLATFORM

On PremiseCloud

Applications

Syndicated Cloud Services

IBM BlueMix

IBM Cloud marketplace

IBM Service Engage

Horizontal Cloud

applications

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Business Challenge KPN Wholesale needed a platform to support the

generation of new revenue streams by enabling its distributors and VARs to offer cloud-based application services quickly and easily.

Solution Summary KPN Wholesale chose Parallels Automation to help it

achieve full operational and commercial service automation that is allowing it to build new revenue streams through its Wholesale customers.

Products Used SoftLayer Parallels Automation APS Many integrated ISV’s

1 2

KPN made a decision to BUY vs BUILD, and selling value added services on top of IBM’s SoftLayer´s IaaS

Results

Generate new revenue streams for its wholesale business

Leverage APS to enable fast, cost-effective application delivery

Tailor application offerings to individual distributor, reseller and market requirements

“Parallels Automation and the Application Packaging Standard are hugely advantageous for us and crucial to the future of our business.”

— Norbert Van der Knaap, Manager Hosted Applications, KPN Wholesale

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1 2

CSPs need to think of new, innovative ways to build applications on the cloud

Ecosystems emerge comprising platforms, marketplaces, developer portals, and storefronts as companies seek to be “essential” to their customers

A company’s business assets (data, function or computing resources) can be represented as digital

Web APIs are created providing access to the company’s business assets. Digital products emerge.

Co-value creation occurs using 3rd Party APIs, developers, partners, hobbyists, or IT departments all of which consume, compose and produce APIs and APPs

APPs as strategic applications emerge; APPs and APIs are used to re-imagine the client experience creating new or enhanced business processes leveraging mobility, cloud, analytics and social platforms

Business models evolve to increase customer value resulting in more customers, less churn and more revenue

Optimization is continuous based on insights from new customers and usage of APIs. APPs and APIs continuously improve. Product management emerges for APIs as digital products

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Systems of Engagement Systems of Records

1 2

Cloud streamlines systems and operations while also enabling the transformation to a Digital Service Provider

Systems of Insights

GloballyIntegrated Enterprise

DigitalFront Office

Improve company efficiency and effectiveness to enable new growth

Connect, transact, and engage with customers to create mutual value

Employees

BusinessPartner

Customer

Cloud Cloud

CRM ...SCM ERP

Internet of Things

Ecosystem Connectivity

Pioneer digital-physical innovation

Open up to customer influence

Craft engaging customer experiences

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1 2

Hybrid cloud provides a new delivery model for CSP’s mission critical applications and OSS/BSS systems

Off Premise Rapid access Low entry cost Highly elastic

Supported by rich APIs Encapsulating expertise into

patterns Open, extensible hybrid model Building on IBM HW/SW/Svc

capabilities that are delivering client value today

On Premise Fully customizable Robust management Scalable

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1 2

CSPs who are moving to a Cloud platform can expect typical cost savings of >50 % in IT resulting in payback within ~1 year

Financial Benefits

Business Benefits

IT labor costs reduced up to 50% due to:1. Automated provisioning with elimination of

manual activities2. Reduction of labor associated with approvals3. Reduction of labor for image maintenance driven

by image standardization

Reduce Capex up to 75% for services:4. Provisioning of Services, Network, hardware and

software as needed 5. Reduction in software licensing costs. 6. Automated usage metering and billing

Provisioning of fully configured, security and enterprise architecture compliant test environment in less than one hour rather than weeks.

Improve quality by eliminating more than 30% of all defects that come from faulty configurations

3.4 Million Dollar Annual Expense [Example]

Without cloud With cloud1.03 million-dollar

annual expense

Strategicchange capacity

Liberated funding for transformation investment or direct saving

Depreciation (and amortization)

New development

Software and other costs

Labor costs (operations and

maintenance)

Depreciation( - 91.6 percent)

Labor cost ( - 80.7 percent)

Deployment (1-time)

Software and other costs

New development (for business-enabling

capabilities)

Annual cost of operation(- 79.0 %)

Note: 5-year depreciation period with 5 percent discount rate

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1 2

Cloud is helping to transform CSPs internal IT and Data Center operations

Key reasons for datacenter investments:

