1© 2005 Cisco Systems, Inc. All rights reserved.Session NumberPresentation_ID
Zero Touch Provisioning
Value Added to Service Providers’ Business
Filippo GalimbertiBusiness Development Manager – NMS/[email protected]
222© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Agenda
• New services activation:Operation Challenges
• Cisco Technology
• Financial drivers
• ROI Analysis
• Case Study
333© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
New services activation:
Operation Challenges
333© 2004 Cisco Systems, Inc. All rights reserved.Presentation_ID
444© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Current Service Providers’ marketdiverging requirements
Time to MarketSe
rvic
es
com
plex
i t yCost reduction
• Price competition
• Margins reduction
• Deployment rapidity
• Process flexibility
• Automated
• New converging services on the network
• Bundled offers• Market more and
more demanding
555© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
New ServicesOperation Challenges
ACTIVATION PROCESS
ACTIVATION PROCESS
SERVICE LEVEL AGREEMENT
SERVICE LEVEL AGREEMENT
LOGISTICSLOGISTICS
OPERATION CHALLENGESOPERATION
CHALLENGES
666© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
New ServicesOperation Challenges
ACTIVATION PROCESS
ACTIVATION PROCESS
SERVICE LEVEL AGREEMENT
SERVICE LEVEL AGREEMENT
LOGISTICSLOGISTICS
OPERATION CHALLENGESOPERATION
CHALLENGES
• Configurationdeployment
777© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
New Services paradigmThe activation process
• Critical to achieve the “time to market”
• Error prone process
• Customer facing: the quality is directly perceived by the end user
• Interacting with an highly innovative environment
• Directly impacting revenues through OPEX
888© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
New ServicesOperation Challenges
ACTIVATION PROCESS
ACTIVATION PROCESS
SERVICE LEVEL AGREEMENT
SERVICE LEVEL AGREEMENT
LOGISTICSLOGISTICS
OPERATION CHALLENGESOPERATION
CHALLENGES
• Configurationdeployment
• Failure repair
999© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
New Services paradigmService Level Agreement
• Quality drives
• Service control is essential
• Time to repair is the measurement point
• Organization Challenges: the need to have teams skilled to address all deployment
101010© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
New ServicesOperation Challenges
ACTIVATION PROCESS
ACTIVATION PROCESS
SERVICE LEVEL AGREEMENT
SERVICE LEVEL AGREEMENT
LOGISTICSLOGISTICS
OPERATION CHALLENGESOPERATION
CHALLENGES
• Configurationdeployment
• Failure repair
• Devices stock management related savings
111111© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
New Services paradigmLogistics challenge
• Devices stock reduction is essential
• Stocks delocalization and optimization on the territory
• Truck rolls and delivery cost reduction
• Service diversity should marginally impact the logistics
121212© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Automated deployment:
Cisco Technology
121212© 2004 Cisco Systems, Inc. All rights reserved.Presentation_ID
Configuration Engine Technology Configuration Engine Technology overviewoverview
131313© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Configuration Engine Technologymultiple domains
Enhanced network interfaceProgrammable interface to the network Single configuration pointmore performing interface to provisioning systemsEasier system integration
Enhanced network interfaceEnhanced network interfaceProgrammable interface to the network Single configuration pointmore performing interface to provisioning systemsEasier system integration
Zero Touch DeploymentAutomated CPE configuration and deploymentReduction of time to repairsupport to advanced services deployment
Zero Touch DeploymentZero Touch DeploymentAutomated CPE configuration and deploymentReduction of time to repairsupport to advanced services deployment
141414© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
What is Zero Touch Deployment?
• Zero Touch Deployment technology automates ordering, configuration and deployment of Cisco IOS CPE in Service Providers environments.
• Zero Touch Deployment enables SPs to
–reduce time to market
–increase customer satisfaction
–reallocate valuable IT resources
–reduce operational expenses in the life cycle management.
