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1© 2005 Cisco Systems, Inc. All rights reserved.Service ExchangeFramework_1205 Cisco Public
Cisco Service Exchange Frameworkand Policy Management
2© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Agenda
Service Provider Market Dynamicsand New Revenue Opportunities
Service Exchange Framework Application and Service Possibilities
Service Exchange FrameworkPolicy Management and services
3© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Representsa CompoundAnnual GrowthRate (CAGR)of 95.6% from2002–2007
2001 2002 2003 2004 2005 2006 2007
SP Business Model Dilemma
81K
180K
500K
750K
1.5M2.6M
5.2M
0
400K
700K
1M
3M
5M
100K
50K
Terabits per Day
75K
400B
350B
300B
250B
200B
100B
150B
50B
0
$ Billions
Total Retail Calls
Total Retail Dataand Internet
Source: Gartner 2003 95.6%
Service Providers are Turningto New Service Platforms for
Business Growth
4© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Consumer Needs Are Evolving BeyondConnectivity: Requires Integrated Voice / Video / Datawith Mobility
• Subscriber Personalization:Actively manage the subscribers identity and adjust the serviceoffering/packaging (i.e., different identity in different worlds)
• Mass Scalability:Leverage mass-customization principles:Service-bundling; subscriber-grouping and per-group processing
• Service Evolution:From transport-based service models (time/distance/volume) tocontent-based service models
IP NGN Infrastructure
Physical and Social Context Determinesthe Application Mix Used
Home Office / VPN Internet AccessIM / Group Chat IPTV/VoDOnline Gaming
5© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Web ServicesCollaboration Applications Storage/Computing
Convergence
Business Needs Are Evolving Beyond ConnectivityRequires Highly Available, Secure Managed Services
Helping Businesses Reduce Cost / Free Resourcesto Focus on Core Competency
• High Availability:Managed networks can help ensure business continuity in the face ofeveryday interruptions and unexpected disasters
• Application Awareness:Allows operators to classify applications, apply application-specific QoSpolicies while metering / billing for services on a converged network
• Service Security:Providing firewalls and intrusion detection systems (and keeping themupdated) and using encryption for all sensitive data
IP NGN Infrastructure
6© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Market is Primed…Consumers are Spending Heavily on Communications
Evolution of Household Spending in OECD Countries, 1990–2000
Source: OECD 2003
CommunicationsIndex: 1990=100
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Health
Education
Water, Electricity & Gas
Recreation and Culture
Transport
Restaurants & Hotels
Alcohol, Tobacco & Narcotics
Household Equipment
Clothing & Footwear
Food
160
150
140
130
120
110
100
90
80
70
60
7© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
…And are Willing to PayMore for Valued Services
SecuritySimplicityIntegration
PersonalizationControl
Speed ReliabilityLow Cost
VoiceData
Video
WiredWireless
Innovation
Share households spent on communications rose by50% in developed countries over the past decade
8© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Creating a Multitude of New Service Opportunities…Example: Residential Broadband Services
Integrated Networks, Content, and Entertainment Services to Move Up the Value Chain with the Customer
End-to-End Intelligent Network
Teleworker/Home Business
~$70/Mo
Local andLong
DistanceVoice
~$40/Mo Home Net ~$10/Mo
Video and xVOD~$50/Mo
DigitalMusic
~$10/Mo
Wireless Security~$30/Mo
ResidentialBroadbandAccess~$30/Mo
NetPVR~$10/Mo
Gaming~$7/Mo
9© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Creating a Multitude of New Service Opportunities…Example: Managed Services for SMBs & Enterprises
Integrated Networks and Services to Move Up the Value Chain with the Customer
Managed IPTelephony
~$40/Mo/Site
IP/ MPLS VPN~$150/Mo/Site
Managed LANService~$13/Mo/User
ManagedFirewall
~$100/Mo/Site
RemoteAccess
~$75/Mo/Site
ContentDistribution~$50/Mo/Site
Metro Ethernet~$500/Mo/SiteManaged Router
Service~$250/Mo/Site
10© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
More Than Just RevenueOther Tangible Benefits Can Be Measured
MarketShare
CompetitivePosition
CustomerRetention
Advancing Upthe Value Chain
with theCustomer
Servicescrossing overinto othersegmentstraditionalareas
Deployingservices asdefensivemove versuscompetitors
Moreservices percustomerreduces churn
Deployingunique servicesfends againstcommoditizationor beingrelegated to‘only transport’for applicationproviders
11© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Today’s Universe of ApplicationsRequires Support for SIP and Non-SIP Applications
Session BasedNon-Session Based
Web, HTML P2P
Business IP - VPN
Messaging–SMS, MMS
Voice Push-to-Talk
Push-to-Video
StreamingVideo
IM
Group Chat
Video onDemand
OnlineGames
IPTV
DualMode
EnterpriseIntegration
E-Commerce
SIP (IMS) OnlyApps
SIP (IMS)OR
Non-SIPApps
Non-SIP OnlyApps
Rea
l Tim
eN
on-R
eal T
ime
12© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
What is IP Multimedia Subsystem (IMS)?
