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Proprietary and Confidential Current Analysis Inc. All rights reserved.
2
Washington, DC / London / Paris / Singapore
Cloud-based BSS: Essential for Long-term Operator Survival in the Digital Economy
June 2014
Presented by:
Ron Westfall Research Director, Service Provider Infrastructure
Jason MarcheckService Director, Service Provider Infrastructure
Proprietary and Confidential Current Analysis Inc. All rights reserved.
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Agenda
State of the Market
Market Drivers
Solution and Architecture Requirements
Vendor Positioning and Differentiation
Cloud BSS Future
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State of the Market: Cloud BSS
Can BSS Technology Adapt to Massive Scaling of IP Traffic?
What is the Potential Impact of Cloud Computing on BSS
Transformation?
What are the Cloud Migration Challenges Facing Operators?
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State of the Market: Burgeoning BSS Challenges
By 2017, there will be ~3.6 billion Internet users, >48% of
the worlds projected population (7.6 billion)
By 2017, >19 billion global network connections Fixed/mobile personal devices, M2M connections, etc.
Data-Centric Perspective By 2017, Global IP traffic will surpass 1.4 Zettabytes per year
By 2017, IP Video traffic will account for 73% of Internet traffic
Proliferation of Non-PC Digital Traffic By 2017, non-PC devices will account for 49% of total IP traffic,
demonstrating the effect of web-enabled TVs, tablets and smartphones on
the way consumers access and use the Internet
Source: Cisco Visual Networking Index
IP Traffic Explosion Yields Opportunities for Billing Innovation
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State of the Market: Cloud-ready BSS Emerging
Annual global cloud IP traffic will reach 5.3 zettabytes by the end of 2017 By 2017, global cloud IP traffic will reach 443 exabytes per month (up from
98 exabytes per month in 2012)
By 2017, >19 billion global network connections
Global cloud IP traffic will increase over fourfold during next 5 years Overall cloud IP traffic will grow at 35% CAGR from 2012 to 2017
Global cloud IP traffic will account for more than two-thirds of total data
center traffic by 2017
Cloud models well-suited for convergence of multiple BSS platforms
Emergence of real-time cloud model (SDN/NFV)
Source: Cisco Global Cloud Index
Massive Scaling of Cloud Computing on the Horizon
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State of the Market: Operator Barriers
Silo legacies
Proprietary interfaces
Limited visibility
Untapped analysis of data wealth
Storage Costs
Fragmented customer experience
Cloud security
Business Mindset Also Needs to Change:
Must adapt to digital economy
Accommodate regulatory shifts
Integrate third-party app innovation
Internet-centric
Cloud Migration Challenges
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State of the Market: Targets
Small/Medium-sized operators
Mobile operators
MVNOs
Second Wave Adopters of Cloud BSS:
Top-tier Operators
Verticals
Enterprises
First Wave Adopters of Cloud BSS:
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Market Drivers: Cloud-based BSS
What are the Operator Drivers for Cloud-based BSS?
What are the Operator Pain Points?
What are the Vendor Drivers for Cloud-based BSS?
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Cloud-based BSS Drivers: Operators
Industry Back-Office Transformation
The BSS market is
evolving Cloud Migration = Survival
BSS transformation key to new
business solutions and models to
drive new revenue
Operators need new
partners Leverage new relationships and
fill gaps to execute on innovative
business models to create
revenue opportunities
Gaining a toe-hold in the
digital biz value chain Keep up with OTT competition
and develop new consumer
services
No roadmap, no guarantee
of success... Time, investment, risk of investing
in costly transformation projects
Need to tap new customer
segments / revenue sources
Which new opportunity to
go after first? Uncover which suppliers have the
right portfolios to match their
needs
Identify the right partners
Traditional built-in Carrier
mentality Reactive vs. Proactive
Need to convince the troops with
solid case studies
Market Drivers Operator Pain Points
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Cloud-based BSS Drivers: Vendors
Vendors Need to Ally with Operators to Drive BSS Innovation
Operators Need to
Innovate New revenues
Counter/monetize OTT
Vendors Need to Be
Partners Capture more revenue
Capture long-term revenue
Operators Recognizing
Need to Transform
Networks Requires new skill sets
Vendors must evolve to meet the
requirements
The Need to Show
Thought Leadership Education / marketing
Portfolio innovation
Acquiring the Right Mix
of Skills Build or buy
Innovation
Where to focus R&D
Differentiating in a
Muddled Scene Where to focus marketing?
Where to tailor R&D?
Market Drivers Pain Points Opportunities to Help
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Solution Requirements: Cloud-based BSS
What are the Architectural Considerations for Operators?
What are the Operator Priorities?
What is the Timing for Critical Mass Adoption?
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Solution Requirements: Essential Cloud-based BSS Capabilities
NFV-driven virtualization
Cloud security
On-demand access
Multi-tenant modes
Automation of processes
Dynamic SLA parameters
Coordinated data distribution
Vendor Product/Solution Considerations:
Real-time charging
Policy integration
Open interfaces
Managed service support
Pre-integrated, pre-configured, pre-packaged
Operator Architectural Considerations:
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Solution Requirements: Operator Prioritization
Operator Priorities:
Using SDN/NFV to improve Cloud value
Cloud-based OSS/BSS launch/expansion
Opening APIs for Cloud-based customer apps
Supporting Cloud SLAs and QoS
Cloud Security
Cloud Service Priorities
Cloud Security 4.62
Supporting Cloud SLAs and QoS 3.08
Opening APIs for Cloud-based customer apps 3.04
Cloud-based OSS/BSS launch/expansion 2.62
Using SDN/NFV to improve Cloud value 1.62
Scale (1-5): 5 Highest Priority; 1 Lowest Priority
Source: Current Analysis OSS/BSS Survey (May 2014)
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Solution Requirements: Operator Prioritization
Operator Priorities:
Increased Operational Efficiency (i.e. reduce silos resulting in OpEx savings) 2.59
Increased Operational Flexibility (i.e. more agile fulfillment, assurance) 2.05
Preparing to support Cloud-based service offerings 1.91
Support for Big Data Analytics 1.83
Preparing OSS to support virtual network operations 1.56
Preparing to support Service Oriented Architectures (SOA) 1.30
Scale (1-3): 3 Highest Priority; 1 Lowest Priority
Preparing to support Service Oriented Architectures (SOA)
Preparing OSS to support virtual network operations
Support for Big Data Analytics
Preparing to support Cloud-based service offerings
Increased Operational Flexibility (i.e. more agile fulfillment, assurance
Increased Operational Efficiency (i.e. reduce silos resulting in OpEx
Overall OSS/BSS Investment Drivers
Source: Current Analysis OSS/BSS Survey (May 2014)
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Solution Requirements: Timing of Cloud-based BSS Migration
Operator Priorities:
Scale (1-3): 3 Highest Priority; 1 Lowest Priority
Already use 12%
Next 12 Months35%
12-18 Months 31%
18-24 Months 12%
2-3 Years 4%
No Plans 8%
Timing of Cloud-based OSS/BSS Migration
2/3 of operators have some plans to adopt Cloud-based OSS/BSS
by the end of next year
Source: Current Analysis OSS/BSS Survey (May 2014)
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Solution Requirements: Essential Cloud BSS Benefits
Substantial $ savings over SW licensing
Real-time interactions
Streamlined, intuitive view
Reduction of infrastructure spend
Simplify employee training
Actionable intelligence
Additional Cloud BSS Benefits:
Integration with OSS/Cloud OSS
SDN/NFV Efficiencies
Cloud services brokerage
Leveraging metadata
Hybrid, Public, Pri