Slide title In CAPITALS 50 pt Slide subtitle 32 pt Open Source Business Models for Mobile Media Gateway Node Manager.

Slide titleIn CAPITALS

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Open Source Business Models for Mobile Media Gateway Node Manager

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© Ericsson AB 2008 Open source business models for Mobile Media Gateway Node Manager2

Ericsson Media Gateway for Mobile Networks (M-MGw) 1/2 The M-MGw is one part of a core network entity called

the MSC– The MSC operates between different mobile and fixed

networks– Handles both user plane and control plane traffic

In layered architecture the MSC is split in two: MSC-S and M-MGw

– M-MGw handles the user plane traffic– MSC-S performs control plane activities controlling the M-

MGw


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Horizontally Layered Architecture


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M-MGw in Core Network


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Ericsson Media Gateway for Mobile Networks (M-MGw) 2/2 Main functions:

– Payload processing– Bearer control– Media conversion

O&M functionality: – Built in the node with an API– Three layers:

The Network Management Layer The Sub-Network Management Layer The Element Management Layer

– One single M-MGw is managed on element management layer with the Node Manager


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The Node Manager

An element management layer tool Written in Java

– Can be run on any platform in any enviroment

Provides a GUI for the O&M functions in the M-MGw– A node can be managed both remotely and locally

Used for– Configuration management– Software and hardware management– Fault management– Troubleshooting– Collecting performance data


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Open Source 1/4What is it exactly?

A software development method and ideology Utilizes the power of process transparency and shared

peer review Efficiency increases with the number of developers Details depend on the chosen license

– However, the license only defines the rules and boundaries, a framework for operations


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Open Source 2/4Licensing?

Open Source Initiative (OSI) approves licenses that are in line with the open source definition

– Nearly 60 approved licenses to choose from– Naturally, a number of licenses exist without OSI trademark

Copy-left vs non-copy-left An open source license defines:

– The right to modify the software– The right to distribute both the original and modified

software freely– The ownership of intellectual property rights– Warranty, liability etc.


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Open Source 3/4How does it work?

The open source process is based on free distribution It costs nothing to give away a piece of software

already written Getting something valuable in return is likely Win - win situation Open source applications:

– Google Android– Mozilla Firefox– MySQL– Linux


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Open Source 4/4Why?

Open Source programs are:– Diverse– Reliable– Usability improves constantly– Can be obtained free of charge– Can be freely modified

Examples in PC and Internet environment prove that: – The open source software development method can

produce good programs– Open source methods generate also revenues when

correctly utilized


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Benefits

Diversity– More functions available

Higher quality– More bugs being spotted and fixed– More reliable and stable

More customized solutions– Lower OPEX– More complex features possible to implement

Responsiveness– Customization made locally– No time wasted in organizational steps


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Open Source Business

1. Businesses are not sustainable, only few survive over decades

2. Software businesses are not superior to other types of businesses when revenues and profits are compared

3. At least few of the popular open source projects have been successful for quite a long time. These businesses seem to be equally or even more sustainable than traditional ones

4. The future of open source seems bright, the process may change over time, but the ideology remains. Open source, free software and proprietary are going to coexist in the near future.

5. Open source can make money. It is only a matter of strategy to make an open source project profitable.


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Open Source Business Strategies

Support sellers (Red Hat: Linux) Loss leader (Microsoft: Xbox) Sell it, free it (Google: Browser) Widget frosting (Nokia: Mobiles) Accessorizing (O’Reilly Associates: Books) Service enablers (Teleoperators: Mobiles) Branding (Red Hat: Linux) Aggregating and enhancing (Sourcefire: Security) Commecializing with a dual license(MySQL: Database)


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Open Source and Ericsson

Clear demand for customization– Open source could be the way of implementation

Widget frosting strategy recommended for Ericsson– Later support sellers should be considered

Fist mover advantage– Create strong bond with customers

Positive publicity if successful– May create requirements for other products as well– Failure may result in negative publicity

Open sourcing a program is not just throwing the code over the wall


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Outbound Open Source Software Development Model


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Objectives

Increasing hardware and maintenance sales– Competitive advantage

Customer switching costs and lock-in effect– Customer satisfaction

Lower OPEX Customization

Organizational learnign– New way of working

Refocus of energy– Innovation

More people, multidiciplinary views


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Risks


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Conclusions

Open source is an intriguing opportunity Increases customer satisfaction

– Decreases the number of lost customers– However, no new HW sales expected– OPEX could be the key to success

Organizational learning May contain high costs

– Uncertainty and risks involved

Time is not ripe for this solution– Not enough potential users yet– New inspection after 12-18 months– User profile needs re-definition


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Slide title In CAPITALS 50 pt Slide subtitle 32 pt Open Source Business Models for Mobile Media Gateway Node Manager.

Documents

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mgw slide

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core network slide