Datacenters becoming critical part of telecom infrastructure

Datacenter interconnection – key part of differentiation strategies

Cloud-based DC Operational Optimization

Efficiency – Consolidated its data centers by approximately 97.5 percent - from 200 data centers into five sites, over a period of three years

Optimization – Reduced its JPY50 million annual licensing fee for Oracle software by 70 percent

Source: IBM PureFlex Cloud DataCenter Deployment Results, 2013

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1 2

Cloud DevOps, for continuous service delivery, enables CSPs to respond with agility and velocity to seize market opportunities

Accelerate Software DeliveryExpanding collaboration to include customers, LOB and others to eliminate organization silos

Balance speed, cost, quality and riskAutomating manual processes across delivery lifecycle to eliminate waste/delays and compliance tracking

Reduce time to customer feedbackEnabling a customer feedback loop for continuous improvement

Continuous Innovation, Feedback and Improvements

DevOps Lifecycle

Operations/ProductionDevelopment/TestCustomers Business Owners

Monitor and Optimize

Plan and Measure Develop and Test Release and Deploy

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1 2

Bluemix is helping CSPs to develop, prototype and deploy new applications in days rather than months

Compose applications from a rich library of IBM, 3rd party and open source runtimes, services and exposed APIs.

Deploy with confidenceknowing IBM’s cloud platform is built on a foundation of open standards.

Secure and scale new applications and services with infrastructure services from IBM SoftLayer.

About Bluemix

Run apps in any language

Built on open standards Integration services to

your systems of record Designed for mobile Provides DevOps

services

Bluemix services

DevOps Big Data Mobile Cloud Integration Security Internet of Things Business Analytics Database Web and application

Source: http://www.redbooks.ibm.com/redpapers/pdfs/redp5011.pdf

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1 2

What do composable Cloud application services look like?

Application Services

Integration

Big Data

Internet of Things

Security

DevOps

Data Managemen

t

Commerce

MarketingWatson

Analytics

Mobile

MQTTCloudCode Mobile App Mgmt

Mobile Services Mobile

Quality Assurance

Twilio Historian

Internet Of Things

Push

Domain-specific curated bundles of software services targeted toward businesses

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1 2

Cloud presents the opportunity for CSPs to radically transform their security practices and optimize security operations

SaaSPaaSIaaS

Dynamic Cloud Security Portfolio

Optimize Security Operations

ManageAccess

ProtectData

GainVisibility

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1 2

Additionally, Networks and IT are converging to cloud, enabling Software Defined Networks (SDN) and Network Function Virtualization (NFV)

Access & Core NetworksPhysical, all-in-one network elements

IT Back Office InfrastructureTraditional IT servers

Cloud Hosting InfrastructureScale-out server farms

Carrier network

IT compute & storage

Tilltoday

Startingnow

Mid/longterm

Datacenter LANPhysical, all-in-one network elements

IT/datacenter network

Access NetworksPhysical network elements

Core NetworksService platforms running on IT servers (pre-NFV)

Virtualized Network FunctionsSoftware Defined Nertworks (SDN), Network Function Virtualization (NFV)

Cloud Hosting InfrastructureConverged network/IT, telco/enterprise scale-out server farms

Virtualized LAN FunctionsSoftware Defined Networks (SDN)

Cloud Hosting InfrastructureScale-out server farms, back-office services

Access Networks HWSpecific hardware(outdoor sites, CPEs)

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1 2

A large CSP in North America deployed a converged cloud to empower standardized and repeatable service delivery

Convergence

Common language for cloud deployments.

Integrated operations across Utility, Enterprise, and soon Public offerings.

Establish common standards for deployment, management, and reclamation.

The Solution

IBM Cloud Orchestrator.

Interoperability across Vmware and OpenStack based cloud environments.

IT RealityBusiness Goals

Results

Significantly reduced duplication of efforts across IT.

Enabled common architectures and designs to be replicated across multiple environments in Network and IT.

Converge multiple internal cloud environments using common technology.

Enable re-use of standard tooling and skills.

Provide choice to end users of workload types, allowing cloud to determine best placement.

Enable convergence of multiple cloud environments under one management layer.

