The Collapse of the Walled Garden

Copyright © 2007 Juniper Networks, Inc. Proprietary and Confidential www.juniper.net 1

The Collapse of the Walled Garden

Paul GainhamDirector Service Provider Marketing EMEA

$


Changing Marketplace

Intense pressures placed on carriers to increase revenue

Content providers are aggressively making offers to customers• Web 2.0, interactive web• Social networking• Video Architectures• Software as a Service

How can this application focus be leveraged?

$

WirelessVoice

$ $

Broadband

$

Overall Revenue

Application

Explosion


Plumbing vs. Value Carriers are faced with the problem of Best-Effort being

too good• Only value is in adding more bandwidth…for less revenue• Great for Internet hosted content…is it good for the carrier?

Customer see value in the applications, but not necessarily in the network• Is there value that the carrier can provide in this evolving space?• Is Web 2.0/WebServices a threat or an opportunity for carriers?

What are the new sources of revenue for the carrier?• Need to find sources of revenue beyond just from the customer• New revenue requires new sources of value—what is that carrier

value?


Increasing Carrier Revenue Create an environment that allows the customer to

access their desired content in a controlled fashion Solution:

• Focus on Customer Control

• Integrate disparate Network Elements (content, core, access)

• Differentiate Delivery based on Customer/Application Requirement

Cable TV Business Model

NFL -Content Source

NFL -Content Source

ESPN –Content AGG

ESPN –Content AGG

ValueValueValue

Cable Provider

Cable Provider

Users

Each step cares about the “Experience” They are getting paid for it

Good user experience


Increased take-up

Content Aggregator

Content Aggregator

Content SourceContent Source

Transforming the Experience: Controlling the delivery of Services

Internet Model

SPSP

Value

Transformed Model

Content SourceContent Source

Content Aggregator

Content Aggregator

ValueValueValue

SPSP

User

Users

Value

Poor user experience No differentiating value to the carrier

Appropriate user experience Increased take-up

Increased carrier value & revenue by controlling the “experience”


Trends: Collaborative Content Distribution

Content and application providers:

• Provide an enhanced user experience

Network providers:• Deliver the service experience

• Monetize the Network

“We don’t have to own every service. We just have to package a lot of them and help the customer find the things they like.”

Ivan Seidenberg | Chairman and CEO | Verizon Communications

“We don’t have to own every service. We just have to package a lot of them and help the customer find the things they like.”

Ivan Seidenberg | Chairman and CEO | Verizon Communications


The Role of the Service Provider Network

Internet

Applications

Residential

Business

Identity

Experience

Best Effort

Enhanced

Assured

Security

L3/L4 Stateful

L7 Signature

L7 Application

L3/L4 Stateless

Connectivity/Virtualization

L2 VPN

L3 VPN

L7 VPN

Routing/Switching

Mobile

WebServices

Video

Gaming

HomeTelemetry


Future Service Model

It is all about the Application It is all about the Experience of the end user

• Quality, simplicity, continuity, multiple personal devices It is all about how the network can deliver this

AAA + Policy and Resource Control

Applications/Content(Video, Voice,…)

Core

Business

Access

IP Edge/ GGSN

WebServices

Applications, End Points, & Services

Off-net valued content


Super CoreMetro CoreAccessIP

Edge

Carrier Network

Content Relationships and Network Value

Carrier Hosted and Delivered – longer time to market, more control

Customer

Identity Federation & Policy and Control

WebServices

Video

Carrier HostedCarrier or Partner

Content

Gaming

HomeTelemetry

On-Net

WebServices

Video

Partner HostedPartner Content

Gaming

HomeTelemetry

Off-Net

Video

Internet HostedNo relationship

Gaming

HomeTelemetry

InternetOTT

Content

Partner Hosted, but carrier transacted – fast time to market, same model No partner relationship – Best Effort delivered applications, no carrier value Need to build a model where the network has value – experience is a value

that only the network can deliver

Best EffortEnhancedAssured


The New Off-Net Business Model

Rapid time to market with new services• Deploy a new service every week

Micro-segment the customer market• Target 2% of the customers, not 50%

Leverage the intelligence of application companies• SOA and WebServices Frameworks

Reduce the risk of new services Always leverage the value of the network

• Provide the Glue between the applications and the network


New Business Model

Delivering an application with an appropriate experience has value at several levels

Carrier Network

CustomerBest EffortEnhancedAssured

Applications

WebServices

Framework

Microsoft CSF

IBM SDP

Identity Federation & Policy and Control

Network

€€


Time of Change

We now have the first opportunity for innovation and carrier differentiation in over a decade

This is a new way to do business…not just a new offer or a new network build

Leaders will define the future - followers live in it

The Collapse of the Walled Garden

Documents

Transcript of The Collapse of the Walled Garden