building strategic partnerships with telcos ... - huawei.com · huawei technologies co., ltd. 2013...

HUAWEI TECHNOLOGIES CO., LTD.

www.huawei.com

2013 Huawei Global Analyst Summit 2013 Huawei Global Analyst Summit

Building Strategic Partnerships with Telcos in ICT Transformation

Carrier Network BG CTO: Sanqi Li

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1

2

3

Market Outlook

Strategy Layout

Achievement Overview

Agenda


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Historical Achievements in Telco Industry

Market Share Growth

Fixed IP

10X

Mobile

Revenue Growth ($B)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2002 2012 2002 2012 2002 2012

2 2.4 3.4 5.1

7.1 10

13.7

18.2

21.6 23.6

25.7

9X 4X


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Key Contributions to Telecom Industry

Successfully Led Three Major Telco Transformations in 2002 to 2012

Huawei Product and Solution Strategy Overview

2004 2005 2006 2007 2008 2009 2010 2011+

Distributed

BTS

SingleFAN

(DSL/Fiber) Softcom Single

Strategy Cloud

Computing

SingleRAN

All-IP

Network

OTN

Standard

Fixed Mobile Voice Data

TDM IP


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Continually Innovate and Lead in Technology and Standard

• 30,000+ patents granted by 2012

Top in granted LTE/LTE-A patents

• 5,000+ standard proposals submitted in 2012

20%+ of all approved proposals in 3GPP LTE Core Specifications

• 180+ lead positions in 150+ standard bodies

Tech

no

log

y

Rele

van

ce

Business Significance

NfV


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Achievement in 2012

Highlight:

• 78 of 163 global LTE commercially launched networks

• 70+ 100G WDM commercial networks

• The Fastest-growing MS Provider, serving 120+ operators, managing 310+ million subs

• 500+ CSPs in 138 countries selected Huawei BSS & OSS

Revenue Breakdown

Mobile No.2

IP No.2 No.1

Fixed

Router 12% LTE 300%

MS 63%

CEM 43%

Cloud 32%

BSS 16%

Mobile

Network

$8.0B

Fixed

Network

$7.8B

Software

$3.0B Global Services

$6.9B


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Industry Recognition in 2012

“Most Significant Development for Commercial LTE

Networks” and “Best LTE Core Network” by 2012 LTE

World Summit

“Best Broadband Access- Fixed” by InfoVision Award 2012

“Next Generation Optical Awards” by 2012 IRR

(Institute for International Research)

“Solution Excellence Award” by 2012 TM forum

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Agenda

1

2

3

Market Outlook

Strategy Layout



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New Digital Economy:

Internet of Things

Enterprise Internet

Industrial Internet

…

A Digital Tsunami is on its Way…

• 2B Internet Users

• 3.4% GDP in 14 Countries

• 21% ↑ GDP in Developed Countries

• 10% ↑ Productivity in SME

• Digital Transportation

• E-Health and E-Learning

• E-Government and M2M

• Impact 50% GDP by 2025

Cloud

Mobility

OTT Apps


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Ultra Broadband: Foundation of New Digital World

App App App

Data Center

App Platform

Consumer Enterprise Family

IP + Optical

Carrier DC and IT: $50B (2017)

Backbone X5

Metro X100

Fixed X25

Mobile X20

Carrier

Services

$100B (2017)

Network Capacity

Growth by 2017

Fundamentals of telecom industry continue to be solid @ 3 to 5% annual growth


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Disruptive Challenges to Telco Business

New Revenue Growth

Cost and Efficiency

19%

94%

?

Saturated and Declining

Business Model Today

New Value proposition in Digital Age

Business Model to be

Social

Networks

Content

Networks

Enterprise

Networks Home

Networks

M2M

Networks

Virtual

Networks Telco

Networks

Inefficient and Unsustainable

TCO Structure Today

BB Policy in Digital Age

• Today: Regulated and legacy-focused

Heavy Asset vs. “0’ Asset (OTT)

• Tomorrow: National Strategy on BB Infra.

