How to sell cloud and SDP in Americas

Chamath Kodituwakku

Selling SDP in the cloud inAmericas14 January 2013

This presentation is on importance on Cloud Computing, Service Delivery Platforms in shaping the service delivery and consumption in a networked world, detailing how cloud and SDP solution providers should address the market requirements and how to sell such solutions to both to Operators and Enterprises, it is generic in nature but applies to specific issues in North America and Latin America.This is about networked future, that applications ( services) to consumers what will be driving revenue for any business in the future. Connectivity will soon become a commodity, The future is in how one can address end users service demands in a cost efficient, dynamic, efficient and specialized way with evolving technology and requirements of speed and flexibility, and interoperability. On Anywhere, Anytime, Any device.

This Presentation was done to HP CMS Management in January 20131

Challenge to Operators (Carriers) There is a strong push by the ecosystem in silicon Valley to force operators to become bit pipes. If not adapting the right strategy, OTT SP, 3rd parties will take the Services to the consumers, Enterprises and prevent operators and Enterprises adding revenues streams.Leverage the strengths of the telecom networks and interoperable services to gain a competitive advantage instead of moving slowly, and seeing revenue disappear into the 3rd parties OTT service providers in cloud. Voice and Data is commodity nowCloud computing may be high on carriers agendas but they still need to catch up with OTT SP, internet giants like Amazon and Google etc. because a rapidly increasing number of users will want and need to stay connected, any time, any where, any device to utilize ANY OR specialized services.Implementing effective business models with cloud application providers that take advantage of the operator's quality-of-experience assurance, (QoS) capabilities, security and subscriber base.Accelerating time to provision and deploy operator-hosted cloud services in a world where speed and specialization will standout

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Operators have historically coupled connectivityor the pipe as in broadband and DSL added applications communications, as in voice and SMS services. With the presence of ubiquitous broadband access and IP connectivity there is a move towards decoupling of services from access and operators see some of these of revenue-generating services bypassing their bills. This so-called over-the-top trend (moving services into the internet cloud), increases the importance of the connectivity business for operators but also risk reducing it to a commodity delivered by dumb bit pipes.

Given the control they exercise over access transport networks, operators are better positioned to address many of the concerns that Relate to cloud computing services on the internet. It is an offensive as well as defensive Strategy. They can provide secure quality-of service (QoS) connectivity to and from the data centers. Moreover, their customer-connectivity offerings can be very flexible (elastic) in terms of bandwidth.

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Challenges to Enterprises Internet and the power of mobile computing (any device, any where, ay time ) are disrupting every industry. Avoid new OTT competitors, in future rapidly increasing numbers of users, will want to stay connected to their services anywhere, anytime, any device. Enterprises that are still on the fence about cloud computing, enterprises want to see the where is the money.Enterprise IT Focus should be on Services and Revenue: Not on IT infra management, as in the client server era. Focus on DEVELOPING Custom Services

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If you arent developing custom services for your business, why the heck not?

Skills are light in many of these organizations, it will probably delay movement from infrastructure-centric to application-centric operations models, but adaptation is key to survival. Current skills are make sure there are computers available on which to run software that the business requires, not how to optimize application and services usage for revenue generation. Heavy equipment manufacturer Caterpillar provides an online data collection and analytics service to keep track of equipment condition. Early pioneers in online learning platforms included several colleges and universities. Even political campaigns have gotten into the custom software act.

Cost , Complexity, and Time . Thus, in order to see significant MONEY spent to migrate/move existing apps to the cloud (private or public), we must overcome these obstacles. Find a way to lower the REAL costs of moving from my own installation in my own data center to a secure instance executing in the cloud. If I have to buy all new stuff to do it, and then pay someone else to manage it, it's not going to be cheaper. Find a way to make it simpleI really want to ship an entire SYSTEM (virtual, presumably) that contains everything as is, from where it currently resides, to the cloud. With one button. Do that, and you solve for time. There isn't any additional time involved.

Sounds simple, Yeah? But hardly no ones done it. Moving existing legacy apps to the cloud take armies of consultants, tons of dough, and an obscene amount of time. That's why no one is out there talking about how much money they are MAKING on this stuff, only how much they are SPENDING. Big difference.

