1.Communications Edition

Industry EdgeCommunications Edition

Feature stories

Enabling communication service providers to become cloud service brokers

M2M delivers a profitable new revenue stream

HP • Issue 012 • Winter 2013

Communications unboundThe value chain in the communications industry has rapidly changed. The role of the network has been commoditized. Over-the-top players dominate the consumer experience. Modern IP-based networks, applications, and services have brought down the walls between players. New cloud infrastructures, mobile device technologies, trends toward consumerization of the enterprise, and liberal bring-your-own-device (BYOD) policies fuel higher user expectations for an expansive digital lifestyle.

All of this spells both a challenge and an

opportunity for CSPs. In this e-zine, Industry

Edge, we’ve assembled fresh thinking and ideas

about the solutions and services that create

revenue opportunities and support emerging

business models for providers.

• New research from the CMO Council points

to how big data can help you secure revenue

from behavior-based pricing.

• Managingthemobileapplifecycleintensifies

as we work to provide universal access to

people, applications, and data.

• Machine-to-machine (M2M) communications

in the cloud exponentially expands

connectivity requirements.

• Managed security services (MSS) open new

revenue opportunities for providers.

So read on to learn more about these key topics

and how HP can help you create a meaningful

user experience from the communications

services you provide. Because in the end, the

experience we create is what matters most.

David SliterVice President and General Manager

Communications, Media, and Entertainment

HP Enterprise Services

In this issue4 Enabling communication service providers

to become cloud service brokers

8 M2Mdeliversaprofitablenewrevenuestream

12 Turkcellofferscustomizedcloudservice

bundles for enterprise customers

13 Softbank Mobile wins and retains

customer loyalty with online storefront

14 Accelerate and simplify mobile

application development

19 Mobility 20/20

20 As cloud expands, so do the dangers

24 Pay-per-use managed network

solutions help CSPs drive new revenue

26 Cloud and mobility—keys

to a better retail experience

30 New report from CMO Council

validates value of big data for CSPs

5.Communications Edition

Enabling communication service providers to become cloud service brokersThe communications industry ecosystem has fundamentally changed; legacy business models and their associated revenue streams have either transitioned to new entrants or been replaced by modern IP-based applications and services. The communications service provider (CSP) is no longer the owner of the ecosystem. And in a more wide-open and competitive environment, CSPs need to evolve and create new services that can help them expand into new markets.

HPbelievesCSPscanbenefitfromthecloud

in this changed ecosystem:

• To choose hybrid delivery and hosting

options that best meet their requirements

• To become a cloud service broker and

monetize their network assets

Converged cloud enables a choice of hosting and business modelsThrough the HP Converged Cloud solution, CSPs

can choose the hybrid delivery and hosting

6. Communications Edition

option that best meets their unique needs and

opportunities. A CSP may:

• Buy HP hardware and software to run

from their data center, which they

operate themselves.

• Buy HP hardware and software to

install in their data center, which HP

can operate for them.

• Buy and have HP host and operate the

solution they select in an HP data center.

No matter which hosting model a CSP chooses,

they also have the option of reselling IT and

cloud services to their enterprise customers.

Together with these delivery options, HP Cloud

Service Enablement Solutions (CSE) enable CSPs

to build, operate, and monetize their public cloud

infrastructure and become cloud service brokers.

As a key component of HP converged cloud, HP

CSEgivesCSPsthebenefitsof:

• Faster time-to-value—with accelerated

deployment of cloud services made possible

with mature preintegrated solutions.

• New revenue streams—from the creation

ofadifferentiatedportfolioofInfrastructure

as a Service (IaaS) and Software as a Service

(SaaS)offeredviaamarketplaceportal.

• Lower total cost of ownership—by the

ability to launch new services with limited

investment as well as mitigate the risk of

new market entry with a consulting program

dedicated to the public Cloud as a Service

business model. A choice of multiple delivery

and go-to-market models helps optimize TCO.

Read how we have worked with Turkcell to achieve these benefits on page 12.

7.Communications Edition

Why is HP unique?Converged cloud solutions from HP are unique

inthechoice,confidence,andconsistencythey

provide to CSPs and enterprise customers.

Choice

HP cloud delivery models cross private, managed,

public, and traditional IT to provide a continuum

of service level agreement (SLA) choices.

Platforms are built with open, heterogeneous

architectures to accommodate multiple operating

systems, hypervisors, developer frameworks,

and multivendor infrastructures. We have a

wide range of partners to work with and choose

from, including strategic alliances, value-added

resellers, system integrators, and outsourcers.

Confidence

HP can manage and secure data and

applications across delivery models as well as

offerthescalabilitythatenterprisesneedto

drive business forward.

Consistency

HP Converged Cloud provides a common

architecture across delivery models, allowing

workload portability that gives users a single

consumption experience.

Find the cloud option that best meets your needs.Every CSP and its enterprise customers have

differentneedsforITinfrastructures.HP’s

mission in the communications industry is to

deliver solutions and services that support

emerging business models and the increased

demand for enterprise mobility solutions.

Converged cloud is a key part of that.

For more information on converged cloud,

please go to hp.com/go/cloud.Forspecific

information on how we’ve worked with CSPs,

please visit our website.

Forinformationspecificonbecomingacloud

service broker, go to http://h18006.www1.

hp.com/storage/pdfs/4AA3-6850ENW.pdf

or http://h20195.www2.hp.com/V2/GetPDF.

aspx/4AA2-1428ENW.pdf.

