UNLOCKING NETWORK POTENTIAL
CREATING VALUE FOR SERVICE PROVIDERS,
APPLICATION DEVELOPERS AND ENTERPRISE USERS
Marc Jadoul

                 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
IT TAKES THREE TO TANGO


    smart             smart                                              smart
  NETWORKS        APPLICATIONS                                          DEVICES




    SERVICE            SOFTWARE
   PROVIDERS          DEVELOPERS                                        END-USERS



                                          2
                COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
CREATING A WIN-WIN-WIN ECOSYSTEM

               Communication • Collaboration • Convenience



 END-USERS                                                                          SOFTWARE
                                                                                    DEVELOPERS



                                           smart
                                   NETWORK
                                                                                 • Access to
                                                                                   network
   •   Experience                                                                  enablers
   •   Quality                                                                   • APIs
   •   Security
   •   Cost
                          SERVICE PROVIDERS
                                                   3
                         COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
END-USERS WANT (AND DESERVE)
BETTER AND MORE…

         USER EXPERIENCE                                                     CoS levels used/wanted
                                                                             100%
                                                                                                  10%    11%




  72%
                                                                              90%                 4%
                           want single                                        80%                 12%
                                                                                                          9%

                           sign-on                                            70%                        20%
                                                                                                                Don't know
                                                                                                  11%
                                                                                                                6 or more
                                                                              60%
                                                                                                  13%     9%    5 levels
                           frustrated with                                    50%



  62%
                                                                                                  14%
                                                                                                         10%    4 levels
                           video delays                                       40%
                                                                                                         11%    3 levels
                           and freezes                                        30%
                                                                                                                2 levels
                                                                              20%                 37%           No CoS
                                                                                                         30%
                                                                              10%
                           willing to pay 10%

  56%
                                                                                0%
                           premium for per-app                                                    2010   2012

                           bandwidth control
                                                                                      QUALITY OF SERVICE
Source: Alcatel-Lucent primary research
                                                                    4
                                          COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
MEETING SLA EXPECTATIONS FOR
BUSINESS-CRITICAL APPLICATIONS

 Enterprise
      SLAs

                                                                            CLOUD
                                                                           SERVICE
Application                                                                DELIVERY
    centric
                                 APPLICATION
                                 AWARENESS &
                                                                                  Requires network
                                  ASSURANCE                                       intelligence and
                                                                                  efficiency to
                Virtual
                VIRTUAL                                                           meet application
                Private
                PRIVATE
  Network
               NETWORKS
                                                                                  SLA expectations
   centric

                                                                                      Service
              WAN provider                    Trusted ICT partner                     Provider role

                                                    5
                          COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
EXAMPLE: BELGACOM EXPLORE




 http://prezi.com/ovvczjhrqgf9/explore-the-next-gen/




               From transporting bits & bytes to an
     ”        application aware ‘smart’ network
                                  Tom Wuyts, Director Product Management WAN, Internet & Security, Belgacom


                                                                    6
                                          COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
PUBLIC CLOUD IS NOT GOOD ENOUGH
FOR CRITICAL ENTERPRISE USE



     Amazon outage casts a cloud
     over cloud computing.                                                                — msnbc.com, 25 April 2011




                                                                                                   ELASTICITY
                 Availability   Outage per Year                                                    FLEXIBILITY
 Google cloud      99.9%           8.76 hours                                                  PREDICTABILITY
 Amazon cloud     99.95%           4.38 hours                                                       SECURITY
 Carrier cloud   99.999%        5.26 minutes                                                  DYNAMIC PRICING


                                                            7
                                  COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
OPEN APIs
GROWTH IS ACCELERATING
         Total APIs over time


3000
                                                  9 months




                                      18 months
2000


                    8 years
1000
                                                                                                     Internet    Social      Mapping
                                                                                                     Reference   Tools       Telephony
                                                                                                     Shopping    Financial   Enterprise
    0                                                                                                Search      Music       Messaging
        ’00   ’01   ’02   ’03   ’04   ’05   ’06   ’07    ’08     ’09      ’10                        Video       Photo       Travel

Based on directory of 3,200 web APIs listed at ProgrammableWeb, May 2011
                                                                              8
                                                    COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
MOST WANTED NETWORK ASSETS
BY APPLICATION DEVELOPERS

  Network APIs requested by developers

    Bandwidth management                               25,50%


    QoS & reliability                  19,60%                                                            51%
                                                                                            of application developers are
    Subscriber                  15,70%                                                       willing to pay for or to share
    profiles
                                                                                           revenue on QoS and bandwidth
    Identity                                                                                  management capabilities
                            13,70%
    management

