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 1.6.2005

Erik Dahl, Senior Strategy AdvisorTelenor, NorwayCoauthors André Bersvendsen, Babak Farshchian

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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

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TelenorAn 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.

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Telenor’s organization

Telenor

Nordic Mobile Intl Broadcast

Mobile

IS

Operations

Fixed

Marketing

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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)

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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

Situation Related challenges

HR

Call Center

CRM

ERP

OSS

Legacy System

Billing

HR

Call Center

CRM

ERP

OSS

Legacy System

Billing

HRERP

Call Center

CRM

OSS

Legacy System

Billing

CIMHR

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

HRERP

Call Center

CRM

OSS

Legacy System

Billing

CIM HRERP

Call Center

CRM

OSS

Legacy System

Billing

SOA

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IT

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Tjeneste

Nett

IP Tjenesteplattform

IT

Aksess Aksess Aksess

TV

STB

Brukere

Brukerutstyr

Nett

Nett

Tjeneste

Aksess Aksess Aksess

TV

STB

Brukere

Brukerutstyr

Nett

Tjeneste

Tjeneste

Tjeneste

IP TjenesteplattformFrittstående applikasjoner / servere

Eksempel uten IP Tjenesteplattform

PC PC

TjenesteTjeneste

TjenesteTjeneste

TjenesteTjeneste

TjenesteTjeneste

TjenesteTjeneste

TjenesteTjeneste

TjenesteTjeneste

TjenesteTjeneste

Eksempel med IP Tjenesteplattform

SOA in the network…

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Device Domain

User Domain

Network Delivery Domain

From ”SILO solution” to Next Generation Network

Radio/TV

Telephony

GS

M

ATM

(Data)

DevelopmentNetwork migration

IP/MPLS Core and Aggregation

Network

Access Access Access

Services

Services

Services

Services

The IP Service Platform consolidates and optimises the production of services!

DevelopmentIP Service Platform

Communication Control

Service M

anagement D

omain (IS

/IT)

User service domain

Service Brokerage Domain

IT/IS

IP/M

PLS

network

Services

Services

IP Service Platform

TodaySingle Service Networks

TargetIP Service Environment

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Profitability of an IP service platformEstimation of value - A thorough overall value estimationIncome - 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

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Possible schedule for penetration

2005 2010 2015

SOA in IT/IS

GRID in IT/IS for telecom

SOA intelecom network

GRID intelecom network

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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):

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Situation today:

Devices without a platform

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Tomorrow:

Devices with a platform

Enabler

Enabler

Enabler

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Enablers (operator-owned)

Third party services

Personalized context-awareService provision

Web service

Web service

Web service

Web service

Customer

WiBrixWireless bricks

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Human-Human-computer computer interactioninteraction

MobilityMobilityPervasivePervasive

Computing Computing

Glob

al a

cces

sGl

obal

acc

ess

User experience/intuitiveness levelUser experience/intuitiveness level

Fixe

dFi

xed

wire

less

wire

less

Mob

ileM

obile

LowLow HighHigh

Pervasive computing

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Applications

Terminal

Content/use

Data hosting and services

Network

Service platform

Tele Media IT

Man

agem

ent,

aft

ertr

eat,

billi

ng, p

aym

ent

Modular technologies- Function of WS and GRID

Web Services

Web Services

Web Services

Web ServicesGRID

Web ServicesGRID

GRID

GRID Web Services

GRID

GRID

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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,…

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Some requirements for future GRIDsas 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

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Thank you!