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Operator Business Opportunity

Increase revenue streams, buy providing rental business models SaaS, PaaS and IaaSSharing revenue Business models : private labeling, co-branding, and reselling. Share revenue with cloud-based application and content providers, ensuring the QoS of UE. Use intelligent Mobile Networks, Next-generation unified service delivery architectures, SDPs to gain revenues with own differentiated hosted servicesCapture revenue from new business-to-business-to-consumer (B2B2C) partnerships with cloud application providers.Sell a range of cloud services, including hosted audio, video, and web conferencing; sales force automation; HR tools, etc other SaaS ,IaaS, PaaS Services

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Cloud services provide users with a service or application stored centrally over a web interface or through a thin client. The service is provided on demand, and is highly scalable, always up to date, and very flexible. Operators can partner with or become cloud-based application providers to gain new revenues from the delivery of hosted software-as-a-service (SaaS) or PaaS, or IaaS. Collaboration with existing cloud application providers can take several forms, including private labeling, co-branding, and reselling. Operators can provide enhancements to subscribers in terms of quality of experience, ease of use and discovery, inclusion in value-based bundles, and other features enabled by intelligent mobile network infrastructures.

For operator-hosted SaaS, operators can greatly reduce the time to launch new cloud-based services by combining the virtualization of the data center with the capabilities of the next-generation IP network. This approach to cloud services encompasses a shared unified compute pool, a unified networking fabric, and an application- and media-aware network for secure delivery of services. This allows operators to collaborate with cloud-based application and content providers.

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What Cloud means for OperatorsMove up in value chain with delivering ICT resources as a service in a utility model (on demand and pay-per-use). Ability to Innovate AND stay upto date with technology.Control the infrastructure and access NetworkQoS ,Security accessibility.Defend value and improve one Service delivery Network is the computer : Cloud is in the network, So a provider who owns robust network: With extreme high availability, scalability and the enterprise-class security with Internet Data Centers, that provide the performance and bandwidth is needed for most demanding cloud-based solutions.Able to bundle and specialize on verticals: Bundles sell better than individual services.. and specialization 14 January 2013

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Cloud Solutions : the benefitsAvailability of infinite resources on demandNo upfront fees, or commitment or time delays in deployments, no CAPEXTrue pay as you go, rental business models on demand services, to desired scalability Better utilization through workload multiplexing and virtualization Simplify operations and reduce OPEX, faster TTM time to market End-to-end QoS guaranteed experience, which includes access to the cloud, in providing Value added Services and expanding the users and service capabilities.Being the both the connectivity provider and communication provider in the operators case, enhance UE in innovative communication services, integrated to verticals.Resilience : SME can choose cloud solutions to support their business continuity and disaster recovery plans, ensuring compliance with regulations and best practices for data availability.Low cost of utilization in the long run

Many more

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Solutions:

Why use rental services ( i.e Cloud ) ? Because A: doing it yourself is complex, and expensive in this disrupted IT world and B: It should be cheaper to do it with others who have industry specialization.

By 2011, folks were just as likely to consider implementing a cloud solution to contain costs as they were to kill a project or fire people. 2012 data tells us that we've crossed the chasm - people are now MORE likely to use cloud techniques as a cost containment/reduction strategy then they are to shoot a project or get rid of people.This is a tipping point. Cost reduction/containment is by far the most important catalyst to a long term, thriving market opportunity. 6

SDP Solutions : the BenefitsSDPs are made to cross technology boundaries, with seamless integration, services aggregation and expose the capabilities of the underling architecture and service enablers.SDP to expose network assets in a controlled manner to both the internal and external development communities, including web developersIt Can manage the lifecycles applications and developers. Increase Customer experience through service variety, easy service access, and streamlined service delivery Improve customer experience through service variety, easy service access, and streamlined service deliveryIncrease profitability, through shorter time to cash for new servicesReduce operational costs and prospective investments through flexibility and simplicity of service delivery, and shorter TTMAbility to create competitive edge through shorter time to market for new service offeringsAbility to deliver better customer value through partnership schemes and personalized service bundles

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In the new world of converged service delivery, SDPs should also be considered not just as a core function within an operator but as a number of interconnected, distributed service nodes and enablers for different service profiles to different business and market sectors

SDP is not anymore Telco specific SOA.

Why SDP , A: because you will have new revenue models, that you will need to rapidly adapt to with partner eco-system that changes B: Everybody will be sooner or later asking for flexible, scalable and available Virtual Private Service Environment 7

Benefits of SDP in the Cloud Enables innovation, decrease time to market, reduce costs, optimum utilization of resources, all rental business models ( as a service, or a platform or infrastructure) Enforcing service levels, SLAs on Hybrid, Private and Public clouds, hybrid cloud can be model that will prevail once enterprises start to embrace cloud services.The services can be provided on demand, and scalable, in a secure network, dynamic up to date, and flexible. Operators and Enterprises can partner with or use other cloud-based SDPs or application providers to gain new revenues from the delivery of hosted software-as-a-service (SaaS), or PaaS or IaaS.

