SDPs AND THE TELECOM BUSINESS TRANSFORMATION

The Moriana Groupwww.morianagroup.com

October, 2009

Lucia Gradinariu, PhD Sr. SDP Market Analyst

The Moriana GroupIndependent Telecom Services Layer Analysts•Open Collaboration of Experts in the areas of SDP, IMS & Management of New Generation of Services

Results of Collective Intelligence and Expertise

www.morianagroup.com

NEW – TelecomApplicationsCatalog!

THE REALITY CHECK ON SERVICE DELIVERY PLATFORMS

The Basic Idea …• Overlay numerous service stove-pipes with

a horizontal platform based on standard technologies and components– Decrease service operating costs – Reduce time-to-market– Stimulate service innovation

Moriana – SDP 1.0 Operator Guide, 2004

Now a Confusing Terminology

Service Delivery Framework

Service Delivery Environment

Service Delivery Platform SDP 2.0

SDF 2.0

Telco 2.0

The Reality

• Service Providers have to deal with multiple service platforms because: – SDP investments are based on the availability of

ready-to-deploy services– SDPs are better designed for specific service classes– There is no SDP reference architecture

• The great idea of one service platform is an utopia rather than reality but:– Little standardization does not stop deployments– Incremental approach is usually taken

Typical Classes of SDP Services

Standardization

Rationalizing the SDP space

Common Set of Architectural Principles:• Horizontal, layered architecture• Use of standard technologies• Common, reusable components• Open APIs for services creation• SOA-based integration, orchestration & composition

A revolving role for the SDP:• Exposing network services• BSS/OSS transformation to service orientation• 3-rd party platforms

SDP Evolution Curve

20012001

20042004

20062006

20032003

20052005

20002000• 1st Gen SDPs for Mobile Content and Services (SMS)

• Open standards – Parlay APIs, JAIN SLEE, SIP Servlets, etc.

• 2nd Gen SDPs for Voice, Video, Location, Presence, etc.

• 3rd Party Access – Telecom Web Services Parlay X, OMA

20072007

• Focus on NGN – Support for VoIP, IMS, IPTV services

• Service Governance & Mgmt - TM Forum SDF initiative

20082008 • 3rd Gen SDP 2.0 – Telco/Web 2.0 service mashups

20092009 • New business models, SaaS/Service Aggregation, etc.

• SOA Integration, Service Orchestration, and J2EE

• Web 3.0 , Semantic SDP, New Technologiesbeyondbeyond

SDP AS ENABLERS OF TELECOM BUSINESS TRANSFORMATION

SDP Market Analyst Report 2009- 2012

• Moriana’s recent analysis shows that, despite the current global economic downturn, the SDP market segment will steadily grow year-by-year and will exceed $3 billion in 2012.

• In the business transformation process to Service Providers, SDPs are poised to become the most valuable assets!

SDP Deployments & Estimated Investments

MORIANA SDP Market 2009-2012 Analyst Report Deployments (#) and SDP market size ($M)

# Deployments per Region Tier 1 Tier 2 Tier 3 Total

North America 25 13 24 62

Europe & ME 71 40 56 167

APAC 48 13 10 71

Americas 9 2 3 14

Africa     3 3

TOTAL 153 68 96 317

# Deployments per SDP Type Tier 1 Tier 2 Tier 3 Total

Mobile content and messaging 78 45 43 166

Mobile commerce and advertising 6 2   8

3rd Party Access Management 8 4 1 13

Voice - NG IN & VoIP 41 21 44 106

IPTV & Triple Play 17 6 5 28

Convergent Charging   1 2 3

TOTAL 150 79 95 324

SDP Challenges & Inhibitors• Make a solid business case for SDP

– Understand the strategy for SDP investments– Align with business priorities of CSP organizations

• Quickly start driving revenue – Ready-to-deploy services – Eco-system for service creation– Seamless OSS/BSS integration

• Fight “stove-pipe” solutions favored by CSP business organizations

Making the Case for SDPs• Service Factories to fuel CSP’s

Catalog of Products & services New paradigm for service creation, enabler

of the Long Tail and targeted offerings

• Components of Platform Based

Business ModelsEnabler of new and flexible business

models that attract new categories of users and usages for telecom assets $ $

Service Lifecycle Management

Service Factory Model

Video On Demand

(legacy net)

SMS AgendaSDF Service

<<Functional>>

<<LifecycleManagement>>

<<Resource

exposure>>

<<Consumer>>

SDF Service

<<Functional>>

<<LifecycleManagement>>

<<Resource

exposure>>

<<Consumer>>

3-rd Party services

ServiceCatalogSyndication

ProductCatalog

OrderProvisioning

ServiceAssurance

Invocation

B/OSS Transformation

Service Lifecycle Management

Operator’s Legacy &NGN services

EndUser

Ag

gre

gati

on

B/OSS services

Catalyst projects

End Users

IntegrationPlatform

SaaS /CP/SPPlatform

3-rd Party Community

End Users

App Store Platform

End Users

NetworkPlatform

OTT ServiceAggregation

DevelopmentEco-System

End Users(side1)

TransactionalPlatform

End Users(side2)

Multi-sided business

Platform Based Business Models

DevelopmentPlatform

DifferentBusiness Priorities• Increase ARPU with “long tail” of services:

– Development platforms, service marketplaces

• New revenue streams from niche markets:– SMBs, verticals (healthcare, government)

• Maximize assets value by extending life of legacy network and exposing OSS/BSS:– NGIN platforms, CRM/Billing as a service, MVNO enablers

• Reduce operation costs through equipment replacement and unified management:– IMS, IPTV, SDF

Different Implementations

• Telefonica Latam Multinational SDP – first multilayered SDP with centralized common functions and localized services in 13 countries

• BT/Ribbit – SDP for integrating Communication oriented services in Business workflows and Social Applications

• Vodafone 360/Samsung LiMo (w/BONDI support) – Framework for users' contacts, messages and social networks backed up and synchronized on any device from operator’s platform + shop for > 1000 apps

• Mobilkom Austria NG Services Architecture – IMS ready SDPs, J2EE and JSLEE, open to 3-rd parties

Conclusions • Analyze and plan your desired Business Model • Establish a roadmap to your targeted SDP• Learn from others although it is really ongoing learning• Customization and integration are essential requirements

• Experienced Professional Services assure rapid execution• Open up to external innovation and co-opetition

Thank you!