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Co-sponsored feature: Alcatel-Lucent

Bringing together combined network and IT experience provides an efficient means to address
operators’ needs to transform business. The Alcatel-Lucent and Hewlett-Packard (HP) alliance,
now established for over a year, unlocks the potential to perform that transformation more
effectively, explains Andreas Herzog, president of Alcatel-Lucent’s Managed Services Division

Achieving competitive advantage through proven

business transformation and outsourcing strategies
Multi-country operations and governance
Multi-country operators are looking to unify opera-
tional models, either on a regional or global basis,
depending on the type of operations they run. The
alliance provides end-to-end managed services solu-
tions to support all domains and business units of
Andreas Herzog: Bringing together operators from tier 1 to tier 3 in multi-country envi-
IT and telecoms expertise addresses ronments. Solution strategies address the consolida-
the strategic imperatives operators tion and optimisation of different operating companies
face under a single governance and management umbrella
for network and IT — excluding core business pro-
cesses, such as end customer marketing and sales.

The total telecom framework

HP and Alcatel-Lucent have designed a joint frame-
work for complete outsourcing of operators’ revenue
generating infrastructure. The framework encom-
passes end-to-end design, plus the build and transi-
tion into managed services or outsourced solutions.
The framework covers and supports potentially all
domains and business units within an operator and
enables them to take the strategic solutions they need
to reach their specific business goals.
Operators today face a multitude of process, organisa-
tional and technological issues as their networks expand Solution strategies for business transformation
and product portfolios grow. They face operational These deliver transformation services that span from
difficulties from both absorbing organic growth and the network to IT, service management and opera-
the integration burden of renewed mergers and acqui- tional processes and tools to ensure a smooth, effec-
sitions in the sector. These issues are compounded as tively-integrated transition of the operator business.
operators deal with heightened competition from both
legacy and new service and content providers. In-country operator mergers and acquisitions
In order to meet these new challenges effectively, These solutions support operators as they manage
operators need to institute fundamental change across the integration burden of mergers and acquisitions.
their businesses. Change is required in five key areas: An example of such a scenario would be the merger
n Developing strategic partnerships around technology of fixed and mobile operations. The alliance provides
n Integration of multiple domains such as IT, the end-to-end managed services solutions to support all
network and customer relationship management domains and business units in one specific country
n Establishment of business processes that are more environment to optimise and consolidate multiple
end-user centric service providers. The solutions exclude core business
n Optimisation of capital and asset management processes like end customer marketing and sales.
n Adaptation of the operator organisation to become
more agile The value proposition
The HP and Alcatel-Lucent alliance combines a com- Depending on the strategic managed services engage-
prehensive set of capabilities and processes that system- ment, the Alcatel-Lucent HP Alliance can achieve the
atically align to offer operators the most effective man- following typical improvements:
aged services solutions as they transform to converged, Incremental decreases in total operational expendi-
next generation service providers. There are no other ture by up to 3% compared to the alternative of
similar alliances in the industry that bring together managing multiple contracts. This can be achieved by
the IT and telecoms expertise of the participants to reducing IT and network costs for a total customer pro-
offer a portfolio of solutions targeting specific strategic gramme and removing the costs of duplicated functions
imperatives operators are now facing. These include: such as programme management, service desks, etc.