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Public : public test collaboration, cost issues, not sure of the demand patterns for applicationsPrivate: strict service level, mission critical applications, long term strategy for internal cloud

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Strategy for Operators Enhancing Security and smarter Connectivity using technologies like deep packet inspection and traffic management and broader using technologies like LTE and GPON. keep innovating at the communication layer with Interoperable services, for example video conferencing, real-time media and TVNeed to move up the value chain and to the verticals, with tailored services for industries like media, auto, utilities and governments, utilizing telecom unique assets as enablers.Embrace the disruptive business models that technology creates and establish new partnerships with Content providers and Service Providers.Enable users to connect any time, anywhere, any device to consume ANY services. Establishing new revenue models in SaaS, PaaS, and IaaS as next slide for Enterprise SME as well..14 January 2013

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Strategy for EnterpriseIdentifying cost reduction, revenue generation, in Application centric Business models Understanding application architectures that can bring the benefits, business objectives by leveraging the services offered by cloud providers and cloud platforms to combine connectivity, services, consumers, computation and data.Identifying the partners and associations required in the transformation and revenue generation business models. Rapid transition from client server based IT administration to software application Services administration where Enterprise core business is focus Plan Transfer of IT infrastructure-centric IT operations to to application-centric operation models Adaptation of Application Centric business models

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Cloud computing is not only about building virtualized data centers. It is also about an enhanced experience for users and enterprises.For Enterprises This can be difficult to achieve when traffic is scaled up and the applications environment becomes complicated. Traditional ITnetworks will find scaling up while ensuring a good user experience difficult and this gives telecom operators a competitive advantage.

If handled in the right way, the Enterprise benefits are the same, Its a matter of enabling the vision of users being connected anytime, anywhere,to anything and on any screen.

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Selling SDP and Cloud Rising above the SDP crowd and the Cloud Crowd with strong emphasis on capabilities to address additional revenue generation, problems, transitions, business needs, with complete researched facts about the buyers existing situation, or the problem scenarios with 360 degree focus on customer.Presenting at all stakeholder levels how explicit needs can be addressed and demonstrate, in- if ? Then, scenario, imply the benefits of the solution offers, rather than stating the benefits of the solution to the buyer. ( based on SPIN selling)

Articulate Solution capabilities to achieve Revenue, Specialization and Speed.. Emerging markets require specialization and speed, not what Enterprises and operators are used to.

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Situation Questions.

Problem questions,

Implication Questions, result statements,

Need pay off questions leads to Benefits 11

Selling SDP and Cloud My General Sales Rules Know the solutions and product portfolio to deeper and greater extent , SWOT, what it can address as business objectives, and how to fill any gaps or short comings.Honor the prospects and cultivate a good relationships with respect and diplomacy with clientsBe truthful, timely and specialized in subject matter and humble in interaction addressing the requirements and business needs of clients.Constantly adapt to the requirements, and constantly evolve with solutions, tools and techniques within the organization. Perception : Relationships can make the difference. Address the emotional want beyond the explicit rational need of the client.

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Needs are product specific, rational and above the surface, situation and problem questions leads to that. Requirements ( facts) are measurable.

Wants are product neutral, emotional below the surface, based on the perception and not measurable. 12

Selling SDP and Cloud : Providing what is required Outstanding end to end products with professional service offerings that address the business requirements, with skilled experience, tools, and best practices in reducing time to market in deploying mobile network solutions to both CSPs and Enterprises.Access-independent, Secure IP-based, interoperable, scalable, Mobile Internet solutions are key drivers of differentiation and new revenues, and profitability to CSPs and enterprises.Cloud computing services that operators , Enterprises can combine the user experience with professional services that will be able to handle a range of issues, such as protection of information, confidentiality of sensitive business data, data protection, IT governance, legal questions, unclear regulation, non-standardization, customer support and billing etc.14 January 2013

With cloud computing services, operators and Enterprises can combine the user experience with professional services and will be able to handle a range of issues, such as protection of information, confidentiality of sensitive business data, data protection, IT governance, legal questions, unclear regulation, non-standardization, customer support and billing.

The benefits to enterprises, operators and users sound pretty straightforward. So why is there still universal apprehension? The answer is security. A report by managed services firm Colt, based on studies by research firm Portio, states that 68 percent of European CIOs said security concerns were holding them back from using cloud computing services. Those who provide cloud computing services simply have to put to rest the concerns of enterprises, operators and users that their entrusted data or personal information is not secure. Cloud computing is, after all, the outsourcing of information. IT staff so far still sleep the soundest when their in-house systems are close by and protected by a local firewall. And cloud computing services are distant, in a shared environment and protected by someone else.

