Huawei – Confidential
Huawei ITO Utilizes Key ICT Transformation Metrics to Deliver Next Generation of IT Services February 2016
Technology Business Research, Inc. Page 1
Huawei ITO Utilizes Key ICT
Transformation Metrics to Deliver
Next Generation of IT Services
Key Service Provider Metrics Market Study
February 2016
TBR
TECH N O LO GY BU SIN ESS RESEARCH , IN C.
Huawei – Confidential
Huawei ITO Utilizes Key ICT Transformation Metrics to Deliver Next Generation of IT Services February 2016
Technology Business Research, Inc. Page 2
TBR
Table of contents
1. Telecom operators face ICT disruption
2. The rationale for IT outsourcing to support ICT transformation
3. Success metrics for ITO
4. Huawei’s ITO offerings form a comprehensive solution
5. Operators leverage Huawei’s ITO solution for ICT transformation
6. TBR perspective
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Telecom operators face ICT disruption
To say telecom operators face challenging business conditions is an understatement. They
operate in an industry where traditional services enabled by a standard telecom
infrastructure are no longer enough. Lower costs and accelerated time to revenue are
required to prevent operator business models from failing.
“We cannot survive the way we are going,” said Telefonica CTO Enrico Blanco. “Traffic
grows at 50% every year and 100% in some countries. Our network will be growing; we
will be improving access and improving capabilities every day. But revenues are not
growing at this rate; we have to lower our cost. We need to use additional business levers.
In my mind there are no options — now is the time.”
Blanco’s sentiments reflect boardroom discussions worldwide. The industry faces
limitations in cost control and revenue growth:
Factors preventing cost control:
o Opex out of control — In 2015 average opex grew from 77% of total
operator spend to 82% to fund expanding network operations, according to
TBR’s review of global operator spending based on company financial
statements.
o Data growth without limit — Data traffic is estimated to grow tenfold by
2019, requiring continued capacity builds and spectrum purchases,
according to operators interviewed by TBR.
Factors preventing revenue growth:
o Price wars — Disruptive operators that start price wars, lowering average
revenue per user (ARPU) for everyone, are operating in saturated markets
where subscriber growth is limited.
o Digital competition — Digital service providers (including cable, over-the-
top and cloud firms) are competing through “freemium” and advertiser-
sponsored services, squeezing the ability of operators to earn revenue from
data.
Operators have tried to add new services to their business models with mixed results,
largely because their costs have not changed and services revenue growth is limited. This
dilemma is similar to that faced by their peers in the information and communications
technology (ICT) industry. The industry is evolving rapidly as new technologies and
economic models disrupt traditional businesses. TBR benchmarks continue to track flat or
declining revenue across traditional segments such as telecom and IT, while new
segments such as cloud, software-defined data center and digital business grow at
double-digit rates. New products, services, value chains and business models are required
as evolution shakes the foundation of the ICT business.
Increasingly, telecom operators must see themselves as ICT companies. They must find
market share, revenue and profit in the new economy, and evolve and compete with their
infrastructure in new ways.
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The rationale for IT outsourcing to support ICT transformation
Rapidly moving to a more competitive ICT infrastructure requires telecom operators to
reconsider or adapt investments to manage their evolving networks. TBR research
indicates three types of approaches to technology management are emerging in the new
paradigm:
1. Investing in business outcomes, enabled by technology, where a third-party
supplier provides the innovative platforms and the operator leverages those
platforms to create business value
2. Building solutions, but outsourcing technology components
3. Owning and controlling the solution and the basic technology with a goal of using
the technology to innovate to create differentiated business value.
TBR believes operators are shifting their budgets — as much and as quickly as possible —
from buying, assembling and integrating technology components. Operators are instead
purchasing supplier offerings that deliver their needed outcomes (approach No. 1 or No.
2), due to the realization the best way to reap the innovation of ICT infrastructure is to
acquire it from suppliers rather than creating it in their labs. Also, industry pressures
increasingly dictate the time-to-market advantages of acquiring built technology.