• Layered architecture—separates transport,control and application functions
• Access-agnostic—initially defined formobile carriers, but allows convergence offixed and mobile networks and applications
• Real-time IP applications—Enhances and“blends” SIP-based services
A standards-based effortdeveloped as a means for
voice-centric mobileoperators to more efficiently
deploy and handle SIPservices
13© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Service Exchange FrameworkComprehensive Support for BOTH IMS and Non-SIP Apps
Intelligent Networking
Video &Gaming
DataCenter
Presence-Based
TelephonyWeb
ServicesMobileApps
IPContactCenter
IntelligentEdge
CustomerElement
MultiserviceCore
Access/Aggregation
App
licat
ion
Laye
rSe
rvic
eLa
yer
Net
wor
kLa
yer
Transport
Ope
ratio
nal L
ayer
ServiceExchange
OpenFrameworkfor Enabling
‘Triple Play onthe Move’(Data, Voice,
Video, Mobility)
Identity Policy Billing
Mobility
SelfService
Traffic Traffic EngineeringEngineering MulticastMulticast SecuritySecurity
CoS/QoSCoS/QoS MPLSMPLS
PeeringPeering
L2L2//L3 VPNL3 VPN
VPLSVPLS
FastFastReroutingRerouting
Routing ProtocolsRouting Protocols
IPoDWDMIPoDWDM
PPP/FR/ATM/EthernetPPP/FR/ATM/Ethernet
IPv4/IPv6IPv4/IPv6
IMS Non-IMS
14© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Common “IMS” Elements and Segment DifferencesOne Size, Doesn’t Fit All… Exactly
Common IMSElements
BGCF MGCF CSCF SEGPDF HSS/SLF SGW
IMS MGW MRFC/MRFP
Mobile Wireline
Cable
• PDP Accessspecific focus
• GSM Wirelessnetworking in3GPP, CDMAwireless 3Gnetworking in3GPP2
• Resource andadmission controlsubsystem
• Networkattachmentsubsystem
• Firewall / NAT traversaland QoS over Cable HSD
• Policy enforcement formultimedia services
• Access andinterconnectborder control
Vendor IMS Strategies Must Be Flexible toAdapt to Each Segment’s Needs
15© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Cisco IP NGN ArchitectureAchieving a Whole Greater Than the Sum of the Parts
Intelligent Networking
GamingData
Center
Presence-Based
TelephonyWeb
ServicesMobileApps
IPContactCenter
IntelligentEdge
CustomerElement
MultiserviceCore
Access/Aggregation
App
licat
ion
Laye
rSe
rvic
eLa
yer
Net
wor
kLa
yer
Transport
Ope
ratio
nal L
ayer
ServiceExchange
OpenFrameworkfor Enabling
‘Triple Play onthe Move’(Data, Voice,
Video, Mobility)
Identity Policy Billing
Mobility
SelfService
16© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Triple Play on the MoveProviding Means for Service Continuity, Customer Stickiness
Enterprise Home
Small Business PSTN
Branch Office
ASP
Hotel/Airport
MobileWireless
SONET
DPTCABLE DSL DIAL
LR ETHERNET
LR ETHERNET
DWDM
METRO
17© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Service Exchange FrameworkEnabling Personalized Rich Media Services
MOBILITY SERVICES MANAGEMENTDevice RoamingService MobilityUser Mobility
MULTIDIMENSIONAL IDENTITY MANAGEMENTUser / Device IDSubscriber AwarenessLocation / PresenceService RegistrationAudit / LoggingAssured Authentication
DYNAMIC SESSION MANAGEMENTCall ControlSession Border ControlRich-Media ControlDiff Bandwidth & QoS per SessionAccounting / Billing
POLICY AND RESOURCE MANAGEMENTSubscriber PolicyApplication / ChainingPer-Sub ServiceService Invocation
Who?• Who is the user?
• Devices• Profile• Location• Presence
What?• What can the user do?
• Within what timeframe• To what extent• Under what rules
How?• How can I dynamically control resources?
• Interwork & provide rich media control• Monitor & charge on a per
service / per user basis• Enable application awareness
Where?• Where can the user roam?
