Sam Baker Sales Leader, Telecommunications Industry Software Group, Asia Pacific, IBM

1. SOA & Web 2.0 in Telecommunications IBM Software offerings & Customer References in Service Creation Deployment, Execution, and Management Sam Baker Sales Leader, Telecommunications Industry Software Group, Asia Pacific, IBM

2. IBM’s Vision Become a “keystone” within the emerging converged ecosystem, enabling individual players to participate successfully within it. While allowing service providers easy deployment and management via a robust Service Oriented Architecture. Helping drive innovation Improving member competitiveness Supporting the introduction of new players and new business models as they arise Ultimately increasing the overall vitality of the ecosystem Converged Ecosystem Telecom IP core networks IPTV, wireless Broadband, WAN Access / bandwidth ConsumerElectronics Media Rich content PCs, Smart-phones Digital Rights Mgt PVR, games consoles Branding Faster, cheaper chiptechnology Packaging Broadcasting Battery technology ITServices Applications Middleware Web services Suppliers Network Equipment ISVs,,Systems Integrators, IT Suppliers, Middleware Managed Services

3. Strategy Evolution – IBM in Telecom Telecom Investments SPDE, Digital Media Framework, SOA, CBM, Carrier Grade Open Framework, TSPM IP Multimedia Subsystems Over 20 deployments worldwide leveraging IBM SDP From an initial 6 to more than 1500 partner ISVs Vallent Acquisition IBM launches BladeCenter HT IBM Announces IMS Middleware Suite Carrier Grade Open Environment Standard IBM wins 4th Gen SDP at Bharti 2007 Acquired: Micromuse Webify FileNet MRO ISS IBM opens Telecom Solutions Labs Founded ITU-T Open Comm. Arch. Forum IBM launches BladeCenter T IBM launches 3rd Gen SDP at SBC Acquired: Ascential Trigo DWL IBM launches 2nd Gen SDP at Sprint IBM launches SDP at France Telecom IBM 1st Gen SDP at FarEasTone Carrier Grade Open Framework 2006 IBM opens Telecom Industry Partner Network IBM Develops SPDE Framework Start of an Industry focus in Telecom 2005 2004 2003 2002 1999 2000 2001

4. IBM is making major investments to expand our software leadership around Services Oriented Architectures “Business Process Mgmt from IBM leads in market share” Best Enterprise Information Integration (Intelligent Enterprise Reader’s Choice Awards) • $1B increase in investment next 3 years • 15K practitioners, expected to grow by 65% next three years • Gartner leaders-quadrant Horizontal Portals • 100’s of pre-built portlets ready for SOA dashboards • 2,500+ Channel Partners & Solutions • 37% market share in application and integration middleware market* (Gartner) • Almost 400 Telecom ISVs enabled on WebSphere • Over $1B/yr invested in SOA • SOA consultants, architects and IT specialists • Leadership in open standards • 300+ SOA-related patents

5. … a service? A repeatable business task – e.g., check customer credit; open new account … service orientation? A way of integrating your business as linked servicesand the outcomes that they bring … service oriented architecture (SOA)? An IT architectural style that supports service orientation … a composite application? A set of related & integrated services that support a business process built on an SOA Simply Put, What Is It? Service Orientation? SOA?

6. IBM’s Overall Telecommunication Industry Solution Strategy Establish leadership around NGN/SDP security and autonomics Enable broad partner ecosystem for demonstrable applications and use cases. Preintegrate and package prioritized partners Help telcos extend services to the enterprise and exploit internet models (Web 2.0) NGN Services Ecosystem Autonomics & Virtualization Lead the industry to accelerate SDP/IMS market adoption through a revenue-based business case. Execute with a SOA / SW led services transformation Security Service Oriented Architecture OSS/BSS Process & Info Integration Service Delivery Platform Service Fulfilment Service Creation Service Execution Service Mgmt Leverage Netcool, Vallent, MRO and Webify software, partners and broad customer base Lead in Service Assurance and use to balance influence of Oracle and Amdocs Service Assurance Expose Build Partner Legacy Services Next Gen Services Legacy OSS/BSS Next Gen OSS/BSS Differentiate IBM with integrated value of our SOA-based SDP and BSS/OSS assets Billing Exploit IBM’s SOA and Information on Demand leadership to win overall BSS/OSS process/info integration Become truly NEP agnostic while exploiting their channel. Let NEPs drive cost reduction business case NEP Partnerships Legacy IMS

7. Rapidly deliver new converged telecommunications services Tsunami alert is issued Calls are made to homes, offices, cell phones, pagers to locate Personnel alerted and instructions given Required emergency personnel is identified and located List of available emergency personnel created

8. Agency Responder ? Typically a sequence of multiple, “single-step” processes… Tornado alert is issued Calls are made to homes, offices, cell phones, pagers Personnel mobilized Attempts are made to locate emergency personnel in effected area Emergency personnel have been located …which can lead to costly time delays.