Operators are realizing the value of business-outcome-based investment at a time when
they must also evolve their infrastructures. This combination is leading rapidly to a new
wave of outsourcing where operators are seeking new relationships with suppliers. PwC
calls this wave “second-generation outsourcing,” and one executive stated it is “turning
over entire domains — such as IT, mobile network operations and cable networks — to
vendors.” The executive went on to say, “The goals of this effort, which we call re-
sourcing, are to gain greater flexibility in transforming their own operational models, to
restore some of the capabilities lost in turning over operational control to vendors in the
past and to reboot their innovation efforts.”
TBR believes this form of outsourcing is becoming a preferred way to drive infrastructure
evolution toward more agile ICT infrastructure. Critical to this approach is the evaluation
of initiatives in the separate domains of network operations and IT/data center. The new
ICT infrastructure requires convergence of these domains. Many operators started
evolving their networks. What is needed is a parallel IT outsourcing (ITO) program that
will evolve to match the requirements of the new network infrastructure.
Furthermore, the evolution of ITO supports the requirement for operators to extend
business models deeper into the enterprise, where similar evolutions are taking place.
TBR’s Telecom Infrastructure Services Benchmark indicates that for ITO, managed services
will remain a significant investment area as part of ICT transformation. The market is
estimated to grow to $12.1 billion in 2016, according to TBR (Figure 1).
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Figure 1: Operator spending on managed services for ITO
Success metrics for ITO
While operators routinely expect 20% to 30% opex reduction from cost-savings-driven
outsourcing, the second-generation multidomain outsourcing driven by business
outcomes requires a new set of metrics to assess value.
ITO, in particular, requires a different measurement approach as the conventional IT
metrics are limited to generic data centers, not the operational requirements of telecom
operators.
TBR conducted interviews with regional operators engaged in outsourcing to determine
which metrics they are applying, or would like to apply, to their ITO engagements. TBR
fielded a study in December 2015 and January 2016 with the following objectives:
Uncover key metrics that will help define how to measure success of ITO services
based on primary research from service providers.
Uncover insights on industry trends and challenges and uncover demands of
carriers for the ICT transformation process for internal transformation and for
enterprise customers.
TBR included large telecom operators such as Millicom, MTN and Telefonica in its study,
conducting in-depth interviews with senior managers with insight into their organizations’
ITO and ICT transformation processes.
The operators interviewed still placed cost savings as the highest priority, tied with
improving operational efficiency (which drives cost savings) and enabling revenue growth
by introducing new services. Respondents also gave significant weight to evolving
technology infrastructure through platform change-outs. The goal of increasing overall
agility and fluid operations was the lowest priority (Figure 2). TBR believes as
organizations enter ICT transformation, agility will become a more prominent goal.
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Figure 2
New services appear to be the major additional driver of cost savings. One senior
manager stated the purpose of ITO was to “enhance the innovation process, thereby
offering new products by moving toward the digital world and meanwhile enhancing our
facilities in areas of procurement.” The manager continued, “With regard to the service
that we have implemented [this] includes enterprise and M2M [machine-to-machine]
technology.”
While operators’ ITO goals remain fairly consistent (Figure 2), varied approaches to
metrics enable them to drive their ITO engagements in different directions. For example,
how cost savings, operational efficiency, new service growth and agility are measured
helps define the nature of the technology platforms required, the number of domains
included and the scope of the agreement with suppliers.
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Figure 3
As Figure 3 illustrates, metrics can vary widely from a focus on personnel, asset utilization
or operational cost reduction driven by process standardization to reducing back-office
activity. According to TBR research, having a more streamlined, standardized process and
lower operating expenses were the highest-rated key metrics.
Figure 4
For operators targeting increased agility and more fluid operations, ITO metrics depicted
in Figure 4 reflect nearly equal priority. These priorities include different ways to measure
reduced time to provision or change a new service. Less prominent, but still a high-
priority metric, is reduced time to add applications and services based on partner
offerings. TBR believes this metric will become increasingly important as operators
embrace new business models.
