Click here to close now.

Welcome!

SOA & WOA Authors: AppDynamics Blog, Carmen Gonzalez, Liz McMillan, Ian Khan, Leo Reiter

Related Topics: SOA & WOA

SOA & WOA: Blog Feed Post

IT and the Communication Industry

Why SOA implementation is necessary for Traditional Telco Service Companies?

After lecturing on SOA concepts, Architecture and Technology, I present Case Studies. While presenting Case Studies, I ask my students: "Why many Case Studies and Success Stories are from the Telco industry?" Usually they do not provide a good answer to the good question.

It is a good question because the answer is based upon Business dimension, Technology dimension and the relationship between the two dimensions. 

Why SOA implementation is necessary for Traditional Telco Service Companies?
For many years, Traditional Telco companies revenues were based upon telephone calls billing.
In USA Bell Labs was split to Baby Bells. In other countries these companies were Monopolies or Duopolies.  
Due to lack of competition, their revenues were high.

When Voice over IP matured they found a lot cheaper competition such as Skype

When someone traveled to other countries, he called his family in his home country. The Telco service providers earned money.

However, when I paid a visit to Bhutan two years ago, I could find free Internet services in almost every hotel or guest house. I used Skype. I could talk to my friends and relatives as much as I liked to. I paid nothing to a Telco Service provider
The Computer Camera enables another type of data classical phone calls were not able to provide: I could see my friends and relatives during our phone calls. 

Bhutan is just an example of Developing Country. You may be sure that me and anybody else could use free Skype calls from Developed Countries.

The traditional Telco Companies had to reinvent themselves or perish. 
They developed new Business Model based on new services e.g. Content Services, Internet Infrastructure Services etc. 

As Far as Information Technology is concerned, frequent and major changes were required in order to support the new Business model and the New Business Services. 

Agility or ease of Change is SOA's major Value Proposition. The Traditional Telco Services providers transformed their IT systems to Service Oriented Architecture based systems in order to support the IT Systems changes.  

SOA and Cellular Phone Service Companies
The emergence of Cellular Phones is another threat to the Traditional Telco model, which was not mentioned in the previous paragraph.

I would like to describe the beginning of my SOA lectures, prior to discussing why there are many successful Cellular Phone companies SOA Initiatives.  

I start my lecture by describing two new banks. I describe a very simple Business Plan and the Information technology effort supporting it.

The first imaginary bank, named T-Bank (T stands for Traditional) built Legacy Silo based systems. The students easily find and understand the disadvantages of that approach.

S-Bank(S stands for Service Oriented Architecture), imaginary bank as well,  built a pure Service Oriented Architecture and the systems building blocks are Services. The students easily find and understand the advantages of this approach. It is  relatively simple and easy to  build S-bank systems


The third imaginary bank is R-Bank (R stands for Real). It is a "T-Bank" which was merged with another "T-Bank".
Moving from large Silo systems architecture to SOA based Architecture is a long, complicated and expensive journey. 

Let us go back to the Cellular services companies. 
Which type of bank resembling them? These companies are new companies, therefore most of their systems are modern. They have only few Legacy Silo Systems. They resemble S-Bank.

Most of the Traditional Telco Companies as well as most Banks, Insurance Companies, Governmental Agencies and Utilities companies resemble R-Bank.

It is easier for Cellular Services Companies to transform their architecture to SOA, therefore SOA Initiative's success stories of companies of this vertical are common. 

New Challanges to Cellular Services Companies
Similar to the need of Trditional Telco Companies to reinvent themselves a decade ago, Cellular Services Companies need to change their Business model.  
Revenues from Cellular Phone calls and SMS messages are lower than few years ago.

Services like downloading a Ringtone you paid for are obsolete in Smartphones.

Regulations and Competition are factors lowering income from Phone Calls and other services.

Mobile Apps make some paid services unnecessary. 
WhatsApp is an example of an aplication replacing SMS, without any revenews to the Mobile Services provider.
Infrastucture costs are high. 

The Mobile Services Companies are looking for new revenews sources e.g. Financial services, Content Services and even Cloud Computing Services.

The lucky providers have solid SOA and BPM implementations, which facilitate the major IT systems changes supporting the assimilation of new Business Lines. 

Final Notes
SOA provides the basis for Business Agility. Business and IT Agility is a must for Traditional Telco companies, as well as new Telco companies, which have no choice but to reinvent themselves. 

I read about financial difficulties of Post companies.
Increased usage of e-mail, SMS as well as other technologies, reduce the number of letters and reduce the revenews. Soon they will have to reinvent themselves like the Traditional Telco services providers and the Mobile services providers.

Read the original blog entry...

More Stories By Avi Rosenthal

Ari has over 30 years of experience in IT across a wide variety of technology platforms, including application development, technology selection, application and infrastructure strategies, system design, middleware and transaction management technologies and security.

Positions held include CTO for one of the largest software houses in Israel as well as the CTO position for one of the largest ministries of the Israeli government.

@ThingsExpo Stories
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along with a steady stream of well-publicized data breaches, only add to the uncertainty
Hadoop as a Service (as offered by handful of niche vendors now) is a cloud computing solution that makes medium and large-scale data processing accessible, easy, fast and inexpensive. In his session at Big Data Expo, Kumar Ramamurthy, Vice President and Chief Technologist, EIM & Big Data, at Virtusa, will discuss how this is achieved by eliminating the operational challenges of running Hadoop, so one can focus on business growth. The fragmented Hadoop distribution world and various PaaS solutions that provide a Hadoop flavor either make choices for customers very flexible in the name of opti...
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will discuss how to cut costs, scale easily, and unleash insight with CommVault Simpana software, the only si...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, will focus on how to set up a cloud data governance program and s...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and expertise to guard against those threats. But will that be enough? In the foreseeable future attacks w...
HP and Aruba Networks on Monday announced a definitive agreement for HP to acquire Aruba, a provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt approximately $2.7 billion. Both companies' boards of directors have approved the deal. "Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT," said Meg Whitman, Chairman, President and Chief Executive Officer of HP...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics archive, in his session at @ThingsExpo, Jim Kaskade, Vice President and General Manager, Big Data & Ana...