Larry MarsonWW Business Lead, Applications and Cloud

Enablement Domain

Communications and Media Solutions

HP Enterprise Services

8. Communications Edition

M2M delivers a profitable new revenue streamWhy is machine-to-machine (M2M) one of the fastest growing communications trends? For communications service providers (CSPs) alone, M2M services could be worth up to $260 billion1. M2M technology has been around for decades, but with device and network connectivity costs falling rapidly, M2M is becoming affordable for the mass market. When combined with mobility and the cloud, the possibilities for M2M are endless—and very profitable for network operators.

New growth area for network operatorsM2M is an exciting area of growth because it

has a model similar to short message service.

With a high volume of small messages delivered

at a good margin, M2M can provide a lucrative

business opportunity. Service providers can

leverage their infrastructure and capabilities to

become key players in this area.

Today, innovative vertical industry

applications are driving the rapid expansion

of M2M across many market segments.

Creative new uses for M2M that take

advantage of mobility and the cloud include:

• Automotive—Insurers install devices

in cars to detect driving habits such as

speeding, tight turns, or sharp stops, and

use this data to determine whether good

driver discounts should apply.

• Healthcare—A blood glucose monitor reports

vital information about a remote patient

toaphysician.Or,afleetofbloodglucose

monitors sends anonymized data to the cloud

for researchers to analyze health trends about

an entire population of patients.

1 Machina Research at M2M World Congress 2012

9.Communications Edition

• Enterprise—When an employee walks into

a corporate building with his or her own

smartphone or tablet, M2M makes it possible

to detect the device and automatically

configureacontainerarounditforbusiness

use with enterprise controls. When the

employee exits the building, it is again

detected automatically, and the controls are

lifted. This makes the use of personal devices

for business seamless for employees.

• Retail—A retailer guides customers to what

they’re looking for when they are shopping

in a mall. The retailer uses M2M to interact

withcustomersviasmartphone,andoffers

incentives for purchases when customers are

in the store’s vicinity.

• Utilities—Promotingoperationalefficiency

through the green agenda, M2M brings data to

people. In the utilities industry, smart meters

not only replace human meter readers, they

provide comprehensive usage information

in near real time that both the utility and its

customers can access via the cloud.

Build a profitable M2M ecosystemImplementing M2M involves an entire

ecosystem that includes connectivity, platform

services, application services, as well as

integration, consulting, and analytics services.

To present a complete solution to their

customers, carriers must work with partners

to complete the ecosystem.

HPhelpscarriersbuildaprofitableM2M

ecosystem with:

• Traffic balancing—HP helps carriers

optimizeprofitabilitybydeterminingwhich

networktouseforM2Mtraffic.Forexample,

the solution weighs the convenience and

ubiquity of LTE versus the cost advantages of

moving small data on 2G.

• Platform services—HP provides a M2M

service platform that allows carriers to

connect to machines, manage machines, and

connect to the application services layer.

• Application services—In certain markets,

HP provides ready-to-use, revenue-

generating applications. For instance, in

the utilities market, HP solutions provide a

single, comprehensive view of smart grid

and information network operations. It adds

value by providing meter data management

as well as event management capabilities for

near real-time problem diagnostics.

• Integration, consulting, and analytics—One

of the best ways carriers can add value is to

help the customer understand what they can

learn from M2M data and build in analytics

upfront. HP has expertise in your customers’

vertical markets and can deliver integration,

consulting, and analytics services to get the

most out of M2M data.

10. Communications Edition

Dip your toe in the waterIf you’re not quite ready to go “all in” on

M2M, the cloud makes it possible for you to

proceed more cautiously. Using your existing

infrastructure, built for cell phones and

smartphones, can be very expensive for M2M

transactions. Rather than investing capital

innewinfrastructurespecifictoM2M,let

HP host your M2M transactions in the cloud.

You’ll pay only for the transactions and

services that you use, so you can ramp up on

your own schedule.

This approach gets you started in M2M, so you

canfindoutwhatthisexcitingtechnologycan

do for your customers and for your bottom

line, such as:

• Dynamic SIM management—How to

reduce M2M OPEX with SIM self-service

management

• Usage-based insurance application—In this

automotive and insurance application, a car

sensor (rating engine) monitors and reports

driving behavior, and the insurance company

can use this data to set rates for drivers

• Asset management application—Allows

organizations to monitor any GPS-enabled

logistics asset. This helps companies deliver

higher service levels, reduce theft and

shrinkage, and hold the optimal number of

assets, products, and inventories

Jeff EdlundCTO, Communications and Media Solutions

HP Enterprise Services

11.Communications Edition

7 M2M best practices for mobile providers1. RealizethatM2Misdifferentfromyourcorebusinessandrequiresdifferent

marketskills.BuildM2MasaseparatebusinesswithdifferentKPIs.

2. Make sure you have global connectivity with local sales. To compete in a

marketsuchasfleettelematicsassettracking,yourplatformmustoperate

globally, but to grow the business, you must understand local requirements

and regulations.

3. Participate in industry standards. Cooperation between network operators is

key to growing the M2M market.

4. Beflexibleabouttechnologiessuchasoperatingsystemsaswellas

management systems. Machines come in all shapes and sizes.

5. Think carefully about your pricing, taking into account costs to deliver as

well as perceived value. Some machines may output an unending stream of

data while others, such as medical devices, may be critical to life-or-death

decisions.Haveyourbusinessandfinancialanalystsworkcloselywiththe

people designing the M2M solution to get your pricing right for the market.

6. Grow in the vertical markets you know. While the M2M network and

platform are horizontal solutions, the applications are highly tailored to

specificverticalmarkets.Ifyou’vealreadybuiltpartnershipsanddeveloped

an expertise in a particular vertical market, look to grow within that market

to take advantage of your expertise and existing partnerships.