0%
3%
3%
3%
3%
3%
3%
3%
8%
11%
32%
32%
Reduction in software licenses
Depreciation cost
Opex per site
Back-office escalation rate
Avoid reuse of assets and duplication of efforts
Monitor quality
Procurement performance improvement
Eco-responsibility and procurement
Reduced headcount
Increased asset utilization
Lower operating costs
Greater process standardization
% of Respondents
OPERATIONAL EFFICIENCY METRICS USED
SOURCE: TBR
TBR
3%
10%
13%
23%
26%
26%
% of Respondents
INCREASED AGILITY METRICS USED
SOURCE: TBR
TBR
Service delivery platform integrated
into operations
Reduced time to add applications/services
from developers
Reduced time to add applications/services
from partners
Reduced time to ma ke adjustments in
cus tomer change requests
Reduced time to ma rket for new services
Increased s peed of service provisioning
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Huawei ITO Utilizes Key ICT Transformation Metrics to Deliver Next Generation of IT Services February 2016
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TBR
Figure 5
As shown in Figure 5, operators’ views of metrics regarding enabling new services are
more general, led by the need to add partners and business opportunities. Operators are
still identifying ways to measure and address new services beyond traditional network
value-added voice and data models. TBR’s findings suggest operators are looking more to
partners and new business than to developers.
Figure 6
Cost-savings metrics revolve around equal parts opex and capex savings with nearly equal
shares drawn from communications technology (CT) and IT budgets. Supplier
performance and consolidation are also parts of current outsourcing metrics as shown in
Figure 6.
2%
2%
12%
14%
14%
28%
28%
Real-time charging of services
Seamless integration
Reduced time to recognize revenue
Increase cross-sell/upsell per subscriber
Increased number of developers
Increased number of partners
Increase new business opportunities
% of Respondents
ENABLE NEW SERVICES METRICS USED
SOURCE: TBR
TBR
2%
2%
2%
2%
8%
17%
21%
23%
23%
Supplier performance
Disposal of noncore assets
Improvements with cost accounting tools
Tools to monitor changes
Reduction in number of suppliers
IT budget reduction
CT budget reduction
Lower capex costs
Lower opex costs
% of Respondents
KEY COST-SAVINGS METRICS USED
SOURCE: TBR
TBR
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TBR
Figure 7
Despite the urgency to evolve to a new, more agile infrastructure, as seen in Figure 7,
legacy integration remains the most common metric when operators measure technology
change. The overall theme of reducing the time to change is reflected in all metrics.
ITO is an important driver in ICT Transformation
As illustrated by Figure 8, specific operator ICT transformation strategies have yet to
coalesce, indicating a market opportunity for vendors to provide strategic guidance and
consulting as well as point solutions. Operators indicate a wide variety of ICT
transformation managed services focus areas, with the least popular responses
(workplace/end-user computing transformation and NFV [network functions virtualization]
integration and operations) just eight percentage points below the most popular (data
center transformation). As more managed services focus areas are defined, operators
need guidance to determine and prioritize the areas they should outsource to align with
present needs and objectives. As awareness grows and vendors tout reference wins, TBR
expects vendors with strong positions in both CT and IT — such as Huawei — to benefit.
Figure 8
2%
2%
2%
12%
12%
20%
22%
27%
Rate of innovation
Rate of application change
Percent of urgent changes
Reduced time to deploy new IT infrastructure
Reduced time to deploy new CT infrastructure
Reduced time to upgrade infrastructure
Reduced time to integrate new infra. with ops.
Reduced time to integrate new and legacy infra.
% of Respondents
TECHNOLOGY CHANGE METRICS USED
SOURCE: TBR
TBR
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TBR
ITO is a key requirement for operators and an initial step in their strategic approach to ICT
transformation, as ITO will lower opex, drive operational efficiency and enable growth
through the faster introduction of new services.
