Here Comes the Cloud: How to Cut Service Creation Time & Grow Revenue

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Here Comes the Cloud: How to Cut Service Creation Time & Grow Revenue

By: Tony Kourlas, Director of Carrier SDN and NMS Product Marketing in the IP Routing & Transport Group, Alcatel-Lucent

The cloud era is here -- do you think your network is ready? As a network operator, you will need to deliver on-demand network services that are just as dynamic as the cloud services that now dominate network traffic. You face many challenges in making this happen.

But a new study from ACG Research shows you can achieve this quickly and profitably with advancements that are available now. Their analysis of the new Alcatel-Lucent Network Services Platform in a national network scenario showed you can cut service creation time, generate more revenue, and achieve significant ROI very quickly.

Network complexity & waste block profitability

So what’s stopping you with the present mode of operation? Complexity and waste are getting in the way of your profitability.

The business processes used to plan, build, and operate network infrastructure involve manual handoffs between the network engineering processes that control network resources and the network operations processes that provision services. Each is further divided into separate packet and transport silos. OSSs/IT and element management systems are forced to interoperate with the network through multiple, complex, and vendor-specific APIs.

The impact of these limitations can be crippling as operators make the transition from static to dynamic network services.

  • It can take months to years to deliver new services to market, and weeks to months to fill customer orders.
  • Capacity waste drives cost to levels that are too high to profitably deliver dynamic services at attractive prices.
  • Commitments to add large blocks of bandwidth capacity must be made many months before they are needed.
  • Underutilized capacity cannot be redeployed to where it is needed.
  • Substantial bandwidth capacity must be reserved to protect against the possibility of network outages.

Carrier SDN:  Automate & optimize for true freedom

Carrier SDN offers a fresh way forward. The NSP leverages Carrier SDN to unify service automation and network optimization in one integrated platform. The result is that network operators can deliver dynamic services quickly, efficiently, and at great scale.

The NSP accomplishes this by:

  • Applying policy-based resource selection using real-time network visibility to meet service objectives in the most optimal way, and by provisioning all network layers automatically to enable the service.
  • Abstracting the service towards IT systems/OSSs to simplify integration.
  • Enabling real-time network path computation and optimization that is centralized and KPI-driven to rapidly adapt to changing network conditions.
  • Supporting automation and optimization across multiple Layer 0-3 services, IP/optical/Ethernet technologies, and physical and virtual network infrastructure as well as equipment from multiple network vendors.

ACG Research test results

To put the NSP to the test, ACG Research made comparisons between an NSP-enabled and PMO-enabled national network used to deliver bandwidth calendaring and bandwidth on-demand services to a target market of 10,000 large enterprises.

ACG found the following:

  1. NSP cuts service creation time by 58 percent compared to the PMO: 5-week service creation time versus 12-week service creation time.
  2. NSP produces about 8 times more bandwidth calendaring revenue than the PMO over 5 years.
  3. NSP produces up to 9 times more bandwidth on-demand revenue than the PMO over 5 years.
  4. NSP deployment in support of the launch of the bandwidth calendaring and bandwidth on-demand services has a 4-month payback and 400 percent ROI over 5 years.

Operators can achieve the dramatic increase in revenue with the NSP, compared to the PMO, because it can improve capacity utilization by 40 percent. This utilization improvement enables profitable operation at a price point that is 29 percent lower than the PMO price point. This, in turn, stimulates demand relative to what is possible using the PMO. The NSP’s 58 percent faster service creation time also provides a prime-mover advantage and advances revenue recognition.


To be as dynamic as the cloud services that now dominate network traffic, you will need to:

  • Move to an on-demand network service delivery model so applications can consume only what they need, when, and where they need it.
  • Take new services from concept to market in weeks/months, not years, and be able to provision them in seconds/minutes.
  • Better harness your underlying packet and transport infrastructure in order to profitably offer on-demand services at attractive price points.

We believe the NSP can help you make this happen. Download the Carrier SDN business case and register for our upcoming webinar series to find out how you can cut service creation time and grow revenue  


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