• Track/recognize user devicesacross carriers
• Maintain user sessions acrossmultiple networks
• Offer all services in all locations
ServiceExchange
Framework
18© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
CONTROL: Turning an Uncontrolled Network …
Barriers to HarnessingMore Profit:• Insufficient information yields anuncertain revenue model
• Network congestion and contention forscarce bandwidth degrades subscriberexperience, leading to increased churn
Cable POP
DSL POP
Mobile POP
Optical POP))))))
))))))
BackboneNetwork
InternetOSS
Billing NMS
ContentDeliveryNetwork
MultimediaServers
PSTN
Service Exchange Enables:• Application and subscriber-level control• Usage reporting and billing• Programmability for any current/futurecustomer need
• Mobility management
ServiceExchange
… Into a Controlled Network
19© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
User Identification and Control Enables CustomizationIdentify Users and Serve Them According to Unique Profiles
Physical(1)
Data-Link(2)
Network(3)
Transport(4)
Session(5)
Presentation(6)
Application(7)
Network Control:User-Experience linkedto Network Categories
Data Characterization, Grouping into administrativeDomains, and Treatmentdefined based on NetworkCharacteristics, e.g., • Interfaces, VLANs, VCI/VPI• Access Protocols/Methods
Virtualization of the Network Layer for the User
Physical(1)
Data-Link(2)
Network(3)
Transport(4)
Session(5)
Presentation(6)
Application(7)
Session Control:“User-Aware Network”
Data Characterization, Grouping and Treatmentdefined independent of NetworkCharacteristics.
20© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
ServiceExchange
SERVICES: One Size Does Not Fit AllValue Add Comes from Personalization
Service-Aware IP Infrastructure
VirtualWAN
Manager
VoIP
Bandwidthon Demand
ContentAware Prepaid
TieredServices
Content AwarePostpaid
P2P Control
ParentalControl
AccessControl
DoSProtection
IntrusionDetection SPAM Control VoD Digital
RightsManagement
LawfulInspection
21© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Agenda
Service Exchange Framework Application and Service Possibilities
Service Provider Market Dynamicsand New Revenue Opportunities
Service Exchange FrameworkPolicy Management and services
22© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Service Exchange PossibilitiesPlays to Top and Bottom Lines of an SP Business
Rev
enue
Gro
wth
New Services
OpEx R
eductionEfficiencies
23© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
TCP Session Limits
Protocol Restriction(No IPsec)
Turbo Button
Subscriber Self-CarePortal and Accounting
Intelligent and Secure IP NetworksCreate New Service Opportunities and Increase ARPU
Walled Garden Portal
Pre-Paid Services(Volume, Time…)
Per-User Firewall
Integrated toThird-Party Billing
Export Data Formatfor Billing Services
User-Based Billing
Virus Filtering
Peer-to-PeerTraffic Marking
Traffic PatternAnalysis
SLA Monitoringand Reporting
Revenue-Generating
Services
24© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Cisco Service ExchangeComprehensive Support for Non-SIP Apps
MoreServices
GreaterEfficiencies
BetterControl
• Personalization anddifferentiation throughself selection
• Content filtering throughdeep packet inspection
• More granular chargingmodels with extensivepre/post-paid options
• Service prioritization viadeep packet inspection
• Preserve video QoS viaefficient managementof oversubscription
• Greater scalabilitythrough contentvirtualization
• Network-based servicecontrol and chargingmultiple accesstechnologies
• Fair use enforcementthrough deep packetinspection
• Higher availabilitythrough enhancedsecurity
• Transparent mobiledata networking acrossmultiple accessnetworks
25© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Cisco Service Exchange FrameworkCase Studies
• Subscriber-managed parental control• Basic web site blacklisting provided
free of charge• Comprehensive filtering and security
for a small monthly subscription
Content Filtering
• Simplifies the end user experience• Personalize per user including self
subscription and account refresh—e.g.,new consumer service activation
Personalization via Self Selection
MoreServices
Page Blocked!Forbidden
Content Detected
26© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Features ofthe Future
WiFi phonesDual mode handsetsVanity featuresHiFi / High-def voicePictures and videoVideo telephony
Call logClick to dialWeb-based voicemailCustom ring tonesMobilityArea code selection
Today’sAdvancedFeatures
Enhanced IP Communications Services & FeaturesSuperior to PSTN Telephony
Call waiting3-way callingCaller IDMulti-lineCall forwarding
Standard AnalogFeatures
MoreServices
27© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Cisco Service Exchange FrameworkCase Studies
GreaterEfficiencies
