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Capturing New Business Models and Revenues with Cisco Policy Suite

Ben Bleichman, Product Manager, Cisco Policy Suite Bob Smith, Product Manager, Cisco Policy Suite May 26, 2015

2 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

•  Market Trends and Today’s Need for Policy •  New Business Opportunities •  Cisco Policy with Dynamic Orchestration •  Cisco Access Policy Solution

Agenda


Cisco Policy Suite: Delivering Dynamic Services

Services Dynamic Policy User

•  Profile •  Services •  Segment •  Device •  Etc.

Session

Network

•  Load

Analytics

•  Existing services •  OTT providers •  New services

SON

Gi LAN

Core Network

Delivery optimization

•  Subscriber Id •  Access Type •  Location

•  QoS •  Time •  Etc.


Global Mobile Data Traffic Drivers

More Mobile Connections

More Mobile Users

Faster Mobile Speeds

More Mobile Video

Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019

By 2019:

Mobile Momentum

Metrics

2014 2019 7.4 Billion 11.5 Billion

2014 2019 1.7 Mbps 4.0 Mbps

2014 2019 4.3 Billion 5.2 Billion

2014 2019 55% of Traffic

72% of Traffic


Global Mobile Device Growth by Type By 2019, M2M Devices will grow to 28% of devices, up from 7%

0

2

4

6

8

10

12

2014 2015 2016 2017 2018 2019

Other Portable Devices (0.2%,0.2%) Tablets (1%,3%) Laptops (3%,2%) M2M (7%,28%) Smartphones (29%,40%) Non-Smartphones (61%,27%)

9% CAGR 2014–2019

Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019

Billions of Devices

* Figures (n) refer to 2014, 2019 device share


How Operators Capitalize on Mobile Growth

Individual Services •  Turbo boost •  Freemium •  Location-specific

information •  Parental control

Vertical Markets •  Automotive •  Internet of Everything •  Healthcare

New Business Models •  Enterprises/MVNOs •  VoLTE/VoWi-Fi •  Sponsored data

Policy Opportunities


Cisco Policy ready for vertical take off

Modular Platform Next-Gen Architecture Open environment

Orchestration Automation, provisioning and

interworking of physical and virtual resources

NFV Network functions and software running on any open standards-

based hardware

SDN Separation of control and

data plane


Service Velocity Lets You Seize Your Opportunities

•  The market’s most rapid service innovation engine

•  Extensive library of use case plug-ins for instant rollout

•  Self-serve Policy Builder: new use cases without new code

•  Feature-based platform easily programmable for complex cases

New Service Time-to-Market

Cisco Policy Suite Legacy Policy

1-30 Days

3-6 Months


Business Opportunities

Congestion Management

MVNO

Connected Car


Congestion-Aware Content Delivery Challenge: Unpredictable network congestion deters premium and on-demand quality of service (QoS)

offers for high-bandwidth apps (such as gaming, video, enterprise apps)

Ensure that the subscriber experience meets service expectations and entitlements

Truly monetize QoS (for example, turbo boost, bandwidth on demand)

Monetize exclusive and premium content (for example, NFL, Champions League, etc.)

Default on / Speed Step Downs Turbo Boosts Happy hour Tiered plans or Services Market

methods


Schedule-based RAN Congestion Description:

§  Alleviate user plane network congestion §  Provide all users a fair access to network

bandwidth §  Potential evolution to SON/Probe-based

solution

§  Fair use policies §  P2P BW Limits §  Video Optimization §  Heavy User Bandwidth Throttling

Benefits:

§  Improved user experience §  Prevent revenue erosion from subscriber

churn

§  CAPEX savings from deferred capacity growth

Cisco Policy Suite


Service Providers are Connecting Cars

“Connected cars will create new business models and provide opportunities for current businesses to greatly improve their service offerings.”

Forbes, February 20, 2015


AT&T to Utilize Cisco Virtual Mobile Network Technology Within Its Connected Car Services "With this new software-driven mobile Internet solution incorporated in to our offerings, we can help to provide auto makers with advanced connected car services that give consumers more real-time communications services that positively impact the driving experience.”