7. Beproactiveaboutanalytics.Makeanalyticspartofyouroffering.Insteadof

justbillingfordatafrommachines,demonstratethevalueoffindinginsights

inthedatafromafleetofmachines.

12. Communications Edition

Turkcell offers customized cloud service bundles for enterprise customers Turkcell, the leading communications and technology company in Turkey, with 34.5 million customers, needed a single software platform to set itself up as a “one-stop shop” for providing cloud-based services to its business customers. The company wanted to provide business customers with both Infrastructure as a Service (IaaS) and Communications as a Service (CaaS) offerings.Benefitswouldincludemorepredictableoperating costs, low capital investment, and minimal risk in new technology adoption.

Findingaflexiblesolutionwouldbecriticalinenabling the company to adapt quickly to market changes and deliver cloud services that could be tailored for each customer. Turkcell selected HP CloudSystem Service Provider as its best option. This comprehensive solution includes hardware, software, and services.

Everything is integrated to streamline the on-boarding and operation of IaaS and Software as a Service (SaaS), including CaaS, business applications, device management, and security. Specificservices,suchasemail,canbeeasilyenabled within the solution, allowing the company to quickly enter a growing market

withbusiness-readyofferingsandtoachieveanadvantage over would-be competitors.

Turkcell is using the key components of HP CloudSystem Service Provider:

• HP Converged Infrastructure provides an integrated platform designed to enable the rapid,efficientdeliveryofIaaS.

• HP Aggregation Platform for SaaS (AP4SaaS) provides a common foundation for multiple as-a-serviceofferings.Itintegratesandautomatesimportant service management processes such as provisioning, activation, reporting, service usage, and revenue settlement.

• HP Cloud Service Automation provides advanced provisioning and management of applications and infrastructure using industry best practice templates, linking HP AP4SaaS with HP Converged Infrastructure.

HP also provides consulting and integration services for design, implementation, and project management, as well as support and management. To learn more about cloud solutions from HP and the Turkcell agreement, read the original press release or visit hp.com/go/cloudsystem.

Press release

13.Communications Edition

Softbank Mobile wins and retains customer loyalty with online storefrontAs a leading communications service provider (CSP) in Japan, Softbank Mobile strives to win and retain customer loyalty in a fast-changing mobile Internet market. Its number one goal is to deliver the best customer experience. The company took a big step toward achieving that by launching an online content store called “The Softbank Bookstore” two years ago.

Softbank Mobile selected the HP Service Delivery Platform (SDP) Storefront Portal as the online solution for providing its 29 million customers with a fast, easy way to shop for, download, and manage wireless services and entertainment content.Itofferedcustomersmorethan372,000filesandprovedverypopular.

Now, Softbank Mobile has expanded this broad variety of choices by supplementing its own offeringwiththosefromothermajorthird-party content providers. And it further enhances customerflexibilitybysupportingmultiplehandsets and wireless devices. The company credits HP for its understanding of Softbank Mobile’s business and providing a complete solution that cuts time-to-market in half and helpsthemwithfinalimplementation.

The HP SDP Storefront Portal:

• Builds valuable customer loyalty with online service delivery

• Enables CSPs to transform their business models with new revenue streams

• Is based on the HP Service Delivery Platform, an integrated solution with an extensible framework than can help CSPs link SDPs to the application store business model

• Includes a customer-facing application store and a developer portal

• Has been deployed by CSPs worldwide

To learn more about the HP Service Delivery Platform Storefront Portal and the Softbank Mobile implementation, read the press release.

Press release

14. Communications Edition

Accelerate and simplify mobile application developmentMobility has become one of the greatest challenges for an enterprise—whether a communications service provider (CSP) or its customers. As a result, IT leaders are searching for ways to reduce the growing cost and complexity of, for example, mobile application development, while maintaining relevance to the business.

Managed mobility services (MMS) are getting attention and taking on new capabilities to meet enterprise demand. This year, we’ve begun to see the services within MMS expand to include capabilities such as telecom expense management (TEM), mobile device management (MDM), mobile security, logistics, and mobile application enablement and management.

1 IDC,“TheEmpoweredITUser:HowIndividualsAreUsingTechnology&RedefiningIT,”March20122 Gartner, “Gartner Executive Program,” January 2013

The mobility challenge• Approximately 4.5 billion personal client devices (BYOD) will be on the network in 20151

• 70% of CIOs cited mobile technologies as the most disruptive to the enterprise2

15.Communications Edition

A complex mobile environment demands a comprehensive strategyMany see mobility as creating the “Wild West”

within an organization. The old rules that

required employees to use only a certain kind

of mobile device have been replaced by BYOD

(bring your own device). Mobile applications

have become a way of life, and the line between

consumer expectations and how we expect

to get work done has blurred. Enterprises are

pursuing mobile application strategies to keep

up with competition (externally) and increase

productivity (internally), but many need guidance

andhelpfromserviceproviderswhocanoffer

full managed mobility services support over

all phases of the mobile applications lifecycle.

Addressing the entire lifecycle helps accelerate

and simplify rollouts to reduce costs, improve

response to market demands, and ensure a

positive customer experience.

Six key steps to develop an enterprise mobile applicationHP believes that six fundamental steps

are critical when developing a new mobile

application and enterprises should select

management mobility services that address

each one:

1. Design mobile applications in a platform-

agnostic way to support multiple devices.

2. Build feature-rich, complex mobile

applications for web, HTML5, hybrid,

or native clients.

3. Integrate to connect the application

securely and seamlessly with one or

multiple back-end systems or web

data sources.

16. Communications Edition

4. Test to enable mobile software applications

to function as intended.

