Mobile Peer-to-Peer Business Models T Network Services Business Models. Mikko Heikkinen
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1 Mobile Peer-to-Peer Business Models T Network Services Business Models Mikko Heikkinen
2 Outline Definitions What is peer-to-peer? What is mobile peer-to-peer? Motivation STOF and MP2P communications Success factors Conclusions Slide 2
3 What is peer-to-peer? Slide 3
4 What is peer-to-peer? Client-server model Peer-to-peer model Slide 4
5 What is peer-to-peer? Steinmetz and Wehrle, 2005: a system with completely decentralized self-organization and resource usage Androutsellis-Theotokis and Spinellis, 2004: Peer-to-peer systems are distributed systems consisting of interconnected nodes able to self-organize into network topologies with the purpose of sharing resources such as content, CPU cycles, storage and bandwidth, capable of adapting to failures and accommodating transient populations of nodes while maintaining acceptable connectivity and performance, without requiring the intermediation or support of a global centralized server or authority. Slide 5
6 What is mobile peer-to-peer? Mobile Peer-to-Peer (MP2P) = Peer-to-Peer (P2P) system + mobile environment Peer-to-peer systems File sharing (BitTorrent, Gnutella...) Content distribution (Linux, World of Warcraft...) Communications (Skype, Google Talk...) Streaming (Spotify, SopCast,...) Mobile environment Laptop and mobile Internet connection (3G/UMTS, WLAN...) Pure mobile device (Nokia Symbian, Windows Mobile...) Slide 6
7 Motivation MP2P traffic rising (and hiding) % of total traffic P2P potential P2P computer-generated P2P file sharing traffic, 3 Finnish mobile networks, N 4M Source: Heikkinen, Kivi and Verkasalo 2009 Slide 7
8 Motivation New MP2P applications Slide 8
9 Motivation Not only nerds, also Obama fans Source: Slide 9
10 STOF model Source: Khurri 2009, adapted from Bouwman et al Slide 10
11 Technology Requirements P2P systems MP2P systems Example: P2PSIP Slide 11
12 Technology Requirements Firewall traversal Operator-endorsed services vs. smart protocol (e.g. Skype) Energy efficiency Battery technology lacks behind other technologies Limits processing power Network constraints Delays High churn (mobile nodes exit and enter rapidly) Freeloading (some nodes do not contribute) Usability Small displays User interface Security Availability, authentication, control, privacy, etc. Slide 12
13 Technology P2P systems Unstructured architectures Hybrid decentralized Central directory server Content transfer between peers Purely decentralized No central coordination Scalability issues Partially decentralized Supernodes index the files of their peers and proxy search queries Reduced discovery time and reduced load of normal peers Structured architectures Different mechanisms for routing messages and locating data Distributed Hash Table (DHT) variations Source: Androutsellis-Theotokis and Spinellis, 2004 Slide 13
14 Technology MP2P systems Homogeneous system Identical roles for all devices Usually does not work Limited processing power and transmission capacity of mobile nodes bottlenecks for the whole network Availability of mobile nodes a problem Heterogeneous system Fixed nodes as superpeers, mobile nodes as normal peers Conservation of energy (little burden on mobile nodes) Capacity where available (concentration on fixed nodes) Smart availability of mobile nodes: hibernation and activation Slide 14
15 Technology P2PSIP Peer Gateway peer PSTN PSTN protocol Peer Peer P2PSIP overlay Proxy peer Redirector peer NAT P2PSIP peer protocol P2PSIP client protocol SIP SIP UA P2PSIP client Slide 15
16 Service MP2P deployment areas Benefits and opportunities Challenges Example: Nokia Mobile Web Server Slide 16
17 Service MP2P deployment areas Content distribution File sharing: e.g. Symella, SymTorrent Commercial systems Personal sharing: e.g. Nokia Mobile Web Server Streaming Communications: e.g. Fring Audio and video calls Chat and text messages Presence: status and location Slide 17
18 Service Benefits and opportunities Cost savings for end-user Free or low-cost services: phone calls, content, etc. Cost savings for service provider Users form most of the required service architecture Efficient use of resources Capacity where available Avoiding congestion and unavailability Users as service providers Mobility context Location, instant access, etc. Slide 18
19 Service Challenges How to promote services? How to ensure fair resource allocation? How to hide technical complexity from user? How to optimize battery consumption? Who is responsible for the service? How will network operators react? How will copyright holders react? Slide 19