Cameron Coursey, Vice President, Product Development and Operations, Internet of Things, AT&T


•  In 2019, MVNOs will account for 3.7% of global mobile subscribers

•  43% CAGR from 2014–19 in Oceania, Eastern & South-Eastern Asia

•  Japan predicted to be within top 5 countries with the highest ARPU for MVNO in 2019

MVNOs are Thriving Worldwide

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2013 2014 2015 2016 2017 2018 2019

Africa

Middle East

Oceania, Eastern & South-Eastern Asia Central & Southern Asia Eastern Europe

Western Europe

Latin America & the Caribbean North America

43% CAGR

Source: “MVNO Outlook: 2014–19” Ovum, Oct’14

Source: “MVNO Outlook: 2014–19” Ovum, Oct’14

MVNO connection forecast by subregion, 2013-19


Case Study: K-Opticom Mineo Service

“Cisco Policy Suite is providing the environment which we can serve the customer in the very best way”

- Yoshihiro Matsumoto, General Manager, Technology Planning and

Development Group, K-Opticom

Operator Challenge

§  Build a system with flexibility for subscriber services §  Be attentive to each user’s needs, providing and managing

customized plans §  Ensure precise management of its many plans and services

Benefit §  Can now offer a broad range of useful services to Mineo customers,

including rollover unused data, family plans §  Network resources available on demand §  Future plans: 1M users while being attentive to each user’s needs

Solution

§  Cisco Policy Suite with Cisco ASR 5000


Cisco Policy with Dynamic Orchestration


Cisco Policy Suite NFV Evolution

2010

Virtualized QPS

•  Virtualized Solution – no bare metal deployments - VMware

•  Leverage standards-based orchestration tools to provision the VMs

Today CPS 7.5

•  VM Orchestration Framework

•  Automated installation •  KVM/Openstack •  Elasticity based on system

KPIs

Tomorrow CPS 8.x

NFV CPS

•  NFV/Dynamic Orchestration •  Cisco Telco Cloud Manager

Integration •  Auto-Install/Start/Monitor •  Orchestration API •  Elasticity TPS Scale Up/Down

Virtualized today with Dynamic Orchestration


•  3GPP NFV Compliant (ETSI NFV 002)

•  KVM/Openstack and VMware support

•  CTCM

•  Default NFVM – Shipped with CPS product

•  Orchestrates QPS VMs – compute, memory, network and storage

•  Handles lifecycle events: tracks VM health and key KPIs

•  Elasticity – auto scales VMs based on hitting KPI thresholds

•  Consistent interface for the NFVO to instantiate the CPS and VPC

•  Cisco Policy Manager (PCRF Client)

•  Policy Builder Configuration GUI

•  REST based service configuration APIs from Policy Builder or external provisioning system

•  SVN – used to publish VM configuration and software versions to available VM instances

•  OA&M: KPI Mgmt, Logging, SNMP

Cisco Policy Suite NFV/Orchestration NFV-O “Top Level” Orchestrator

VNFM (Cisco Telco

Cloud Manager)

CPS Cluster Manager

Policy Director

OpenStack, VMware

(VIM)

Policy Director

Policy Server

Policy Server

Session Manager

Session Manager

Control Center

Network and Compute

CPS PCRF VNF

NSO (Tail-f)

OSS/BSS


NFVI

OSS/BSS

VIM (e.g. OpenStack)

NFV-O Os-Nfvo

Nf-Vi

Nfvo-i CPS VMs CTCM

(VNFM)

Or-Vnfm

Vi-Vnfm

Ve-Vnfm

Vn-Nf

CPS VMs

Bring up a Cisco Policy Instance

1.  The NFV-O receives a message from the OSS/BSS to instantiate a CPS, e.g. small, medium, large

2.  NFV-O provisions a VNFM for CPS (uses OpenStack to create the VM and attaches to the network)

3.  NFV-O calls an API on the CPS VNFM to instantiate the CPS, e.g. “medium” as well as the external networks that need to be reachable

4.  VNFM uses OpenStack to create the CPS VMs and attach to the various networks.vlans

5.  NFV-O pushes the service configuration to the VNFM for diameter peers, policy rules, etc.

6.  VNFM applies this configuration to the various VNFs

7.  CPS is ready for service

1 2 3

4

5

6 7


Virtual Policy – Why it helps new sectors.. Ops

Separation of interests Departments / companies Geo Features

Device SELECT Wi-FI?

