Light Reading

Telcos Face 'Dramatic Disruption' – TMF Exec

Carol Wilson
6/2/2014
50%
50%

NICE, France -- TM Forum Live! -- Service providers are facing "dramatic disruptions" to their business that will require sweeping cultural and organizational change and likely threaten most of current industry practices and processes, TM Forum VP-Strategy Ken Dilbeck warns here today.

"What is required is a radical, disruptive approach to [operations and business support systems] and orchestration," Dilbeck says, kicking off an NFV Workshop prior to the opening of the TM Forum 's annual event.

The primary goal is to be able to develop new services and capabilities rapidly, but that will require "relooking at all of our infrastructure top to bottom and determining what has to change, what has to be more flexible and more dynamic," Dilbeck says.

But network operators must also be willing to undergo sweeping internal changes that fundamentally change their culture and organizational structure, even though that process will be painful and difficult.

Converging network and IT resources into a single set of on-demand capabilities will "produce power and political struggles within corporate infrastructure because boundaries will have to be broken down," Dilbeck warns. He cites one immediate example: Lengthy, costly procurement processes that take years and cost millions will be replaced by a phone call to Best Buy, using a credit card, or outsourcing of the entire process to a specialty vendor.

Network operators also must learn to succeed as part of a solution or ecosystem and not necessarily be the partner in charge, he adds.

"There will be an evolution into a value fabric, and you might not be the center of the chain-delivering service, from the SLA perspective," Dilbeck says. "In the future, you will be in a different role. In some cases, you will have the customer relationship but in others, you won't. "

Dilbeck says the TM Forum is stepping up through its Project Zoom to enable all of this change and to exploit the collective intelligence of not only the telecom industry but other industries such as IT and the Internet players. (See TM Forum Tries ZOOMing to NFV.)

Promising to "be radical," Dilbeck says Project Zoom will set a target for all of this transformation and define the migration path from where carriers are today to the target point. Along the way, he says, Project Zoom will not reinvent the wheel, but will re-use best practices from the computing industry and elsewhere and take a real-world practical approach to enabling transformation that must happen for service providers to succeed.

— Carol Wilson, Editor-at-Large, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
briansoloducha
50%
50%
briansoloducha,
User Rank: Lightning
6/2/2014 | 3:18:33 PM
Re: Disruption Common Now
Would you care to elaborate on the sources of these disruptions?

Given the disruptions that people have seen both with telecom bubble of 2000 and housing bubble of 2008, coupled with the relentless growth of Internet traffic and erosion of revenue per bit, I'd like to like that people can adapt to many situations.

The disruptions I'm hearing about this spring are related to beef and pork prices, which, at the margin may affect discretionary spending of lower-income customers, but hardly represent a clear-and-present danger to the entire telecom industry.

So far, SDN and NFV seem to be a forest-clearing exercise, and I am following developments in this field, I haven't seen anything there to convince me that it's a dramatic disruption.

Is there something out there that's obvious that I have missed?
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
6/2/2014 | 2:59:02 PM
Re: Disruption Common Now
Carol,

Undoubtedly, service providers are in for a major disruption, perhaps bigger than anything we've seen to date. Moving from circuit to packet networking was hugely challenging and disruptive. No need for TMF to ring the alarm bells--except, perhaps, to inject a little excitement into the show. But I'd think Nice is exciting enough :-)

 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
6/2/2014 | 11:20:15 AM
Re: Disruption Common Now
Phil, you make a good point but this is a matter of degree. What I am hearing over and over again here in Nice is that there is a period of pain lying ahead. I just heard it again from Fred Feisullin of Sprint - there is a level of disruption ahead that is going to rock the telecom culture harder than previous transitions, even the Internet and the telecom bubble bursting. 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
6/2/2014 | 11:16:46 AM
Re: Disruption Common Now
It's the annual TMF "sky is falling" presentation. At some point, the sky will fall. Or not. Meanwhile, network operators continue to adapt to a rapidly changing environment -- some better than others, but there are very few who aren't making the effort.
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
6/2/2014 | 11:06:37 AM
Disruption Common Now
The idea of business disruption in telecom should be nothing new. Since the mid-1990s when the Internet first started getting more common business and consumer use, the challenges and opportunities in telcom have been shifting, with disruption being more commonplace every year. 

Being nimble enough to take advantage of new opportunities and to ward off new threats is the distinction between successful teleocm companies and unsuccessful ones.
rgrutza600
100%
0%
rgrutza600,
User Rank: Lightning
6/2/2014 | 5:49:46 AM
Webmaster
To Lightreading webmaster, Please fix the GRAYISH color of the text in the articles.  It makes them very difficult and unappealing to read.
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Metaswitch's New CEO Martin Lund Discusses His Role

9|2|15   |   11:27   |   (1) comment


Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers ...
Telecom Innovators Video Showcase
Nominum on Leveraging the Power of DNS to Deliver Superior Subscriber Experiences

9|2|15   |   07:13   |   (0) comments


Nominum CEO Gary Messiana talks about the challenges service providers face in competing for a much more sophisticated customer, a customer that has heightened expectations for more personalized and compelling digital experiences. Providers are focusing their efforts on delivering higher value subscriber services, retaining their existing customers and increasing ...
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
T-Mobile CEO Plays Data Traffic Cop
Sarah Thomas, Editorial Operations Director, 8/31/2015
CEO Chat With Bill Gates
Steve Saunders, CEO and founder, Light Reading, 8/31/2015
Time to Monetize Cable WiFi
Alan Breznick, Cable/Video Practice Leader, 8/31/2015
New Apple TV: More $$, Not Content – Report
Mari Silbey, Senior Editor, Cable/Video, 8/31/2015
Ex-AlcaLu Boss Tasked With Bolstering Altice
Iain Morris, News Editor, 9/1/2015
Like Us on Facebook
Twitter Feed
September 16, 2015
Wi-Fi First or Second?
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers with the agility to embrace new technologies quickly and the ability to deliver on substantial projects for global network operators.
The scene: Last Saturday, lunchtime, the interior of a shi-shi-foo-foo eatery in Manhattan's SoHo district.
Cats with Phones
Tastes Like Fish Click Here
Please hold while I lick the phone.