1. Title of Presentation Client
Telecommunications in the Cloud: What It Means for Service Provider Operations
Elisabeth Rainge
Director, Communications Software
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2. Title of Presentation Client
Agenda
Title of Presentation
Client
Cloud & the Communications Industry
How Cloud Changes OSS/BSS
OSS/BSS as Cloud Opportunity
Cloud as OSS/BSS Opportunity
Billing for Cloud
Essential Guidance
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3. IT Cloud Services Taxonomy
Title of Presentation
Client
IT Cloud Services
Cloud
Applications
(Apps-as-a-service)
App Dev/Test
Cloud
(Application) Platforms
(Platform-as-a-Service)
App Deploy
Cloud
Infrastructure
(Infrastructure-as-a-Service)
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4. Hybrid Environments Will Dominate
Private
Designed for, and access restricted to, a single enterprise (or extended enterprise)
An internal shared resource, not a commercial offering
IT Org is the “vendor” of the shared/std service to its users
Hybrid
Enterprise’s cloud services portfolio includes both private and public cloud services
Some specific services are delivered through a combination of public and private models (e.g., private cloud “bursting to” a public cloud service)
Public
Designed for a market, not a single enterprise
Open to a largely unrestricted universe of potential users
appliances
hosted/ managed
custom-built
Integrated
Mgmt
2009 IDC Directions

5. Industries Converging on Cloud
Title of Presentation
Client
Hardware
- Networking
Software
CLOUD
Services IT
Telecoms
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6. The Essential Equation
Title of Presentation
Client
The Essential Equation
Title of Presentation
Client
Increase portfolio and service flexibility
Infrastructure rationalisation and lower cost of delivery
Infrastructure
Copyright 2008 IDC. Reproduction is forbidden unless authorized. All rights reserved. 6
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

7. The Telco Customer Relationship: A Multi-Channel Affair
Customers ?
Large Corporate
Telco
Account
Management
SMB
Contact centre
SOHO
Online
CONSUMERS
Direct and Indirect Channels

8. Title of Presentation Client
Partnering
Title of Presentation
Client
Partner
Large
Enterprises
Small-Medium
Businesses
Consumers
The
Service
Account
Management
Contact centre
Online
Source:/Notes:
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9. Title of Presentation Client
Many Hidden Dynamics
Title of Presentation
Client
Services
Revenue $
New revenue
Broadband,
Quad play,
Applications,
Managed services
Margin
improved
Operational & Capital Costs
Time
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

10. Public IT Cloud Services Forecast
Worldwide IT Revenue* by Consumption Model 2009, 2013 ($B) 10 20 30 40 50 60
100
200
300
400
500
600
Public IT Cloud Services 45 17
2009
2013
Worldwide IT Revenue ($ billion)
359
416
Traditional IT Products 45 17
359
416
CAGR
26% 4%
CAGR
26% 5%
10% 45 17
Source: IDC, March 2010
* Includes revenue from delivery of Applications, Application Development & Deployment Softrware, Systems Infrastructure Software,
Server capacity and Disk Storage capacity via both traditional product model and the Cloud Services model; AD&D excludes online B2B messaging providers/exchanges
2009 IDC Directions

11. Datacenter Buildout Considerations
Title of Presentation
Client
Priority of Access to Telecommunications
Medium
#1 Answer!
High
C6. If you had to build a new Datacenter to replace your current XXX Datacenter, rate how important each of the following would be in your consideration. Use a scale where 0 = not at all important and 10 = extremely important.
n = 197
Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.

