SDP -A Emerging market competition note Alok Hom Independent Paper 20 May 2008
Agenda Introductory note to SDP and key findings Competitive SDP framework components Market strategies and Key differentiators Services led successful SDP architecture frameworks New revenue Opportunities
Introductory note to SDP and key findings SDP as a architectural framework has gone a long way from pure service enablement to governance, better management, qualities and Web 2.0. Traditional Telco’s of emerging marketing has been faced with international aspirations with their concerns against high subscriber growth and low ARPU counts. Along with service offerings typically not going beyond the traditional voice, message and ring tones, the challenge to introduce the ‘right fit’ Service Delivery Platform that addresses the current market places needs arrives more like of a confusion to their minds. The suppliers, System Integrators and other 3 rd party content providers and startups find it a definite challenge to put forward the winning ‘best fit’ framework for the end customers. So what do the Telco’s really need? And which is the best solution fit to their needs? As per few recent findings, the Telco’s seem to look for policy control to economically manage new, disparate network services, wide range of policy-based variables, including presence management, time of day, device type, subscriber permission, subscriber preference, subscriber age, location, role, billing arrangement, and many others requirements to be orchestrated in a single box. These Telco’s also feel the need to store the expanding range of parameters that can be applied to individual subscribers and check against these to see which features apply as soon as a user requests a service.
The evolution for the SDP architectural framework
The established Telco’s of emerging markets expect successful models to support for Partner Management, Content Management, Content Marketing, Retail Capabilities, Service Discovery, Personalization, Device Identification, Network Abstraction and Policy Management. The suppliers had to thus primarily align their offerings to address the core Telco focus on service oriented provisioning and assurance needs. Among the successful suppliers who are involved in the offering of a emerging service delivery framework are Ericsson, HP, Huawei, IBM, Nokia Siemens Networks, Alcatel and Sun Microsystems. Others being Accenture, Oracle, Microsoft, Telcordia, Telenity, Ubiquity Aepona, Appium, BayPackets, BEA Systems, Bridgewater Systems, First Hop, jNetX, Leapstone, LogicaCMG, Redknee and Tazz Networks.
Competitive SDP framework components The successful suppliers have defined more or less the common business components that sync to leading Telco’s interests. Competitive focus has been laid to rapidly support create-provision-control-reuse of needful end-user services, system scalability focus to diverse service and network demands, proprietary interfacing & stovepipe(s) flexibility, Stability to compound-orchestrate-package and price services, better user-profile monitoring & control, extending middleware challenge to new business apps, network agnostic & multi-terminal support, legacy flexible and convergence charging, etc.
Market strategies and Key differentiators
The IT Majors focus [ the DNA to survive]
Session management, presence and unified directory, AAA / real time resource allocation & control.
3 rd party pooling for service -orchestration, aggregation and convergence blocks, call control to rich media interfaces.
Carrier Business/multiparty service value chain/networks focus. [ operators to MVNO]
Business “events” driven models.
[ geography to service cataloguing]
Major Tie ups to strategically deliver Common Services Framework.
[ embedded to client-server components]
Alignment to operator business units
[ MKtg./IT depts. to help develop high level graphical tools, (BEA, MS varieties), integration layer for SOA- IT environs and SIP apps server dev. challenges.] Focus on service control layer for IMS, DVBH/UMA.
Reference SDP creation on operator needs.
[ MS CSF, BEA’s SCE , more technologies]
70% common SDP design, 30% System integration and operator customizations.
The Network Equipment Majors
Established Standards driven Offerings.
IT tie-ups/branding for testing & support.
HP’s focus on marketplace, Seimens on enterprise apps for vertical industry sectors, BayPackets / Telenity by Telco value apps recognition to backdoor entry. [Content partners pick steam on feasible framework mash-up]
Facing persuasion challenges to Telco offerings through business transformation & Professional Services modalities.
[ bets on multi vendor interfacing uniformity] Exceptions to long-standing partners & market tested players.
Operator stovepipe confusion challenges to architectural approaches.
[ Suppliers fears to non-descript varieties]
System Integrators sourcing dependency
Near-Assured workforce, competency & talent pool.
Geo-political support and Core technology offering readiness. Alliances.
Proven Telco culture workouts with Managed Service models.
The evolving operator market dependencies
Services led successful SDP architecture frameworks The proven SDP frameworks with services-led focus seem to have succeeded with changing market requirements. Leading brands like IBM, HP and Ericsson, Cisco have always addressed current technology visions to their past success styles. Below is an example of how a software services giant like IBM could blend applicability to Telco’s service silos. Their largest competition is from Cisco.[ Ericsson in emerging nations]
Microsoft’s CSF is a market oriented utilities-centric model to emphasize their past success on client-server technologies, catalog or file system culture, SDK based dependencies, security based applications, strong IP legacy and Microsoft OS leadership, certified products leadership, operator presence by PC/OS branding, etc. Their largest competitor is Oracle and Cisco. [ IBM is emerging countries]
The Oracle Service Delivery Platform (SDP) is a standards-based software environment for the design, development, deployment, and management of services that lie at the heart of IT and network convergence. Services include messaging, rich multimedia and next generation services such as Virtual PBX, IPTV and fixed-mobile convergence voice calling. The Oracle SDP gives operators and ecosystem partners the ability to accelerate service innovation, consolidate application silos for reduced costs, and leverage widely adopted IT practices. The DNA for Oracle’s offering is based on server, database and business apps/process centricity. Their compete with IBM.
Though there are fitment, execution challenges and service orchestration loads, emerging Telco’s may want to support suppliers with infrastructure, commitment to change management, collaboratively work towards platform services success and look for future professional services. Key positioning parameters for a typical SDP is a huge time, CAPEX & OPEX saver for Telco’s. True business drivers cut across the quicker serviceability, time, costs and 3 rd party apps support.
New revenue Opportunities
500 m users by 2010 divided by 6 healthy Telco players
Adoption to IP led services a promise
Demand to cater more stovepipes
CAPEX/OPEX/PAT as a function of service differentiation
Dependency on middleware grows. Access type independent.
Integration Challenge for new Service Orchestration with diverse service loads.
Supplier market segmented over IT, NEMs and startups.
Architecture vs. adoptions as a differentiating leadership
Provides challenging adapters to IT players.
Huge traction build for outsourcing and Incubation.
Provide support and testing requirements to NEMs.
3-4 leading SDP providers to share 6 Emerging Telco players of ~ 14 million subscribers / year / player
With ARPU assurance standing at ~150 INR/user the ROI to Telco player would be at least 50%+ve (13 cr. INR)