151515© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
CiscoCisco
Zero Touch DeploymentAutomated CPE Ordering, Configuration and Service Turn-up
Service Provider
Subscriber1
Internal Order2
ConfigEngine
CPE shipped to customer34
1. Subscriber orders managed service from Service Provider2. Service Provider initiates the deployments workflow3. Cisco ships customer CPE with bootstrap config. SP can track shipment online4. Subscriber plugs in CPE and device boots, pulls service configuration, and validates5. Device publishes ‘configuration success’—service is on!6. SP OSS workflow engine monitors events and triggers next step
161616© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Zero Touch Deployment Scenario
ConfigurationExpress Common
Configuration
ServicesActivation
CPEDeployment
CPE Replacement
eToken
NetworkInfrastructure
ConfigurationEngine
f4
171717© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Cisco Configuration EngineNetwork interface
Publish/Subscribe Message BusPublish/Subscribe Message Bus
Network EngineerUsing GUI Interface
Customer/OSSApplicationXML/SOAP
ISCCisco Product
SDK
CustomerApplication
SDKJavaJava C++C++
CiscoConfiguration Engine
Web
Svcs
CiscoConfiguration Engine
Web
Svcs
Pop or Region Large Pop or Region Small Pops or Regions
Customer/OSSApplicationXML/SOAP
Configuration Services
Image Services Image Services
Configuration Services
JavaJava C++C++
181818© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Cisco Configuration EngineNetwork interface
Many values are provided via the Network interface:
• Single point to configure the network
• Based on standards
• Easier system integration
• Error reduction in interfacing the network
• Easier deployment of new services
191919© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Cisco Configuration EngineGoal
191919
available on any Cisco Device
Cisco Configuration Enginecreates the infrastructure to
drive the intelligence in the network
202020© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Automated deployment:
Financial drivers
202020© 2004 Cisco Systems, Inc. All rights reserved.Presentation_ID
212121© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
•Direct savingsCPE activationnetwork activationsfewer errors to repair
•Direct savingsCPE activationCPE activationnetwork activationsnetwork activationsfewer errors to repairfewer errors to repair
•Indirect savingsstock managementstaff training
•Indirect savingsstock managementstock managementstaff trainingstaff training
•Additional opportunitiesfaster time to revenueseasier and faster introduction of new servicesdifferentiation
•Additional opportunitiesfaster time to revenuesfaster time to revenueseasier and faster introduction of new easier and faster introduction of new servicesservicesdifferentiationdifferentiation
“Zero Touch” enabled opportunities
222222© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Financial Point of ViewZTD role
CA
PEX
OPE
X
NET
WO
RK
OSS
OPE
X
• ZTD lowers the Total Cost of Ownership
•cost per element is composed by Infrastructure plus OSS
• Config Engine Network Interfaceimpacts the “Element cost”, maintaining margins on the service for network extension
TCOTCO
Cost per Cost per ElementElement
NET
WO
RK
OSSOPE
X
232323© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Operations Expensesreduction is a great leverage
• One dollar of CAPEX or OPEX saved flows directly into cash flow
• CAPEX reduction is the fastest and easiest “lever,” but only a small piece of overall network cost
• OPEX reduction is the largest lever, but more difficult to implement
Total Operating ExpensesTotal Capital Expenses
CO Transmission and Switching
15% Cable and Wire, General
Plant Equipment
10%
Network Operations and Access
10%
Customer and Corporate Operations
23%
Depreciation and Amortization
22%
Source: FCC, 2001 (Incumbent LECs)
Plant Maintenance
20%
242424© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
ROI Analysis
242424© 2003, Cisco Systems, Inc. All rights reserved.Presentation_ID
CPE deploymentCPE deployment
252525© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
ROI calculationactivities
• Ship router to warehouse
• Unpack router for configuration
• Add asset tag, label, and record serial number.
• Create and load software configuration file and test router
• Repackage router
• Ship or Truck-roll (send skilled technician onsite to complete router installation)
• Other (specific to your operations)
272727© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
ROI calculationresults
($2,000,000)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
0 200 6,000 10,000 20,000 30,000
ManualAutomatedSavings
devices
Deployment Spending
282828© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Costs savings on OSS assisted deployment
Source: NMTG ROI analysis 735
Time Lag: Order to First Day Billing (days)
1550Time to Install Config Stub CPE (min)
$ 35 $ 25 $ -Labor Rate Shipping & Powerup
95%60%80%% Reduction in Truck Rolls Expected
High ValueLow ValueDefault ValueAutomated Cost Drivers:
1577Time Lag:Order to First Day Billing (days)
904560Time to Config CPE (min)
35%15%20%Error Rate, Manual Config
$ 70 $ 45 $ 50 Labor Rate for Manual Config
$ 300 $ 150 $ 225 Truck Roll Cost/Device
High ValueLow ValueDefault ValueManual Cost Drivers:
292929© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Case Study
292929© 2004 Cisco Systems, Inc. All rights reserved.Presentation_ID
303030© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Service ProviderContext
• Service Provider having a country-wide network
• Delivering high quality and high SLA IP services
• hundreds of end-points deployed per day
• The project is designed toenhance customer satisfaction by accelerating time-to-provisioning and time-to-benefit
improve efficiencies by cutting cycle times
increasing productivity, and reducing errors from its service turnup and customer premise equipment (CPE) provisioning processes
improve revenue generation by speeding time-to-service and time-to-billing
313131© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
“Acme” Service Provider Business Value
• Reengineer the business IP services turnup/provisioning processes by reducing number of technician visits – or “truck rolls” – from two to one, projected to save an estimated $500,000 per year.
• Cut up to six days out of provisioning lifecycle for Dedicated Internet Access, (DIA), allowing “TheProvider” to realize an estimated $440,000 in added revenues per year through swifter time-to-service and time-to-billing.
• Quadruple the number of routers “TheProvider” is able to deploy each day.
• In its next phase, provide a platform for automatic configuration of routers for “TheProvider’s” Network IP-VPN services.
323232© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Service Provider’s Quote
323232
Operation VP
““The ability to automatically configure The ability to automatically configure our Cisco routers is a our Cisco routers is a hugehuge benefit to benefit to our provisioning organization. The our provisioning organization. The productivity gains are substantial. productivity gains are substantial. From a customer service perspective, From a customer service perspective, this is a major win/winthis is a major win/win..””
333333© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Conclusions
333333© 2004 Cisco Systems, Inc. All rights reserved.Presentation_ID
343434© 2005 Cisco Systems, Inc. All rights reserved.FG 20051004
Cisco Zero Touch Deployment technologyConcluding
• TechnologyCisco Configuration Engine is designed to enhance network manageability
• Zero Touch DeploymentZTD allow a faster, more effective and more rentable deployment of CPEs
• Better business cases Configuration Engine allow the implementation of better business cases through Process Savings and faster introduction of new services
35
© 2005 Cisco Systems, Inc. All rights reserved.Session NumberPresentation_ID
December 12 December 12 –– 1515Cannes, FranceCannes, France