Software defined networking (SDN) and Network functions virtualization (NFV) = IT meets network operations. Google is ready but where does that leave the rest of the communications ecosystem?
It is an ugly situation for communications service providers (CSPs) right now. Internet traffic continues to grow due to the increasing volume of connected devices and media consumption on tablets and smartphones. Competition is only getting worse as more "over-the-top" providers enter the market, and current networks are not ready to support this growth.
CSPs need to move from classic network models with hardware appliances to a next generation model with virtual/cloud-based appliances. The bar has been set and it is time for action. This leaves IT and network executives scratching their heads trying to figure out how to move away from traditional systems while still keeping some business support systems like billings in place. On top of this, CSPs need to derive new revenue sources in order to combat relatively flat and decreasing income.
At the recent Light Reading Big Telecom conference, Marcus Weldon, CTO of Alcatel Lucent uttered that “CSPs need to do revenue management like the airlines do,” and move to more dynamic pricing. This was music to my ears as SAS is uniquely qualified to provide solutions in this area. Providers most certainly need to do more sophisticated pricing. We have spoken to providers that are not using science to determine rate plan and bundle pricing, and they know this needs to change!
Bikash Koley, Google’s Principal Architect and Manager of Network Architecture was the disruptor keynote at the event. Google is providing new Fiber Internet and TV services at speeds of 1000mbps in limited markets. This translates to being able to download 8 HD movies simultaneously, which we all know is not possible with traditional service providers today. Bikash’s message opened with “SDN is not about cheap hardware. It is about rapid feature development and getting rid of silos.”
His message resonated and reinforced the wakeup call that newer providers will enter this space with more advanced technology so the time to act is now. Google, however, is open to work with the providers since they are more about getting people connected and making the internet stronger.
It is difficult to recognize how enormous this transition will be and the metamorphosis of the customer experience as providers move to the world of warp speed internet. At SAS, we are seeing the CSPs taking various approaches to bridging this huge gap from the now to the future. One thing we are seeing is the emergence of the CTO who is driving more agile analytics environments to quickly uncover problems like revenue leakage and poor performing networks. And, these environments are built on Hadoop and SAS in-memory and high performance analytics.
While SAS is not in the market as an SDN vendor, we are the leader in advanced analytics, which provide insights as providers journey into the future. SAS empowers providers to: deliver more intelligent customer service through better analysis of churn, roaming, fraud and network performance; maximize revenue by insuring proper billing across network gaps; and secure new sources of revenue by monetizing customer data and improving the customer experience.
Learn how to open new lines of revenue with SAS Communications Services.
