Successfully Operationalizing SDN/NFV

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1 Successfully Operationalizing SDN/NFV Ari Banerjee Vice President, Strategy 1

2 What s it going to take to make money? Technology is no longer the barrier Organization changes have started (slowly) It s time to make business the focus Service Providers who have taken a businessfocused approach are gaining success. 2

3 Solid GTM strategy and execution will drive business success Focus on technology Focus on business 3

4 Fast time-to-market with digitized operations Service provider launched 1 st service in 12 weeks DevOps delivery Daily Scrum Meetings 3 Sprints 76 User Stories End-to-end automation Across physical and virtual Full stack MANO and BSS/OSS 6 months 70% Earlier ready for revenue generation Reduced time on new VNF onboarding 258 Tasks 2-4 weeks Time to launch the next set of services 4

5 Better customer experience delivering revenue growth Service provider delivered Marketplace-driven services I know what I m getting 15% Conversion rate increase with a try-beforeyou-buy approach. I see how much I use and what I pay for I can connect from anywhere to anywhere securely and reliably Customer Experience leaders demonstrate up to 6 times higher revenue growth (source: Forrester, 2016) 4x 40% Revenue driven by upsell through easeof-use Resolution time reduction with automated closedloop assurance and self-healing 5

6 Source data: BCG Analysis Revenue (thousands) Revenue (thousands) Innovative business models to transform business 15% Increase in profit margin compared to hardware-based solutions FROM A BOX RESELLER 40% Increase in target market size TO A CLOUD SOLUTION PROVIDER On-premises customer XaaS customer % One Two Three Four Five Years of service Initial license Maintenance Upgrades Revenue Increase per customer for the same service in XaaS model over 5 years 0 One Two Three Four Five Years of service Subscriptions Usage growth Add-ons and cross-selling 6

7 Single-Stop-Shop for IT & Communications Enable Services Manage Offers Interact with Customers Software Bill Assure Learn Firewall Router VM Storage Virtual Network Unified Product Catalog Buy Conventional telco/ IT services Advanced Analytics Partner Lifecycle Get Billing CRM Partner BSS/OSS Microservices Fulfill Services Omni channel Sales Pay Use Hybrid Operations Partner Product Catalog Revenue Customer Sales & Marketing Advanced Analytics 7

8 Today s siloed operations complicate service automation Connectivity IoT/M2M IT & Apps (aas) Contextual Services Content VAS How to automate end-to-end across silos? Legacy OSS SDN NFV Automation gaps exist within each silo Hybrid Network Physical Virtual 8

9 Netcracker s Approach to Revenue Key Features Enterpise Customer VNF 1 Provider VNF 2 Provider Cloud Provider OOB revenue models - resellers, sponsorship, direct / indirect billing, etc. 4 % discount, if I generate $1K per month Pay me 100$ per site Pay me depending on traffic processed by my application per month Pay me depending on quantity of backup data per month Multi-party distribution of charges Invoice 1152$ + tax Compensate 300$ Compensate 215.7$ Compensate 111.3$ QoS-based rating & charging support Dynamic tariff optimization Rating, Charging, Invoicing & Quoting Netcracker Revenue Multi-party Compensation Financials, A/R, General Ledger and Collections 9

10 License Usage-based Throughput Amount of traffic through VNF (pay as you go) Multiple licensing models Revenue Generating Units Number of sites Different license applications License server Number of vcpus NFVI-based Subscription-based Number of users License key Cloud-based or on-premises License management process is not standardized in the industry yet Multi-vendor license management can create multi-dimensional complications 10

11 Netcracker s Approach to License License Key Features Customer Partner /Vendors Digital Marketplace Automated VNF license lifecycle for multi-vendor VNFs Activation/Termination B2B Gateway Reservation/Release Assignment/Revocation Procurement and Onboarding Update Centralized license policy management License (LM) Network Operation Centralized license capacity tracking Revenue MANO/VNF-M Unification of 3 rd party VNF licenses Centralized, automated license management for VNFs and Cloud services 11

12 Netcracker s Approach to Catalog Key Features VNF Providers PPV/VOD Catalog Core Products Cloud Providers 3 rd party content Cross-vertical product bundling support AI-driven dynamic generation of personalized bundles PLM function shared with 3rdparty companies Catalog readiness to support: Centralized Catalog VNF license models Cloud-based license models Pay-as-you-go, Subscriptions Exposure to 3rd parties via open APIs Digital Marketplace CRM Revenue Orchestration Sales 12

13 Netcracker s Approach to Customer Key Features - Crosschannel adaptive journeys - Smart personalized interactions - Real-time contextual decisioning Mobile Web Agent Retail Social Partners & Apps Data-driven Customer Insights Unified Journey Omnichannel Customer Journeys Business API s Business Friendly Tools to Manage Customer Journeys Accelerate changes in channels with decoupled front-end Configure Customer Journeys with business friendly tools Avoid changes in BSS/OSS with abstraction layer - Intelligent Customer Profiler Billing Customer Product Catalog Order Assurance 13

14 The Steps to Business Success Focus on strong GTM strategy Adopt multi-channel marketplace and self-service Adopt DevOps and design thinking Drive operations in a top-down service approach Energize sales Give control to customer Generate revenue faster Accelerate new service launch 14

15 Thank You 15

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