    Scalability         11,80%                                                           87% | 78% | 57%
                                                                                                     large | medium | small
                                            % of respondents                                        enterprises would sign up
                                                                                                      for rich service offers,
                                                                                                    relying on these features
Sources: Heavy Reading, Shenkan & Associates, Alcatel-Lucent research
                                                                      9
                                            COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
TRANSFORMING THE NETWORK
INTO AN INNOVATION PLATFORM

                           Billing & payment

            Location &
       network presence                                                           Secure identification
                                                                                  & authorization

     Numbering
    & addressing                    CARRIER                                             Subscriber, device
                                   NETWORK                                              & application profiles
                                   ENABLERS
   Call & session                   FOR NEW
                                    BUSINESS
         handling                                                                        Device & SIM
                                  APPLICATIONS
                                                                                         management

                                                                                  Analytics
         QoS enabled
              services
                            Reliable network

                                                   10
                          COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
EXAMPLE: INTERNET RETAIL

50-70% of drop-off due to
initial registration process!




   Secure identification                                                                       Call & session
   & authorization                 Billing &                                        Reliable   handling
                                   payment                                          network
   Subscriber, device                                                                          (Contact center)
   & application profiles

                                                     11
                            COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ANOTHER EXAMPLE:
ENTERPRISE VIDEO
       Expected benefits from video conferencing
       Lower travel budgets
     Improved productivity
          Workforce mobility                                                                           30% of heavy
        Global collaboration
                                                                                                       users experience
        Staff/exc availability
     Executive sponsorship                                                                                savings of
         Lower solution cost
    Lower connectivity cost
                                                                                                       1 day per
   Lower management cost                                                                                 week.
      Improve performance
           Vendor financing                                                                            Even non-users
                       Other                                                                            believe video
                    Not sure
                                                                                                       communications
                                 0%    20%          40%              60%              80%               will save them
                                      Percentage of respondents                                        1 hour per
                                                                                                          week
Sources: Gartner, Ipsos Mori, Alcatel-Lucent
                                                                        12
                                               COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
TODAY’S VIDEO SOLUTIONS ARE
NOT EXPLOITING THE FULL POTENTIAL

    End-user experience


                                            TELE-
                          Rich
                                        PRESENCE
                                          ROOMS



                                                                             (WEB-BASED)
                                           LEGACY
                          Poor




                                                                          CONFERENCING ON PC
                                            VIDEO
                                            CONFE-
                                          RENCING


                                   €€€                                                       €
                                 Required enterprise investments

                                                              13
                                     COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
BENEFITING FROM VIDEO ENABLERS
IN THE CARRIER NETWORK

              VIDEO PROCESSING
              Blending, backgrounds, overlays, visual effects, …



                              MULTI-SCREEN
                              Content rendering and delivery to thin clients
    VIDEO
   ENABLERS
                              VIRTUAL DIRECTOR
                              Speech, image and motion analysis & visual impact



              QUALITY OF SERVICE
              Service prioritization and bandwidth optimization

                                                    14
                           COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
IMMERSIVE COMMUNICATION
(VIDEO)




http://www.youtube.com/watch?v=HlxIWmA4pMk
                                                               15
                                      COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
16
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
17
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

Unlocking Network Potential (2011)

