A Walk in Telco Cloud

Balance in SDN/NFV Technology and Business Strategy

Telkom University, Bandung – November 17th 2018
Nata Diredja Fryandi Ramada
Agenda
• What’s in Telco Cloud
• Who Walks in
Telecom industry has been a game to • To Conquer SDN/NFV
dominate, or even to colonialize, the
crowd by… • Show Me the Money
promoting unbeatable technologies,
offering irresistible services, • The Maps ~ The Games
influencing for more addictions,
sharing the values, and gaining • Summary
profitability.
In the end, it’s a business anyway.
 NETWORK OPERATORS WEBSCALE OPERATORS

Mobile Web Cloud

4
THE SHIFT..........
 We are in the Middle of the 3 rd Wave
Ready for the 4th?
REVENUE GROWTH CURVES

Data

TODAY
Digital
Voice (Call) Messaging (SMS) • OTT
• M2M
• IoT
• PaaS
• SaaS
• …

SUBSCRIBER PENETRATION
Source: © Chetan Sharma Consulting 2013
Why Telco Cloud?

• Today’s anchor is Data, or to be exact: • Digital characteristics:

Mobile Broadband. • evolving fast as flash
• All time Improvements: • continuous/regular updates
• Speed • Millennial/smart market
• Volume • Focus: Applications  software
• Latency/Jitter • Historically Software is IT origin
 Satisfying? NEVER!!!  Goodbye Telco pride..!
• Users take for granted: • IT : Private Cloud
• Faster speed (Mbps) • ISP: Public Cloud
• Cheaper volume (GBytes) • Telco CSP/Operator/Vendor:
• Next attractions: Digital Services Telco Cloud ~ SDN/NFV
 WHAT AND WHY SDN ?
APP
APP
CLOUD
GLOBAL WAN
NETWORK PLATFORM APP

X
SDN
CONTROLLER NP NP
NP
NP NP NP
NPNP

I’m here and Automatic, Optimized IP

I’m App X Networking & Transport
TOR TOR TOR TOR
Massive (Ms of VMs) Scalability
APP APP APP
No VM limitations
…
APP

Any User IP @
APP Multi-tenant Security

ANY NETWORK ANY NETWORK

7
 WHAT & WHY NFV ?
VIRTUALIZED APPLICATION

APP
VM
PHYSICAL INTERFACES
VSWITCH
HYPERVISOR
TOR
STORAGE SERVER
SWITCH
Voice SERVER

SERVER

Packet SERVER
COMPUTE
SERVER
MEMORY

Messaging SERVER
SERVER CARD
Application(s)
NETWORK PROVIDER ‘X’ IT
“DATA CENTER” DATA CENTER
8
 WHAT & WHY NFV ?

9
SDN & NFV Difference

10
 + SDN controller
NFV architectural framework
Source: ETSI NFV GS NFV 002 ETSI NFV GS-EVE 005

5
1
PNF
SDN
SDN controller
controller in
hierarchy and failover
NFV architectural scenario
framework
Source: ETSI NFV
Source: ETSI NFVGS-EVE
GS-EVE005
005)

5
1
PNF
SDN
Agenda
• What’s in Telco Cloud
• Who Walks in
Telecom industry has been a game to • To Conquer SDN/NFV
dominate, or even to colonialize, the
crowd by… • Show Me the Money
promoting unbeatable technologies,
offering irresistible services, • The Maps ~ The Games
influencing for more addictions,
sharing the values, and gaining • Summary
profitability.
In the end, it’s a business anyway.
ECOSYSTEM IN OUR TELCO INDUSTRY
Consumer Behavior is the Controlling Point

DEVICE(S)

CONSUMER
BEHAVIOUR

SERVICE(S)
VOICE/CONTENT/APPS NETWORK(S)

14
CONSUMER BEHAVIOUR
The Shift from Mobile Devices to “EVERYTHING”

From… To…
One PC Complex, growing
ecosystem of connected
devices and partners

One feature phone

15
CONSUMER BEHAVIOUR
The Shift from Pure Telco to “DIGITAL”

source: www.thefastmode.com
16
THE CHANGES: STATIC.... to DYNAMIC

Goal of making the network software-d

App App App App App Make the
network and
cloud
applications
dynamically
responsive to
each other