8%
11%
10%
10%
11%
13%
5%
5%
10%
7%
9%
0%
100%
ICT TRANSFORMATION MANAGED SERVICES FOCUS AREAS
Governance integration and operations
Management integration and operations
SDN integration and operations
NFV integration and operations
Workplace/end-user computing transformation
Data center transformation
Improving end-to-end information management
Improving end-to-end application management
Providing end-to-end integrated service delivery infrastructure
Establishing a DevOps digital service innovation capability
Establishing a cloud services infrastructure for enterprise services
TBR
SOURCE: TBR
Note: Does not add up to 100% due to rounding.
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TBR
Figure 9
IT transformation capability, as shown in Figure 9, is led, unsurprisingly, by IT firms
holding incumbent positions in operators’ IT environments. The most notable exception is
Huawei’s No. 4 position, which places it ahead of traditional CT rivals Alcatel-Lucent,
Ericsson and Nokia. Huawei was early to recognize the convergence of CT and IT and
focused on transforming its portfolio and adding IT services and products. Huawei’s
transformation was noted by customers, with one chief technology and information
officer surveyed calling Huawei one of the most “trusted partners to provide managed
services for a converged IT and CT infrastructure.” The respondent said, “It has
transformed its managed services to become a next-generation provider to offer
managed solutions to overcome all the challenges related to ICT and convergence.”
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
ZTE
Amdocs
Oracle
Accenture
Dell/EMC
Nokia
Alcatel-Lucent
Ericsson
Huawei
HPE
IBM
Cisco
IT TRANSFORMATION CAPABILITY
TBR
SOURCE: TBR
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Figure 10
HPE, Cisco and IBM ranked highest in SDN capability, as shown in Figure 10. Huawei beat
out its traditional CT rivals, with one operations head surveyed noting, “Huawei has come
a long way in developing SDN.” Suppliers with proofs of concept and commercial deals
fared well.
Figure 11
As shown in Figure 11, automation and orchestration capability scores were lower in the
aggregate than other surveyed capabilities, suggesting vendors can improve in this area.
Reducing opex costs is a strong driver of automation and orchestration adoption.
Figure 12
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Accenture
ZTE
Amdocs
Nokia
Oracle
Alcatel-Lucent
Dell/EMC
Ericsson
Huawei
HPE
Cisco
IBM
SOFTWARE-DEFINED NETWORKING CAPABILITY
SOURCE: TBR
TBR
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Dell/EMC
Amdocs
Nokia
ZTE
Ericsson
Oracle
Alcatel-Lucent
HPE
Cisco
Accenture
Huawei
IBM
AUTOMATION AND ORCHESTRATION CAPABILITY
SOURCE: TBR
TBR
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HPE (18%) was ranked as the most trusted vendor, followed by IBM (16%), Cisco (13%),
and Huawei and Accenture tied at 10% as depicted in Figure 12.
One manager of operations and deployments surveyed stated Huawei is “one of the best
companies to help transform network infrastructure. [It is] the leader when we talk about
a converged ICT environment. [Huawei] came up with new SoftCOM and FusionSphere
services that allow operators to make use of NFV and OpenStack technologies to enhance
network performance and capacity.” TBR believes Huawei’s participation in open-
standards groups contributes to and heightens its standing. Operators will become
increasingly comfortable with adding vendors to their IT environments, provided vendors
embrace open-source networking.
Huawei’s ITO offerings form a comprehensive solution
The evolution of an operator’s infrastructure requires transformation of both IT and
communications networks. Huawei can deliver such transformation through its ITO
solution, which consists of its Managed IT Transformation, Managed IT Operation and
Managed Enterprise Cloud offerings.
Managed IT Transformation
HPE
18%
IBM
16%
Cisco
13%
Huawei
10%
Accenture
10%
Dell/EMC
9%
Ericsson
6%
Oracle
4%
Nokia
4%
Juniper
3%
Alcatel-
Lucent
3%
Broadsoft
2%
Amdocs
2%
TRUSTED PARTNERS FOR TRANSFORMATION
TBR
SOURCE: TBR
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Huawei’s Managed IT Transformation consists of three approaches to address three
different IT outsourcing scenarios, with the goal of maximizing the benefits of technology
evolution and increased agility.
