Zero Touch Provisioning Value Added to Service Providers’ Business
Filippo Galimberti Business Development Manager – NMS/OSS
[email protected] Session Number Presentation_ID
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Agenda
• New services activation: Operation Challenges • Cisco Technology • Financial drivers • ROI Analysis • Case Study FG 20051004
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New services activation: Operation Challenges
Presentation_ID FG 20051004
© 2004 2005 Cisco Systems, Inc. All rights reserved.
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Current Service Providers’ market
Services complexity
diverging requirements
• Deployment rapidity • Process flexibility • Automated
T im
M o t e
et k r a
• New converging services on the network • Bundled offers • Market more and more demanding
Co st
red u
cti on
• Price competition • Margins reduction FG 20051004
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New Services Operation Challenges
ACTIVATION PROCESS
SERVICE LEVEL AGREEMENT
OPERATION CHALLENGES
LOGISTICS
FG 20051004
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New Services Operation Challenges
• Configuration ACTIVATION PROCESS
deployment SERVICE LEVEL AGREEMENT
OPERATION CHALLENGES
LOGISTICS
FG 20051004
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New Services paradigm The 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 FG 20051004
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New Services Operation Challenges
• Configuration ACTIVATION PROCESS
deployment SERVICE LEVEL AGREEMENT
OPERATION CHALLENGES
• Failure repair
LOGISTICS
FG 20051004
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New Services paradigm Service 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
FG 20051004
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New Services Operation Challenges
• Configuration ACTIVATION PROCESS
deployment SERVICE LEVEL AGREEMENT
OPERATION CHALLENGES
LOGISTICS
• Failure repair • Devices stock management related savings
FG 20051004
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New Services paradigm Logistics 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
FG 20051004
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Automated deployment: Cisco Technology
Configuration Engine Technology overview
Presentation_ID FG 20051004
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Configuration Engine Technology multiple domains
Zero Touch Deployment Automated CPE configuration and deployment Reduction of time to repair support to advanced services deployment
Enhanced network interface Programmable interface to the network Single configuration point more performing interface to provisioning systems Easier system integration
FG 20051004
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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. FG 20051004
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Zero Touch Deployment Automated CPE Ordering, Configuration and Service Turn-up 3
4
1
CPE shipped to customer
Config Engine
Subscriber
Service Provider 2
Internal Order
Cisco
1. Subscriber orders managed service from Service Provider 2. Service Provider initiates the deployments workflow 3. Cisco ships customer CPE with bootstrap config. SP can track shipment online 4. Subscriber plugs in CPE and device boots, pulls service configuration, and validates 5. Device publishes ‘configuration success’—service is on! 6. SP OSS workflow engine monitors events and triggers next step FG 20051004
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Zero Touch Deployment
f4
Scenario Configuration Express
Common Configuration
eToken
Configuration Engine CPE Deployment CPE Replacement
FG 20051004
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Services Activation
Network Infrastructure
16
Slide 16 f4
FINISCI ANIMAZIONE e figure sotto fg, 5/6/2005
Cisco Configuration Engine Network interface Customer/OSS Application
ISC Cisco Product
XML/SOAP
SDK
Java
C++
Network Engineer Using GUI Interface
XML/SOAP
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Configuration Services
Large Pop or Region
Cisco Configuration Engine
Web
Cisco Configuration Engine
Svcs
FG 20051004
Web
Pop or Region
C++
Customer/OSS Application
Publish/Subscribe Message Bus
Svcs
Configuration Services Image Services
Java
Customer Application SDK
Image Services
Small Pops or Regions 17
Cisco Configuration Engine Network 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 FG 20051004
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Cisco Configuration Engine Goal
Cisco Configuration Engine creates the infrastructure to drive the intelligence in the network available on any Cisco Device
FG 20051004
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Automated deployment: Financial drivers
Presentation_ID FG 20051004
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“Zero Touch” enabled opportunities •Direct savings CPE activation network activations fewer errors to repair
•Indirect savings stock management staff training
•Additional opportunities faster time to revenues easier and faster introduction of new services differentiation FG 20051004
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Financial Point of View
OPEX
•cost per element is composed by Infrastructure plus OSS
NETWORK
• ZTD lowers the Total Cost of Ownership
OSS OPEX
OPEX
ZTD role
• Config Engine Network Interface impacts the “Element cost”, maintaining margins on the service for network extension
OSS
FG 20051004
NETWORK
CAPEX
TCO Cost per Element
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Operations Expenses reduction 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 Customer and Corporate overall network cost
Total Operating Expenses Total Capital Expenses CO Transmission and Switching
15%
Operations
• OPEX reduction is the largest lever, but more difficult to implement
23%
Source: FCC, 2001 (Incumbent LECs) FG 20051004
10%
Depreciation and Amortization
Plant Maintenance
20%
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Cable and Wire, General Plant Equipment
22% Network Operations and Access
10% 23
ROI Analysis
CPE deployment
Presentation_ID FG 20051004
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ROI calculation activities • 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)
FG 20051004
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ROI calculation elements
FG 20051004
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ROI calculation results Deployment Spending $12,000,000 $10,000,000 $8,000,000 Manual
$6,000,000
Automated $4,000,000
Savings
$2,000,000 $0 0
200
6,000
($2,000,000)
FG 20051004
10,000
20,000
30,000
devices
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Costs savings on OSS assisted deployment
Manual Cost Drivers:
Default Value
Truck Roll Cost/Device
$
225
$
150
$
300
Labor Rate for Manual Config
$
50
$
45
$
70
Low Value
High Value
Error Rate, Manual Config
20%
15%
35%
Time to Config CPE (min)
60
45
90
Time Lag:Order to First Day Billing (days)
7
7
15
Default Value
Low Value
High Value
80%
60%
95%
Automated Cost Drivers: % Reduction in Truck Rolls Expected Labor Rate Shipping & Powerup
$
-
$
25
$
35
Time to Install Config Stub CPE (min)
0
5
15
Time Lag: Order to First Day Billing (days) Source: NMTG ROI analysis
5
3
7
FG 20051004
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Case Study
Presentation_ID FG 20051004
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Service Provider Context • 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 to enhance customer satisfaction by accelerating time-toprovisioning 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 FG 20051004
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“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. FG 20051004
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Service Provider’s Quote
“The ability to automatically configure our Cisco routers is a huge benefit to our provisioning organization. The productivity gains are substantial. From a customer service perspective, this is a major win/win.” Operation VP
FG 20051004
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Conclusions
Presentation_ID FG 20051004
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Cisco Zero Touch Deployment technology Concluding
• Technology Cisco Configuration Engine is designed to enhance network manageability
• Zero Touch Deployment ZTD 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 FG 20051004
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December 12 – 15 Cannes, France
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Presentation_ID
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