Security Redundancy SLA’s

Payment

Functionality Release cadence

Right model per customer

Global architectures

Data sovereignty

Access selection Device Entitlements

Bill for machines

Right SLA per customer

Industry sectors Different demands


Cisco Access Policy


Access Network Selection Today A Source of Poor User Experience…and a Large Opportunity

Device Driven

Limited QOE awareness

Limited / no SP Operator controls / inputs

Wifi selection and login hassles

…thus an opportunity for SP / MSO differentiation through QOE improvement while also achieving managed cellular offload


Typical Network Selection Problems

Wi-Fi 3G/4G

Signal Quality Signal quality alone does not guarantee user experience

Ping-Pong Effect Mobile users constantly switching

between Wi-Fi and 3G/4G


3GPP Solution Framework: ANDSF Operator Controlled, Client-Server Access Selection

S14 Mobile Network

IP Based Interface Works over 3G, 4G, Wi-Fi

SP Controlled Selection Which networks are preferred for the SP

Policies Per Time / Location Choose the network based on location, time of day, day of week, date, etc.

Policies Per Flow Each IP flow can use a different available network

In practice, a framework for an Always Best Connected User Experience that increases overall data usage and offloads 3G networks, and enables new SP monetisation

plays


Open HTTP/XML Interface OMA-DM based S14

Flexible, optional extensions for value-added device client functions

(GCM, APNS, device based analytics)

APP

Network Interface

Bring SP controls and presence onto subscriber devices, ensuring better QOE and new service offerings

Operator driven policy rules

Wifi / RAN Analytics

Network Aware Access Policy •  Personalized access policy in context of SP

commercial data bundles. •  Integratable to PCRF, SPR, Analytics/OSS, SON/

RAN ecosystem for full network awareness. •  Build to scale for millions of sessions •  Integration of device Analytics

Improved User Experience

Focus on full device ecosystem / options Access selection based on link QoS

Policy on the Device (eg Wifi Roaming service)

Support for iOS and Android

SON PCRF/SPR/DBs

Security RA/CA Cisco Wifi APs


Operator TelcoCloud

High Level Architecture

Mobile Network

Public Wi-Fi

Corporate Wi-Fi

Internet CPS 7.5

Cisco ASA

Android / iOS ANDSF Client

Mobile Network

2G/3G/4G

Public Networks are Unmanaged,

may require VPN

Corporate Networks are

Managed. Credentials may

be sent from ANDSF Server

GCM / APNS is used to send push notifications from Server to Device

Cisco ASA/AnyConnect for VPN termination

CPS 7.5 Access

Selection CPS


•  Location Based Access •  Time Based Access

•  Power Geo-Fence

•  Wi-Fi Link Quality

•  Access Prioritization

•  Smart Secure Wi-Fi

•  Subscriber Profiling •  Personalized seamless login

•  Location Triggered Policy Pull

•  Server Triggered Policy Push

•  Automated subscribers on-boarding

Access Selection Policies Overview


North American MNO Adopts Cisco Policy Suite Enabling New Applications and Monetization Models

Connected Car (IoE)

Enterprise Private Mobility

Consumer PCRF

(500M subs/ 1M TPS)

Reseller / MVNO

virtualized platform

OTT App Gateway


•  Policy enables service innovation and velocity •  New policy architecture with virtualization will

create agility and scale •  New business models and verticals enable

operators to grow revenues

Policy Creates New Business Opportunities

www.cisco.com/go/mobilepolicy

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