Profit from a practical IP Billing Solution Suresh Balasubramanian Senior Product Manager Macrovision

Agenda IP Billing – Lets break it down Software / Hardware Electronic Licensing Next generation IP Billing Technology Q & A

IP Billing Systems Enable service providers to bill for any Internet Protocol related business Flat fee billing Usage based billing Feature based billing

Service provider needs to be creative! Integrated real-time service management Fast time to market with new services and features Self-configured enhanced services Billing-on-the fly Flexibility of billing is KEY

IP Billing providers are at a critical junction Deep expertise in voice billing IP networks – orders of magnitude more complex than voice / data Need a comprehensive billing framework which can track, monitor, record and bill multitude of data elements –Routers, firewalls, switches, web servers, proxy servers, license servers System needs to keep up with increasing complexity

Total US Wireline/Wireless Billing IP Billing grows to over 50% by 2004 Source: IDC Research

IP Billing system architecture Business System Layer Mediation Layer Network Element Layer Billing Custome r care Reportin g Networ k Ops Fraud Detectio n ProvisioningUsage Network and hosting elements

Evolution of Mediation Layer Dynamic provisioning –Configurable hardware –Self-aware software Usage based billing –Complex usage models –Pay-per-use` Multitude of data elements on the network –Flexible billing required to reconcile usage Critical to the success of next generation IP Billing system

What is Electronic Licensing? “Electronic Licensing is the ability of a vendor or customer to authenticate,offer and vary the terms of usage of a particular product to the end user”.

Electronic Licensing Reduce unauthorized use of software through authentication Flexible configurations, pricing, change and create on-demand “soft bundles” Gather critical customer usage data, by module, package Support next generation software delivery and usage models Compliance Flexible Pricing & Market Strategies Flexible Pricing & Market Strategies Business Intelligence Business Intelligence eBusiness

Industry Directions in Software Licensing License pmt. & duration One time/perpetual right to use recurring payments expiring licenses Full s/w load a la carte per module S/W Granularity Paper, CD Paper / Electronic mix On line ordering, payment & download Ordering & fulfillment Little visibility when indirect Vendor resident customer data Customer Data at Vendor Protect IP rights Competitive differentiator, Business enabler IS/IT responsibility Company responsibility Vendor licensing Mindset Manual process call home ability self updating Platform upgrades FOCUS

Key benefits to software vendors Increased revenue opportunities Flexible pricing and packaging –Offer “soft bundles” on the fly Deeper account penetration in large enterprises Lower opeational costs Usage based billing models

Key benefits to hardware vendors On-site hardware configuration Dynamic provisioning of hardware features Enormous reduction in manufacturing costs Uniformity in product development efforts

Next generation IP Billing System Meet the demands of next generation customers with a highly evolved Mediation Layer Smart Mediation Layer incorporates the benefits of “electronic licensing” to help solve billing Mediation Layer ProvisioningUsage

Hardware can be flexibly licensed depending on application and usage –Licensed hardware can now be “counted” –Counting produces -> Usage Data Electronic licensing encodes data source on the network with an unique signature Equipment manufacturer can standardize on “super hardware” –Turn on required features based on service provider needs –Dynamic provisioning, on-the-fly configuration Mediation Layer Provisioning

Authentication through electronic licensing –Collect highly granular usage data Generation “accurate” usage data for each network element Electronic licensing provides the flexibility to “adapt” usage gathering based on hardware and service type Mediation Layer Usage

What does it look like all put together? Need system diagram with flexibility points showing how things can be changed on the fly.

Summary Electronic licensing represents a clear evolutionary path for mediation layer Smart mediation layer is the fundamental building block for the next-generation IP Billing Systems Incorporate the best of breed technology to provide high quality IP billing systems

Questions? Thank You