© 2014 IBM Corporation
Cloud in TelecommunicationsPoint of View IBM Institute for Business Value
Partner’s Name, Partner’s TitleDD Month YYYY
© 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.
© 2014 IBM CorporationIBM Institute for Business Value3
3 IBM and cloud
2 Charting the path for cloud adoption
1Cloud will transform the Telecom Industry - Generating Revenue as well as Improving Efficiency
© 2014 IBM CorporationIBM Institute for Business Value4
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
© 2014 IBM CorporationIBM Institute for Business Value5
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
© 2014 IBM CorporationIBM Institute for Business Value6
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
© 2014 IBM CorporationIBM Institute for Business Value7
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
© 2014 IBM CorporationIBM Institute for Business Value8
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
© 2014 IBM CorporationIBM Institute for Business Value9
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
© 2014 IBM CorporationIBM Institute for Business Value10
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
© 2014 IBM CorporationIBM Institute for Business Value11
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
© 2014 IBM CorporationIBM Institute for Business Value12
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
© 2014 IBM CorporationIBM Institute for Business Value13
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
© 2014 IBM CorporationIBM Institute for Business Value14
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
© 2014 IBM CorporationIBM Institute for Business Value15
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
© 2014 IBM CorporationIBM Institute for Business Value16
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
© 2014 IBM CorporationIBM Institute for Business Value17
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
© 2014 IBM CorporationIBM Institute for Business Value18
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
© 2014 IBM CorporationIBM Institute for Business Value19
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)
© 2014 IBM CorporationIBM Institute for Business Value20
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.
© 2014 IBM CorporationIBM Institute for Business Value21
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
© 2014 IBM CorporationIBM Institute for Business Value22
3 IBM and cloud
2 Charting the path for cloud adoption
1Cloud will transform the Telecom Industry: Generating Revenue as well as Improving Efficiency
© 2014 IBM CorporationIBM Institute for Business Value23
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
© 2014 IBM CorporationIBM Institute for Business Value24
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
© 2014 IBM CorporationIBM Institute for Business Value25
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
© 2014 IBM CorporationIBM Institute for Business Value26
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
© 2014 IBM CorporationIBM Institute for Business Value27
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
© 2014 IBM CorporationIBM Institute for Business Value28
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
© 2014 IBM CorporationIBM Institute for Business Value29
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%
© 2014 IBM CorporationIBM Institute for Business Value30
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
© 2014 IBM CorporationIBM Institute for Business Value31
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
© 2014 IBM CorporationIBM Institute for Business Value32
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
© 2014 IBM CorporationIBM Institute for Business Value33
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
© 2014 IBM CorporationIBM Institute for Business Value34
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
© 2014 IBM CorporationIBM Institute for Business Value35
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
© 2014 IBM CorporationIBM Institute for Business Value36
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
© 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
© 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
© 2014 IBM CorporationIBM Institute for Business Value39
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
© 2014 IBM CorporationIBM Institute for Business Value40
3 IBM and cloud
2 Charting the path for cloud adoption
1Cloud will transform the Telecom Industry: Generating Revenue as well as Improving Efficiency
© 2014 IBM CorporationIBM Institute for Business Value41
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
© 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
© 2014 IBM CorporationIBM Institute for Business Value43
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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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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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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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Thank You
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