1. Open Source, Business Models, and Standards…

2. New Era of Networking is Here!
Disaggregation
Softwarization & Virtualization
Open Source
That we as a community have been making lot of progress and we should feel very good about all the barriers we have overcome. And we can now announce that the New Era of Networking is here. It is defined by
o Disaggregation
o Softwarization and Virtualization
o Open Source
How do disaggregation, softwarization and virtualization, and open source manifest?

3. Vendor Business Model + Open Source
Open Source ONOS, ODL, OPNFV, …
Current Business Units With Closed Boxes
Proprietary solutions with “Open Source Inside”
Current sales force & sales channel
Service Providers
ASICs
HW Box
Embedded SW
Open Source
R&D Investments
Metrics of success: Number of boxes sold, support contract
Recipe for Failure – does not work for any disruptive innovation

4. Service Provider & Vendor: Difficult Equation
Service providers have to transform their infrastructure & business
Conceptual (not real fractions)
Vendors current models don’t help service providers
Capex
Opex
Software
Services
Capex
Opex
Software
Services
Service Provider Spending

5. What can vendors do? How can vendors make money with merchant silicon, white boxes, open source?

6. Explosive growth expected in new services

7. Who will create the services and who will capture the value?
$100B+ Question
Who will create the services and who will capture the value?

8. Vendor’s Disruptive BU Business Model
Open Source
Vendor’s Disruptive BU
System Integration
Software for new services
Solutions/Services Sales Force
Service Providers
Merchant Silicon
Own silicon if competitive
White box from ODM
Own box if competitive
Open Source
System Integration
SW & Services
R&D Investments
($10s of million + New Talent)
Metrics of success: Software and Services
Capex/Opex savings for service providers
Recipe for Success – become a real partner of service providers to realize Capex & Opex savings and create new services

9. Open Source and Standards
Open source integrated & e2e solutions require standards
Open Source
Standards
Gaining significance but does NOT eliminate the need for standards
Have problems; losing significance for some “good reasons” but we need them
Challenge Two
As we build open source integrated and end to end solutions with open source platforms we still require standards – some standard protocols and some standard APIs to get interoperability and avoid vendor lock-in.
However we know the pitfalls of standards --- our industry knows it really well… For example
Standards take too long & removed from implementation experience
Companies game the standards processes to get competitive advantage and protect IPR and the end result is that many times the standards don’t guarantee interoperability
All this is true but still we need standards even with open source.
Our challenge is how to get the best of open source and standards and how to make them work together.
How to get the best of both

10. Example Collaboration: SDOs and Open Source
BBF
Next Gen Broadband Use Cases
CORD
Open Reference Implementation
Use Cases/Requirements
MEF
Next Gen Enterprise Use Cases
IEEE
Open Source Implementations Input to Specifications
IEEE
5G Capabilities

11. Devil is in the Details…
Intellectual Property Rights (IPR)
Many companies are used to making money based on IPR royalty
With open source, you give away your IPR
Companies look at standards as a way to get competitive advantage
With open source, you get a competitive advantage very differently
What to do with the army of “standard professionals”
They cannot contribute to open source and difficult for them to derive standards based on open source

12. The “frontier” is to invent the right business models for various stakeholders

13. Thank You!