102 Global Telecoms Business CEO and CFO Guide to Managed Services: September/October 2010
Co-sponsored feature: Alcatel-Lucent
Improvement of time-to-market and enhanced network and IT infrastructure as a differentiator and to
speed of innovation from months to weeks by provid- increase efficiency and innovation in order to compete.
ing open application developer ecosystems for new
service offerings in both consumer and enterprise Why HP and Alcatel-Lucent?
segments, ensuring solutions are pre-integrated and The HP and Alcatel-Lucent alliance combines a
backed by an end-to-end validation process. This is comprehensive set of capabilities and processes that
also accomplished by removing operators’ internal systematically align to offer operators the most effec-
overheads that inhibit rapid service — or system — tive managed services solutions.
introduction. The benefits that operators can derive from the
Reduction of subscriber acquisition and retention joint HP and Alcatel- Lucent partnership include:
costs can be achieved through the alliance’s sin- n A committed partnership for the next 10 years that
gle Business Intelligence (BI) operations framework will result in consolidated, industry leading net-
that correlates network, IT and customer man- work and IT innovation to help remove duplicate
agement along with enhanced subscriber profiling network and IT functions and costs.
for improved end-user quality of experience and n Improved time-to-market by making use of the
understanding of customer segmentation. Greater largest technology and service capabilities, such as
customer satisfaction can be achieved through more research and development, that include long-term
responsive end-user centric business processes. roadmap collaboration and access to the joint inno-
The operators’ go-to-market capability is expanded vation lab that addresses technology, application
by accessing the combined expertise of HP and Alca- and process development.
tel-Lucent in the enterprise segment. The operator’s n Mitigated implementation risk that delivers
network services can be used to support new applica- reduced operational complexity across functional
tions for enterprise-verticals such as cloud services, domains through a single delivery model and with
application enablement or hosting, to name a few. a single point of accountability.
In addition, joint marketing campaigns that target n Elimination of hidden project and management
industry specific solutions such as tele-healthcare costs through removing overhead associated with
can be created. managing multiple contracts and dependencies
Optimisation of capital and asset management across functional domains thereby avoiding dupli-
occurs through proactive capacity management cation of projects and effort.
across all technology landscapes, access to on-demand n Improved business management through more
capacities, skills and resources and access to financial accurate end-to-end business analytics and data
instruments. This optimisation helps to mitigate mining that enables: quality of experience indica-
start-up costs of transformation projects from both tors across functional domains including the CTO,
capital and operational expenditure perspectives. CIO, CMO functions and business units; service
A managed services approach enables operators to performance indicators across technology layers
combine best in class IT, network technologies and comprising the network, IT, OSS, BSS, CRM,
business operational processes to achieve the best CPE, SDP and applications; and metrics for tar-
business outcomes. geted marketing and cross-selling campaigns.
n Optimised capital expenditure investments through
Key business problems solved new service models such as hosted value added ser-
The telecommunications industry is looking for vices that can bring the operator into an enterprise
growth in mature markets across the world. This has IT cost curve whilst maintaining the reliability
manifested itself in the form of new services. Yet, tra- demanded of a telecom infrastructure.
ditionally, the industry has been focused on deploying
and maintaining state of the art infrastructure. The HP and Alcatel-Lucent approach
The problems created in mature markets by this The alliance recognises that every customer is dif-
shift in the demands made upon operators are clear: ferent and is bringing together its local sales and
n Operators now need to launch new services far delivery teams to work with customers to identify
more rapidly than ever before, areas where the alliance can serve them more effec-
n The infrastructure and processes needed to deliver tively than it can individually. The local teams are
these services must offer previously unseen flex- backed by worldwide and regional alliance resources
ibility, and that support the creation of joint solutions and carry
n Infrastructure spend needs to be re-aligned to the experience from joint engagements from one cus-
relate to service development. tomer opportunity to another.
In emerging markets, or where start-ups or new The alliance brings together its strengths in the areas
licenses have been acquired, the challenge is to: of network and IT managed services which include:
n Rapidly build out the infrastructure and business n A clear engagement model comprised of a local joint
processes, engagement with customised delivery to match cus-
n Manage them thereafter at minimum cost, and tomer needs, backed by a 10 year worldwide alliance,
n Provide differentiated services at launch while n Jointly developed managed services governance
being fully aligned to the business strategy. model designed to accommodate the multivendor
While the emphasis will be different in each market environment, and
regardless of the type of business, the truth is that an n Strong Alcatel-Lucent and HP executive sponsor-
operator will need help in using network and IT skills ship and willingness to engage in any managed
to manage growth, to maximise the capabilities of the services opportunity. n Global Telecoms Business CEO and CFO Guide to Managed Services: September/October 2010 103