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Editor's Notes

• #2: Thank you to the leadership and members of the Alliance for Telecommunications Industry Solutions for hosting Sonus and this session. I¡¯d also like to thank the audience for taking time out of your busy schedule to join us. Finding time to sit down can be tough, never mind for 40 minutes. I¡¯ve been at my booth for the last couple of days emphasizing to key business leaders, analysts, engineers, business managers, and entrepreneurs, how important it is that they move their networks to where their markets are. Being at the booth hasn¡¯t afforded me time to visit around or most importantly see if my question was answered at the Keynote Panel discussing ¡°the New Network¡±. As part of preparing for the show, ATIS gave you an option to ask a question and so I asked:How many of the keynote panelists are active contributors of a social network like, Facebook and/or Twitter. In the last 24 hours, how many status updates did they make on those social networks. My point in those questions is something that I¡¯d like to discuss. The telecommunications industry I walked in on 10 years ago was just beginning to feel the pain of the internet and new user habits. I remember seeing a chart when I first started at Sonus and it showed a steady incline with a hockey stick turn for data use. The increase of internet calls on the voice network required service providers to think differently about their deployment strategies, in order to lessen their increasing operational costs. Today the use of the web continues to put pressure on the carrier¡¯s network and more importantly, on how they earn revenue from consumers. ?I hope in the next 40 minutes I¡¯m able to use my experience and perspectives to shed some light on how service providers can engage the new market and make up for lost revenue. ?To start this discussion, ATIS helped us by asking these two questions ¡°Where has voice gone and what¡¯s next? Let¡¯s start with where has voice gone?
• #3: Truthfully, I don¡¯t think voice has gone anywhere,
• #6: I¡¯d ask it as¡­¡°where is the main revenue line going?¡±
• #9: & there was a time when traditional voice was the most popular product.
• #10: But as you know, about 50 years ago we went full speed into capitalizing on a great technology called the Internet. (thank you Russia¡­ARPA or as its called today, DARPA.The USSR's launch of Sputnik spurred the United States to create the Advanced Research Projects Agency, known as ARPA, in February 1958 to regain a technological lead. ¨C www.wikipedia.org
• #11: Which then was a very cool idea, imagine being in the room where the discussion of networking began.
• #12: but did we hurt ourselves? That'
• #13: Today our efforts for building out IP technologies are causing us to re-evaluate our business models.
• #14: Let¡¯s look at how next generation consumer has moved their revenue and attention in other industries.
• #15: ComScore report this year that online sales continue to outpace local purchases. During last year¡¯s holiday spending, it was discovered that Large items were heavily purchased via online. 18% more.Online Spending Trends Outperform Brick-And-Mortar Across Several Key Retail Categories ¨C January 2009, www.comscore.com http://www.comscore.com/Press_Events/Press_Releases/2009/1/Online_Spending_Outperforms_Brick-and-Mortar -
• #16: I just put the iTunes logo on this slide since I didn¡¯t think we needed to go there. We know how impacting digital media has affected the music industry.
• #17: Newspaper advertising revenues are certainly feeling the pain. They are down 23% in the last two years according to Pew Research. http://pewresearch.org/pubs/1151/state-of-the-news-media-2009 - March 16, 2009
• #18: The communications industry is under as much pressure to adapt.Picture Source: http://www.flickr.com/photos/69282447@N00/110375029http://www.telecomtv.com/comspace_newsDetail.aspx?n=45179&id=e9381817-0593-417a-8639-c4c53e2a2a10#
• #19: This track asked the question ¡°Are service oriented architectures the key? It certainly presents itself as an opportunity.
• #20: But before we answer that question, let¡¯s ask ourselves another question; What will make a provider buy products in next 1 ¨C 3 years?
• #21: Will it be because it¡¯s smart technology? Might ?Or will it be because Google likes it. Maybe ?Are these solid reasons enough? Will you march into a service provider today with a newer form of technology to sell them based on those answers?? Service Oriented Architecture (SOA) has grown significantly, starting in 2003. - http://c2.com/cgi/wiki?ServiceOrientedArchitecture
• #22: A. It saves them money?If you¡¯re not reducing some sort of cost, you won¡¯t even be looked at in today¡¯s environment.B. Their customers are asking for it.?If there isn¡¯t a demand, there¡¯s no need to create a supply.
• #23: Since buyers expect reason A. to be available at point of purchase¡­ ?The second reason becomes more critical. So let¡¯s take a closer look.
• #24: Who are the new provider¡¯s customers? It¡¯s kids or the next generation. They don¡¯t have the buying power now but over the next few years, they will start. Do you wait?Source: Pew Internet Statisticshttp://www.pewinternet.org/Reports/2009/14--Teens-and-Mobile-Phones-Data-Memo.aspx
• #25: Knowing this is the customer, how many of them ask for a phone from a specific provider because they have deployed a service oriented architecture? ?None
• #26: What they asked for are phones that let them text, surf the mobile web, remain in contact with their social network and more. They want as many communicating options as possible.