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Cloud will eventually transform Telecommunication to be pervasive ... across IT, Networks and Commercial services

Consolidation of fixed and mobile markets.

All IP network.

Software Defined Environments will eliminate most if not all proprietary equipment; API Economy will evolve.

Data Centre Focused, Geo-independent, Affordable services will be the underlying paradigm.

Seamless transition from wired to wireless User Experience.

Telecommunications Industry will eventually move up the value chain

Future of Telecommunications on Cloud

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3 IBM and cloud

2 Charting the path for cloud adoption

1Cloud will transform the Telecom Industry: Generating Revenue as well as Improving Efficiency

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Cloud Adoption Strategies: Incumbent Telcos vs. New Entrants

INCUMBENT TelCos NEW ENTRANTS

Consolidate and improve current processes and systems suitable for the Cloud TechnologiesIM

PR

OV

E

Strategize and Transform Network InfrastructureData CenterIT ApplicationsT

RA

NS

FO

RM

Create Business Value viaNew business models for delivery of existing and new servicesCR

EA

TE

VA

LUE

CH

AIN

Evaluate market needsFormulate strategy to address the demandHarness Cloud for fast deployment and highly reduced TCOS

TR

AT

EG

IZE

Create Business Value viaEnhancing existing business model and/or develop entirely new Business LineC

RE

AT

E

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Using cloud as a source of revenue, CSPs have to decide the segments to focus on

Horizontal Applications

Vertical Applications SMB Consumers

Communication/ collaboration services

Sales force automation

Work flow management

ERP CRM Others

Complete end-to-end cloud services for industry verticals Health care Travel Government Financial Services Others

Cloud solutions for small and medium businesses Office-in-the-box Sales force

automation Invoicing & billing Virtual Desktop Others

Cloud solutions for end consumers: Cloud gaming M2M Others

REVENUE GENERATION STREAMS

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Using cloud to improve operational efficiencies, CSPs have to decide how to navigate to a highly efficient operating model

Ent

erpr

ise

Clo

ud A

dopt

ion

Migrate existing workloads

Cloud First

MigrateQuantifyPrioritizeSelect

Workload analysis Wave 1 Wave 2 Wave 3

Migration Plan

Business case

New project

Replace existing app / infra

New project

Evaluate a blend of cloud options that best suit the business

requirements

BPaaS SaaS

PaaS IaaS

SELECT > PRIORITIZE > QUANTIFY > MIGRATE

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A key step is to analyze the business services essential to the telecommunications industry

SELECT > PRIORITIZE > QUANTIFY > MIGRATE

Classification Criteria: Cloudable X%, cost savings Y%

Identify those business services that can be delivered and consumed most efficiently, effectively and securely over the cloud

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Cloud Work Load Analysis: Determining which functions and processes can be moved to cloud

SELECT > PRIORITIZE > QUANTIFY > MIGRATE

Telcos would provide the following inputs: Servers and Operating systems Location distribution Overall storage Non functional requirements

(NFR) Application and workload data Current costs

Cloud service provider can provide the following inputs

Target cloud configuration

Target cloud NFR

Historical data

Target cloud cost

Input/output, disk and utilization mapping

NFRs Analysis

Migration Complexity

Operating system and software compatibility

Cloud Workload Analysis

Strategy, Infrastructure & Product

Operations Support System

Fulfilment Assurance Billing

High-level representative view of Telco functions and processes

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Prioritization: Some Telecom functions and activities are more conducive to cloud than others

SELECT > PRIORITIZE > QUANTIFY > MIGRATE

Category 1 - Ready for cloud Category 2 - Not ready for cloud

Characteristics

Standardized applications Apps that require on-premise data (that cannot be migrated to cloud)

Self-contained workloads High degree of customization

Applications developed using Service oriented architecture

Legacy systems

Complex application integration

Apps that need high performance

Example workloads

Analytics Sensitive data

Collaboration Highly customized

Compute & Storage Not yet virtualized third-party software

Virtual Desktop Infrastructure Complex processes and transactions

Business Processes Regulation sensitive

Disaster Recovery Legacy industry applications

Development and Test

A third category relates to workloads that require individual analysis and may be ready for cloud

Example workloads are

Isolated workloads

Preproduction systems

Batch processing

Source: IBM cloud implementation projects and analysis

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A Cloud readiness assessment of Telco functions and processes helps speed up Cloud adoption

Strategy, Infrstructure & Product

Fullfilment Assurance BillingOperations Support & Readiness

Market/Sales Domain Campaign Management

Compensation

&Results

Channel Sales Mng.

