Future of connectivity-what's on the menu? - Helping CSPs cater to the networking needs of modern enterprises - Deloitte
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Future of connectivity—what’s on the menu? Helping CSPs cater to the networking needs of modern enterprises
Brochure / report title goes here |
Section title goes here Brochure / report title goes here |
Section title goes here
Putting network services on the menu 2
Whetting the appetite 6
Designing an enticing menu 8
Offering a network service menu 12
Technology ingredients for CSPs 14
Stories from the kitchen 15
Catering to current—and future—demand 16
Contact us 17
Endnotes 18
b 1
Future of connectivity—what’s on the menu? | Putting network services on the menu Future of connectivity—what’s on the menu? | Putting network services on the menu
Putting network
services on the
menu
It’s 4 p.m. on a Friday afternoon and Bob Also, it was unlikely that Bob would have Figure 1. Current vs. future state of network service positioning
Smith, the vice president of engineering been successful in this endeavor. An
at SampCo, a Fortune 100 enterprise, just operation at such scale certainly couldn’t
received a request from the CIO. The ask: have been put in place over a single
to increase capacity on the high-speed weekend.
connectivity to SampCo’s 30 global offices
for an urgent “all hands” multi-site webcast But Bob’s not worried. He simply relays the
scheduled for Monday morning. The board details of the task to his engineering team Call center–driven Truck roll to provision Physical installation Manual provisioning
had scheduled the webcast to announce the and waits for it to be executed. The team complex ordering process customer premise equipment of CPE at customer site from back office
acquisition of a major competitor: CompCo. uses the newly designed “network service
In addition, Bob was asked to coordinate menu” offered by the CSP partner to get the
with his counterpart at CompCo to deliver job done. This menu relies on an assistant Current state
the webcast simultaneously at their 20 based on artificial intelligence (AI) to
ORDERING COMMISSIONING PROVISIONING
global locations. systematically guide SampCo in finding the
service(s) of its choice and making changes Future state
Traditionally, the technical complexity to its network in near real time. In this case,
and logistics required to arrange this SampCo’s IT organization simply uses a Order request Service activated
type of webcast would have been an smartphone application to increase capacity
enormous challenge. Bob would have to all 30 SampCo locations and add the 20
called an emergency meeting with his CompCo locations.
and CompCo’s network teams. This would
have led to numerous conversations with
communications service provider (CSP)
Self-service portal to raise Instant allocation Remote configuration Automated service
partners to dispatch trucks and coordinate
and manage orders of virtual resources of customer CPE provisioning
across global locations to deliver network
equipment and increase capacity. Teams
at both companies would then be faced
with the complex task of configuring the
Better experience Faster, economical provisioning Real-time validation
networks at SampCo and CompCo to talk to
each other.
2 3
Future of connectivity—what’s on the menu? | Putting network services on the menu Future of connectivity—what’s on the menu? | Putting network services on the menu
At the click of “Complete Order” button, real time? The answer lies not just in targeted telco offerings to end customers Figure 2. Network service menu offers mutual benefits for CSP and enterprise clients
the CSP network configures the network an intelligent service menu, but also in through a network service menu. This
s
SP
for Monday’s webcast. Come Tuesday, the planned adoption of telco-centric prompts many questions for CSPs, such
the team uses the same application to technologies, such as network function as: “What services do we offer?” “Which
C
restore capacity to normal levels and virtualization (NFV), software defined channels should we use?” And “What digital
Faster service delivery
decommission CompCo sites until the networks (SDN), fifth-generation (5G) applications should we use to enable our
Automated service order to activation process
actual merger goes through. networks, and AI. services?” These considerations coexist
with the usual design, development, and Improved service life cycle management
So, what’s changed? How has the decades- In addition, the careful integration of these operational deliberations.
old, time-consuming telecommunications technologies into a business workflow Insights on passive service requirements
network become so responsive and in makes it possible to develop self-service Globally, the demand for connectivity
services is expected to triple the global IP
traffic between 2016 and 2021, but global
enterprise service revenue growth could
3.3ZB remain flat1,2 (CAGR 0.1 percent). What’s
more, the proliferation of alternatives,
such as cable providers and over-the- ris
es
top (OTT) providers, has resulted in rp
Expected enterprise
te
network traffic by 20212 a very competitive and cost-sensitive “Self-serve” network service catalog
En
$508B
environment. Given the forecast that OTT’s
market share of traditional telco services Flexible billing models
will continue to increase significantly until
Rapid prototyping of new services
2021, CSPs are experiencing tremendous
Forecast market size of enterprise
pressure to act now.
communication services in 20221 On-demand service customization
In this situation, CSPs and cable providers
are increasingly confronted by the same
question that baffles the chefs de cuisine of
the world’s greatest kitchens: “What should
we serve our customers?” At the same
time, the customer’s choice of provider has
become akin to the question: “Is this my
best meal yet?”
