The Impact of Programmability on Networks Part 2

Yesterday we reprinted the first part of Telecom Asia magazine’s interview with Brian Shoda, director of Cisco NGN architecture sales for Asia Pacific. Here is the second and final part of the story.

4. [Telecom Asia] How can telcos better optimize and simplify their network architectures?

[Brian Shoda] The traditional layered and hierarchical model of network architecture has served operators well for many years. Today, the demands on operator networks are vastly different to those of the past. Optimization and simplification of network architectures is a key focus for most operators. Long lead times for activating new capacity, idle link capacity, and 1:1 bandwidth reservation are all costly methodologies and are no longer feasible for the modern operator.

Cisco’s Elastic Core and nLight solutions address these traditional models by converging the Optical transmission and IP transport layers of the network. In converging these layers, operators are provided the capability of programmability to minimize network complexity while maximizing service intelligence and monetization opportunities.  This capability significantly reduces network total cost of ownership and is a key element of the Cisco network programmability approach.  Cisco’s network programmability capabilities integrate an operator’s underlying network infrastructure with network device operating systems and application environments, creating opportunities to deliver new application-specific services.

5. [Telecom Asia] As networks scale in size, how can telcos operate networks more efficiently?

[Brian Shoda] Scaling network infrastructure is the key consideration for most operators. There is currently significant industry momentum in the areas of Network virtualization, Network function virtualization and deep OSS/NMS integration. These emerging technologies all focus on simplifying the network and removing complexity from the processes and systems required to acquire, connect and service customers.

Network virtualization in particular aims to provide topology, place and capability agnostic resource consolidation and virtualization for simplified operations, increased network capacity and accelerated service delivery. By consolidating multiple diverse physical network elements into single logical management entities, operating costs can be reduced by as much as 69%. In combination with rich OSS capabilities network virtualization also provides for simplified service management through Plug-and-Play capabilities, single point-of-service management using Cisco PRIME, cost-effective configurations and ease of deployment reduce the need for costly on-site setup, support and maintenance, while providing hardware and software savings.

Cisco’s network virtualization technologies in the core, edge, access and aggregation deliver on the promise of helping operators better manage, enhance and profit from the rapidly growing volume of Internet traffic and the proliferation of connected devices.

6. [Telecom Asia] What new business models do you see as a result of these transitions?

[Brian Shoda] At the core of the current technology transitions are the need for operators to generate new profitable revenue streams. As a consequence, operators are also seeking new business models. The traditional models of pre/post-paid, volume billing, and fee for service are no longer sustainable in the highly competitive and price sensitive market.

Mobile monetization is top of mind for operators. Extending beyond simple mobile advertising, these new business models focus on creating new revenue streams from the vast amount of data available to operators about customer behavior based on location, context, and consumption on these devices. Examples include Free to End User services that are paid for by third parties, subscriber data mining and real-time network response to subscriber management, context aware mobile advertising, commerce, stored value  and subsidized services.

Cisco facilitates these new business models through its Mobile and fixed Videoscape solutions, Service provider WiFi architectures and Adaptive Intelligent routing capabilities. When combined with cloud services and integrated with an agile IP NGN networking platform, these technologies provide operators a fundamental basis upon which they can evolve their business models and leverage market and industry transitions to drive their business into the next phase of revenue and profitability.