Product Management DomainProduct Strategy/Proposition Mng.

Product Performance

Mng

Product Lifecycle

Mng.Product Catalog Mng

Customer Management DomainCustomer

Information Mng

Transactional Document Production

Billing Account Mng

Receivables ManagementCustomer Self ManagementCustomer

Order Mng

Collection Management

Billing Inquiry, Disputes

&Adjustments

Bill CalculationBill Format/

Render

Charge Calculation & Balance Man

Service Management Domain

Service Catalog Mng

Service Inventory Mng.

Service Problem

Management

Service Order Management

Service Performance

Mng.

Service Quality Mng

Resource Management Domain Resource Process Management (Workflow/Integration)

Resource Domain Management

Resource Life Cycle

ManagementResource Order

Management

Voucher Management

Resource Performance Management

Supplier/Partner Domain

Enterprise Domain

INT

EG

RA

TIO

N IN

FR

AS

TR

UC

TU

RE

Customer Contact Management, Retention & Loyalty

Customer Problem

Mng

Partner Management (Including SDP Ven)

Supply Chain Management

Revenue Assurance

Management

HR Management

Financial Management

Asset Mng Security

MngKnowledge

Mng Fraud Mng

Sales & Marketing Reporting

Sales Account Management

Solution Mng.

Contract Management

Sales Portals

Customer SLA Mng

Case Mng Billing Events Man

Service Test Mng.

Workforce Mng

Resource Inventory

Mng

Network Number Inventory

Mng

Location Mng

Resource Test Management

Fault Mng

Usage Mng

Wholesale / Interconnect Billing

Regulatory &

Compliance Man

Administrative Services

Service D

elivery Platform

(With Integration Layer to 3

rd Party S

ervice Vendors)

App-1

App-2

App-n

IVR and Call Center Functions

Campaign Management

Is Cloud

Adaptable?

Yes.

Range=100%,

Estimated IT

Cost Savings

for this

campaign

management

application

between 40%

to 80%

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Quantification: Cloud helps reduce technology spend significantly and facilitates process enhancements

SELECT > PRIORITIZE > QUANTIFY > MIGRATE

Note: The above is based on actual cloud adoption for a Telco, shown here as a representative example. The results will vary based on Telco environment, requirements, and assessment.

Background A Tier-1 Telco Service Provider has Voice as well Data solutions for wired as well as wireless consumers Has challenges in managing a vast complex estate of 2000 servers, inefficient processes and increasing costs

Current costs

Reduced costs

Costs for managing servers only

80% cost reduction

80% reduction

Provisioning time

Virtualization

90% reduction

Processing overhead

Auto provisioning &

Service Management

30% reduction

Provisioning time

Application Pattern Provisioning & Management

Workload deployment

80% reduction

SolutionIBM cloud with PureApplication system

Benefits (specific only to servers moving to cloud) 83% Return on Investment 12 months break even period

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Migration: Cloud migration from architecture through implementation

Determine the organization goals, platform requirements & complexity associated

Develop enterprise cloud strategy, options available and roadmap

Envision the cloud architecture that will support cloud initiatives

Update IT Strategy and IT plans to align them with cloud strategy

Define business drivers to prioritize use cases for cloud

Implement a CloudFirst strategy to evaluate right blend of cloud options for new projects

Assess and evaluate from the current applications, the best candidates for cloud

Determine the applications to be moved to cloud

Define multi-sourcing models and cloud vendor selection criteria

Assess and determine how to best leverage the options of private, public and hybrid delivery models

Develop Cloud Service Catalog, SLAs and KPIs

Develop cloud cost models including transition

Finalize a cloud business case and examine its ROI including time required for initial payback

Prepare infrastructure for cloud

Develop Cloud Risk

Management plan and policies

Security and Compliance plan and processes

transition plan including workforce transition

Assess impact on operating model, identify and plan changes required

Note: The above shows an overall plan and will include aspects of workload prioritization and migration discussed in other slides