9. Personnel Support - Mobile Personnel Support – Police & Fire Personnel Support – Hospital & Others Emergency Response Office Electronic Mapping Application Provider Location info Telecom Service Provider Presence info Tsunami alert is received and forwarded High risk areas are identified People and resources are identified Available method of communication identified Notify via best available communication method

10. Service orientation in action On-line mapping service Emergency response center Telecom Providers Telecom Providers Telecom Providers Send broadcast message Geographic analysis Field dispatch system Determine Eligibility Order Input Determine Availability Determine proximity Content rendering Emergency Response Services Presence Location Based Services Push 2 Media Emergency response system Mapping Application Hardwired connections

11. Swisscom Mobile Trial IMS service innovation and cost reduction leveraging IBM Rational Unified Service Creation Environment Challenge Value Delivered: • Prove that IMS shortens the time to market new services and reduces cost • Roll out 2 services to prove that IMS Architecture works end to end • Prove that a generic Service Creation and Execution Environment is viable • Two innovative Rich-voice Services were demonstrated – CallTones and InfoService • Hosted an integrated IMS Solution for Swisscom in IBM Telecom Solutions Lab in Montpellier • Established a generic Service Creation Environment in Swisscom Labs for trialling new services on an ongoing basis How IBM Helped • Defined and implemented IMS architecture • Integrated multiple vendor components in a short period of time to create an end-to-end solution • Efficient delivery of innovative services in conjunction with 3rd parties • Leveraged IBM Software products in IMS Service Plane

12. Adapt composite services to specific segments needs to establish brand association 4 Compose Composite services by combining two or more foundation services into an integrated service packages (e.g. voice and data services combined) Segment Specific Services Sports, Project Office, Field & Sales Force enablement Service Creation Facilitates service creation and composition 3 Deploy simple basic service that can be sold in its own right (e.g. Push2 X, instant conferencing, streaming video) Composite Services Composite service created from 2 or more foundation services… Rich voice, games with “trash talk” Service Enablers Common set of enablers across services Presence, GMLS, NAB, etc… 2 Deploy Services enablers as common elements across multiple services ensuring commonality between services and reduce cost through reuse Foundation Services Basic unit services … Voice, conferencing, PTT, games etc 1 Next Generation Services Characteristics Anywhere, anytime, anyoneComposed (Reuse)Open APIs offered for 3rd parties to create innovative servicesSOA technology enabled • Streaming time-sensitive data on IP/MPLS Core • Dynamic routing and call setups • IT-enablement of network service • Users new protocols • (SIP, Diameter, Web-services, XCAP, Parlay)

13. IP Centrex Voice Mail SMS Email Conferencing VoiP Push to talk Game portfolio Push to video Push to picture Mobile TV broadcast User comment portal Merchandising Portal Push to voice message Streamed video Instant messaging Multimedia dialling & call mgt IBM suggests Clients create a portfolio of common cohesive services Start by implementing foundation service set – these are the qualification services Rich voice Illustrative Messaging Video Games

14. Select Buddies Josef Jochan Rebecca Can Paul Select Game Trash Talk with the game? • Yes • No Invitations to the game are sent to the selected buddies Combining Multiple Enablers and Foundation Services to Create Composite Services Helping maximize the flexibility of your service portfolio + Composite Service Gaming & “trash talk” Presence Mobile games + + Charging Conferencing + Group List Gaming & “trash talk” scenario… The marketing team drives demand by continually adding new games and competitions He selects a game from the choices available Then selects friends whose presence status shows them available … and decides the game will be more fun if they can all talk to each other Jacques has some spare time and decides to play a game with his mates

