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
    Flash Poll
    From The Founder
    Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    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.
    LRTV Custom TV
    End-User or Enterprise Benefits to the New IP

    7|30|15   |   04:27   |   (1) comment


    Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
    LRTV Custom TV
    Network Visibility & the New IP

    7|30|15   |   02:23   |   (0) comments


    Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
    Between the CEOs
    Video Exclusive With Basil Alwan, Alcatel-Lucent

    7|24|15   |   26:44   |   (5) comments


    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    LRTV Custom TV
    VDF: Enable the Financial With Mobile Money

    7|20|15   |   06:53   |   (0) comments


    Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
    LRTV Custom TV
    Telefónica on OSS Transformation

    7|20|15   |   06:01   |   (0) comments


    Jose Gonzales discusses the details of Telefónica's operation transformation program.
    LRTV Custom TV
    Judi Achmadi on Huawei's Cloud Storage Solution

    7|20|15   |   03:33   |   (0) comments


    Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
    LRTV Custom TV
    KPN Enlightening Digital Business & IT Transformation

    7|20|15   |   06:19   |   (0) comments


    Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
    LRTV Custom TV
    Stratus Telco-Grade Cloud Solutions & NFV

    7|20|15   |   07:34   |   (0) comments


    Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
    LRTV Documentaries
    The Six Million Dollar Business Man

    7|20|15   |   01:52   |   (0) comments


    Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
    Between the CEOs
    CEO Chat With Anukool Lakhina, Guavus

    7|20|15   |   38:51   |   (1) comment


    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    LRTV Custom TV
    IBM's Flash Storage With Intel QuickAssist

    7|20|15   |   03:18   |   (0) comments


    Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
    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
    All Upcoming Live Events
    Infographics
    To keep up with consumers' increasing digital lifestyles, an IT system and operating model overhaul is required using a modern BSS, IES and analytics.
    Hot Topics
    FCC Plan Could Stymie Rural Broadband
    Carol Wilson, Editor-at-large, 8/3/2015
    Eurobites: Nokia Seals HERE Sale
    Paul Rainford, Assistant Editor, Europe, 8/3/2015
    Verizon Small Cells Ready to Rock in Chicago
    Sarah Thomas, Editorial Operations Director, 7/31/2015
    Like Us on Facebook
    Twitter Feed
    September 22, 2015
    Media Begins With “Me”
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    I was pleasantly surprised when Ericsson recently agreed to let me interview its CEO, Hans Vestberg. Traditionally, mega-companies like Ericsson (or Cisco) have kept ...
    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    Cats with Phones
    Comes With Free Phone Stand Click Here
    Who says cats don't have any skills?