Prepare for implementation

Develop Cloud business case

Determine cloud deployment options

Identify and prioritize workloads

Create Cloud strategy, architecture and plans1 2 3 4 5

Cloud planning should result in accelerated migration, quick wins and mitigated risks

SELECT > PRIORITIZE > QUANTIFY > MIGRATE

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Cloud adoption can be accelerated using IBM’s pre-defined approach and accelerators

1 2 3 4 5

SELECT > PRIORITIZE > QUANTIFY > MIGRATE

Actions for migration Accelerators

Create Cloud strategy, architecture and plans

Identify and prioritize workloads

Determine cloud deployment options

Develop Cloud business case

Prepare for implementation

Develop a vision for cloud, align business – IT objectives & goals Identify changes in Enterprise Architecture and IT plans

Use assessment & decision framework as a tool for prioritization Identify’ Telco’s functions, processes and applications that can be moved to cloud

Assess workloads, data, impact on security and compliance Rapidly assess and determine optimal option from private, public and hybrid

models

Determine models for business case Identify business functions / processes impacted by cloud, business benefits,

overall costs, and risks

Acquire / prepare cloud infrastructure Develop Cloud Risk Management plan Develop transition plan including workforce transition Assess impact of cloud on current operating model

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Enterprise innovation is realized by integrating new technologies with existing core systems, coupled with any required process changes

Cloud enables leaders to take a systematic approach to integrate these capabilities to drive

enterprise innovation

Systems of insightAdvanced analytics and cognitive computing systems that harness big data enabling competitive advantage for Telcos.

Systems of engagementLeverage mobile and social to transform relationships with customers, employees & citizens.

Systems of recordThe traditional core systems such as accounting applications and product systems that record key internal data.

Pervasive Security A dynamic approach to threat reduction through a life cycle of prevention, detection and response.

Enterprise Innovation

Systems of Engagement

Systems of Record

Systems of Insight

Enabled by Cloud

1 2 3

Strategy

Pervasive Security

54

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Vietnam Mobile Telecom Services Selects IBM to Develop Cloud-Based Mobile Computing Platform

1 2 3 4 5

Strategy

Vietnam Mobile Telecom Services Company - VMS, a state-owned telecommunications company

Business problem: The Vietnamese mobile landscape has matured from its heady days of exponential growth to one that is fiercely competitive. This drove VMS to examine their business models, explore ways to reduce their operating expenses and seek new and better ways to differentiate themselves by providing superior products and customer services.

Solution: VMS is the first organization in Vietnam to deploy an end-to-end mobile on cloud infrastructures based on IBM technology: The new mobile platform is based on IBM WAS and IBM Worklight software, as well as a cloud management system running on IBM SmartCloud Provisioning and Tivoli Endpoint Manager.

IBM announced its collaboration with Vietnam Mobile Telecom Services Company (VMS), one of Vietnam’s leading telecom companies, to build an advanced, end-to-end mobile computing platform.

Based on IBM’s MobileFirst, SmartCloud and PureSystems offerings, the project will enable VMS to expand into new markets while enhancing its enterprise application development capabilities and improving workforce productivity.

Innovate business models by becoming a Cloud Service Provider

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Security, privacy and compliance issues can be readily addressed with cloud

As Telcos start planning to adopt cloud, key questions arise about their data & apps:

Where is our data stored? What about data sovereignty?

How do we protect our customers’ privacy?

How does cloud affect our regulatory compliance?

Is a business continuity plan available for cloud?