5. Publish mobile applications to any public

application store or to private enterprise

application stores.

6. Monitor, manage, and analyze the mobile

applicationecosystemanditseffectiveness

through detailed usage reporting.

Robust mobile app lifecycle management is critical to successful MMS offeringsTo make sure that all six steps are adequately

covered, service providers should base their

managedmobilityservicesofferingsona

robust technology platform that can address

all phases of the mobile applications lifecycle.

A comprehensive lifecycle approach ranges

from planning and development to deployment,

hosting, management, and optimizing mobile

applications (see Figure 1).

This mobile app lifecycle approach drives the

transformation of enterprise applications for

mobile devices by facilitating design, testing,

security, performance, management, and

compliance requirements to reach new customer

audiences and support employee BYOD policies.

This helps ensure that enterprise applications

meet user expectations for high availability and

anytime, anywhere access.

Following this approach to mobile applications

helps companies drive the most value from their

mobile application investments. And service

providers can take advantage of the perfect

storm of opportunities mobile applications

providewhilestrengtheningserviceofferingsto

drive customer acquisition and retention.

Decide appinnovation bets

Build appsand services

Integrate application with

back-endsystems

Automate functional security and performance

testing

Deploy and expose mobile apps

Manage andmonitor

end-to-endsolutions

Lifestylemanagement

and teamcollaboration

Figure 1: Addressing the mobile app lifecycle supports comprehensive mobility management.

17.Communications Edition

Expanding revenue opportunities in a dynamic mobile marketplaceA mobile app lifecycle approach that covers

all six key steps can go a long way in helping

customers successfully launch basic mobile

applications. But it also supports a broader

range of enterprise mobility hosting and

management options to open new revenue

opportunities for service providers. These could

include managing employee mobile devices

and applications on behalf of the enterprise to

help ensure uniform upgrades and that policy,

governance, and security is adhered to.

It’s also important to keep in mind that mobile

applications are the front end for Software

as a Service (SaaS) applications. They need

careful management to get the most value

from the SaaS model.

Further, mobile devices are the focal point for all

kinds of innovative partner-supported market

opportunities for providers. Applications could

include data feeds from third parties (to check a

prescription’ssideeffects,forexample)orbuying

incentives (restaurant coupons) linked to the

device’s GPS coordinates. Here again, managing

the mobile app lifecycle can help ensure the

initiative’s success. A comprehensive mobility

strategy—including the back-end infrastructure

and the RF environment—also helps set realistic

expectations about what the application can and

cannot do.

Lower cost and faster time to marketComprehensive mobility management that

encompasses every phase of the mobile

18. Communications Edition

applicationslifecycleprovidesseveralbenefitsto

service providers and their customers, such as:

• Lowering costs via better resource

management (hardware, software, people)

• Reducing time to market while improving

organizational agility to support

business objectives

• Improving quality management through

functional, security, and performance

testing automation

• Providing a better customer experience by

reusing scripts, knowledge, and expertise

from development to operations

• Standardizing the tracking of projects

through metrics and encouraging best

practices, stronger developer ecosystems,

and greater collaboration

HP Mobile App LifecycleThe HP Mobile App Lifecycle includes HP

Software solutions and services that accelerate

and simplify the creation of internally

developed or “in-house” enterprise mobile

applications. It also facilitates the deployment

and management of in-house and commercially

available mobile applications used in business

settings on both company-provided and “bring

your own” smartphones and tablet computers.

Working together at the new mobile horizonHP’s mission in mobility is helping IT build a

connected mobility environment by working

with CSPs and their customers to provide

universal access to people, applications,

and data. To learn more about how support

and services from HP Software can help

you deliver mobile applications through

better management of each phase of the

mobile applications lifecycle, download

the new HP business white paper, “Deliver

mobile applications: a lifecycle approach,” at

hp.com/go/mobiletesting.

Alain DecartesWW Communications, Media, Entertainment

Lead, Industry Market Development

HP Software Marketing

19.Communications Edition

Mobility 20/20Looking toward the era when everyone— and everything—is connected

Depending on which prediction you believe, each

person worldwide may be using as many as nine

mobile devices by 2020. Currently, smartphones

out-ship PCs, and in a recent Time Mobility Poll,

66% of respondents would rather take their

mobile device to work than bring lunch.

The interconnected world of the next decade

will rely heavily on public, private, and personal

clouds. Today’s “mobile experience” will evolve

into, quite simply, life. By 2020, zettabytes of

data from trillions of networked sensors will

have transformed the Internet of Things (IoT),

making transactions and interactions seamless.

For instance:

• Wearable devices and mobile applications

will manage your health—and share details

with your doctor.

• Your car will know how you drive, who’s in

the car with you, and how you’re feeling.

• Your favorite café or retail store will

recognize you—along with why you’re

there—andsendcustomoffers.

• Your refrigerator and pantry will make sure

your smartphone knows what you need at the

store—and will place the grocery order for

you if you’re too busy to shop.

• Salespeople will use mobile devices

to demonstrate products interactively

and immersively.

• You’llbeabletopayforpublictransit,filetax

returns, and report public safety issues on the

go, thanks to embedded biometric sensors

and yet-to-be-developed mobile innovations.

• Your pharmaceuticals and food will be

fresh, safe, and authentic thanks to sensors

and machine-to-machine communications

along the supply chain.

Mobility20/20offersaglimpseofaworld

in which enterprise IT answers to consumer

demands while innovating with the business.

We invite you to weigh in on:

• Whatchallengesandbenefitswillmobility

deliver by 2020?

• What changes will enterprises need to make

to secure users and their information in a

mobile world?