Efficient Management ofVideo Oversubscription
• Preserves quality of experience• Provides network-based graceful busy
signal when demand exceeds capacity• In trials at major MSO, critical for IPTV
Video Call Admission Control• Enable new business models between
content and service providersDetect and manage affiliatedapplications and align QoSCo-branding and fee sharing
Service Prioritization viaDeep Packet Inspection
Reduced TransitCosts
Web
P2P
Actual Customer
Data
Actual Customer
Data
220,000200,000180,000160,000140,000120,000100,00080,00060,00040,00020,000
0
KB
ITS
/SE
C
Week #1 Week #3 Week #5
Hourly Total Bandwidth (Kbits/Sec) Per Serv ice
Managing P2P Applications
28© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Cisco Service Exchange FrameworkCase Studies
Implement Fair Use Policy
• Eliminates bandwidth bottlenecks• Enhanced user experience
User quota based on 7-day timeframe16 kbps28 kbps28 kbps48 kbps P2P
48 kbps65 kbps128 kbpsNo Limitaudio /video streaming
256 kbps
256 kbps No LimitNo Limite-mail + WWW
over 5.6 GB
less then 5.6 GB
less then 4.2 GB
less than 2.8 GB
Usage
16 kbps28 kbps28 kbps48 kbps P2P
48 kbps65 kbps128 kbpsNo Limitaudio /video streaming
256 kbps
256 kbps No LimitNo Limite-mail + WWW
over 5.6 GB
less then 5.6 GB
less then 4.2 GB
less than 2.8 GB
Usage
BetterControl
Enhanced Security Services• DDoS service provider
infrastructure protection• Peering edge DDoS
protection• Managed service models
DefendDefend
DetectDetectMitigateMitigate
InjectInject DivertDivert
Infrastructure
ProtectionClean diverted
Traffic using
Cisco guard
Re-inject
cleaned
traffic
Proactive threat
Detection
Enhanced Security-DDoS Protection
29© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Typical Tiered Service Model Pricing ExampleAdding Value to Differentiate Services
MEMBER SERVICE FAMILY SERVICE BUSINESS SERVICE•One IP Address•2MB Down•512K Uplink
•One IP Address•4MB Down•512K Uplink
•Three IP Addresses•6MB Down•1MB Uplink
•500 Minutes paid •Unlimited •Unlimited
$19.95 $49.95$9.95
•Email•Basic Internet•P2P Marked
•Email / Video•Full Internet•100 TCP Sessions•P2P Traffic Marking•Child-safe Internet•Pop-up Blocker
•Email / Video / Voice• Wireless Internet• No TCP Limits• P2P Traffic• Firewall• IPSEC VPN Speed Up
NEW
$29.95 $69.95$39.95
BetterControl
30© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Enhanced VoBB Service ExamplesImproving the Quality and Control of the User Experience
Video on DemandTV on Demand / nPVR
Broadcast Television Video StreamingVideo Phone /Video Conferencing
Gaming / Interactive TV
“Over the Top”Video
ManagedVideo
Applications
VideoCommunications
Services
Video to Other Devices
BetterControl
31© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Agenda
Service Provider Market Dynamicsand New Revenue Opportunities
Service Exchange Framework Application and Service Possibilities
Service Exchange FrameworkPolicy Management and services
32© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Service Usage Reports and PolicyEnforcement Network Analysis and SubscriberIntelligence
Granular Usage Analysis:• Analysis by subscriber
• Classification by application
• Layer 4–7 deep packet inspection ensures actionable data
• Detailed demographic analysis
Operators can finally assess how subscribersare using the network
33© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Combining Application and Transport Based ServicesFlexible Combinations of Content, Volume, Bandwidth
Application /Content
Recognition (Deep packet
inspection)
Transport Traffic Control(Pre-paid volumes; bandwidth management)
Content
Volume
48* 28* 16*28*
128* 64* 48*
256* 256*Email;WWW
Peer2Peer
IPsec;VPN; FTP
* Service Specific Access Bandwidth in kbps(Example from a mobile-wireless service)
< 2.8GB < 4.2GB < 5.6GB unlimited
High Degree of Customization Coupled with Granular Network Resource
Control and Planning
34© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Services (PDP)
Policy Control(PEP / PDP)
Access & Aggregation& CPE(PEP)
Policy Control Framework
PolicyServerAccounting Authorisation
Standards based transport protocol
Standards based transport protocol
Info
rmat
ion
Mod
el
WebPortal
PolicyServer
3.3. Application PlaneApplication Plane
2.2. Policy PlanePolicy Plane
1.1. Network PlaneNetwork Plane
35© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205
Customer self-provisioning
• Customer subscribed to an-entry-level profile.
• All customer’s accesslines are identicallyprovisoned (i.e. DSL profileat max access speed).
• Service exchange enforcescurrent customer speedand traffic profile.
• Customers candynamically changeprofiles with no manualintervention.
• Profile change can bepermanent (new tariff plan)or time-limited(promotional offers).
36© 2005 Cisco Systems, Inc. All rights reserved. Cisco PublicService ExchangeFramework_1205