12. How Cloud Changes OSS/BSS

13. Today’s CSP Spend on IT Software
Title of Presentation
Client
Communications Service Provider IT Software Spending Share by Category, 2010
Please share your software spending based on IDC's standard categories for software in the telecom industry.
Source: IDC's CSP IT Survey, 2010
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

14. Moving towards Tomorrow
Title of Presentation
Client
$ $ $
Services
Delivered
Application & Service Operations
Application Enablement
Solutions
Components IP
Location
Voice
Messaging
Video
Source: IDC, 2010
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15. Moving towards Tomorrow
$ $ $
Services
Delivered
Integrated Operational
Strategies
Solutions
Components IP
Location
Voice
Messaging
Video
Source: IDC, 2010

16. Or, what does it take to run the shop
Maintain core networks
What is the business priority?
What teams get it done?
Deliver CPE gear
Send out bills
Run mature networks
Manage pricing
Run cutting edge IT
Phones
Data cards
Bandwidth
Operate energy supply
Maintain access area networks
Market services to subscribers
Run mature IT

17. OSS/BSS As Cloud Opportunity

18. Cloud Delivery of OSS/BSS
Title of Presentation
Client
Based on areas of largest and/or complex investments
Based on technology compatibility
Based on business objectives of the CSP buyers
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

19. Title of Presentation Client
Helping Identify the Key Disruptors in the Telecom Value Chain and Adjacent Chains
Title of Presentation
Client
Regulatory change
Domestic CIO holistic decision making
Devices and services combined
Sourcing
(roaming,
Brokering)
KPI metrics
(e.g. APPU)
Planning
timeline
Agile
development
Distribution
partners
Operating
Model
(e.g. MVNO)
Customer
Interaction
preferences
Enterprise CIOs focus on business
ICT strategies
Value Chain Disruptors
Supply
Demand
Convergence expectations
Non-telco channels
Telecoms lost in broader context
Media players 19
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20. Foundations for Cloud-based OSS/BSS
Evolution of SaaS, Managed service delivery methods Business considerations for CSP End to end business transaction considerations (e.g. flow through) Overall system/applications performance considerations

21. OSS/BSS Likely to Move to Cloud
Title of Presentation
Client
Billing Customer record keeping Transformational IT (various) Revenue assurance Network design/planning
Some Criteria
Server investment
Software maturity
Software innovation
Variable usage levels
Supporting role in projects
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

22. Cloud As OSS/BSS Opportunity

23. Is “OSS/BSS” a Priority for Cloud?
Title of Presentation
Client
Busine$$ Case Technology
Bill
Monitor
Configure
Care
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24. Business Challenges: BSS-like processes
Title of Presentation
Client
Purchased
services
Order Entry
Location
Payment type
Loyalty
Trouble
tickets
Revenue
leakage
Availability
Retail
integration
Web
data
Order Management
Self care
Frequency
Of Use
Marketing
Supply
chain
Call center
User profile
Device
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25. Building the Customer Relationship
Title of Presentation
Client
Creating an offer
Making the offer highly attractive
Structuring the financial transactions
Responding to concerns
Upholding product or service levels
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26. Revenues: Points of Risk
Title of Presentation
Client
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27. Billing for Cloud

28. Operations of Cloud: Buyers
Title of Presentation
Client
3 Types of Buyers:
Operators (NSPs)
IT Services (Professional Services)
Software (SaaS)
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29. Telecom Billing System Models
Title of Presentation
Client
High
Mobile voice Billing
Mobile data Billing
Wireline voice Billing
Pricing flexibility
ETM (chargeback)
Online Billing
ISP Billing
Low
Payment Gateways
Low
High
Scale (# users, # transactions)
Source: Worldwide Telecom Cloud Billing 2009–2013 Forecast, IDC # , May 2009
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30. Cloud Billing Market Forecast
Title of Presentation
Client
Spend on telecom billing systems by telecom, IT and online players
Includes multiple delivery methods (consistent with telecom billing forecast)
Remains small as a % of the telecom billing market
Source: Worldwide Cloud Billing, IDC#221358, December 2009
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

31. Title of Presentation Client
Essential Guidance
Title of Presentation
Client
Expect “Service Provider” diversity Hybrid public-private models will dominate Network infrastructure will be increasingly important Communications service providers are inserting themselves into cloud conversations Retail, wholesale and ecosystem aspects affect how communications service providers play in cloud The shift to always-on, including mobile, requires a re-think of investment strategies for business operations
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32. Title of Presentation Client
Contact
Title of Presentation
Client
Follow me
@erainge
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