• Who should be responsible for setting

mobility strategy and policies in the

enterprise organization?

Join the conversation and preview Mobility

20/20 now at enterprise2020.com. The full

chapter will be available in March.

20. Communications Edition

As cloud expands, so do the dangersMaintaining the security of customer data and privacy has always been an important consideration for communications service providers (CSPs). But the cost of cybercrime is increasing rapidly. According to a Ponemon Institute research report, the average annualized cost of cybercrime for a CSP organization in the United States is $8.91 billion1. That’s up from $5.28 billion just three years ago.

The expansion of network access through

advances in cloud and mobile technologies

brings greater complexity and additional

security risks to providers and their customers.

And the regulatory pressures on CSPs to

maintain security—from Sarbanes-Oxley

(SOX), Payment Card Industry (PCI), and other

regulations—are not easing up.

Rising expectations for securityCSPs have seen an explosion in virtualization,

public cloud computing, and broadband

adoption by their enterprise customers. And

at the consumer level, the expansion of social

networking, bring-your-own-device (BYOD)

policies, mobile payments, and wireless

networking make it easier for customers to

connect to enterprise applications and to one

another. These trends potentially expand

the “attack surface” at the perimeter of the

enterprise network.

As these technologies become more widely

adopted, enterprise customers are increasingly

expecting their CSPs to act as security

guarantors across these services.

Successfully staying on top of such risks

can result in greater customer loyalty and

resulting share of wallet with the business

and consumer customer.

1 Ponemon Institute, “2012 Cost of Cyber Crime Study: United States,” October 2012

21.Communications Edition

Securing cloud communicationsPublic cloud architectures add a new layer of

complexity. Security technology will be a critical

component to enterprises in private cloud

architectures. But enterprise customers have

the same expectations for security here also.

The cloud security market comprises a diverse

set of technologies from on-premise software,

hardware, and virtualized appliances to security

delivered as Software as a Service (SaaS).

Also, cloud service providers and CSPs will need

security hardware, software, and SaaS products

to help secure their public cloud service

offerings.Thesecanincludecloudstorageand

servers (Infrastructure as a Service), cloud

development platforms (Platform as a Service),

and enterprise and consumer SaaS applications.

Moving beyond point security solutionsCSPs and their customers want to mitigate the

threat of attack from competitors and malicious

outsiders—attacksthatcouldputfinancial

records and intellectual property at risk. Point

security technology investments have helped

but do not provide the complete visibility

needed to detect fraud, combat cyberthreats,

andstreamlinecomplianceefforts.

Toeffectivelyaddresstheseproblems,

enterprises need to comprehensively

monitor all locations and infrastructure,

including data centers, retail branches,

online infrastructure, and service usage

activity. A comprehensive security solution

shouldaddressfivekeypriorities:

• Manage information risk by identifying threats.

• Protect against increasingly sophisticated

cyberthreats.

• Improve reaction time to security incidents.

• Increasetheefficiencyofsecuritymanagement.

• Achieve compliance in a predictable and

cost-effectiveway.

22. Communications Edition

Monetize security with managed security servicesThe need for comprehensive security solutions,

frequent technology refreshes, and ongoing

commitmenttofightingfraudcanmake

security an expensive proposition for CSPs and

their customers. Fortunately, managed security

services(MSS)notonlyprovideacost-effective

business model for countering cyberattacks but

alsoaprofitablewayforCSPstoexpandtheir

offeringstoenterprisecustomers.

With the MSS model, there’s no need for your

customers to spend their limited budget and

staffresourcesontryingtokeepupwithsecurity

demands. Instead, you can sell them security as

a managed security services provider (MSSP).

AnMSSPoffersremotemonitoringand

management of a customer’s IT security

information, assets, and processes where the

delivery of these services is via a remote security

operations center (SOC) managed by the CSP.

ExamplesofMSSPofferingsthatcanbeprovided

range from identity and access management

tofirewallservicestomanagedsecurity

information and event management services.

Detect fraud with pattern recognitionDetecting fraud is a game of pattern

recognition, and the patterns always change.

Therefore, comprehensive monitoring is critical

to recognizing patterns. Today a dual approach

of real-time monitoring and right-time analytics

helps businesses stop fraudsters while

gaining the enhanced knowledge they need to

implementeffectivepreventivemeasures.

Extension of fraud management tools to

include intelligence capabilities enables

companies to perform data mining for better

risk management. For example, with such

functionality not only are operational alarms

triggered, as is the current practice, but

historical data can be analyzed to see broader

trends. By proposing a cloud computing

infrastructure combining real-time monitoring

with right-time analytics, CSPs can help their

business customers dramatically reduce

fraudsters’ threats to the hard-earned customer

base, products, and brand image.

An affordable business model to help CSPs expand their offeringsThe MSS model provides many security

solutionstocustomersforalowfixedset-up

cost and then allows a predictable variable cost

for bringing new customers on board. This

business model reduces the cost for a CSP to

offersecurityservicesasanMSSPandthen

expanditsofferingsovertime.Further,the

MSSmodelprovidestechnicalfutureproofing

tocustomersbymaintainingamoreefficient

security platform.

23.Communications Edition

Learn more about offering managed security services using HP solutionsTo learn more about the HP security

portfolio and leading solutions that

youcanofferyourcustomersaspartof

a managed security services practice,

visit hpenterprisesecurity.com or

hp.com/enterprise/security.

Alain Decartes

WW Communications, Media, Entertainment

Lead, Industry Market Development

HP Software Marketing

24. Communications Edition

Pay-per-use managed network solutions help CSPs drive new revenueIt’s a widely known fact that enterprises spend more than 70% of their IT budgets just keeping the lights on, which only leaves 30% for innovation. For communications service providers (CSPs), that spells opportunity.