It is important to realize that what matters most is the end-to-end user experience, which includes access to the cloud, the very efficient connectivity layer and innovative communication.13

Selling SDP and Cloud : Providing what is required Differentiation of Services, Network resident Local and Distributed, localizing cloud and SDP InteroperabilityFast access, Fast time to Market in Services Security Integrated as part of the network Scalability, reliability, Speed for application, data and work loads Ability to Multiply power of the AssetsAvoid latency, Improve productivity of the usersLowering the utilization cost in the long Run

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Trends for the customers in Latin America.Trend #1: Telcos and cloud service providers (IT service providers, OTT providers, independent software vendors and cloud aggregators/brokers) will coexist.Trend #2: The Latin American SME cloud services market will consolidate. Strategic alliances between market players will continue emerge, and Telcos will spin out their cloud services divisions.Trend #3: SME cloud services will converge and will evolve from a horizontal to a vertical focus.Trend #4: The cloud aggregator/broker model will become mainstream in Latin America

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Traditionally, Telcos have dominated the SME market for carrier services, as opposed to the IT and OTT service providers. When it comes to cloud services, Telcos are in a vulnerable position due to strong competition from well-established IT service providers, OTTs and independent software vendors (ISVs).

Cloud Services Brokerages as intermediaries between customers and the cloud technologies they use. The cloud services brokerage helps customers aggregate, integrate and customize various cloud services, and helps consumers of cloud services manage all the interactions with providers from licensing and governance to data movement and customization.

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Trends for the customers in North America.North American service providers have grown more comfortable with cloud deploymentsAddressing the security fears in Cloud solutions for consumers as well as businesses. Security concerns remain the chief brake on cloud growthThe influence of lines of business (LOB) on IT consumption is increasing. IT will need to partner with LOB across all stages of IT decision making.SDPs are more and more interesting to Enterprisesex.. transportation, Health care and utility and M2M solutions as well as Enterprise B2B, B2C scenarios.

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There is a strong Need and awareness in Networked computing, Cloud as well as SDP in North America. North American service providers have grown more comfortable with cloud deployments as they themselves have moved into the cloud services realm. Carriers are already offering Cloud services.

I know T-Mobile swapped manual cloud provisioning for HP-powered services portal. AT&T is providing Enterprise cloud services.

Machine-to-Machine (M2M) solutions wirelessly connect millions of diverse devices to a network, enabling two-way communication. From trucks and turbines to heart monitors and vending machines, M2M allows network-ready devices to connect and share reliable real-time data via radio signals. Monitored and managed remotely, M2M automates processes in industries from transportation to healthcare.16

Some thoughts Summery on SDP and Cloud- competitors Today, twenty-three percent of total IT spending is devoted to cloud, and the increase in clouds share of IT spending is expected to increase by 17 percent over the next three years. I think It's HP, Dell, and IBM, Oracle that have the real ability to change the game on a grand scale in this space, mainly due to IT being their core business. NEPs Cisco Eric are slow, no reputation in IT services to react and still bogged down in Network core business.For HP I imagine being able to sell cloud CONSUMPTION as a business model when you have that many customers globally! And Become cloud Sherpas ( brokerage) IBM (perhaps the most committed to cloud) and SDP is still moving pieces around-but have shown they see both the cloud consumption opportunity AND their own brand value. Like others they aren't specializing. Evolution of SOA, Mashups ,New Service orchestration capabilities, provide tools and workflow to help build architectures that deliver Richer UE.

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General Notes: SDPs are commonly considered for the Telco type environments as a core system which interconnects the customer's access and network infrastructure with the OSS systems and BSS systems. SDPs in this context are usually associated to a particular service regime such as mobile telephones or for converged services. SDPs are also considered in the context of very large transformation, convergence and integration programs which require a considerable budget.

In the new world of converged service delivery, SDPs should also be considered not just as a core function within an operator but as a number of interconnected, distributed service nodes enablers (e.g.) for redundancy reasons and for different service profiles to different business and market sectors. Many operators provide commercial scale/grade products such as bundled voice, web hosting, VPNs, mail, conference and messaging facilities to government and corporate clients.

"Virtualization" does not equate to "private cloud"-but it is a key tenet of the private cloud, along with manageability, consistency, and deep understanding of enterprise-level best practices and customer use scenarios. Microsoft's Fast Track for Private Cloud provides a software architecture that enables the delivery of private cloud through its ecosystem. HP has applied its own engineering and integration expertise to Fast Track, resulting in HP Virtual System for Microsoft-HP Converged Infrastructure tuned for Microsoft private cloud environments.

Telecom developers to integrate with Web 2.0 services. SDP enablers expose additional network capabilities, such as access to subscriber HLR/HSS databases, network address books or real-time call control mechanisms. Also on the developer front, new service orchestration capabilities, provide tools and workflow to help build composite architecture.

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