1. Optimize the existing IT environment — quick win solution
Huawei can help operators establish a standardized service platform to reduce
running costs and assure service quality by:
• Standardizing operations management
• Centralizing service management
• Offering self-service
• Optimizing operation tools
• Improving application performance
Additionally, Huawei can deliver asset value maximization by:
• Consolidating data centers
• Increasing hardware utilization
• Rationalizing software license usage
2. Technology transformation
To improve IT infrastructure utilization rates and reduce the time to deploy new
services, Huawei deploys a solution based on its Dynamic Architecture Blueprint,
which includes:
• Open architecture to consolidate IT commodities
• Network technology evolution
• Unified resource pool
• Automation and orchestration of operations
• Fault tolerance and high availability to support business continuity
• Future workplace — VDI, BYOD
3. Business-led application transformation
To improve business agility, Huawei helps operators adopt cloud technology
environments for business applications transformation, including:
• Service platform enablement (PaaS) to support continuous development
and deployment
• Business application cloud enablement to leverage SaaS
• Operating model evolution (bimodal/DevOps)
• Business service assurance
Managed IT Operation
To optimize the as-is state of the transitional data center environment, Managed IT
Operation establishes a centralized and standardized operation services platform to
deliver a high degree of operational efficiency and service quality in day-to-day
operations. The solution also includes operational management of the transformed
environment during execution of the multiple waves of the transformation and in the
resulting operational state.
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Huawei quickly built its IT capabilities by leveraging assets of its managed network
services including:
• Managed Service Unified Platform (MSUP): an eTOM-, ITIL- and TL9000-
compliant platform for telecom IT operations
• Operation Web Service (OWS): a tool set to maximize automation; provides
the unified service portal as required in the scope of work (SOW)
• Global Service Delivery Centers in India, Mexico and Romania
Through collaboration with its managed network services portfolio, Huawei’s Managed IT
Operation is fully capable of supporting a convergent ICT operation.
Managed Enterprise Cloud
Huawei’s Managed Enterprise Cloud is designed for the changing IT services business
model, where cloud computing brings new revenue opportunities. Huawei can help
operators address their challenges (e.g., small partner ecosystem, lack of a go-to-market
system, small early ROI).
Huawei’s strong cloud ecosystem includes partners offering collaboration, security,
customer relationship management (CRM), enterprise resource planning (ERP) and more.
Huawei also reduces risk for its customers by planning, building and operating the
enterprise cloud and providing go-to-market assistance by offering sales support and
partner management and by working in conjunction with operators in marketing efforts.
Managed Enterprise Cloud consists of Cloud Platform Build, Joint Business Innovation,
Business Operation Support and Operation Management.
This approach enables operators to bring new cloud offerings to market faster, reduce
business risks and spur continual innovation. Huawei acts as a reliable strategic partner by
providing a flexible business model and end-to-end service assurance.
Operators leverage Huawei’s ITO solution for ICT transformation
Ooredoo Kuwait transforms network and IT environments with Huawei ITO
Operator summary: Ooredoo operates in 12 markets in the Middle East, North Africa and
Southeast Asia. The priorities of the Kuwait operation include capturing data growth,
increasing ICT capabilities and improving operational efficiency. Ooredoo Kuwait provides
mobile, broadband Internet and corporate managed services. The company’s subscriber
base in the Kuwait market was 2.4 million as of October. Revenues increased 11% and
EBITDA increased 30.9% year-to-year for the first nine months of 2015.
Project goals: Ooredoo aims to become more cost efficient, decrease the time to market
for new services and improve customer experience. The name UNIFY was given to
Ooredoo’s infrastructure transformation program, which includes the unification of
network operation and IT to create a combined service delivery environment with specific
goals:
• Provide any service using a common delivery environment
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• Deliver the service anywhere across Ooredoo’s multicountry footprint
• Reduce service creation and delivery time from months to days
• Disrupt the competition by improving service delivery at significantly lower cost
Ooredoo is testing the power of an NFV-based single infrastructure for networks and IT to
deliver services faster and more cost effectively.