CSPs can now provide managed network solutions to their enterprise customers to help them cost-effectively modernize their networks. These solutions help the provider reach new markets and open up roadmaps for them to offer a wealth of new services to customers. Further, they leverage a pay-per-use business model so CSPs can create new revenue opportunities without capital investment.

Refreshing aging infrastructuresEnterprisechiefinformationofficers(CIOs)

would prefer to focus on delivering advanced

IT solutions and applications that help their

companies be more competitive and responsive

to market opportunities. But too often they have

to divert limited resources to operating networks

for employee access to applications like voice

and videoconferencing. This is becoming more

of a challenge as CIOs increasingly need to invest

in network upgrades that support initiatives like

cloud, mobility, bring your own device (BYOD), and

rich media, which can help them drive innovation

and business growth for the enterprise.

Byofferingmanagednetworksolutionsonapay-

per-use basis, CSPs can help enterprise customers

refresh their infrastructures without upfront

capital investment. This allows the customer to

align their operating costs with actual usage,

and still maintain service level agreements with

25.Communications Edition

business units. This helps bring cloud economics

to even campus and branch networks.

How it worksThe new HP FlexNetwork Utility Advantage

Program enables CSPs, in partnership with

HP, to help enterprise customers modernize

their network with standard, prepackaged

networking solutions, including hardware and

software, with no upfront cost. Customers then

contract with the CSP for the managed network

offeringstheyneedtosupportinitiativesthat

speed innovation on a pay-per-use basis.

Leveraging solutions based on the HP

FlexNetwork architecture, an open, standards-

basedarchitecturethatissoftware-defined

networking (SDN)-enabled, the program helps

CSPs rapidly upgrade and future-proof their

customer’s network. As a result, their enterprise

customersreapthebenefitsofcloud,mobility,

and BYOD initiatives without capital investment,

while freeing IT resources to focus on innovation

that drives growth, as opposed to network

infrastructure management.

Providing a consistent user experienceCSPs leveraging the HP FlexNetwork Utility

AdvantageProgramcanalsodeliveraunified

wired and wireless local area network (WLAN)

solution for cloud services or applications. A

single managed network solution that integrates

wired and wireless networks helps to deliver

consistent services and simplify operations. This

boostsoperationalefficiencies,cutscosts,and

helps provide a consistent user experience that is

critical for the adoption of new applications.

Going to market with a trusted partnerHP works with its CSP clients to ensure successful

launches of managed network solutions. This not

only includes the most advanced technologies

and comprehensive solution bundles but access

to our global support services.

We help establish a common value proposition

with the CSP and then help build a solid business

case for the customer. Our support includes

creating a market launch plan that covers all

operationalaspectsaswellasfinancing.

Learn moreThe HP FlexNetwork Utility Advantage Program

is available worldwide through authorized CSPs.

To learn more, visit our website.

Additional information for CSPs interested

in participating in the HP FlexNetwork Utility

Advantage Program is available here.

Ghassan AbdoDirector, Global Product Management,

Communication Service Providers

HP Networking

26. Communications Edition

Cloud and mobility—keys to a better retail experienceWhen customers walk into your retail stores, how long do they have to wait before talking to a sales associate? How long does it take to get customers through the process of buying a new phone or service?

In a study of the full-service wireless purchase

experience, J.D. Power found that “Satisfaction

improves notably regarding the promptness

in speaking with a sales representative and

timeliness of completing the transaction1.”

In other words, if you can speed up the

transaction with just one customer, she’ll be

happier; the person behind her in line will

stick around to complete a purchase instead

of leaving the store in frustration, and the

guy browsing the phone display will get his

questions answered in a timely manner,

which may keep him from checking out your

competitor on the other side of the mall.

So, how can you speed up your retail

store transactions?

Accelerate transactions in retail storesYoucanshaveminutesoffallyourretail

transactions by moving your paper-based

contract processes to the cloud. This

helps eliminate time-consuming, tedious

administrative tasks and also frees up

sales associates to spend more time

helping customers.

In many retail stores today, the sales associate

must walk away from the customer mid-

transaction at least twice: once to verify or

copy the customer’s ID documents and a

second time to make multiple copies of the

signed contract for record-keeping.

By updating the subscription process to take

advantage of mobile devices and the cloud, the

sales associate can complete the transaction

faster and keep the face-to-face interaction

1 J.D. Power and Associates, 2012 U.S. Full-Service Wireless Purchase Experience StudySM , August 2012.

27.Communications Edition

going without interruption. Using an enterprise-

ready tablet, such as the HP ElitePad, the sales

associate can check the customer’s documents

and capture a signature without stepping

away. And by automatically uploading the

signed contract image to the cloud, it becomes

accessible to other retail locations, marketing,

customer service, and call centers.

In addition to providing faster service to your

customers, using mobility and the cloud for

retail transactions helps you:

• Drivesignificantcostsavings;ifyounormally

print or copy multipage contracts, you can

save almost $2.50 per contract, which adds

up quickly over millions of contracts

• Eliminate the risks of exposing

confidentialcustomerinformation

or losing important paperwork

• Increase the number of customers served

• Provide information that your customers

want, such as how to get started with a

new phone

• Meet compliance regulations and close

the loopholes leading to contract fraud

• Support environmental sustainability goals

by decreasing the need for paper, storage,

and transportation

• Eliminatecostsforoffsitestorageaswell

as courier services to transport paperwork

between the store and the archive site;

typicaloffsitestoragecostsfordocuments

canrunabout$70Kperyear

28. Communications Edition

Accelerate sales associates’ response timeEven before the subscription process begins,

your retail associates should spend face-to-

face time with customers throughout their

information gathering. If the customer asks a

tough question, the sales associate should not

have to walk away to get an answer. Instead,

he should have all the answers available at

hisfingertipswithamobiledeviceandacloud

solution. With a tablet such as the HP ElitePad,

thesalesassociatecanfindinformation,show

videos, and run any Windows® application—

from any point in the store.

