Mobile operators faced declining revenues as SMS and calling became free over internet apps. This led operators to seek ways to lower hardware costs by virtualizing servers to run multiple apps on one machine. Operators adopted private clouds to further optimize resources through automatic app placement, scaling, and server management. Private clouds allow faster response, easier maintenance, and hardware utilization, reducing costs and resources. While most operators use private clouds, public clouds may be another step for even lower costs if security concerns can be addressed.

1. TELCO PRIVATE
CLOUDS
THE RISE and SHINE

2. =
Few years ago, mobile operators were generating high revenues out of SMS and
Value Added applications (MMS, Voice Mail and similar services)
The traditional approach was to install each application on one dedicated server.
Depending on the subscribers base and required application capacity, this could
lead to investing in large amount of computing equipment.
Each platform was an independent set of application servers.
ONE Application

3. With internet becoming more available, at higher speed, free texting and calling
became more common. In many countries, mobile subscriptions started to be
used mainly for internet access and important calls.
When the smartphone revolution started, Push Notifications emerged.
-> Smart techies: Let's create mobile apps that will use Push Notifications to
send free text messages…and pictures…and much more!
-> You: Great, I can send text for free… and call for free using my phone!
Calling and texting are the mostly used services. Mobile operators'
revenues started to decrease and they started seek ways of lowering
down costs of acquiring and maintaining hardware equipment?

4. Meanwhile, computers were still evolving and equipped with faster processors,
bigger memory and storage capacity.
Processors became faster, memory larger. The computing and storage
capabilities of a server machine increased. Great, let's install several
applications on one server and lower down our costs of buying so many
dedicated servers.
SMS, MMS, VoiceMail,
Ring Back Tones,
VoiceSMS,Collect Call,
USSD,…
=
MANY
Applications

5. If you install so many applications on one single server it will be a chaos to
maintain. Therefore a solution was needed to properly fit several applications on
a single server.
The technology was actually there for a while but the Telco world wasn't ready
and motivated for VIRTUALIZATION: A way of partitioning a computer into
independent "Virtual Machines" that will run at the same time and share the
Physical resources of a computer: CPU, Memory, Hard Disks, Network Interface
Cards.
Telco Applications Revenue Going Down
Mobile Operator Need to lower down costs
More Powerful Computers Can
Potentially Run all These Apps Together
Virtualization Technology Ready
+
+
=
It's time for Telco to use Virtualization
and Cloud Computing

6. Virtualized Server
Shared Physical Resources - CPU,RAM,HDD
Virtualization allows us to logically divide each server and have applications
isolated and running independently while sharing the server resources.
SMS CENTER USSDGATEWAY VOICEMAIL MMS CENTER MORE APPS...
However this approach doesn't fully answer the need of optimizing resources
utilization due to the following limiting factors:
-Each application installed have to be mirrored for backup in case of a crash.
This basically means doubling the number of server needed and have an
important amount of unused "STANDBY" equipment.
-There's a load of mobile services applications to deploy. Figuring out which
server has enough resources to install a new application can be a headache.
-When an application requires a larger "Virtual Machine", it has to be
manually configured
So they took the concept one step further….

7. A COMPUTING CLOUD is a set of hardware resources orchestrated and overlooked by a
Cloud Management software as ONE physical resources POOL as follows:
-Once installed, applications are automatically loaded on the appropriate server. The
administrator won't decide where to run an application. That's why we call it CLOUD!
-If a server crashes, the Cloud Management software will move the relevant applications
to the spare server.
-If an application needs more resources, its Virtual Machine can be scaled up as required
by assigning more resources to it (CPU, RAM, Storage)
-Permanent data and files will be stored on Disk Arrays, not inside the servers.
-Cloud Management software will Turn OFF servers when they are not utilized.
-More or less functionalities might be available depending on the capabilities of the Cloud
management software
USSDGATEWAY
VOICEMAIL
MMS CENTER
MORE APPS...
Disk Storage Array 1
Virtualized Server 2
Spare Server
Virtualized Server 3Virtualized Server 1
Disk Storage Array 2
SMS CENTER

8. With the adoption of PRIVATE Cloud, mobile operators are able to:
-Reduce the number of hardware needed to run their mobile services, thus allowing
CAPEX and OPEX reduction.
-When a specific application is getting more popular and generating more traffic,
no need to order new servers and wait for shipment. Respond FASTER to market!
-Deploy new mobile services applications on top of their existing CLOUD
infrastructure, no need to have dedicated servers for each application providers.
One uniform data center is easier to maintain. PRACTICALITY.
-Tailor Virtual Machine size to application need. Ensure Hardware is fully utilized.
Minimize RESOURCES and ENERGY WASTE!
Launching, Scaling up/down
applications is easier, faster and
cheaper with the CLOUD

9. WHAT'S NEXT?
Most of the mobile operators are still adopting the PRIVATE CLOUD
infrastructure, which mean their applications still reside in their own
data centers. If they migrate them into PUBLIC CLOUD Infrastructure
accessed via internet, they can work in a true "PAY AS YOU GO"
mode and spare the costs of acquiring in premises servers and data
centers. Some of them might have started, however security concerns
and data confidentiality regulations might prevent or slow down this
further step.
I hope you enjoyed reading this. It was just an attempt to observe the
how Cloud Computing made its way through the Telco applications
world.
Imad Ayad - Telco Cloud Consultant
imadayad@gmail.com
lb.linkedin.com/in/imadayad
August 2015