15. Converged SIP/HTTP Execution Platform Enhanced!WebSphere Application Server V6.1 delivers a high-performance converged application platform IMS Enablers & Applications Example – call management application • Alice calls Bob and the call is routed to the converged container • The application sees Bob is busy and opens a Web session with Alice to provide options • When Bob is available, the application initiates the call • Single application handles SIP + HTTP flows and maintains context throughout • Standards-based converged Web and SIP application platform • Accelerated development and deployment with seamless interaction for applications including SIP, HTTP and/or Portlets • Simplified deployment and administration with shared session management, security and seamless failover, edge device handling, etc. WebSphere Application Server Converged HTTP/SIP Container Converged HTTP/SIP Proxy

16. Gaming Address book Pre-built Service Enablers from WebSphere Software Accelerating deployment of next generation services and applications Example composite service: Interactive Gaming with trash talk Example composite service: Enhanced corporate phone book Confer-encing Platform to collect, manage and distribute real-time information regarding user access, availability and willingness to communicate Secure, standards-based third party access gateway across legacy and IMS networks Platform for creating and managing groups Group List Server Telecom Web Services Server Presence Server WebSphere Application Server (converged SIP/HTTP) Animated WebSphere IMS Connector (IMS-specific extensions)

17. Demonstrated Rapid Development of New Services Iterative development using IBM service assembly environment and network enablers IBM Rational Application Developer Component/Unit Test J2EE/EJB Tools Portal/Mobile Portal Tools WebSphere SIP Tools BPEL / Web Services Tools Mobile Device Tools VoiceXML Dialog Tools Parlay and Parlay X Tools In 1 week, we delivered another rich service prototype for a different type of customer • reusing 100% of the first service In 4 weeks, we delivered a rich service prototype including: • re-using 4 enablers • building a Group List capability • building a Mobile User Interface Example Example

18. Example Service CompositionInitial Concept is Quickly Prototyped CONCEIVE MODEL Compose Model from Service Components ASSEMBLE Link to SOA Runtime TEST

19. Example Service Composition Iteratively Add features and Refine Product ITERATE ENHANCE MODEL ASSEMBLE Link to SOA Runtime TEST

20. IBM Service Composition Tool; SOA-Compliant, Drag and Drop Reusable Component Catalogs Cable Components Content Provider Components Example SOA Service Composition for TV Caller ID 3rd Party Components Standard SOA Component Definitions

21. Enabling a Future-proof Platform Example of a Web 2.0 Enterprise Mash Up Providing the flexibility to evolve network without modifying 3rd party applications Px Terminal Location WebSphere Telecom Web Services Server Px SMS Px Terminal Status Parlay X to Parlay Gateway Parlay X Direct to Network Element Parlay X over SIP Legacy Network • Handset Location from Sprint BMF Location Web Service • Maps/Routes and Reverse Geocoding from ESRI ArcWeb Services • Enterprise Workforce Management Application from Aligo Next Generation Network

22. Innovation at Sprint IBM’s proven experience delivering a production, high-volume platform Challenge Value Delivered: Enable Sprint to deliver differentiated services to customers in a highly competitive marketplace, leveraging existing network resources and information • Developers and Systems Integrators embedding Sprint network services in their applications are becoming a value-added channel for Sprint • Enterprise applications can invoke telephony services, such as location and status of devices, content delivery notification and call control How IBM Helped • Delivered Telecom Web services-based solution that exposes network service capabilities to enterprise and 3rd Party developers. • Solution provided the necessary flexibility to support multiple underlying networks to ease NGN migration • Re-engineered business processes to accommodate new provisioning and billing approach Approx. 40M Sprint-Nextel users

23. Set top box Call from 512 555 1212 Dorothy Smith WebSphere Telecom Web Services Server Legacy Network Caller A large Tier 1 U.S. operator – proof of- concept of Converged Services over IMS For incremental service revenue through innovation Challenge Value Delivered: • Prove that IMS architecture enables converged services • Roll out Caller ID feature over IPTV to prove that IMS Architecture works end to end • Proved that Caller ID feature works with IPTV technologies • Proved that IMS architecture works end-to-end How IBM Helped • Leveraged IBM-NEP Joint Solution with pre-integrated architecture • Defined and implemented architecture of the Caller ID feature for IPTV • Integrated multi-vendor components in a short period of time to create an end-to-end solution • Leveraged IBM Software suite for IMS Service Plane