4 5Future of connectivity—what’s on the menu? | Whetting the appetite Future of connectivity—what’s on the menu? | Whetting the appetite
Whetting the appetite The requirements are often conflicting
and diverse in nature (e.g., extremely
low latency for autonomous self-driving
Different technologies help solve challenges
in a piecemeal fashion. And with every
technology outsmarting the other on
tuned by CSPs to provide the experiences
that end customers are demanding.
cars versus ultra-long battery life for performance, decision makers are often Figure 4 provides an illustration of a
Internet of Things [IoT] applications). unclear on the services to choose from. situation where several network parameters
This diversity impacts application rollout There are many control points that new must be tweaked to provide varying levels of
“By 2021, 25 percent of enterprise telecom contracts will evolve to allow for greater time to market. technologies offer, which must be carefully latencies and capacities for applications.
flexibility such as canceling services or introducing new services within the contract
period, up from less than 5 percent today.”
Gartner Research, 20183 Figure 4. Key network parameters to be optimized for meeting application requirements
Position functions by performance needs Deploy radio elements per coverage needs
An economy driven by information to this shift. Applications have unique area traffic capacity along with low latency.
and communication technology (ICT) network requirements and are increasingly Depending on the need of the application,
is accelerating the push toward a demanding custom configurations. Vehicle- various network technologies that enable Network functions Virtual RAN
IMS PE EPC
hyperconnected world. This is redefining the to-everything (V2X) applications need 5G may be used alone or in combination.
Spectrum RF Fronthaul Backhaul
way we live, interact, and conduct business. ultra-low latency and high mobility while These technologies include mobile edge
mmWave, 5G NR, MPLS, Fiber,
The multitude of connected devices, augmented and virtual reality (AR/VR) computing (MEC), network function
unlicensed, Wi-Fi, small SD-WAN, ethernet
applications, and services are a testimony applications need higher throughput and virtualization (NFV)/SDN, and AI. CBRS, etc. cells, etc. traditional
Cell Site: Edge DC Regional DC Central DC
Latency: < 5ms < 50ms < 100ms ethernet
Figure 3. Key network technologies enabling 5G architecture
Business application layer
Near Deep Far
edge edge edge
Artificial intelligence
for better service
management Edge data
intelligence MEC Apps Private DC
Streaming 4K video Virtual/augmented reality Connected car collection
N-tier Service Broker Service
oriented mediated mesh
Core layer Public cloud
App App Deploy MEC for performance enhancement Choose the right application architecture
App App
App Network slicing App
App
As if that weren’t enough, most customers In such circumstances, it would be best to CSPs. Starting from identifying the right
Network edge cloud Core network cloud
are expecting instant gratification. A mix offer the services that a CSP is considering services to offering the best controls for
and match of the network requirements (connectivity, security solutions, and IoT optimization, success of the menu is closely
Mobile edge computing Local processing and low latency Higher scalability and manageability (e.g., storage, security, latency, performance, offerings) in a customizable network service tied to the enterprise customer experience.
and reliability) and resulting combinations menu format, enabling customers to order à It is also dependent on effective end-to-end
Access layer are critical to support diverse services and la carte, according to their business needs. integration of the service menu with the
applications. Equally important to customers platform performance and the underlying
5G RAN Virtualized cloud platform is the freedom to test their applications in As simple as it sounds, creating a technologies across ordering, fulfillment,
a sandbox environment to fine-tune the consumable service menu is a labor- billing, and assurance.
Better VM performance and the experience before intensive task that requires careful planning
Mobile radio and Aggregation Virtual computer Virtual storage Virtual network subscribing to the service. and execution at multiple levels for the
device transmission router
6 7Future of connectivity—what’s on the menu? | Designing an enticing menu Future of connectivity—what’s on the menu? | Designing an enticing menu
Designing an 63.5 percent of global telecommunication organizations are making
enticing menu new technology investment in AI systems.
