The use of SOA and GRID technology to allow telcos to act as efficient IP service providers in the future Presentation for the GRID Concertation Meeting Erik Dahl, Senior Strategy Advisor Telenor, Norway Coauthors André Bersvendsen, Babak Farshchian

2 Challenges for telco (such as Telenor) Decreasing will of payment per transported unit gives reduced revenue per user (ARPU) for traditional telecom products End users’ willingness to pay is moved against end user services at a higher level, such as video (TV and VoD), software (ASP), storage, etc Telco may increase ARPU by offering end user services at a higher level and increase our strength as an access supplier A strategic goal will be to simplify, standardise and modularise the product portfolio

3 Telenor An international telecom operator based in Norway Our Vision: Ideas that simplify  Telenor shall be a driving force in renewing, developing and introducing new solutions that simplify our customers' workday.  Telenor's vision is demanding, setting an ambitious goal for the organisation and its individual employees.  Renewal and simplification of our own structures and routines is a prerequisite for attaining competitive power and added value.

4 Telenor’s organization Telenor NordicMobile IntlBroadcast Mobile IS Operations Fixed Marketing

5 The contribution of SOA and GRID Service Oriented Architectures may be used both to simplify Information Systems (IS) and the network itself So far Telenor has a lot of legacy systems, causing nuisence and high costs The introduction of SOA and Web Services is just beginning Our research department has been studying SOA and GRID technology for years Telenor actually built a ”GRID” called Supernett in 1992 (with 34 Mbit/s connections between 4 cities)

6 Introduction of SOA in the IS portfolio Projects in CRM, Order and Network Information have identified substantial need of integration across business units For ULTIMAS alone one has identified need for development and adjustment of more than 130 interfaces Strong functional coupling between applications and systems It is difficult to integrate across business units Establish a future-proof architecture that supports: –Cost-effective development, operation, and management of integrations –Simpler consolidation of IT-systems –Efficient support for process development –Establishment of reusable services across systems and business units –Predictability and shorter time to market for development of new interfaces Establish a suitable organisation to handle integration needs SituationRelated challenges HR Call Center CRM ERP OSS Legacy System Billing HR Call Center CRM ERP OSS Legacy System Billing HR ERP Call Center CRM OSS Legacy System Billing CIM HR Call Center CRM ERP OSS Legacy System Billing HR Call Center CRM ERP OSS Legacy System Billing HR Call Center CRM ERP OSS Legacy System Billing HR Call Center CRM ERP OSS Legacy System Billing HR ERP Call Center CRM OSS Legacy System Billing CIM HR ERP Call Center CRM OSS Legacy System Billing SOA

7 Service Oriented Architecture (SOA) contribute to substantial improvements Process optimisation will be a common responsibility of IT and the business side IT can be used strategically to obtain business goals Top-down approach to IT development Common methology of development (common architecture) based on an EAI platform Coupling loose of systems Centralised monitoring of services in context by the business processes where they are applied Services Data model Transformation Connectivity Processes Systems HR ERP Call Cente r CRM OSS Legac y Syste m Billin g SOA

8 SOA in the network…

9 Device Domain User Domain Network Delivery Domain From ”SILO solution” to Next Generation Network Radio/TV Telephony GSM ATM (Data) Development Network migration IP/MPLS Core and Aggregation Network Access Services The IP Service Platform consolidates and optimises the production of services! Development IP Service Platform Communication Control Service Management Domain (IS/IT) User service domain Service Brokerage Domain IT/IS IP/MPLS network Services IP Service Platform Today Single Service Networks Target IP Service Environment

10 Example: CSF compared to NGN (CSF=Common System Framework ) Service layer is an IT platform that plays the role of an IN-SCE (Intelligent Network Service Creation Environment) extending their functionality in order to cover the new network scenarios. Control layer is the call server that provides call control functions and also provides the control of the Media Gateway. Core layer is the network handling converged services based on IP. Access layer elements includes different Media Gateways that support connection to and from the access network with the core network. Service layer is an IT platform that plays the role of an IN-SCE (Intelligent Network Service Creation Environment) extending their functionality in order to cover the new network scenarios. Control layer is the call server that provides call control functions and also provides the control of the Media Gateway. Core layer is the network handling converged services based on IP. Access layer elements includes different Media Gateways that support connection to and from the access network with the core network. ITU, NGN layers: IMS Brut.net DSL, 3G, etc. IS/IT HIGH-LEVEL VIEW OF CSF

11 Why establish an IP service platform? An IP Service Platform is needed for optimal and module based production of both existing and new transport products and end user services The IP service platform monitors and controls resources in the network an access lines so that services are transported according to the needs of the various services, and according to SLAs with customers The IP service platform makes possible and optimises interfaces for wholesale, and allows content from externals

12 Profitability of an IP service platform Estimation of value - A thorough overall value estimation Income - An IP service platform can be used to produce the services and generate the income that has been estimated in various separate projects (DSL/FTTP, Content on BB, WiFi/WiMAX, and VoIP) CAPEX - Investments on the order of xx M€ in four years is needed. This must be seen in connection with overall IT/IS and platform investments OPEX – An IP service platform allows for a more coordinated and optimal production of services that what is possible with separate servers Churn - Tighter integration between services reduces churn

13 Possible schedule for penetration SOA in IT/IS GRID in IT/IS for telecom SOA in telecom network GRID in telecom network

14 From Web Services to GRID Services Distribution of functionality Lifetime (Time management of services) End-to-end Quality of Service (QoS) Sharing of computing resources (time share) Payment per use becomes possible (micro-billing) Improved security functionality Implementation of Peer-to-peer applications Further cost reductions Probably a gradual development Maybe OGSA, maybe something else… A vision (for the telecom operator):

15 Situation today: Devices without a platform

16 Tomorrow: Devices with a platform Enabler

17 Interaction space Pervasive platform applications platform device applications platform mobile phone TV laptop

18 Enablers (operator-owned) Third party services Personalized context-aware Service provision Web service Web service Web service Web service Customer WiBrix Wireless bricks

19 Human-computerinteraction Mobility PervasiveComputing Global access User experience/intuitiveness level Fixed wireless Mobile LowHigh Pervasive computing

20 Applications Terminal Content/use Data hosting and services Network Service platform TeleMediaIT Management, aftertreat, billing, payment Modular technologies - Function of WS and GRID Web Services Web Services Web Services Web Services GRID Web Services GRID Web Services GRID

21 Service provider SP provider SP provider Billing provider Billing provider Network resource provider Network resource provider Billing provider Billing provider Application server provider Application server provider Data hosting provider Data hosting provider Application provider Application developer Roles involved in supply process to end users Content provider Terminal provider Terminal provider Billing provider Billing provider User Billing provider Billing provider Service platform Data hosting Services, applications, and content Network and terminal OS and MW provider OS and MW provider

22 One promising role: Telecom operator as Service Enabler Operators know their users –Identity, security and privacy, accounting and charging,… Operators know how to operate a universal platform for millions of users Network is a major building block for pervasive applications –Global access, connected devices, sensor data, access to web services,…

23 Some requirements for future GRIDs as seen by a telecom operator The framework should : Support interactivity and multimedia Support location and context-aware services Be network- and terminal agnostic Support self-provisioning Support single sign-on Support pre-paid billing

24 Thank you!