24. CPE Supplier Request Service Order Input Web Service Customer Account Creation Order Management Web Service Product Selection and Ordering Network Configuration Web Service Work Order Generation Network Inventory Assignment VoIP Resource Activation Web Service Service Activation Billing Event Notification at&t Lightspeed Triple Play Triple Play infrastructure based on an SOA model and Telecom standards Value Delivered: Challenge • Provide VoIP, high speed internet access and IPTV in a FTTN and FTTP network environment Enables at&t to effectively and efficiently assemble multiple service components to deliver a seamless customer experience How IBM Helped • Enabled SOA-based Service Delivery Platform using to provide service provisioning, management, activation and subscription management • Integrated multiple partner applications, including Ceon, Cramer, Granite, Amdocs, Sylantro, G2, SAP, Microsoft & Leapstone • Delivered an asset-based solution available in the IBM Austin Telecom Solution Lab

25. IBM’s view is that Web 2.0 requires and enables an architecture of open services which empowers users to CREATE, DISTRIBUTE, COLLABORATE, and COMBINE data within a rich user EXPERIENCE. WEB 2.0 The following examples detail Web 2.0 success in the marketplace:

26. Enabling Web 2.0 functionality requires additional resiliency to existing enterprise infrastructure, and can be mitigated by robust Services Oriented Architecture (SOA) WEB 2.0

27. Sprint Project LaunchPad “LaunchPad must provide the means for Sprint-Nextel to collect detailed usage/interaction data at an individual user level and allow for formally surveying or informally scanning user feedback.”

29. IF@CT IBM becomes Collaborative Innovation Partner of China Telecom (CT) • Highlight Impact • Influenced CT for the notion that Innovation is a grass root effort supported by management. • Enabled CT’s Innovation Works by Innovation Factory (IF) • Continuing partnership • Event on Apr. 6, 2007 • CRL signed an MOU with CT Shanghai Research Institute to be strategic innovation partners with a collaboration framework covering research center transformation, innovation system establishment and NGN technology development, e.g., Cell Blade FOAK. • CT’s Innovation Works was launched to support CT’s 2nd innovation contest. James Yeh, acting director of CRL, An Min Li, director of CT, and around 200 CT employees attended the launch event. The first innovation idea was posted as soon as 20 minutes later!

30. ArcWeb Services Map Database Authentication Customer Example: Sprint Exposes Network Capabilitiesas Telecom Web Services, Enabling Web 2.0 Mash-ups ESRI Datacenter Get map mapping service WSDL / SOAP Enterprise SOAP WSDL Operator Network Telecom Web Services WebSphere Web Services Infrastructure Parlay / OSA API Get phone location Web service Parlay X Web Services WebSphere

31. Web End Users Example Telco 2.0 Service using Mobile Phone Presence Internet Services Mapping Service Enterprise Presence Service Mobile Phone Location Service On the glass integration – “wiring” Telecom Network Services

32. A Closer Look at IBM’s Enabling Architecture HSS TCP Parlay Gateway HTTP Call Control Diameter Presence HTTP GLS PARLAY-X Web Services TWSS Services Platform PARLAY TWSS Access Gateway SIP HTTP SIP Presence HTTP HTTP XDMS XCAP XCAP Direct Connect Connectors Other IBM/WebSphere Policy

33. Monitoring SLA Enforcement Billing Metering IMS Services Mashup Users Mashup Users Mashup Assembler Palette of Widgets Mashup Assembler Service Provider Content Provider Content Provider Content Provider Content Provider Content Provider Content Provider The Service Provider Opportunity Opportunity Today SDP Content Providers can reliably (SLAs) barter or monetize content by tapping into existing Service Provider capabilities Content Providers and Service Providers can rapidly develop customized mashup offerings, to meet situational business demands and reach niche market segments Core services exposed by Service Providers can enrich and enable the personalization of mashups

34. Mashup assembled from operator and Internet services. Opportunities for advertising and transaction revenue sharing from content providers. Mashup Assembler @ Service Provider Mashup Assembler @ Content Provider Mashup assembled from operator and Internet services brokered by operator. Mashup assembler as channel for Operator. Deliver Content Subscribers Expose Services Deliver Mashup Expose Services Deliver Mashup Mashup assembly includes operator services. Content provider as channel for Operator. Deliver Mashup Mashup Assembler Emerging Mashup Ecosystem Content Provider Telecom Service Provider

