Slide title In CAPITALS 50 pt Slide subtitle 32 pt Open Source Business Models for Mobile Media Gateway Node Manager

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager2 Ericsson Media Gateway for Mobile Networks (M-MGw) 1/2  The M-MGw is one part of a core network entity called the MSC –The MSC operates between different mobile and fixed networks –Handles both user plane and control plane traffic  In layered architecture the MSC is split in two: MSC-S and M-MGw –M-MGw handles the user plane traffic –MSC-S performs control plane activities controlling the M- MGw

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager3 Horizontally Layered Architecture

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager4 M-MGw in Core Network

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager5 Ericsson Media Gateway for Mobile Networks (M-MGw) 2/2  Main functions: –Payload processing –Bearer control –Media conversion  O&M functionality: –Built in the node with an API –Three layers:  The Network Management Layer  The Sub-Network Management Layer  The Element Management Layer –One single M-MGw is managed on element management layer with the Node Manager

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager6 The Node Manager  An element management layer tool  Written in Java –Can be run on any platform in any enviroment  Provides a GUI for the O&M functions in the M-MGw –A node can be managed both remotely and locally  Used for –Configuration management –Software and hardware management –Fault management –Troubleshooting –Collecting performance data

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager7 Open Source 1/4 What is it exactly?  A software development method and ideology  Utilizes the power of process transparency and shared peer review  Efficiency increases with the number of developers  Details depend on the chosen license –However, the license only defines the rules and boundaries, a framework for operations

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager8 Open Source 2/4 Licensing?  Open Source Initiative (OSI) approves licenses that are in line with the open source definition –Nearly 60 approved licenses to choose from –Naturally, a number of licenses exist without OSI trademark  Copy-left vs non-copy-left  An open source license defines: –The right to modify the software –The right to distribute both the original and modified software freely –The ownership of intellectual property rights –Warranty, liability etc.

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager9 Open Source 3/4 How does it work?  The open source process is based on free distribution  It costs nothing to give away a piece of software already written  Getting something valuable in return is likely  Win - win situation  Open source applications: –Google Android –Mozilla Firefox –MySQL –Linux

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager10 Open Source 4/4 Why?  Open Source programs are: –Diverse –Reliable –Usability improves constantly –Can be obtained free of charge –Can be freely modified  Examples in PC and Internet environment prove that: –The open source software development method can produce good programs –Open source methods generate also revenues when correctly utilized

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager11 Benefits  Diversity –More functions available  Higher quality –More bugs being spotted and fixed –More reliable and stable  More customized solutions –Lower OPEX –More complex features possible to implement  Responsiveness –Customization made locally –No time wasted in organizational steps

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager12 Open Source Business 1.Businesses are not sustainable, only few survive over decades 2.Software businesses are not superior to other types of businesses when revenues and profits are compared 3.At least few of the popular open source projects have been successful for quite a long time. These businesses seem to be equally or even more sustainable than traditional ones 4.The future of open source seems bright, the process may change over time, but the ideology remains. Open source, free software and proprietary are going to coexist in the near future. 5.Open source can make money. It is only a matter of strategy to make an open source project profitable.

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager13 Open Source Business Strategies  Support sellers (Red Hat: Linux)  Loss leader (Microsoft: Xbox)  Sell it, free it (Google: Browser)  Widget frosting (Nokia: Mobiles)  Accessorizing (O’Reilly Associates: Books)  Service enablers (Teleoperators: Mobiles)  Branding (Red Hat: Linux)  Aggregating and enhancing (Sourcefire: Security)  Commecializing with a dual license(MySQL: Database)

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager14 Open Source and Ericsson  Clear demand for customization –Open source could be the way of implementation  Widget frosting strategy recommended for Ericsson –Later support sellers should be considered  Fist mover advantage –Create strong bond with customers  Positive publicity if successful –May create requirements for other products as well –Failure may result in negative publicity  Open sourcing a program is not just throwing the code over the wall

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager15 Outbound Open Source Software Development Model

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager16 Objectives  Increasing hardware and maintenance sales –Competitive advantage  Customer switching costs and lock-in effect –Customer satisfaction  Lower OPEX  Customization  Organizational learnign –New way of working  Refocus of energy –Innovation  More people, multidiciplinary views

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager17 Risks

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager18 Conclusions  Open source is an intriguing opportunity  Increases customer satisfaction –Decreases the number of lost customers –However, no new HW sales expected –OPEX could be the key to success  Organizational learning  May contain high costs –Uncertainty and risks involved  Time is not ripe for this solution –Not enough potential users yet –New inspection after months –User profile needs re-definition

Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level pt © Ericsson AB 2008Open source business models for Mobile Media Gateway Node Manager19