Critical Role in BIG Economy

TCO

2002 2012

TCO Structure to be

Optimized, Open, Automate and Agile

Centralized and Automated

Network

Management

Customer

Services

Cloud IT

Service

Innovation

($100B)


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Telco ICT Transformation Across Network, Operation, Business and Policy

Network

Operation

Business

Policy

Huawei has been enhancing its value propositions to best benefit carriers

• Rigid

• Manual

• High OpEx

• Siloed

• Network-Centric

• Complicated

• Agile & Adapt

• Automate

• Cloud-based

• Horizontal

• UX-Centric

• Simplicity

• Multi-Gen

• Fragmented

• Inefficient

• Embedded Control

• Protocol Centric

• Ineffective QoS

• Control Decoupling

• Abstraction

• Software-Centric

• Programmability

• Optimization

• SDN & NfV

Reality Today Transform Toward

• Closed

• Traditional Business

• Hard to Innovate

• Locked Core

Capability

• Open

• Orchestration

• Eco-system

• Enabling

• Unlock

• Value Proposition

Reality Today Transform Toward

• Fragment Spectrum

• Discord BB Policies

• Voice monopoly gone

• Digital Age Policy

• National Strategy

• Korea/Japan Success

• Win-Win Ecosystem

• B2C→B2B & B2B2C

• Role in BIG economy

• Highly Regulated

• High asset vs 0-

Asset

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Agenda

1

2

3

Market Outlook

Strategy Layout


Vision: Building Strategic Partnerships with Telcos

Strategy Guideline: Drive Sustainable Growth

Solution Strategy: Scale-Out and Scale-Up

Future Network Architecture Strategy: SoftCOM

Network Evolution Strategy: Single

Carrier Data Center Infrastructure Strategy: FusionSphere

Global Service Strategy: Operation-Centric → User-Centric

Business Platform Strategy: Digital Open Cloud

Close Loop Strategy: Ensure Telco Business Success


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Strategic Vision: Building Strategic Partnerships with Telcos in ICT Transformation

Trusted Partnership • Actively engage in telco business

transformation

Collaborative Consulting • Develop solutions across equipment, software

and services in forming eco-system

Approachable Leadership • Be customer-centric and drive industry

forward

Bottom Line Execution • Achieve operational excellence and maintain

sustainable growth


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Lead in Network

Infrastructure

Best Business

Partnership Responsible Employees Globalized Organization

• 6% CAGR in Revenue

• FBB No.1 and MBB No.2

• 15% CAGR in software

and services

• Solution lead in LTE, IP,

MS and CEM

• No.1 in Asia, Africa, L.A.

and Russia

• Establish second home

base in Europe

• Major player in Japan

and Korea

• Customer-centric &

empowerment culture

• Proactive and

collaborative teamwork

• Talented and innovative

individuals

• Internationalized →

Globalized

• Process-based and

market-driven

• Driving operational

excellence

Strategic Guideline: Drive Sustainable Growth


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Solution Strategy: Scale-Out and Scale-Up

• Scale-Out: Horizontal Control/Management Aggregation across network segments

• Scale-Up: Vertical Functional Integration across Network, Operation and Business

• Migration: Integration and Innovation without Disruption

• Core Technology: Cloud, SDN, Big Data and Advanced Chips

Complicated and Manual → Simplified and Automated

Network

Telco IT Site solution Fixed Network Mobile Network

Operation

Business Closed and Controlling → Open and Enabling

Vertical and Fragmented → Horizontal and Optimized Scale-Out

Sca

le-U

p


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Future Network Architecture Strategy: SoftCOM

Build Cloud-based and Software-Defined Network Solution Framework • Network Control Logically Centralized: Abstraction, Programmability and Optimization (SDN)

• Network Function Software Modularized: Elastic, Simplified and Robust (NfV)

• Operation Management Automation: On-demand, Real-Time, UX enrichment (Cloud OS)

• Business Service Enabling: Orchestration, API, Agile and Monetization (Cloud Platform)

Engage with Carriers in Migration Path with SDN, NfV and Cloud Initiatives

P

OTN/WDM WDM WDM

P

Optimized Programmable Automated Openness

Carier Cloud

API 3rd apps

National Data Center

Edge Cloud

SW Small Cell

RRU

RRU

DSL

DSL

ONT

On-Demand MXU

Cloud in Box

Regional Data Center

P

P

PE

sw

IMS MME Controller API

Manager IP

Video

Carrier Cloud

Carrier Cloud

Apps Controller PCRF

SRC EPC SBC SBC

Carrier Cloud

Cloud BB

Carrier Cloud

Cloud DSL/OLT

Carrier Cloud

Cloud in Box

P P


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Network Evolution Strategy: Single

