Application Enablement: The Sustainable
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1 Application Enablement: The Sustainable Internet Gustavo Tonini Aug 24, 2011
2 Is the current model of Internet sustainable?
3 The evolution of devices and behaviors Vs. A 1x RAM 2000x RAM 2x CPU B 10x CPU C 8Mx RAM 650x CPU The Shift: 1.0 to 2.0 Differences One-way communication Two-way experiences Text-laden web environment Broadband for fixed networks Providers aspire to develop the next killer app Video-rich web environment Broadband across any network Ecosystem of developers leveraged to create apps 3
4 Many more devices 4
5 Faster adoption 5
6 More traffic to the Internet 6
7 Content with Video: Coming to a cache near you soon More video was uploaded to Youtube in the last 2 months than if the major networks had been airing i new content 24/7 since M subscribers and growing at 6M subscribers in 2H10 with 68% annual growth in subscribers Number of video subscribers will exceed Comcast in
8 Applications: The future is virtually everywhere Apps downloaded: 5 Billion apps downloaded up to 2010 (300M in 2009) Do you check/update Facebook or Twitter after you go to bed? Location-based services: 5 Million Foursquare users up to 2010 (200k in 2009) Mobile social/media: 347 % Growth in Twitter mobile usage 200 Million mobile Facebook Users 100 M YouTube videos on mobile devices daily Do you check/update Twitter or Facebook first thing in the morning? Phenomenal, dynamic growth and change in App usage 8
9 The Problem: Revenue versus Network Cost Data ARPU CapEx CapEx+Handset+SG&A CapEx/MB Data Traffic A wireless operator makes 93,750, times as much revenue per bit from SMS, than a wireline operator gets from delivering a Netflix video $/Su ub/mo Operator Network Model Profit Loss + 52% CAGR - 13% CAGR MB/Data plan sub/m Mo Source: Bell Labs Analysis The operator business model is increasingly i unsustainable 9
10 The Proposal
11 The Alternative Innovation & Freedom Investment & connectivity Applications & Contents Network Application Enablement Sustainability Innovation: - Developers - New services - Ecosystem Best Effort: - Low QoS - Limited Security - Low Privacy Legacy: - Pipe - Just Access selling A more sustainable model!!! Reliability: - Security - Billing - Pi Privacy 11
12 The proposal: Application Enablement Developers Program Application Exposure Suite Exposing APIs in a cotrolled way High Leverage Network (HLN) 12
13 100M + LTE, Small Cells 1G to 10G IP/MPLS 1G GPON aggregation/backhaul 1G packet microwave Developers Program HLN: smart, low Application Exposure cost, Suite Exposing APIs in a cotrolled High Leverage way Network high performance Mobility Mgmt and Session Control every screen!!! Policy Mgmt Converged Service Control Light Radio Converged RAN Backhauling Converged Wireline Access Converged Metro and Aggregation Converged Edge Converged Backbone 1G to 10G GPON VDSL 100G Ethernet and DWDM Cache (CDN) 100G 100G Ethernet and Service Edge DWDM 400 G Chip Wireless Access Wireline Access M <1G M/100M+ 1G/2.5G/10G Metro 1G/2.5G/10G 10G/40G/100G Edge 10G 40G/100G Core 10G/40G 40/100G Network and Service Management
14 Addressing the long tail developers # of users Few high volume services (typically service provider branded) Medium number of medium volume services (e.g., co-branded) Huge number of 3 rd party services serving few customers Developers Developers Program Application Exposure Suite Exposing APIs in a cotrolled way High Leverage Network # of apps Application Enablers High Leverage Network Platform Needs to get the long tail developers. How to access them, partner them in a controlled way?
15 Open API Platform Developers Program Application Exposure Suite Exposing APIs in a cotrolled High Leverage way Network Tools for developer: API Tools for API directory, device provider to abstraction, ti create, Service composite, composition, manage policies, usage & access, & distribution monetization dashboard. Tools for Business Management : Billing, Settlement, Market and Application Analytics Tools allowing developers the ability to test in simulated, emulated and protected environments. Tools for publishing Application and/or make the Application Store De eveloper Program API Provider Suite App Dev Suite Business Suite Prototyping Suite Publishing Suite AES API Normalization (network protocols to web protocols). Make it easier for developers. Policy management (Quotas, TPS, rate limits, etc) Caching/cache h control layer Security, Authorization, Authentication API Exp posure S uite
16 Programmable Web API All Rights Reserved Alcatel-Lucent 2006, #####
17 Resolving the device de-fragmentation 17
18 18
19 Examples
20 LTE= Innovative Services Open ecosystem of LTE device, content and application partners Applications and application enablers Payment MCS SDM + Multimedia IP Com Messaging Enable new NON-USER PAID revenue Strengthen existing USER-PAID revenue Content providers Personalization and content brokering $$$ Application providers Payment and commerce Location-Presence Operator Access & Value-add services Payment and commerce $$ Advertisers... Targeted advertising Millions of subscribers
21 Consumer Media & Entertainment Enterprise Collaboration & e-healthcare Automotive Connectivity Digital Signage Computing Experience E-Learning Connected Car Gaming Home Management
22 Telehealth Manager application Bluetooth E-HealthCare App Server Internet Data Browsing LTE Network LTE Connected Camera
23 Summary
24 Tangible gbea and intangible gbe currency are exchanged for unique benefits across the value Chain Service Providers Increased ROI Improved Services New Users Developers can address the defragmentation associated with tons of devices, networks, and App Stores while tapping into new capabilities. Developers Trust APIs Time Time Leveraging Interconnections Brand Recognition Trust Attention Brand Recognition Advertisers Investment With simplicity and performance metrics, Advertisers now gain to aggregated and Opted-in data and can then monetize this information. End Users WEB 2.0 The primary results of the evolved value chain is a better end users experience with a more personalized treatment. 24
25
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