IDC Report4
Like any good Michelin-starred restaurant, menu’s overall design. A niche focus on Order to taste.
the optimal network service menu requires connectivity services (SDN, secure cloud CSPs have traditionally delivered standard sandbox environment (to test the platform’s
certain indispensable components. These connectivity, etc.) or a wider platter of services with little room for customization. ability to meet the application’s unique
components provide convenience to the enterprise offerings (application service Granular, application-based customization requirements) enhance the value of the
enterprise’s clients and position service assurance, high-available connectivity, (levels of QoS, uptime guarantees, etc.) and a network service menu.
providers for success. etc.) is a choice that must be made before
crafting the actual catalog. CSPs can choose
Right theme. to either compete on cost leadership, or
Before they can offer the service menu, on truly differentiated services—and the
CSPs should partner with enterprise clients network service menu should clearly reflect
to carefully plan the categories and the this choice. Figure 6. New-age applications have custom requirements
Transport (V2X) Industrial automation Health applications Virtual/augmented
Figure 5. Services can be organized into one of many themes applications reality
Network function Industry offering Geo-distribution Pricing models
Based on the service Service bundles that are Segmentation by geographical Grouping of services based on
requirements and its role in the customized for industry availability and coverage. contracts and payment models.
network. For example: specifications. For example: For example: For example:
•• Virtual private networks (VPN) •• Financial services •• Global •• Pay per use Vehicle-to-vehicle Motion control Remote diagnostics Retail catalog
•• Security and firewalls •• Health care •• North America •• License model
•• SD-WAN, etc. •• High-tech, etc. •• Asia Pacific, etc. •• One time/fixed
Vehicle-to-infra Mobile robots Remote surgery Gaming
Ease of discovery. Vehicle-to-network Mobile control panels Condition monitoring CV law enforcement
Opening a poorly written, stained menu on first customer touch for network services
which only half the dishes look appetizing is mostly through the network service
or interesting doesn’t set the tone for a menu. Therefore, incorporating technology Vehicle-to-pedestrian Process automation Instant assistance Training/education
memorable dining experience. And unlike aids, such as chatbots that use AI to curate
restaurants, where the customer has the customer cues and suitably tailor the
luxury of a seasoned maître d’ discussing experience, is pivotal to the success of the
High
the signature dishes and wine pairings, the service menu.
Med
Low
Data User Latency Mobility Area Data User Latency Mobility Area Data User Latency Mobility Area Data User Latency Mobility Area
rate rate traffic rate rate traffic rate rate traffic rate rate traffic
8 9Future of connectivity—what’s on the menu? | Designing an enticing menu Future of connectivity—what’s on the menu? | Designing an enticing menu
Instant delivery. Rapid scalability.
Availability, ordering lead times, shipping technologies have transformed service Rapid scalability of the cloud platforms video delivery channel or firewall for
delays, scheduling, connectivity, and other delivery, eliminating truck rolls and reducing and on-demand capabilities of virtual security. While the perfect customer
factors can have an impact on real-time delivery timelines by almost two-thirds for technologies have made it possible for experience requires careful seasoning of
delivery of the service. So, while it’s critical certain services. enterprise customers to demand, in a few technologies, it’s within the realm of
to develop capabilities that deliver services a matter of seconds, services such as practical implementation today.
in near real time, it is equally important to While there are multiple factors to consider provisioning of an additional secure
establish reasonable expectations with across the service design and deployment
customers where real-time delivery is not life cycle, results from carefully planned
possible. Modern cloud and virtual services implementations can be quite spectacular.