Risk Management

Plan

Cloud SLA

Cloud requirements

Monitoring & Auditing

Risk & Security Management

processes

Physical & Logical controls implementation

Audits & reports

Critical elements to address security, privacy and compliance concerns

Telc

oS

CL

OU

D S

ER

VIC

E

PR

OV

IDE

R

IT Strategy

1 2 3 4 5

Identify and prioritize

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A phased migration to cloud helps manage risks

1 2 3 4 5

Potential migration risks Incorrect analysis and identification of

workloads

Inability to meet non-functional requirements

Incorrect ROI analysis

Inadequate preparation of infrastructure / apps for cloud

Complex applications’ interoperability & integration

Failure to comply with security, privacy & regulatory requirements

Management complexity as resources get distributed in a virtualized environment

Discover

current assets and usage

topologies & dependencies

platforms and licenses

SLA’s, security & compliance

Analyze

cloud feature / fit

cloud providers

contract models

resource sizing

workloads

Establish the Migration Toolkit

Cloud-enable infrastructure & applications

Migrate

Infrastructure

Applications, Platforms and Data

Operations Services

Validate Migration

Phased migration approach

Migration & Validation PhaseAnalysis PhaseDiscovery Phase

Identify and prioritize

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© 2014 IBM CorporationIBM Institute for Business Value37

Cloud deployment options enable Telcos to adopt the type of cloud implementations that best meets their business requirements

1 2 3 4 5

Value drivers ….…Standardization, capital preservation, flexibility and time to deploy

Value drivers ….… Customization, efficiency, availability, resiliency, security and privacy

Private cloudTarget

DigitalBack Office

Digital FrontOffice

Real-time Offer Mgt.

Ordering/Buying

Digital Marketing Optimization

Partner Management

Unified Product Catalog

Single View of Customer

CloudNetwork

Real-Time Charging

Billing

Policy Management

Cloudhybrid

Cloudmostly private

Cloudprivate

Today

CRM

Cal

l C

entr

e

Sho

ps

Web

Prepaid

Product Catalog

Order Management

Core Billing

Product Catalog

Network

Service platforms

Value drivers …Leverage flexibility and benefits of private and public cloud while addressing data security, governance, compliance and budgetary challenges

Hybrid cloud

Public cloud

Deployment options

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© 2014 IBM CorporationIBM Institute for Business Value38

Cablecos are also deploying Cloud to create new revenue streams and increase operational efficiencies

1 2 3 4 5

What if you could put your cable subscribers’ DVR storage in the cloud?

DVR in the cloud is going to change the face of media, entertainment and advertising. Not only is it more convenient for subscribers, it delivers a better service. The cable company is going to know so much more about its subscribers, it will be able to virtually tailor the individual experience for each subscriber.

Real Business Results Reduced the costs of deploying and maintaining

set-top boxes by 50 percent, saving more than USD 6 million annually

Generated more than USD 8 million in new revenue from enhanced DVR services

Increased advertising reach by 12 percent

A cloud-based DVR service transforms how a cable company operates, gives unprecedented insights into viewing habits, and offers consumers greater control over their television experience.

A cable television company in North America

Cloud business case

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Cloud is helping Telcos evolve a new operating model tightly aligned to business strategy

1 2 3 5

Implementation / impact on operating model

An operating model is a framework for formulating an operations strategy that best deploys and determine the explicit choices needed to achieve business goals

Market shifts in the digital economy necessitate Telcos to adopt new technologies like cloud, mobile, social media and analytics

To succeed with cloud, Telcos have to assess the impact of cloud on the operating model and all its dimensions and determine what actions are required to make cloud adoption smoother and more successful

ROADMAP FOR CHANGE

Target Operating Model (TOM)

TOM

CustomerExperience

PerformanceMetrics

Technology

Skills & Capabilities

Sourcing & Alliances

Assets &Locations

Organization &Governance

Processes

CULTURE

4

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3 IBM and cloud

2 Charting the path for cloud adoption

1Cloud will transform the Telecom Industry: Generating Revenue as well as Improving Efficiency

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IBM is serving the cloud computing imperatives in Telecom

Infrastructureas a Service

Strategize how to use cloud to drive savings and revenue growth

Build and run your private or hybrid cloud

Utilize cloud services delivered from IBM Cloud

Business Processas a Service

Softwareas a Service

Platformas a Service

Hybrid Cloud Technologies

Expert Integrated Systems

Cloud Platform Technologies

Cloud Infrastructure Technologies

Cloud Security Services

Cloud Strategy and Design

Cloud Implementation

Cloud Migration Services

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© 2014 IBM CorporationIBM Institute for Business Value42

IBM is helping our clients achieve compelling business outcomes, across a number of entry points

BUSINESS PROCESSas a Service

SOFTWAREas a Service

PLATFORMas a Service

INFRASTRUCTURE as a Service

Automating Business Innovation

Marketplace of High Value Consumable Business Applications

Rapid App Development through Composable and Integrated Platform built using open standards

Enterprise Class, Optimized Infrastructure built using open standards

Business Process:

Procurement

Payment Processing

Help Desk

Accounting

Recruiting Commerce

Supply Chain

Analytics

Talent Management

Collaboration

IT Management

Marketing

Development & DevOps

Big Data & Analytics

Security

Integration

Mobile

Traditional Workloads

Integration/ API Mgmt.