20 Service Nokia Mobile Web Server Source: Slide 20
21 Organization Stakeholders Generic scenarios Example: MP2P communications evolution Slide 21
22 Organization Stakeholders End-user Service acceptance and usability Network operator and Network service operator Access pricing: general flat rate vs. service flat rate Network capacity Service provider Service development and deployment Service pricing: free vs. fee Content provider and Content owner Copyright holder: licensing Device vendor Device capabilities: battery capacity and processing power Regulator Slide 22
23 Open MP2P Organization Generic scenarios Operators: open firewalls and general flat rate Efficient 3 rd -party service development Accepted as a method for content distribution by content owners and distributors User-generated content and services Restricted MP2P Operators: restrictive firewalls and service flat rate Low availability and narrow range of services Copyright issues in content distribution Slide 23
24 Organization MP2P communications evolution openness Internet-driven evolution path e.g. P2PSIP e.g. Skype Proprietary evolution path - Competence-enhancing to vendors - Competence-destroying to operators - Cost efficiency main added value - Intermediate entrance barriers - Very high customizability - Independent evolution - Competence-enhancing to vendors - Competence-destroying to operators - Cost efficiency main added value - Varying entrance barriers - High customizability - Evolution from client-server systems Telecom-driven evolution path - Competence-enhancing to vendors - Competence-enhancing to operators - Usability and reliability main added values - Low entrance barriers - Intermediate customizability - Revolution from legacy systems existing market leverage e.g. P2P-IMS Source: Heikkinen and Luukkainen, 2009 Slide 24
25 Finance Value network Content Communication Revenue models Content Communication Examples of commercial P2P services Slide 25
26 Finance Value network, content Device Vendor Network Operator Service flow Monetary flow Merchandise flow Attention flow User Service Operator Network Vendor Advertising Agency Content Provider Content Owner Source: Heikkinen and Luukkainen, 2009 (adapted) Slide 26
27 Finance Value network, communication Device Vendor Network Operator Lock-in actor Competing actors User Service Operator Network Vendor Advertising Agency Interconnecting Network Operator Service flow Monetary flow Merchandise flow Attention flow Source: Heikkinen and Luukkainen, 2009 (adapted) Slide 27
28 Finance Revenue models, content Service operator Subscription: monthly fee Advertising Transaction: pay-per-item Network operator Flat rate fee Bundling of service with network access Device vendor Selling high-end devices Bundling of device and service Content provider and Content owner Licensing Network vendor Selling capacity Slide 28
29 Finance Revenue models, communication Service operator Subscription: monthly fee (interconnection) Advertising Transaction: pay-per-unit (interconnection) Network operator Flat rate fee Bundling of service with network access Device vendor Selling high-end devices Bundling of device and service Network vendor and Interconnecting network operator Selling capacity Slide 29
30 Finance Sources: skype.com, spotify.com, mymobilesite.net, nokia.com Slide 30
31 Success factors Conclusions Questions Slide 31
32 Success factors (1/2) Technology Guaranteeing solid user experience Development and deployment choices support user experience Hiding technical complexity from user Solving energy consumption challenges Taking into account the mobile environment in usability Service Enabling cost efficiency Engaging users with the service Customizability, user-created content, social network, etc. Meeting user needs Slide 32
33 Success factors (2/2) Organization Creating and maintaining a network of service partners Solving stakeholder conflicts Finance Flat rate Operator firewalls Copyright issues Establishing a value network Choosing and maintaining a successful revenue model Slide 33
34 Conclusions P2P services successful in fixed Internet Mobile P2P entering the market Current main issues Flat rate Operator firewalls Energy consumption Copyright Substitute or complementary service? Complex technology and complicated business case Challenging but reasonable success factors Slide 34
35 Questions? Slide 35
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