Figure 7. Key considerations across the solution realization life cycle Figure 8. Carefully planned implementations leading to radical transformation in the service delivery experience
Current mode Phase Future mode
Truck roll to provision Customer configures firewall service
customer premise equipment through self-serve portal
1–2 weeks < 5 minutes
Order
Physically install CPE router, firewall, etc. Application stack for firewall is
SOLUTION DESIGN SOLUTION DEPLOYMENT OPERATIONALIZATION for secure connection installed remotely on uCPE
3–4 weeks < 20 minutes
Hi Bob: Installation &
deployment
• Map application needs to N/w • RF coverage planning • Developer onboarding We need to urgently
KPIs (latency, throughput, etc.) increase bandwidth
• Network slice selection • Application registration Manually configure and Automated provisioning
• Coverage, mobility, and locality
• Determination of MEC locations • AuthN/Z mechanism
for a high-speed test equipment in branch office and real-time validation
needs
dedicated 1–2 weeks < 20 minutes
• Application mobility (transfer • API access
• End-user device support connectivity Fulfillment &
of MEC when user in transit) provisioning
• Environment - Sandbox/production
• Deployment platform (Private/
• VNF distribution
public cloud, Linux/Windows, etc.) • Service monitoring
• Application hosting configuration Slow provisioning Higher cost/fulfillment time Benefits Service agility Real-time validation
• Integration with third-party services • Performance management
• State synchronization (for
• Availability/redundancy planning
continuity)
• Policy management/configuration Reduction in service provisioning timelines from 8 weeks to ~1 hour
• Traffic steering and affinity rules • Issue management
• Third-party integration points *Assuming sufficient fiber capacity at terminating location
• Elasticity and scaling • Rating, charging, and payment
• MPLS/SD-WAN topology
• Feature update - Mode and • Security
• Workflow and orchestration
frequency
• Application patching and service
• Sandbox testing and application
• Assurance and support updates
tuning
• Cost of service
• CI/CD approach
10 11Future of connectivity—what’s on the menu? | Offering a network service menu Future of connectivity—what's on the menu? | Section title goes here
Offering a network
service menu
In light of all this, a network service menu requirements. For example, a medical facilitate a sandbox environment where
that displays the customizable services IoT enterprise customer typically needs they can fine-tune applications for best
across a broad category of network applications like remote diagnostic, long- performance. Customers should be able to
capabilities, including mobility, connectivity, term condition monitoring, remote surgery, easily browse through the menu, assisted by
and device management, alongside quality etc. Such applications depend on services an intuitive, AI-powered portal, and select
of service (QoS) controls and a demand- like inter-branch connectivity, security services based on a projected monthly
based pricing card, will create the perfect solutions, IoT device, and edge deployments cost. Additionally, by establishing self-
menu for future enterprise customers to to support low-latency, high-data rate service as the primary method for service
choose from. The platform will enable users applications. enhancement or change requests, CSPs
to quickly deploy, terminate, or update can cut down on operational expenses
services on the fly. In addition to displaying the various services significantly. At the same time, this capability
offered by the CSP, the network service offers CSPs strategic insights into the
The advantage of leveraging such a menu should act as a front end for the client’s service delivery and operational
menu is that enterprises can opt for the services offered by CSP, enable custom requirements, which can be directly
network services and service guarantees definitions of service-level agreements leveraged in improving future offerings.
that specifically meet their application (SLAs) such as latency and data, and
CSPs Network service menu SampCo
Benefits
Near real-time delivery of services Rapid prototyping and validation of services
Automated service ordering and provisioning Flexible and usage-based payment models
Optimized network service management “On demand” service customization
12 13Future of connectivity—what’s on the menu? | Technology ingredients for CSPs Future of connectivity—what’s on the menu? | Stories from the kitchen
Technology Stories from
ingredients for CSPs the kitchen
While CSPs are faced with an ever-expanding range of Despite being in an early adoption phase, real-life
enabling technologies, a few of these are fundamental to deployments with select clients clearly outline the need for
offering a service menu to end customers. careful consideration across some of the following areas:
Virtualization through NFV and SDN customer experience with intuitive statistical 5G technology ecosystem brings Scrutinizing the business case. Evolving the right technology solution. Investing in the right team.
helps transform traditional network feedback. Data analytics can also predict together players such as CSPs, edge The foremost step for any CSP developing As standards for programmable network Most technology platforms (AI, MEC, network
functions into software-based building and resolve a range of network issues by and public cloud providers, application a service menu should be to vet the continue to evolve, early adopters have slicing, etc.) are still in the early adoption
blocks. These provide CSPs the much- studying network data before they impact platforms, infrastructure companies, etc., business case. Designing a service offering leveraged multiple proprietary options phase and will continue to present daily
needed flexibility to programmatically customers. with meaningful business relationships model, developing a list of viable services, to implement their unique requirements. execution challenges. Investing in the right
create traditional network functions and technical integration. Given the and beta-testing that model with trusted This makes it difficult for CSPs looking for a team with the necessary strategy, sales,
(routing, security, etc.) and reduce the Multi-access edge computing (MEC) dependencies of CSPs on external customers is crucial for the CTO and CMO. flexible and open multivendor architecture and technology skills is probably the most
time it takes to provision and launch adds computing resources closer to data ecosystem partners in the 5G context, This will ensure viability and adoption of the because few proven success stories are important of all the above considerations.