Compute

Storage

Networking

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© 2014 IBM CorporationIBM Institute for Business Value43

IBM cloud marketplace provides easy access to our as-a-service portfolio

Over 200 IBM and Third-Party Software and Services

Leverage world-class IBM partner ecosystem

Curated solution pages with IBM expertise

Easy access to build, consume, deploy and purchase services

IBM CLOUD MARKETPLACEYour gateway to cloud innovation

Explore hundreds of IBM and Business Partner services from across the cloud spectrum.Sign up to offer your cloud services in the marketplace today

Enterprise — grade business apps to accelerate innovation (SaaS)

Powerful services and APIs via an integrated cloud platform (PaaS)

Self-service IT infrastructure configurable to your needs (IaaS)

Biz Dev Ops

ibm.com/cloud/marketplace

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© 2014 IBM CorporationIBM Institute for Business Value44

We recommend a practical approach to Cloud computing

Define cloud strategy and roadmap

Assess cloud deployment models, service options and workloads

Plan cloud strategy and roadmap

Choose initial project

Condition the existing infrastructure for cloud

Virtualize and automate existing systems

Add service management, service catalog

Start with an isolated private cloud deployment

Choose low-risk workload such as development and test

Standardize applications and systems

Deploy self-service portal

Roll out cloud across the enterprise, then consider cloud services

Enable additional workloads on private cloud and add new users

Use trusted public cloud services to supplement data center capabilities

When the organization has the experience with cloud, initiate cloud services effort

Think it Build it Tap into it

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IBM can support you locally and globally

IBM GLOBAL CONTACTSIBM REGIONAL CONTACTS

Warwick HillGBS Telecom Industry Leader [email protected]

Bob FoxGBS Global Telecom and M&E [email protected]

Damien SanteBusiness & Cloud executive [email protected]

Rob van den DamIBV Global Telecom Industry [email protected]

Nick GurneyGBS Communications Industry Leader [email protected]

Sourav DuttaCoC Cloud Executive [email protected]

Michael J. SingerGBS Telecom Industry Leader [email protected]

William F. (Bill) LambertsonGlobal Telco Cloud Solution Sales [email protected]

Thais Lima de MarcaGBS Communications Industry Leader [email protected]

Angela L. Russell Global Telco Segment Solution Leaderrussella@@us.ibm.com

Thomas TattisGBS Communications Industry Leader [email protected]

Steve TeitzelGlobal Telco Solution [email protected]

Lancelot GuoGBS Communications Industry Leader [email protected]

Alisa DeMartinoGlobal Telco EcoD Business [email protected]

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© 2014 IBM CorporationIBM Institute for Business Value46

Richard Puckette – VP and CoC Leader, Global Cloud Consulting [email protected],.com720.395.1526

Kedrick BrownVice President GCTME Telecom/M&[email protected]

Chandrashekhar DeshpandeGCTME Cloud Leader Telecom/M&[email protected] 190-23847

Nancy Agosta – Cloud Industry LeaderCloud [email protected] 919.481.3233

IBM can support you locally and globally (continued)

IBM CoC ADVISORY LEADERSIBM CLOUD CoC ADVISORY LEADERS

Cindy Warner – Managing PartnerGlobal Cloud [email protected]

Mike Owens – Associate PartnerCloud [email protected]

Becky Carroll – Associate PartnerCloud [email protected]

Nathan Herber – Associate PartnerCloud [email protected]

IBM CLOUD CATEGORY LEADERS

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© 2014 IBM Corporation

Thank You

© 2014 IBM Corporation

IBM Institute For Business Value Cloud Telecommunications Point of View


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