  • 1.
    UNLOCKING NETWORK POTENTIAL CREATINGVALUE FOR SERVICE PROVIDERS, APPLICATION DEVELOPERS AND ENTERPRISE USERS Marc Jadoul COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 2.
    IT TAKES THREETO TANGO smart smart smart NETWORKS APPLICATIONS DEVICES SERVICE SOFTWARE PROVIDERS DEVELOPERS END-USERS 2 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 3.
    CREATING A WIN-WIN-WINECOSYSTEM Communication • Collaboration • Convenience END-USERS SOFTWARE DEVELOPERS smart NETWORK • Access to network • Experience enablers • Quality • APIs • Security • Cost SERVICE PROVIDERS 3 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 4.
    END-USERS WANT (ANDDESERVE) BETTER AND MORE… USER EXPERIENCE CoS levels used/wanted 100% 10% 11% 72% 90% 4% want single 80% 12% 9% sign-on 70% 20% Don't know 11% 6 or more 60% 13% 9% 5 levels frustrated with 50% 62% 14% 10% 4 levels video delays 40% 11% 3 levels and freezes 30% 2 levels 20% 37% No CoS 30% 10% willing to pay 10% 56% 0% premium for per-app 2010 2012 bandwidth control QUALITY OF SERVICE Source: Alcatel-Lucent primary research 4 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 5.
    MEETING SLA EXPECTATIONSFOR BUSINESS-CRITICAL APPLICATIONS Enterprise SLAs CLOUD SERVICE Application DELIVERY centric APPLICATION AWARENESS & Requires network ASSURANCE intelligence and efficiency to Virtual VIRTUAL meet application Private PRIVATE Network NETWORKS SLA expectations centric Service WAN provider Trusted ICT partner Provider role 5 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 6.
    EXAMPLE: BELGACOM EXPLORE http://prezi.com/ovvczjhrqgf9/explore-the-next-gen/ From transporting bits & bytes to an ” application aware ‘smart’ network Tom Wuyts, Director Product Management WAN, Internet & Security, Belgacom 6 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 7.
    PUBLIC CLOUD ISNOT GOOD ENOUGH FOR CRITICAL ENTERPRISE USE Amazon outage casts a cloud over cloud computing. — msnbc.com, 25 April 2011 ELASTICITY Availability Outage per Year FLEXIBILITY Google cloud 99.9% 8.76 hours PREDICTABILITY Amazon cloud 99.95% 4.38 hours SECURITY Carrier cloud 99.999% 5.26 minutes DYNAMIC PRICING 7 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 8.
    OPEN APIs GROWTH ISACCELERATING Total APIs over time 3000 9 months 18 months 2000 8 years 1000 Internet Social Mapping Reference Tools Telephony Shopping Financial Enterprise 0 Search Music Messaging ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 Video Photo Travel Based on directory of 3,200 web APIs listed at ProgrammableWeb, May 2011 8 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 9.
    MOST WANTED NETWORKASSETS BY APPLICATION DEVELOPERS Network APIs requested by developers Bandwidth management 25,50% QoS & reliability 19,60% 51% of application developers are Subscriber 15,70% willing to pay for or to share profiles revenue on QoS and bandwidth Identity management capabilities 13,70% management Scalability 11,80% 87% | 78% | 57% large | medium | small % of respondents enterprises would sign up for rich service offers, relying on these features Sources: Heavy Reading, Shenkan & Associates, Alcatel-Lucent research 9 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 10.
    TRANSFORMING THE NETWORK INTOAN INNOVATION PLATFORM Billing & payment Location & network presence Secure identification & authorization Numbering & addressing CARRIER Subscriber, device NETWORK & application profiles ENABLERS Call & session FOR NEW BUSINESS handling Device & SIM APPLICATIONS management Analytics QoS enabled services Reliable network 10 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 11.
    EXAMPLE: INTERNET RETAIL 50-70%of drop-off due to initial registration process! Secure identification Call & session & authorization Billing & Reliable handling payment network Subscriber, device (Contact center) & application profiles 11 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 12.
    ANOTHER EXAMPLE: ENTERPRISE VIDEO Expected benefits from video conferencing Lower travel budgets Improved productivity Workforce mobility 30% of heavy Global collaboration users experience Staff/exc availability Executive sponsorship savings of Lower solution cost Lower connectivity cost 1 day per Lower management cost week. Improve performance Vendor financing Even non-users Other believe video Not sure communications 0% 20% 40% 60% 80% will save them Percentage of respondents 1 hour per week Sources: Gartner, Ipsos Mori, Alcatel-Lucent 12 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 13.
    TODAY’S VIDEO SOLUTIONSARE NOT EXPLOITING THE FULL POTENTIAL End-user experience TELE- Rich PRESENCE ROOMS (WEB-BASED) LEGACY Poor CONFERENCING ON PC VIDEO CONFE- RENCING €€€ € Required enterprise investments 13 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 14.
    BENEFITING FROM VIDEOENABLERS IN THE CARRIER NETWORK VIDEO PROCESSING Blending, backgrounds, overlays, visual effects, … MULTI-SCREEN Content rendering and delivery to thin clients VIDEO ENABLERS VIRTUAL DIRECTOR Speech, image and motion analysis & visual impact QUALITY OF SERVICE Service prioritization and bandwidth optimization 14 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 15.
    IMMERSIVE COMMUNICATION (VIDEO) http://www.youtube.com/watch?v=HlxIWmA4pMk 15 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 16.
    16 COPYRIGHT © 2011ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 17.
    17 COPYRIGHT © 2011ALCATEL-LUCENT. ALL RIGHTS RESERVED.