By taking the conversation to the customer and

keeping the conversation going uninterrupted,

you can reduce or eliminate abandoned

conversations for new products and services.

This helps improve the customer experience,

which can lead to increased revenue.

HP solutions for a better in-store experienceThe HP Account Opening Accelerator for

Communications, Media and Entertainment is

an end-to-end solution dedicated to reducing

paperwork, completing transactions more

efficiently,andgettingcustomersoutthedoor

faster. Eliminating the need to print and store

multiple copies of subscription paperwork, the

solution scans completed, and signed service

contracts and associated documentation, and

digitally routes the contracts to a customer-

specificarchiveforfiling.Inadditionto

increasing customer satisfaction, this process

also helps mitigate risks, such as exposure of a

customer’sconfidentialinformation,andassists

with regulatory compliance.

The HP Account Opening Accelerator is

mosteffectivewhenpairedwithamobile

device such as the HP ElitePad, a tablet

designed for business with enterprise-grade

features, functionality, and support. It is an

ultrathin,lightweighttabletthatoffersthe

full serviceability, enhanced security, and

manageability found in HP Elite PCs, as well as

military-grade durability for drops, vibration,

dust, temperature extremes, and high altitude.

It comes loaded with tools, including HP

PageLift, an application that automatically

trims and correctly lights and orients a

captured image of a paper contract or other

document so it is ready to use or share without

requiring manual editing.

For more information, please visit us online at

hppublicprint.com.

Eileen GriffeeCommunications, Media, and Entertainment

Market Development Consultant

Managed Services

HP Printing and Personal Systems

29.Communications Edition

Innovative, cloud-based services increase customer satisfaction and revenueLeading carriers are introducing new,

innovative services to help increase average

revenue per user (ARPU). Services that

augment user-generated content such as

photo services or mobile printing are popular

with customers. Launched under your

brand, these services can not only provide

a new revenue stream, they can make you

a one-stop shop, which increases customer

satisfaction. And, as cloud-based services,

they’ll also increase your customers’ data

usage, which adds to your ARPU.

For example, Verizon Wireless introduced

the ePRINTitKiosk at CES 2013. The kiosk

from St. Joseph Communications was

developed with cloud printing and mobility

solutions from HP. Users can submit a print

job wirelessly from a smartphone with

just a few clicks and have it printed at the

kiosk. The printed photos and documents

can come from storage on the device or

from cloud-based services like Dropbox,

Box, and Facebook.

HP provides several cloud-based

servicesthatyoucanofferunderyour

own brand to help you monetize user-

based content, including:

• HP ePrint Service Application provides

mobile printing with a worldwide

directory of more than 30,000 public

print locations.

• HPSnapfishisaphotoservicethat

produces professional quality prints as

well as more than 100 customizable photo

gifts, from display-quality photo books

and posters to photo mugs and jewelry.

• HP MagCloud is a web service that

empowers users to self-publish and

distribute content—for business or

personal use—as a professional-quality

print publication or digitally for mobile

and online viewing on today’s most

popular devices.

For more information and to watch a short

video, click here.

31.Communications Edition

New report from CMO Council validates value of big data for CSPsToday, information is at the core of the enterprise and will continue to drive competitive advantage. For communication service providers (CSPs) it is more specifically a matter of staying relevant in a vastly changed ecosystem. Unless the CSP exploits the treasure trove of consumer data that their networks collect daily, they are in danger of providing only commodity services.

CSPs manage the structured information that

comes in from the daily operation of their

business. But they also collect unstructured

data from internal and external sources,

including social media, blogs, messaging,

mobile applications, and other sources.

With HP, CSPs can gain actionable insight to

help them provide a better user experience,

offerthebest,mostsuitableservicesfor

subscribers, and optimize network utilization.

This actionable insight can also be leveraged

to help them enter into “co-opetition” with

over-the-top (OTT) content providers who are

changing this industry’s landscape.

A new HP-sponsored report from the CMO

Council,“ProfitabilityfromSubscriberAcuity,”

notes that the biggest challenge to a CSP is

that customer expectations are evolving faster

than the company can construct services and

The biggest challenge to a CSP is that

customer expectations are evolving

faster than the company can construct

services and experiences for them.

An increase in service fees without an

increase in service value is one of the top

fivefrustrationsofmobileconsumers.

And perceived value is directly tied

to how the customer experiences all

aspects of mobility service.

32. Communications Edition

experiences for them1. The CMO Council found

that an increase in service fees without an

increaseinservicevalueisoneofthetopfive

frustrations of mobile consumers. And perceived

value is directly tied to how the customer

experiences all aspects of mobility service.

Clearly, success for CSPs starts and ends with

the customer experience. Further, deeper

insights in this critical area put the CSP into

a better bargaining position with OTTs to

thebenefitofboth.Mobilesubscribersdon’t

need a commoditized CSP. They need a strong

champion for a great customer experience.