35. What does this mean for Service Providers? Unique Value Position • Core Services – Presence, Location, Click-to-Call, SMS, etc. • Customer base – Existing subscriber/customer data as well as explicit/implicit user generated content • Local Market Brand Recognition, Trust, and Permission • OSS/BSS – Billing/metering/monitoring infrastructure to extract value from the proliferation of mashups built from content Revenue Opportunities: • Proactive Advertising leveraging user generated content and locality (“Advertising by regional businesses targeted to local Web media climbed 31.6% in 2006, 7.7 Billion in 2007”) • Micro-payments from the use of core services and increased network usage • Transaction fees for premium content delivery Costs Savings • Rapid on-boarding/off-boarding of services and content • Dramatic reduction in application development costs • Organic partner ecosystem development • Offload a portion of the marketing costs of applications to the ecosystem • No need to host or aggregate third-party content

36. WebSphere Application Server WebSphereIMS Connector IBM is helping Service Providers get started Mashable pallet of widgets for Core telecom network services QEDWiki: Industry recognized collaboration-centric Mashup Maker with browser based tooling for creating widgets or generating widgets Telecom 2.0 Gateway The Telecom 2.0 Offering from the IBM Emerging Technologies & Telecom Industry Solutions Team Existing Robust IMS infrastructure with Standards-based Service interfaces

37. OSS/BSS Integration Bus & eTOM Process Orchestration/Automation NGN Services Legacy Services SBC Service Plane HSS THE SERVICE VISIBILITY GAP HLS CSC SGW Control Plane MGW Transport Plane WiMax Cable xDSL WiFi RAN FTTx Access Plane A Comprehensive IMS SM SolutionManages all IMS planes and Integrates into the OSS/BSS processes Fulfillment Service Assurance Billing Service Configuration & Activation Order Handling Service Level Management Service Quality Management Billing & Receivables Service Rating & Usage Provisioning FaultManagement Mediation Inventory PerformanceManagement Security Management Test/Diagnostics Management ElementManagement Note: Animated Slide

38. (2) Service Model Dashboards (1) Consolidated Event View (3) Business Risk Indicators Mean Opinion Score Latency Jitter Packet Lost 3.8 110 ms 30 ms 0.5 % Voice Traffic Traffic Load Number of Calls On-net / Off-net Ratio 3.8 Tb 40.2 Eg 543K 67 % VoIP Quality VoIP Usage Call Completion Rate Call Drop Rate Grade of Service Post Dial Delay 90 % 1 % 0.1 % 2.1 sec Service Availability Echo Delay Post Dial Delay Mean Opinion Score 99.75 % 120 ms 2.1 sec 3.8 Call Signalling Service Quality

39. The Blueprint: IBM Industry Studies Best Practices, Implementation Guide, ROI Models, Component Business Models SOA Scenario: Business/Ops. Support: Service Provisioning SOA Scenario: Service Delivery: Converged Services Telecommunications Industry SOA Framework Made up of IBM and Partner Assets • CBS Factory for Telco • NGOSS Contracts • Web Service Interfaces • TriplePlay Provisioning • Unified Service Creation • Telecom Web 2.0 / Mashups • MediaHub • Service & Network Assurance Industry SOA Foundation Domain Models • Next Gen Service Delivery Platform • IP Multi-Media Subsystem • BSS/OSS Transformation • Information On Demand • Service Platform Enablers (Mobile Portal, Group Mgmt, Presence, Telco Web Srvcs) • Telecom Toolkits and Testing • SOMA for Telco • eTOM Process Models • SID Ontology Models Architecture Methods Tooling and Runtime Telecommunications Industry SOA Roadmaps

40. Leverage over $5B of investments in middleware and over $1B per year in service oriented architecture (SOA) • Excess of $350M invested in NGN / SDP solutions over last 5 years • Exploiting common infrastructure software and modular service enablers to apply mainstream SOA and software innovation to NGN Technology Leadership • Significant Service Delivery Platform skills, experiences and learnings • Network of Communications Solution Labs supporting demos, prototypes, trials and engagement support • Accelerating NGN assets, pre-integrated solutions and best practices • Extensive partner ecosystem and programs (including NEPs) • Extensive SOA system integration, governance and learning skills Real-life Experience • Rapid service creation and life cycle management • Enterprise and ecosystem exploitation of Web 2.0 • Evolving service management to address composite services offerings leveraging IBM’s acquisition of Micromuse • IBM research investments in NGN Innovation The IBM Difference Faster time to market, increased revenues and lower development costs for new services

41. How will innovation work for you? Your products? Your services? Your financial strength? Your customer base? Your supply chain? Your management systems? Your business model? Your history? Your brand? Your expertise?