© 2017 TM Forum | 1
Orange Polska
transformation
towards software
driven company
Orange Polska Rafał Dziedzic, Director of Technological Transformation Strategy
Sebastian Nowosielski, Virtualization Transformation Strategy Agency Konrad Gawda, Advanced Services Expert
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66% CAGR mobile*
29% CAGR fixed data**
Almost 50% Convergence
Surge in Internet of Things
Simplicity Security
* Cisco ** analysys mason *** Company’s estimations
and the market is full of opportunities
Customer needs are evolving
traffic in Poland 2014-2019
of streaming in total mobile usage and growing
driven by growing number of connected devices per household
>58% CAGR wearables market*** in Poland 2014-2018
customers appreciate simple solutions
emerges as top customer need
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Orange Polska Market Strategy
Consumer market: strategy centred around household
Bundled households proposals full-range of services to households
FTTH/VDSL
LTE/3G
Business market: push on quality and new services
Smart connectivity
Smart security
Smart Infrastructure
Smart workspace
Smart collaboration
Customer Experience
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accompanied by technology transformation
New Customer Journeys
Virtual CPE Home LAN
IoT/Smart Home NG Multimedia
API Smart Energy
SD WAN Orange Dialer
AI/Customer Mobile Connect
Cu
sto
me
r J
ou
rne
y
Tra
nsfo
rma
tio
n
CAPEX/OPEX savings
Mobile traffic growth
Automation of Operations, Auto-scaling
Rapid growth of connected devices (IoT)
All-IP
5G (TBC)
NFV/SDN (On-Demand)
Tec
hn
olo
gy
Tra
nsfo
rma
tio
n Resilient
services
Open for bundling 3-party services
Try-and-buy experience
Digital Online access
High network customization
On-demand instant deployment of End to End services
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Do we constrain our thinking to „regular telco”?
IT / OTT approach to core telco services
New
Operating
Model
Innovation
towards
IT / OTT
Perfectly sufficient from short- to mid-term perspective
Momentum must not be missed to secure long-term
„We are entering an era when everything and everyone will potentially have a digital identity and be connected by a global network. This will lead to the virtualization of
devices, homes, enterprises and the networks that connect them to the services they consume. This in turn will give rise to a new global-local socio-economic order, where
digital services are offered globally and tailored and delivered locally.” Marcus Weldon, President of Bell Labs, Future X Network, 2016
Telco
services
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NFV/SDN Program
Strategy
Architecture
Operational Model
Financial Model
Vendor Management
Legal &Regulations
Orange Group communication & cooperation
Team Evolution
Implementation Projects, PoC, trials
Strategic key pillars
Business & new services
Technology transformation
OPL transformation
Orange Group & Global trends
Key success factors
Transversal program structure
Balance between stakeholders
All parts of organization involved (technology, HR, legal, regulations, business, financial)
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Things to keep in mind
world
current
Incomes – Polish market Incomes – in Group
Experts team Knowledge-base
Orchestration Arch. framework Operational model
Team evolution
Smooth Transition
Secure the Vision
Business Continuity
CHALLENGES
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Hints for the next steps
Along with advancements, we expect our focus to move towards creating new offers that in the end will address user needs
Offer
User needs
world
current
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VNF Manager VNF Manager
VNF Manager
OPEX savings and protected & new revenues are main drivers
CAPEX savings – not the key to transformation
CPE radio site LAN
Ma
in a
rea
of
tran
sfo
rmation
Min
ima
l im
pa
ct o
n
Ca
pe
x
Excludes radio spectrum, IT systems and IT infrastructure
Core Network
Convergent
Network
Optical Network
and Fixed Access
Network
CPE
Radio Access
Network
of 2016 OPL CAPEX
30%
of 2016 OPL CAPEX
70%
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Initial Focus on Customer Care Use-Case
vCPE (B2C) Trial
Expected Benefits
Simplification of network
Scalability
Capex/Opex savings
Customer self care
Personalized services
New services
Internal Customer
Remote configuration and testing
Services New Revenues
“Orange store” try & buy, on-demand security services, Multi-site Home VPN
Customer Care Opex Optimization
internet IP/MPLS Core network
Multi services IP/MPLS Backhaul
BRG
FunBox 3
Network Controller SDN/NFVI Gateway
OpenStack
IPv4/IPv6 Overlay GRE/VxLAN/VPN/etc…
SelfCare applications Orchestrator
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Zero touch CPE
Friendly User Test with OPL Customer
SD VPN (B2B) Trial
Check market response
Assess Polish market potential
Gain knowledge about consumer value perception
Get and customer’s feedback on new VPN service features
Services New Revenues
Virtual Private Networks
Security VNFs
Site to site connection
Zero touch CPE
On demand options
Self-service portal (order, activate, configure, monitor)
Internet access
Orange orchestrator
Orange SDN controller
NFV POP
local internet
Orange network
local internet
NFV POP
Expected Benefits
Revenue and less churn - better offer
OPEX savings - automated processes
New business models possible
New services’ palette
Shorter time to resolve common problems
Internal Customer
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Two approaches to NFV
Strategic: define target architecture, masterplan
Bottom-up: driven by current needs
Ensure we meet in
one point by
animating Trials
and Quick Wins;
collect and
distribute feedback
manual
virtualization backup-restore
procedure
target NFV
architecture
automation
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No agreement between units = blocking point
NGPoPs BC
negative infra. islands
PoCs, trials, deployments
PoCs, trials, deployments?
Agreement between units
cloud pricing model
cloud hw selection
responsible unit selected
Changes in Orange Polska structure made to address this (IT infra. in Network unit)
No agreement between units
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ECOMP / ONAP evolution
ECOMP ONAP initial
ONAP 1.0
OPEN-O
Open
ECOMP
Initial code published in ONAP was based on OpenECOMP, architecture.
It still evolves.
(since ~2015) April 2017 November 2017 (Jan/Feb 2017)
November 2016
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Brains for NFV – ONAP example
Design Description, Policies
Monitor Metrics, Events
Execute Inventory,
Orchestration, Control
ONAP install
ONAP maintenance
HEAT file ONAP closed loop is one thing
Installing and maintaining ONAP is another one
• as with any open source: buy Enterprise edition with support (traditional approach for telco)
• or develop and support by yourself
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Business models are changing
Collect classic and
new vendors, talk
together to find
win-wins
Run RFPs with
vendors offering
new models
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Take-aways
OTT Momentum must not be missed to secure long-term
Prepare for future user needs
Business models are changing
Fiber deployment is crucial (low latency, high throughput), intelligence can be moved from Customer Premise to the Provider Network
Ensure services quality & availability requirements e.g. geographic redundancy
An initial investment in a few Points of Presence is needed, otherwise it may be difficult to achieve positive business cases for individual network functions or platforms
Focus on OPEX and revenues instead of CAPEX
Strategic and Bottom-up approaches – make them meet
New skills and organizational model
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Thank you