new services. collection points (network edge). This the availability of a rich ecosystem becomes network service menu after its launch. CSPs currently available. It will be imperative Rolling out the technologies across network
restricts the amount of data that needs to foundational for menu-driven next- should consider analyzing the business case for the CIO to make the right technology requires an examination of capabilities that
Physical infrastructure remains an be shared back with cloud, relieving network generation services. across the service portfolio in totality rather choices based on the organization’s unique can be developed organically versus those
integral element of the CSP infrastructure. bandwidth and enabling time-sensitive data than reviewing cases in silos, which will help need to drive effective transformation. that need to be sourced externally. For
Network automation integrates this processing. examine interdependencies and reduce Additionally, the chosen platform must the latter, CSPs need to partner with the
infrastructure effectively with cloud-based time to market for deployment. support flexibility in billing models adopted appropriate industry players to nurture a
solutions—enabling agility similar to the Network slicing helps segregate for various services, be it static or dynamic. healthy ecosystem. Time is of the essence,
virtualized network—and is important applications into multiple logical slices on so the selected approach should foster a
for successful network service menu common network infrastructure. These Investing in process definition. faster time to market.
operationalization. slices expose unique network characteristics Evolving One of the common traps that service
to individual applications, such as end-to- Scrutinizing the the right providers get caught up in is focusing Managing customer experience.
business case solution
Artificial intelligence–based platforms end latency less than 5 milliseconds, and on technology over processes. While The responsibility to the customer doesn’t
need to operate in tandem with service can be served to customers via the network the services remain the same, new end with the delivery of the service. CSPs
offerings on the menu to artfully guide the service menu. Key tenets technology capabilities (for example, require carrier-grade monitoring and a
of effective remote configuration of equipment rapid-response mechanism to constantly
Managing transformation Investing
customer in process that reduces truck rolls) require careful optimize customer experience across the
experience definition redesign of the entire operating model. service life cycle and guarantee security with
Investment in cycle-time analysis of service minimal operational disruptions.
delivery and processes by the COO and
Investing in
the right team process specialists will help align customer
experience and SLAs with new technology
capabilities.
14 15Future of connectivity—what’s on the menu? | Catering to current—and future—demand Future of connectivity—what’s on the menu? | Contact us
Catering to current— Contact us
and future—demand To learn more about how your organization can
become secure, vigilant, and resilient, please contact:
Exponential demand for network services customize their applications and tailor their Nevertheless, the transformation is not Rahul Bajpai Sanket Nesargi Arpan Tiwari
is a hallmark of this decade, but closely payouts. A network service menu is only simple, and pivoting to a network service Managing Director Managing Director Senior Manager
intertwined are the plethora of service the first step toward a customer-oriented menu model requires a systematic change Deloitte Consulting LLP Deloitte Consulting LLP Deloitte Consulting LLP
provider choices. Many enterprise networks service delivery approach that enables across the underlying technology platforms, rbajpai@deloitte.com snesargi@deloitte.com arptiwari@deloitte.com
are still unable to take advantage of the easy discovery of available services and the methods and processes, and people
capabilities that a contemporary network creative freedom to mix and match service capabilities. Manish Rajendran Kshitij Lal Abhinandan Pandey
stack makes available. CSPs can remain options with appropriate performance Specialist Master Senior Consultant Senior Consultant
relevant only by offering their customers a guarantees—all in a self-service mode with Deloitte Consulting LLP Deloitte Consulting LLP Deloitte Consulting LLP
flexible service model that enables them to real-time prices. mrajendran@deloitte.com klal@deloitte.com abhinpandey@deloitte.com
16 17Future of connectivity—what’s on the menu? | Catering to current—and future—demand
Endnotes
1. Gartner, Forecast: Enterprise communications
services, worldwide, 2016–2022, 2Q18 update,
June 26, 2018, https://www.gartner.com/en/
documents/3879993.
2. Broadband Technology Report, “Cisco: Annual
IP traffic to exceed 3 ZB by 2021,” June 8, 2017,
https://www.broadbandtechreport.com/
wireless/wifi/article/16448341/cisco-annual-ip-
traffic-to-exceed-3-zb-by-2021.
3. Gartner, Predicts 2018: Enterprise network
infrastructure and services, December
13, 2017, https://www.gartner.com/en/
documents/3837967.
4. Tina Gurnaney, “Why telecos will soon be betting
on artificial intelligence to build their networks,”
ETTelecom, November 7, 2017, https://
telecom.economictimes.indiatimes.com/news/
why-telcos-will-soon-be-betting-on-artificial-
intelligence-to-build-their-networks/61531211.
(Article mentions that IDC has predicted 63.5
percent of organizations are investing in AI
systems.)
18 19About this publication This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or its and their affiliates are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. None of Deloitte Touche Tohmatsu Limited, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte. com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/ about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2019 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
You can also read
