Composable platform for TELCO
Blog: End to End BPM
Industry outlook
Communications service providers are pinning their hopes for future revenue growth not on their existing connectivity businesses, but on new B2B services that they hope to develop on top of connectivity by leveraging 5G, IoT, edge computing and AI. Despite the market outlook forecasts global double-digit growth beyond 5G connectivity business, the data does not suggest that the telecom industry is on the verge of a B2B revenue explosion[1].
There was hope that platform business models pushed by communication service providers could start demonstrating growth in the market, via ecosystem effect. The reality is existing offers range from basic connectivity, private networks, infrastructure services, IoT platform accelerators and a combination of managed services. The desire to finally monetize the 5G opportunity still demonstrates potential but realizing the business case and progress on technological advancement and new business models remains challenging.
Communication solution providers should focus on building composable cloud platforms that provide horizontal industry-agnostic solutions, based on RAN, 5G-core, vertical solutions targeting priority segments – such as such as industry 4.0, smart cities and cross-industry solutions that consider value sharing and open innovation-enabled by next frontier of network programmability to create unique value propositions.
The United Nations sustainable development goals[2] defined a series of bold ambitions, among those related to connectivity. By 2030, major stakeholders agree that network technology will support a sustainable world, going beyond strategies related to networks harvesting energy from green sources and decreased energy consumption. Primarily, the communications industry will increase its contributions to society, enabling efficient resource use and new ways of living. It also includes going beyond efforts to fight climate change, such as people inclusion that is enabled by connectivity providing access to different forms of digital services such as: banking, education, healthcare, governmental services, remote work, or smart agriculture. The goal is to provide communities on a global scale, with high-grade wireless services for digital inclusion.
Monetize the platform business model
5G is transforming the traditional, layered protocol-based communication industry through cloud network servitization.
Industry horizontal solutions based on RAN, 5G-core, and security enable fast growth and innovation by allowing CSP’s to focus on their core business through a common technical foundation and universal connectivity offerings such as network-as-a-service, cybersecurity-as-a-service, and infrastructure-as-a-service. This layer also includes core cloud platform services enablement such as computing, data & AI, API, IoT / Edge and TELCO-specific functions OSS / BSS.
Industry vertical solutions target dedicated IT functions for specific business needs and operations, such as real-time quality control in an automotive assembly line or a connected ambulance with cognitive vision for patient monitoring.
As supply chains become more distributed and advanced, an integrated approach forms multisided platforms. Cloud native design, open source, and standards drive openness in networks and operations architectures. This enables cross-industry solutions that consider value sharing and open innovation-enabled co-creation and co-capture. The main goal is to provide revenue streams for all involved: service providers, enterprises, government organizations, and consumers. Organizations must consider the lifecycle stage of complementors, customers, and partners in the ecosystem, including the open-sourced effort of a community of developers, a critical element for platform programmability in the communications industry.
“VulcanForms[3]can produce tens of thousands of parts for various industries within hours, from tens of thousands of parts for a jet engine, then switch to doing medical implants. The knowledge of how to make the part lives in the software, allowing large industrial customers to focus on their core R&D, sales, and marketing, and outsource production to individual factories located anywhere.”
Source: Greg Reichow, a partner at Eclipse Ventures[4]
5G is transforming the traditional, layered protocol-based communication industry through cloud network servitization.
Industry horizontal solutions based on RAN, 5G-core, and security enable fast growth and innovation by allowing CSP’s to focus on their core business through a common technical foundation and universal connectivity offerings such as network-as-a-service, cybersecurity-as-a-service, and infrastructure-as-a-service. This layer also includes core cloud platform services enablement such as computing, data & AI, API, IoT / Edge and TELCO-specific functions OSS / BSS.
Industry vertical solutions target dedicated IT functions for specific business needs and operations, such as real-time quality control in an automotive assembly line or a connected ambulance with cognitive vision for patient monitoring.
As supply chains become more distributed and advanced, an integrated approach forms multisided platforms. Cloud native design, open source, and standards drive openness in networks and operations architectures. This enables cross-industry solutions that consider value sharing and open innovation-enabled co-creation and co-capture. The main goal is to provide revenue streams for all involved: service providers, enterprises, government organizations, and consumers. Organizations must consider the lifecycle stage of complementors, customers, and partners in the ecosystem, including the open-sourced effort of a community of developers, a critical element for platform programmability in the communications industry.
Composable Telco platform
In the digital era, platform components can be constructed like “Lego bricks” using a composition approach. This allows for a loosely coupled approach where numerous services can be combined – taking into consideration their use cases that need to be implemented – and matched without impacting others. Like in the ‘Lego brick’ world, platform services and functions need to be repeatable, automatic, and simple to follow a plug-and-play orchestration approach. This allows for different service designs and value propositions to cater to distinct customer requirements.
The constituent capabilities of a composable platform for TELCO industry that support a new flexible network design, full A.I. integration, network programmability, and functions & solutions composability are as follows:
- Modular – Components that can be easily added or removed as needed. Thanks to microservice, containerization or event-driven architecture-based design will exist on the platform to realize a service. Then, to manage this complexity, it will become essential to develop tools for selecting compatible software components suites to realize it and to manage their dependencies.
- Programmability – 3rd Party solution development for HW or networks. Programmable connectivity provides a standard interface across operator networks for developers to build network-aware modern connected applications. This enables the creation of cloud and edge-native applications that interact with network intelligence.
- Autonomous – A.I. as a service runs the network fully automated. This approach enables agile AI-driven orchestration of 5G networks and services, addressing the complexity of concurrent optimization with tailored data, models, and algorithms for specific network domains, slices, and edge cloud services. Autonomous networks are an emerging topic in terms of network operations adapting concepts of human system engineering concepts that are implemented in energy and manufacturing companies.
- RAN Cloudification – New API architecture for customized high-performance networks. Cloudification/containerization acts as a superior backend for applications, providing a foundation for network slicing, on-demand provisioning of virtual resources, and easy support for new services.
- 3D convergence – Progressively integrate terrestrial, satellite & micro networks. The requirement of constant network high-performance availability in 5G has led to the concept of 3D convergence, where satellites, terrestrial, and other communication networks are seamlessly integrated and managed by in-network intelligence as part of the software network continuum. The proved examples are looming on harbor management and intelligent traffic management for autonomous driving proof of concepts.
- Distributed – Multi cloud platforms mesh – cloud agnostic- an infrastructure layer for managing cloud environments without imposing any modification on how the cloud services are implemented. Cooperation between different administrative domains is required to consume APIs exposed by other domains develop open, global, and accessible API solution to operator capabilities, regardless the customer’s domain is in, project CAMARA, is one of many accelerators[5].
A composable TELCO platform offers the possibility of mass tailoring of connectivity services, intelligence & multiple industry solutions. The composability element allows numerous platform components can be combined – taking into consideration their use cases that need to be implemented – and matched without impacting others. Allows the creation of new business models served by operators and network equipment providers. It will gradually reduce the 5G monetization challenge.
References
[1] The telco growth imperative, TM Forum 2023.
[2] THE 17 GOALS | Sustainable Development (un.org)
[3] https://www.vulcanforms.com/
[4] Eclipse: Industrial Evolution
[5] Camara Project – Linux Foundation Project
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