Ooredoo’s transformation shifts the company from traditional to virtualized IT
infrastructure as part of Phase 1: IT virtualization, which will deliver higher hardware
utilization, consolidated storage and lower capex. By the end of Phase 2, more than 30%
of UNIFY’s data centers will be consolidated, in which server racks will be reduced by 30%
and proprietary hardware products will be replaced by just a few x86-based hardware
products.
Huawei’s role: Ooredoo Kuwait plans to increase efficiency and reduce the time to
market for new services by outsourcing its infrastructure to Huawei. However, the
company’s outsourcing agreement is no ordinary contract. Ooredoo is outsourcing both
its IT and network operations to Huawei with the plan to unite the two organizations and
build a common infrastructure using the latest innovations of NFV as well as network and
IT operations.
The operator leveraged several vendors for operations, but wanted to simplify operations.
After a few rounds of evaluation, Huawei was selected to support Ooredoo Kuwait’s
transformation. Huawei was selected as the outsourcing partner in September, and the
transition from Ooredoo operations to Huawei was completed in November. The
transition included transferring Ooredoo staff in Kuwait to Huawei, as well as the
operation of all Ooredoo’s Kuwait data centers. Huawei also transferred its staff to the
operations centers supporting the operator.
The next phase of the operation will occur in stages, beginning with a hybrid model in
which Huawei will initially place its staff in Ooredoo data centers and operate some
functions from Huawei’s India-based global Network Operations Center (NOC). Eventually,
more services will be centralized within the NOC, and Ooredoo will no longer have to
operate as many local data centers.
In addition to savings from consolidating and centralizing data center operations,
Ooredoo expects reduced costs from its application development management (ADM)
processes, which were also part of the outsourcing contracts.
Outsourcing to Huawei enables Ooredoo to address two key issues in the UNIFY strategy:
organizational adaptation and skill deficits. Huawei will bring together the network and IT
functions in its operations, and provide the skilled staff to upgrade Ooredoo’s network
and IT operations to NFV capabilities.
As the chosen outsourcer Huawei acts as the primary vendor, and the other vendors act
as subcontractors. In Ooredoo’s case, Huawei maintains a significant share of the network
with its own equipment, but Huawei must manage other vendors as on-site
subcontractors.
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Ooredoo’s UNIFY transformation enables the operator to create a strategy for the
combination of outsourcing, ICT convergence and NFV road map deployment. The cost-
reductions and time-to-service incentives the operator can achieve may be a game-
changer in the Middle East with global reverberations.
Huawei drives Etisalat’s global ICT transformation through managed services
Operator summary: With headquarters in Abu Dhabi, United Arab Emirates (UAE),
Etisalat operates 2G, 3G and LTE networks throughout 18 countries in MEA and APAC
including the UAE, Saudi Arabia, Egypt, Nigeria and Sri Lanka. Etisalat services 169 million
subscribers.
Project goals: Etisalat is in the early stages of what it refers to as its Service Vision 2020,
an NFV- and SDN-driven transformation that includes an infrastructure overhaul
stretching from the data center to the access layer. A cloud-centric architecture will
provide Etisalat with a more agile network to offer new services such as Internet of Things
(IoT) connectivity to its customers.
Huawei’s role: Huawei is a leading ICT provider and strategic partner to Etisalat. For
example, in Nigeria Huawei manages Etisalat’s communications network and, in a
separate agreement signed in 1Q14, Etisalat Nigeria outsourced its IT operations to
Huawei. For the IT portion, Huawei manages technical infrastructure, application
management and user support. Outsourcing ICT to Huawei enables Etisalat to improve
quality, reduce costs, transform infrastructure and increase the speed to market of new
services.
XL Axiata taps Huawei for managed services to accelerate transformation
Operator summary: XL Axiata is a leading operator in Indonesia supplying 2G, 3G and LTE
to select regions including Java and Bali. Historically, XL Axiata is an early mover in
Indonesia, launching 3G and LTE ahead of regional competitors.