• LTE-A/B/C

• >5Gbps@Peak

• >10Mbps@Edge

• G.Fast

• 1Gbps@100m

• >1Gbps per HH

• Constantly minimize cost of network migration across multi-gen technologies

• Continually innovate and lead in bandwidth, performance and capacity (Data Plane)

• Unified equipment platform across multi-gen

• Masked protocol complexity and interwork

• Key in-house chips for optimal performance

Single Strategy Overview

Cloud

Single BSS Single OSS

Single

Backbone

Single Metro

SingleRAN SingleFAN

GSM/UMTS/HSPA/LTE … ADSL/VDSL/PON/NG-PON…

• 400 Gbps per λ

• 1 Tbps per λ

• 100 Tbps OTN

• 400 Gbps per port

• 2 Tbps per slot

• 1000 Tbps router


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Carrier Data Center Infrastructure Strategy: FusionSphere

• Continue to invest in Carrier Cloud OS with enhanced management automation • Focus on Carrier Specifics in distributed data centers across WAN infrastructure • Support SDN and NfV Initiatives and IDC/EDC IaaS offering

FusionSphere: Cloud OS

Virtualized Distributed Automated Parallel

DMTF, AWS OpenStack API Telecom API Enterprise API

Computing Network Storage


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Global Services Strategy: Operation-Centric → User-Centric

• Solve Telco’s 80% OpEx bottleneck through integration, professional services and managed services

• Transform operation model Network Operation Centric → Customer Experience Centric (CEM):

Inward rigid processing driven → Outward agile business driven

• Explore business insight for new value proposition w/ big data analytics across network, contents and users

Business

Services

End Users

Infrastructure

Cu

sto

me

r Ex

pe

rien

ce

Ma

na

ge

me

nt

Netw

ork

an

d S

erv

ice

s

Evo

luti

on

Transforming Operation

in Digital Ecosystem

Operation –

Centric Model:

Closed, Rigid

& Inside-Out

User-Centric

Model:

Open. Agile &

Outside-In


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Business Platform Strategy: Digital Open Cloud

• Create New Value Proposition in digital ecosystem

• Unleash Telco Core Capabilities to complement and monetize enhanced services

• Enrich User Experiences for differentiated service delivery

• Engage with Carriers to form various solutions using the Open, Agile and Lean framework

Digital Open Cloud

Digital Service Ecosystem

Service Orchestration Management Automation

API Mngt

SoA

Monetization

Big Data Analytics

Identity Location Presence QoE On-Demand Billing

Service Enabling New Value Proposition

B2C B2B B2B2C


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Network

Operation

Business

• Create New Value Proposition across network, operation and business • Engage with Carrier CXOs to Co-Innovate through business transformation

Close-Loop Strategy: Ensure Telco Business Success

Global

Service

Telco

IT FBB MBB

Strategic Partner

Business Consulting

Solution Provider


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Summary

• Trusted partnership in business

success

• Collaborative consulting in solution

delivery

• Approachable leadership in driving

industry forward

• Operational excellence

• 6% CAGR in revenue

• FBB #1 and MBB #2

• 15% CAGR in software and services

• From box-driven to solution-driven

• #1 in Asia, Africa, LA and Russia

• Second home base in Europe

• Invest in SoftCOM and lead

network migration

• Provide advanced solutions across

network, operation and business

• Focus on telco 80% OpEx issues

and business transformation

• Strengthen on solution, SI, MS and

business consulting

• Industry promoter in BB policy and

strategy

Build Strategic

Partnerships with Telcos Lead ICT Transformation Drive Sustainable Growth

Thank you www.huawei.com

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Copyright©2013 Huawei Technologies Co., Ltd. All Rights Reserved.

The information in this document may contain predictive statements including, without limitation, statements regarding the future financial

and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and

developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for

reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

building strategic partnerships with telcos ... - huawei.com · huawei technologies co., ltd. 2013...

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