Monetising the API infrastructure. BY Krishna Kumar Menon Solutions Head - Telecom

Transcription

1 Monetising the API infrastructure BY Krishna Kumar Menon Solutions Head - Telecom

2 Most Operators have until quite recently operated a 2-tier business model, with network infrastructure forming the bottom layer and the commercial functions on top. Instead the trend is towards a 3-tier business model, where products and services will no longer be built directly out of the network infrastructure. Large and progressive Operators are investing in an Application Environment (API Platform) for implementing, exposing, and delivering next generation network & IT capabilities to the external world. throughout the application environment IT HAS BECOME POSSIBLE FOR 3RD PARTY ENTI- TIES (ASP, CONSUMERS, SERVICE PROVIDERS,AND ENTERPRISES) TO DISCOVER, SUBSCRIBE, AND CONSUME SUCH CAPABILITIES AS PART OF THEIR SERVICE OFFERING TO THEIR END USERS OR TRANSFORM THEIR OPERATIONS Each capability will support multiple NGN services and will be made up of elements that reside within the operator s network itself or within higher service creation and management layers. Not every Capability is necessarily intended to be available to all service providers and retailers.

3 Operators are moving to business models which have improved connectedness with partners,suppliers,customers and employees enabling them to influence every aspect of customer relationship and revenue stream Innovative Customer facing Services can be implemented as an application that combines functionality provided by Capabilities, underlying Functions, and virtualized Network services. The API revolution is upon us. According to Deloitte, over 10,000 APIs have been published till date from across telecom, media finance, travel & tourism, and other hightech industries For e.g. in the finance industry, entrenched players are exploring open banking platforms that unbundle payment, credit, investment, loyalty, and loan services to compete with new entrants like Paypal, Billtrust, Amazon, etc. that are riding the API-driven services into the payment industry. Netflix received more than 5 billion daily requests to its public API's The volume is a factor in both the rise in usage of the company s services and its valuation. Many in the travel sector like British Airways, Expedia, TripIt have embraced APIs and are opening them up to outside developers. According to Deloitte, over 10,000 APIs have been published till date from across telecom, media finance, travel & tourism, and other high tech industries Netflix received more than 5 billion daily requests to its public API's

4 Operators are exposing a variety of NGN capabilities to the market- 1. Profile The ability to store and access User data 2. Presence The ability to check if someone is online, busy or offline 3. Authentication The ability to check someone is who they claim to be 4. Application Driven QoS Ability to boost ADSL & Fibre lines 5. Call Set-up Ability to set up calls between parties 6. Session Control & Set-up Ability to control session aware services like voice calls, multi-media telephony, etc. 7. Content Management Ability to package & present media (music, video etc. to users) 8. Messaging Ability to send and receive messages both real-time and non-real-time 9. Billing The ability to charge end users for the use of service via a consolidated bill 10. Geographic Location The ability to locate a person based on the position of their mobile phone

5 The customer for such capabilities are people who wish to develop next generation services that include capabilities that Operators are making available. An application implementing the NGN API may have zero visibility of the Operator Network but will be able to access the same in a secure, manageable, and billable manner. There are number of benefits - for example it is possible to embed chat applications (which may be presented as a button on a web page) in a web site where it is possible to start a call between two people or change the bandwidth on a broadband line (e.g. Booster) on the fly by the user to experience an enhanced streaming session for a premium content just purchased. APIs are the backbone of the opportunity. Whoever manages and monetiese the underlying services of the API are poised to reshape industries The NGN capabilities will be presented to the external world as a set of controlled interfaces (API) which can be accessed across the internet or via private connections to create any service that developers can dream up. This can be done by just using the capabilities that the Operator offers or through Mashup (integration of NGN API with other 3rd Party APIs already available in the market place like Facebook, Twitter, Amazon, etc.). Operators have begun to consider strategies to virtualize their networks through SDN & NFV efforts, they also need to relook at the way their current B/OSS Solutions and the Architecture are able to leverage their virtualized services for transforming their customer engagement experience, service creation, service execution. That is where THE CIO AND THE CTO TEAMS WILL HAVE TO COME TOGETHER TO DEVELOP A CARRIER GRADE ON-DEMAND REAL-TIME SERVICE EXECUTION AND SERVICE MANAGE- MENT ARCHITECTURES

6 By enabling such an architecture, it will be possible for Operators to provide for 3rd party entities (ASP, other Service providers, Enterprises, Machines, and consumers alike) the ability to subscribe, access, and deliver new age services. The starting point is the creation of an Application Environment which establish a stadardized and common way for operator to provide: 1. Controlled & chargeable exposure of own & 3rd party services and service fea tures for use by the Operator, 3rd Party VAS Enablers, Applications & Services 2. A framework for Cost effective and timely development and testing of new appli cations and services by development teams 3. Hosting and operational management of developed applications and services at a competitive rate and within a service level agreement (SLA) 4. Professional services of experienced application developers to aid in the cre ation of internal and external applications By making it easier for internal units, custmers, partners and suppliers to link together and consume each other s capabilities, the applications environment will facilitate business agility, enable incremental revenues and drive down costs. The Applications Environment will play a key role in the commercialization of the Operator s Network & B/OSS Assets providing the following benefits: 1. Exposing functionality and business process via standard and open interfaces will make it easier and quicker for customers, suppliers and partners to link with the Operator, making the Operator, a partner and supplier of choice Linking and consuming each other's facilities will facilitate business agility, enable incremental revenues and drive down costs.

7 2. This capability will allow easier integration of Network and application functionality, which helps an Operator to move up the ICT value chain into the managed applica tions layer 3. It will help to ensure that the NGN Services environment becomes the environment of choice for applications, content and service providers, thereby creating a virtuous circle of services attracting customers attracting services etc. 4. By exposing functionality to 3rd parties, it will facilitate the creation of new business models, incremental revenue lines and innovative applications and services, whilst also reducing the Operator s risk profile on service development 5. It will act as a shop window for the Next generation services, increasing revenues by offering selected applications and services for sale to the Operator business units and third parties 6. The standardized methodology & technical framework of the Applications Environ ment will reduce both time-to-market and time-to-profit. 7. By encouraging component re-use and removing duplication, it will reduce develop ment & operational costs. In summary, the ingenuity of the service is left only to the imagination of the application builder and the fact that the same can be built and deployed in to the market place quickly means that the service provider has the power now to offer rich services without resorting to costly service launches as is currently the case and also independent of the operator. Hello there! I am an Ideapreneur. I believe that sustainable business outcomes are driven by relationships nurtured through values like trust, transparency and flexibility. I respect the contract, but believe in going beyond through collaboration, applied innovation and new generation partnership models that put your interest above everything else. Right now 105,000Ideapreneurs are in a Relationship Beyond the Contract with 500 customers in 31 countries. How can I help you? TM