Project goals: To accelerate its transformation into a digital telecom operator and address
the domestic rise is data traffic, XL Axiata turns to Huawei for managed services. XL Axiata
is shifting resources from traditional voice traffic to initiatives that enable it to offer
digitally based services. These initiatives include the construction of a network and service
operation center in Jakarta.
Huawei’s role: Huawei is the leading managed services partner for XL Axiata, enabling it
to digitally transform and support new services and applications. Huawei provides its
Managed Services for Total Value of Ownership (TVO), which streamlines network
operations and allows Huawei to manage IT applications such as OSS. Additionally,
Huawei manages XL Axiata’s Digital Merchant (DM) ecosystem.
Telefonica leverages Enterprise Cloud Migration from Huawei to offer
outsourced IT to enterprise customers
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Operator summary: Telefonica is a leading global telecom operator based in Madrid.
Telefonica’s operations stretch throughout Europe and Asia, and into North and South
America.
Project goals: Telefonica selected Huawei as a strategic partner to enable it to offer cloud
IT services to enterprise customers. The operator can now deliver managed compute,
backup and storage services leveraging its own data centers. Telefonica calls its new
service Telefonica Open Cloud.
Huawei’s role: Huawei is supplying elements of its Managed Enterprise Cloud to enable
Telefonica’s Open Cloud globally. Huawei’s OpenStack-based service is deployed in eight
Telefonica data centers. Brazil, Mexico and Chile will be the first Telefonica markets with
access to the service.
Additionally, Huawei is supporting Telefonica’s business in China, where it is supplying
knowledge and experience to enable Telefonica to penetrate the public cloud market.
Huawei’s managed services accelerate ICT transformation for du and KPN
• Huawei provides managed services for du’s mobile, fixed and broadcast networks in
the UAE. Huawei is well-equipped to carry out the contract, utilizing its three
resource centers and five training centers in the region to deliver comprehensive
services to du. du is transforming its networking operations to prepare for 5G
deployments.
• Netherlands-based KPN selected Huawei as the sole provider of ITO services,
including managing the OSS/BSS, value-added services, delivery and management,
for the operator’s Ortel mobile virtual network operator (MVNO) in Spain. Huawei
was selected due to its role as a provider of network equipment for the broader
KPN Group. The MVNO was launched using KPN’s Magnum platform, which it used
to launch multiple MVNOs in Europe. KPN is one of Huawei’s largest OSS/BSS
customers in Europe.
TBR perspective
Operators will increasingly require ITO services to deliver key cost savings, promote
operational efficiency and enable revenue growth through the introduction of new
services. ICT transformation in an operator’s network and IT environments cannot
become a reality without a strong ITO partner.
Huawei’s expertise in ITO lies in its telecom managed services foundation, but is
strengthened by the vendor’s IT focus, particularly in cloud enablement and the data
center. Huawei has accumulated over 450 cumulative contracts in managed services,
provided integration for more than 480 data centers, completed over 160 cloud
deployments, and engaged in 20 NFV and SDN joint innovation projects with operators.
Huawei must persuade its customers to adopt transformative products and services such
as NFV and SDN. This dilemma is not unique to Huawei, as Ericsson and others face similar
Huawei – Confidential
Huawei ITO Utilizes Key ICT Transformation Metrics to Deliver Next Generation of IT Services February 2016
Technology Business Research, Inc. Page 19
TBR
challenges. Huawei is on the right track to build its partner ecosystem and bring an end-
to-end ICT solution to the market faster, with best-in-class capabilities.
About TBR
Technology Business Research, Inc. is a leading independent technology market research and
consulting firm specializing in the business and financial analyses of hardware, software,
professional services, telecom and enterprise network vendors, and operators.
Serving a global clientele, TBR provides timely and actionable market research and business
intelligence in formats that are tailored to clients’ needs. Our analysts are available to further
address client-specific issues or information needs on an inquiry or proprietary consulting basis.
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