CMOs step up to own the customer experienceThe CMO Council report calls out that if provider

CMOs want to play a more strategic role, they

must identify “deeper customer insights

and market intelligence that can fuel more

1 ChiefMarketingOfficerCouncil,“ProfitabilityfromSubscriberAcuity:EmbracingBehavior-BasedPricingModels,”January2013

“HP is the only vendor who could understand SBM’s true issue in usage data management… We can now leverage our view of customer usage to provide a better customer experience…”

—Akihiro Muranaka, Manager of Rating System, Information System Division, Softbank Mobile

33.Communications Edition

personalized and targeted experiences.” The

CSP marketers surveyed for the report described

their charter or mission in the following way, “to

deliver enhanced insights and intelligence into

theorganizationinanefforttoimprovecustomer

experiences, identify new market opportunities,

andimproveoperationalefficienciesacrossthe

marketing organization.”

But that’s a tall order given the complexity of

the mobile ecosystem, a diverse and rapidly

expanding subscriber base, and constantly

shifting customer expectations. Despite the

significantcommitmenttochampioningthe

customerexperience,asconfirmedbythe

report’sfindings,marketersareoftenstymiedby

a lack of visibility and insight into critical areas

of intelligence and analytics. The CMO Council

found that only 5% of marketers have access

to an automated solution that leverages data

and intelligence to enable improved decisions

or personalize individual engagements.

Fortunately, new tools in big data and analytics

can help CMOs develop keen insights into the

customer experience to provide well-informed

counsel on strategic decisions for the CSP and at

the bargaining table with OTTs.

Mining for goldBig data and analytics help CSPs gain deeper customer insights to deliver a better experience

Consider this: a typical U.S.-based CSP moves

19 petabytes of data through its network each

day. (By comparison, it took only 1 petabyte of

data to render the movie “Avatar.”) The sheer

magnitude of this data can provide deep and

exclusive insights into the customer experience

when you apply big data and analytics to it.

“What is clear from this study is that marketing has been tasked with owning the customer experience and driving bottom-line revenue improvements. Considering that research has put the potential revenue loss from OTT starting at $13.8 billion in 2011 alone, it is not surprising that telco marketers see OTT as an opportunity to exploit.”

—Liz Miller, Vice President of Programs for the CMO Council

34. Communications Edition

Then CSP marketers can leverage this “secret

weapon” to assert their organization’s role

in the evolving mobile ecosystem and their

leadership in the value chain.

Big data and analytics provide CSP marketers

with three key capabilities:

• The ability to gain better insight into

customer preferences and behaviors

• Turning insight into action, delivering

customer-impacting services and

business models

• Offeringsmarterpricingmodelsthat

reflectthetruecostofprovidingrobust

network services

With these three capabilities in their marketing

toolbox,CMOscanofferpersonalizedservices

to the individual needs of each customer. This

helps the CSP improve its position as a value

provider to the customer and avoid having to

compete as a pure commodity service. And with

mobile services tailored more closely to real

customer needs, subscribers perceive more

value from what they’re paying for and are less

likelytochurnoffthenetwork.

They’re also more likely to pay for the services

that more closely satisfy their needs. CSPs

candefinedifferentpricinglevelsfordifferent

service variants rather than providing mass

market pricing. Providers can break away from

flat-ratepricingplansandstartchargingfor

bandwidth by its real value instead of letting

everyone download unlimited video for cheap.

Further, big data and analytics help change the

relationship between CSPs and OTTs to support

asignificantshiftinthewayprovidersare

looking to these potential partners. The new

report said 31% of respondents are already

identifying potential revenue streams from new

productsandservicesthatcanbeofferedto

OTT players, including subscriber analytics and

behavioral insights.

“This lack of visibility into the key drivers of customer behavior leaves a significant opportunity to drive incremental revenue and improve engagement performance. Marketing is being asked to sway behaviors but simply does not have the tools needed to make those core decisions effectively. However, this research also shows that above all else, marketers understand what they need to be more effective and what points of measurement will enable real change and improvements in the customer experience.”

— Miguel Carrero, Director of Actionable Customer Intelligence Solutions, HP Enterprise Services

35.Communications Edition

HP launches new big data solutions for CSPsTohelpCSPsdifferentiatethemselves,deliver

more value to their customers, and improve

financialresults,HPlauncheditsHPTelcoBigData

and Analytics group of solutions in December. HP

Telco Big Data and Analytics helps carriers:

• Develop new revenue streams and business

ventures—via new services or ventures

with third parties

• Target and create new product and

marketing campaigns—relying on

informed customer insight

• Optimize network investments—by

improving their CSP capital planning by

optimizing network utilization and their real-

timeresponsetotrafficcongestionsituations

Learn moreTo learn more about how providers are looking

to boost revenues through partnerships and

alliances with OTTs, download the full report.

For more information on HP Telco Big Data and

Analytics solutions, please visit the website.

Julia OchineroCME Marketing Leader

Enterprise Industry Marketing

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

Microsoft and Windows are registered trademarks of Microsoft Corporation.

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Why HPHP helps the world’s communications service providers (CSPs) transform the way they do business—to grow in a fast-changing market. CSPs must meet the huge demand for new services and streamline internal operations. HP is unmatched in its ability to help CSPs drive transformation with more than 30 years of telecom experience, global IT leadership, and a broad telecom-specific portfolio coupled with leadership in telecom services including consulting, outsourcing, and managed services.

Quick facts• CSP public cloud deployments deliver SaaS,

IaaS, and CaaS solutions in three continents

• 400 HP OSS customers worldwide

• 250 fault management customers globally

• 170 customers use HP real-time

mediation solutions

• 90 CSPs globally count on HP Service Activator

to provision network as well as IT services

• 90 carriers worldwide depend on HP’s Revenue

Intelligence Solutions to protect their revenue

streams and customers

Learn moreFor more information visit hp.com/go/csp.