Light Reading

Huawei Managed Services – Enhancing Total Value of Ownership

Light Reading
Huawei Press Releases
Light Reading
2/12/2013
50%
50%

Operator Business Challenges The global economic downturn has put pressure on many businesses, and Communications Service Providers (CSPs) are no exception. At the same time, the exponential growth in data usage, driven by video, has resulted in rising network investment to cater to the increased bandwidth demands, while revenues are decreasing as services from “over the top” (OTT) players compete for traditional CSP revenue. At the same time, end user expectations are growing, making subscriber growth more difficult, so operators need to provide a superior customer experience as a way of attracting and retaining customers. Coverage, speed, and capacity are no longer enough to ensure this and provide differentiation. Quality of Experience is becoming an important new way for operators to differentiate, and has been identified as an important influence in subscriber churn. So operators need to find a new operating approach to bring a service quality focus to their networks while continuously increasing network efficiency - and outsourcing their operations offers them an opportunity to do this. Beyond this, top line growth through the launch of new services or simply the reduction of churn is imperative to retaining reasonable margins. They need to transform their business to reach new markets and new subscribers to increase revenues and preserve margins. The new approach In response to this changing business environment, the Managed Services business worldwide has begun to change from a network centric to a service centric operational focus which addresses the economic realities. Huawei is leading this change with an MS proposition that focuses on not only OpEx reductions, but how the Operator can improve margin and revenues. As a result of this, Huawei is redefining Managed Services. We have developed an approach which we call Managed Services for TVO, “Total Value of Ownership”, because by doing this we show our customers how our Managed Services offer contributes to both Revenue and Margin improvement by impacting operational efficiency and customer experience, and by doing this delivers genuine business value. Huawei MS for TVO In developing this approach, we have taken the best of our existing Managed Services portfolio, and within that both highlighting innovative new solutions and ideas and then adding the next generation of end-user service-focused solutions - which have all been incubated and hatched from the Huawei Service R&D organization. 1. Centralized, Standardized & Secure Network Operation Classic MS operational outsourcing is predicated on the need to reduce OpEx. This reduction is still a top priority for Operators, and so any MS offer must be laid on the foundation of a sound Network Operations solution which applies the latest best practices. Key objectives must be to improve network quality and efficiency, to give the operator a competitive advantage in the market. Huawei achieves this in a number of ways:

  • By allowing converged operations across Fixed, Mobile and IT networks. This combined capability is a differentiator in our industry
  • The use of innovative process KPIs within our network lifecycle process to measure and quantify operational efficiency.
  • Proactive network performance taskforces such as Huawei’s global Monitor, Analyse, and Improve (MAI) team allow us to measure, benchmark, compare and analyze across the organization’s infrastructure and processes for continuous improvement, anticipating rather than reacting to performance issues.
  • Advanced in-house field maintenance solutions such as Workforce Management and Site Intelligent Management System make a direct contribution to operational efficiency. The maximisation of efficiency is possible only when there is a free flow of information between the relevant stakeholders; efficiency and transparency go hand-in-hand. To this end Huawei have developed a unique customer portal which offers high visibility in real time, 24/7 of the network performance and capacity, and the operational performance metrics. 2. Transforming to Service Focus Operators need to transform from network-centric to user-centric management practices. A user-centric approach ultimately focuses on the end user’s emotional experience, so so as to deliver on the promise of a better experience, and hence tangibly and positively impact top line growth; everything we do in the MS context must ultimately improve this. And while Service Quality Management (SQM) has been accepted for the past decade with positive results in measuring and managing the quality of network service, today’s end-users are more sophisticated. They expect not only higher service quality, but also a differentiated, consistent and transparent end-to-end customer experience. To enable this, at Huawei we are implementing our live Services Operation Centre (SOC). The SOC houses the expertise and resources that enable us to improve end-user service quality, and it does this by influencing our day-to-day operations based on a new hierarchy; that of the service performance driving the network performance. This allows operators to quickly and effectively address end-user bad experience such as slow data connection, network congestion or other issues affecting service quality. The integration of NOC and SOC processes is a vital part of this capability. Crucially, this ensures that true Service Quality is understood by Network Operations. With the SOC we address SQM by extending the focus from a pure “Per Service (PS)” or “Per User (PU)” concept to a “Per Service Per User (PSPU)” model, an approach which is widely recognized as the right way to transform operations and one which Huawei is leading. 3. Enhancing revenue with Business Operations Support The challenges currently being faced by our customers require us to offer more than cost reduction possibilities. To allow us to directly impact our customer’s revenue, Huawei has developed a series of solutions which enable us to support Business Operations, and represents the third part of our MS for TVO approach. Launching new VAS quickly and easily is of utmost importance to operators in this context. Huawei enables this, amongst other things, via our Hosting service - which not only allows our customers to access the International market for Applications and Services, in our case over 500 content and service providers and 1200 Applications, but also to launch new market-appropriate services with fast time to market and a low investment profile in terms of both solutions and processes. Within an operator’s existing service delivery environment for VAS there are significant opportunities for revenue enhancement, which can be exploited via our Managed VAS solution. We do this by analysing existing data to allow improvements in areas such as:
    • Revenue leakage, using data to optimise tariff strategy in order to maximise revenue
    • Tariff optimisation, using innovation in flexible charging policy to increase revenue
    • Channel selection. By analysing the conversion rates of promotions on a per channel basis, the best channels can be identified to improve the overall conversion rate.
    • Additionally this data analysis opens up new opportunities such as greater precision in the targeting of user groups with the highest revenue potential.
    So today’s MSP must be seen to be actively investing in solutions that promote top line growth. These are just some examples how Huawei is rising to that challenge. The changing relationship Just as we acknowledge the fundamental changes that must take place to allow the Managed Services ecosystem to thrive, we must all be ready to take action in the redesign of the way we work together. MS for TVO is such a development, and the approach described here can be the beginning of a new way of working. MS for TVO defines the behaviour of today’s MS player, and represents a significant commitment to our customers and the future of our business. For example to support this framework Huawei already has a significant proportion of its 1,200 dedicated managed services R&D staff working on TVO orientated solutions and will continue to invest like this, while other MSPs in many cases are reducing investment in their MS portfolios. The way forward Our industry faces a period of change, with Operators’ costs growing faster than revenues and the need to move to a Service oriented operation. At Huawei we believe that there is a growing realization amongst MS industry stakeholders that we must work more closely together and allow MSPs to bring their creativity to the table in more open and flexible discussions about the future of our mutual business. The Huawei MS for TVO approach, we believe, sets the perfect foundation for this kind of relationship. Not only does it directly address the business challenges of today’s operator, but it permits and facilitates the maximum amount of value to be offered from the creative depths of the MSP. By bringing to bear all of our unique strengths in a perfect convergence of skills, talent, experience and innovation we will be responding to these challenges in a way which benefits all parties and hence protects our evolving MS ecosystem.
    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    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   |   (2) comments


    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
    It's a New Age... Click Here
    When smartphones replace stuffed animals.