CONSUMER
BEHAVIOUR

Dynamic
Static
Services
Network
Model
ECOSYSTEM PLAYERS

Big Vendors Ecosystem and Collaboration

Industry communities
Ecosystem VNFs VNFs Suppliers

Partner VNFs Example 4th party

VNFs

+
vIMS vTAS vEPC

+ Independent Interoperability
Body MPLS, SDN, NFV, Clock Synchronization

Hardware certifications

3rd Party DC
components integration

Different DNA of the Organization will drive different requirement for skillsets
Agenda
• What’s in Telco Cloud
• Who Walks in
Telecom industry has been a game to • To Conquer SDN/NFV
dominate, or even to colonialize, the
crowd by… • Show Me the Money
promoting unbeatable technologies,
offering irresistible services, • The Maps ~ The Games
influencing for more addictions,
sharing the values, and gaining • Summary
profitability.
In the end, it’s a business anyway.
SDN/NFV Components
Software:
• SDN Controller
NSO (Network Service Orchestrator) • NFV-I Hypervisor (Virtualization Layer)
• NFV-I VIM (Virtual Infrastructure Manager)
• VNF + EMS
• VNF Manager
• NFV Orchestrator
• OSS + BSS
SDI
• NSO, SDI, CIM, etc.
CIM
Hardware:
• Server – COTS (x86)
***
SDI : Software Defined Infrastructure • Storage – NAS/SAN/etc.
CIM : Cloud Infrastructure Management
• Connectivity – L2/L3 Switch
Reference Technologies (not necessarily to master)

• Hardware:
• Commercial Off The Self  NFV-I
• x86 Computing (Intel)  NFV-I
• Storage (NAS/SAN)  NFV-I
• L2/L3 Switch  NFV-I
• Network:
• IP Routing  SDN
• EMS/NMS/OSS  VNFM / NSO
• Load Balancing  NFV-O
• Functionality:
• Virtualization  NFV-I / SDN
• Core  VNFM / NFV-O
• Transport  SDN / NFV-O
Future Carrier Architecture by SDN/NFV
Source: Arthur D. Little; Bell Labs (2015)
Agenda
• What’s in Telco Cloud
• Who Walks in
Telecom industry has been a game to • To Conquer SDN/NFV
dominate, or even to colonialize, the
crowd by… • Show Me the Money
promoting unbeatable technologies,
offering irresistible services, • The Maps ~ The Games
influencing for more addictions,
sharing the values, and gaining • Summary
profitability.
In the end, it’s a business anyway.
Drivers for Telco Cloud

SDN NFV
CSP/Operator as the Main Stream
Technology Driven
• Always the first in rolling-out new
/latest high-tech solutions to users.
• Comprehensive services portfolio.
Common idea:
SDN/NFV for Cost Reduction as
the main value for Operators
 Then WHY investing? 
*Cheap Price is a MUST 
Business Driven
• More and more coverages.
• More and more subscribers.
• Immediate services offers.
• More and more subscriptions.
• More and more addictions.
• CapEx and OpEx  cost saving
Topline is always Growth & Revenue, or
Revenue & Growth.
A Dream of Industry for Telco Cloud Values
Someday the required hardware
will only be COTS servers,
storages and Layer-2 switches,
while..
the rest will be all software.
1. Fastest time to market in new or
updated services delivery.
 Revenue & Growth
2. Simplicity in planning, acquisition,
deployment, operation and
maintenance.
 Lean & Agile
3. Cost reduction in the long run
comprehensively.
 Profitability
Agenda
• What’s in Telco Cloud
• Who Walks in
Telecom industry has been a game to • To Conquer SDN/NFV
dominate, or even to colonialize, the
crowd by… • Show Me the Money
promoting unbeatable technologies,
offering irresistible services, • The Maps ~ The Games
influencing for more addictions,
sharing the values, and gaining • Summary
profitability.
In the end, it’s a business anyway.
TYPICAL APPROACH
MANAGING CULTURE CHALLENGES

USER PLANNING OPERATION MKT/IT/PROC

High
Rank
APPOINMENT

OFFER/BID MEETINGS

FOLLOW UP PRESENTATION
Low
Rank
WINNING TEAM IS A DEDICATED TEAM

Lead Overall Lead all on technical and bridging the communication Lead all communication on Trial or PM-issues
between Internal & External

SALES TEAM LOCAL ENGINEER PM/ TRIAL MANAGER

Providing Business Case(s), someting Marketing Use Case(s) Providing competitve landscape, Technical Deep Dive, Critical in a complex technology environment
AND Reference(s) of Other Operator(s) Business Models Analysis etc

BUSINESS CASE TEAM SUBJECT-MATTER EXPERTS TRIAL EQUIPMENT

Critical Support Secure a winning position PRODUCT(S)
PRICING
PLACEMENT (DELIVERY)
PACKAGING (BUNDLING)
PARTNERSHIP(S)

TRIAL TOOLS COMPETITIVE LANDSCAPE TOTAL COST OWNERSHIP

Who Does What

Manual network configuration Automated networking

Network SDN
configuration 00:01
Network controller Network Request
completed in
change Minutes Templates
Help desk completed in
change
control
days/weeks
Auto-configuration
VLAN LAN (VLAN)
address configuration