• #27: So if end users aren¡¯t asking for products, where SOA is needed, will a service provider do anything??Providers know they¡¯ll need it eventually, but just not now¡­?So how do we change this in order to facilitate the growth of SOA.?
• #28: My view¡­we have to do a few things differently and no I¡¯m not saying we force it through¡­but we do have to stress the points.
• #29: Providers have been in opex reduction for years, and it will continue, but now its time to put some savings to work. Let¡¯s get innovative beyond cost cutting and venture out into the new world of communicating.
• #30: We have to try and/or invent more things. ?There are sufficient technologies available to create just about anything, so get out there and test new products/models. And if it isn¡¯t something you know how to do, then refer it to someone who might. http://www.camptaichi.com/blog/wp-content/uploads/tinkering-with-tai-chi.jpg
• #31: Most importantly, and I stress importance here; develop deeper relationships with users to find those yet-untapped opportunities.
• #32: That means you¡¯ll have to get to know what they are into and target those interest areas. That might mean you have to put on some keds, rip the your pants¡­.maybe even start twittering? Get into your market and see where the new revenue opportunities are.
• #33: If we take these actions, I think we can get at the next which leads us to the second part of our conversation today.
• #34: What¡¯s next?
• #35: About a year ago I was at a developer meet up at Betahouse in Cambridge, MA. Betahouse is a co-working location and it was here I got to participate and see first hand how new properties come along. At these developer meetups a group of folks with various backgrounds all get into one room. Here everyone introduces themselves and why they are there. Networking, have an idea, need help¡­whatever. After everyone has introduced themselves, people then start talking about the ideas and what they can do to bring it to life. After that¡¯s been decided, the newly formed groups of workers, then go into a room and put it together. After 12 hours, lots of RedBull, and good music, all groups showcase their status. Would you know it, most of them are working but not fully formed for commercial. The applications being built today are pulling different forms of information from all over the web. Facebook with its social streamGoogle with search, maps, and the newly released ¡°Wave¡±Delicious ¨C those tags show common interestTwitter ¨C status stream, real time trendingEven local governments are getting involved by making their data available for use. Here the Massachusetts Dept of Transportation is running a challenge for creating apps using their data.
• #36: If we are going to capitalize on the SOA opportunity, you need a framework that supports creating services that can pull the information sources.
• #38: WorksnugAllows mobile employees to see where¡¯s a nice place to sit and work. Users open the camera on their phone and point it toward the facility they want to go work at. The facilities information is shown on the phone. (How many of you have sat down and said to yourself, ¡°I¡¯m going to create an app because I need something that gives me this info?¡±
• #39: LayerLayer is an augmented reality property that lets you use the camera on your phone to see what around you has been visited and given feedback.The last time I attended a Betahouse Developer meetup in Cambridge, I heard a kid, he was about 17, ask if anyone could help him create an app that told him if there were any folks walking down the road that shared similar interests. He wanted this so he could have someone to walk with. That¡¯s not uncommon to hear questions like that. I sit there in awe sometimes just thinking about where these ideas stem from. A couple more examples.
• #40: goPostal goPostal is making the old seem new again. GoPostal allows you to use content on your phone to create postcards which can then be sent to family and friends via US Postal Service.
• #41: StorySomethingAllows you to create children stories to share with your kids. Those stories can be shared over the phone. Again, have you asked yourself that question?These are examples of where entrepreneurs are taking advantage of your ¡°voice¡± and creating newer forms of revenue.
• #42: So if an enterprise brand like Starbucks wants to create a way to tell me while I¡¯m in my car or walking by that my favorite coffee is available for 30% offhttp://www.takesontech.com/wp-content/uploads/2009/09/iphones-my-starbucks.jpg
• #43: Then the sources of information like ?Where I am (GPS)?What I like (user profile)?What¡¯s on sale (starbucks server)?Need to speak a common language so I can access via my phone.http://images.ectaco.com/ut/images/1/coll3.gif
• #44: When the information sources are synched, creating and selling new services will get easier and faster.
• #45: There are only 10 more to go but they go quickly¡­
• #46: The new spenders are treating industries and technology in very different ways so it¡¯s important that we get committed to adapting much faster in creating services. We are beyond evolution¡­
• #48: If we can take these actions, we can find newer opportunities.
• #49: Because we know we¡¯ve gotten closer to our users and have deliver into their interests
• #50: have invested again
• #51: and have created/released products
• #52: These actions should allow us to find those yet-untapped revenue opportunities and put us back on track.
• #53: My name is Ben Ortega and I work for Sonus Networks. I¡¯ll now take your questions and if I don¡¯t have time to answer them all, please join me at booth 3517.