Project
coordinato WAN (IP)
IP
r configuration
addres
s

Security/ Firewall
QA team configuration

Cumbersome, constrained,
X manual processes, inefficient
 Automated, agile and
programmable
 Who Does What

Product, etc.
Net-Q
4

NOC

IT-App
2

Core Transport
3

Network
5
1
PNF IT-Infra
SDN
Who Does What (Simplified)

Operation
4

Network Product

3
DC/Infra
5
1
PNF
SDN
Applicable Approach

Product Network

• Focus: • Focus:
• Functions
• Revenue
• Time to market
• Time to market • Capital Expense (Investment)
• SDN/NFV offers: • Evolution/Transformation
• Fast roll-out • SDN/NFV offers:
• Openness
• Simple for applications • Fast roll-out
• Unified standardization
• Cost effective
• Simple to plan/expand
Applicable Approach (cont’d)
DC/Infra
• Focus:
• Time to market
• Capital Expense (Investment)
• Evolution/Transformation
• SDN/NFV offers:
• Fast roll-out
• Unified standardization
• Cost effective
• Simple to plan/expand
Operation
• Focus:
• Lean process  Agility
• Operational Expense
• SDN/NFV offers:
• Openness
• Unified standardization
• Cost efficiency
Agenda
• What’s in Telco Cloud
• Who Walks in
Telecom industry has been a game to • To Conquer SDN/NFV
dominate, or even to colonialize, the
crowd by… • Show Me the Money
promoting unbeatable technologies,
offering irresistible services, • The Maps ~ The Games
influencing for more addictions,
sharing the values, and gaining • Summary
profitability.
In the end, it’s a business anyway.
SDN & NFV SKILLS

TECHNICAL SKILL
(Job skill)

SKILLS SALES SKILL (incl. Business)

PERSONAL SKILL
(The multiplier performance)
SDN & NFV: TECHNICAL SKILLS

Dynamic Commodity Hardware

Provisioning Simplified Network Operations Hype Central
Efficiency
MoM Orchestration Virtualization
Cloud
Standards
HW/SW Separation

SDN
Control Plane Extraction
vTelco
Dumb Network

710 APIs
Agility

System Integration
Abstraction
Speed

IaaS
Flag Waving
Programmable

Customized
Forwarding
OpenFlow

NFV

Flow
Improved
Link
Utilization
Hyper Optimization

Innovation visor Virtual Network Fabrics

Dynamic Consumption
Open Network Foundation
Skills & Its Trends

Impact over the time of technology evolution Market Share of the Leading vendors in the
in Virtualization market. Virtualization market

Source: GlobalData 2016 Source: GlobalData 2016

SDN & NFV: B2B SALES SKILLS (Simplified)
1. Absolute Understanding of The Formal & The Informal Structure
2. Identify The User, The Buyer, The Approver, The Influencer, The Blocker etc
3. The Style - The Preferences – The Mindsets of The: User – Buyer – Approver – Influencer – Blocker
4. The Competitive Factors & The Unique Differentiators (incl. SWOT Analysis) – Positioning – Tactical Marketing
5. The Unique Differentiators incl. The Strength, The Weaknesses
6. The Art of Appointment (Call, F2F, Confirm the Appointment, Get ahead of time & Mentally Prepare)
7. The Art of Conversation: Small Talk - Statement Intention – Bounding Statement – Seek for Referral/Endorsement
8. The Art of Questioning: Permission to Ask Question, Problem Question, Hesitation Question, Solution Question, Benefit
Question, Objection Question, Summary Statement, Statement of Finding, Target for a Presentation
9. The art of Advertising – Presentation (Objective Scenarios, Ideas, Structure, Key Message, Follow Up Points, Gestures)
10. Feedbacks, Social/Culture Proof, Refer to Experts, Isolate Objection
11. Creating & Feeding Insights, Help People Make Decision that are good for them
12. Budgetary, Re-apply, Justify the Margin – Closing.
 SDN & NFV: BUSINESS SKILLS (Simplified)
This is the DNA of
Most Operators as
organization and
where they are 1
good at. 1

3
3

2
2
This the DNA of most OTT
Players

Different DNA of the Organization will drive different requirement for skillsets
SDN & NFV: PERSONAL SKILLS
The multiplier performance
1. Self Motivation is a Must !
2. Self Management
 The capacity to manage time
 Priority Management & Focus
 Active Listening and willing to learn
 Goal setting and direction
 Flexibility in strategy
 The capacity to bring completion Or to deliver results
 The capacity to be accountable, sense of ownership
 The capability to be a self-starter and independent
 The capability to handle rejections/failure
 Are you a team player ? Led and Lead
Balance in Digital Era

• SDN and NFV are Enablers

while Services/App(s)/Users are the real Drivers.
Beauty contest is one game, but to win is about
full-blown series of a championship.
Technology
Is it desirable ? Consumers

Is it possible ?

Business
Is it viable ?