Igor Milojevic Director FBB&Convergence Solutions Huawei CEE&Nordic

ICT will generate huge innovations and enable limitless possibilities

Next 20 years will see emergence of a profound synergy between digital and physical worlds

Google Glass Enters the Operating Room Tesla & Connected Cars

Connections

Grows to 100 Billion Connections

5 Billon 45 Billon 50 Billon

Traffic

Grows to 65 ZB/Year (65,000 Billon GB/Year)

Capacity

Cloud Storage Grows to 2 ZB/Year (2,000 Billon GB/Year)

Source: Informa, IDC, Gartner, SA, OVUM, Huawei MI

2016

2.45

15%

20%

2012

2.00

35%

30%

70%

15%

10% 5%

Voice + SMS

FBB, Digital Home, Video

Mobile Data Traffic

IT/Cloud Service

Content, application and cloud service will generate more connections and reshape the digital world. More values will be transferred to ICT industry from the digitalization of other industries

Telcos key capability will be enhanced through adaptive strategy on business transformation and related IT/CT infrastructure convergence

With the improved capability, telcos have the

potential to generate $2.45 trillion revenue in

2016, 22% more than in 2012

Source: Gartner and Ovum Analysis

TDM

ATM

SDH

FR

No.7

Ethernet

All IP

FMC 1.0

"Single" Strategy

Software-based

Virtualization

FMC 2.0

SoftCOM Strategy

Intelligent

Automated

Distributed

Simple & converged

Reduced OPEX

Traffic grows, yet the investment/revenue

ratio remains the same

Agile, open, and innovative

Optimal customer experience

Value creation

Cloud-based Data Center will be the foundation of the converged ICT infrastructure

Technology

Driven Business & Operation

Driven

Customer Experience Centric

IP

Transformation IT

Transformation

6

Users

Device

OTT

(SP/CPs)

Telcos

Telcos

OTT

(SP/CPs)

Device

Users

Cooperation Eco-system Revenue sharing

Request on-demand

DevOps, Time-to-market

Architecture decoupling Easy upgrading, TCO saving

OPEN

V3

V2

V1

6

Standards Hardware

Software

Standards

Hardware

Software

Open ICT Architecture

Open Operation model

Open Biz Eco-system

7

Ultra Experience: Anytime, Anywhere

User Experience Network

Business Target

Opportunity New Service

Competitive Branding,

Loyalty

Revenue Traffic

Speed Higher

Connectivity Anytime,

Anywhere

Service Satisfaction Spectrum

Site Technology

ROADS

Real-time On demand All-online DIY Social

7

ICT Infrastructure is fundamental for the business transformation at all operation models

Value Proposition of

Digitalization

L3: Contribution Level

Innovative

Change Business Transformation

ICT

Infrastructure

Business

Model

Innovation

Model

R&D

Model

Marketing

Model

Operation

Model

Best Network,

Experience Centric

Vertical Integration over ICT Infra

Openness & Aggregation

Smart Pipe, Monetize Traffic L2: Enabler Level

L1: Functional Level

L4:

Unique Value

SDN/NFV

Centralization

DC Consolidation, Service Centralization

Virtualization Unified Platform

Openstack

CIO Cost

Reduction

CTO Technology

Innovation

CMO Revenue

Growth

Cloudified External IT

IT Services

(IaaS, PaaS, SaaS)

IT Infrastructure

Application-Centric

Cloud-based CT Services

Data Center

IT Infrastructure

Resource Pool/VDC

ICT

Convergence

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Metro

(IP + Optical)

Operation Reconstructing: Internet Style Operation, All

Online, On-demand, Big Data

Business/Service Reconstructing: Beyond Connection, E2E ICT

Service Based on Cloud

Architecture Reconstructing: Data-oriented, Data Centric

Network

Network Reconstructing: SDN & NFV

Backbone

(IP + Optical)

CloudEdge

Operation Cloud

CPE RRU Small Cell Small Cell RRU MxU MxU

New ICT Services (NaaS,IaaS,PaaS,SaaS )

Customers Partners OPS TEAM

Big Data

API

ONT

Hypervisor + Cloud OS

New ICT Services (NaaS,IaaS,PaaS,SaaS )

BSS Suits E2E ICT Resource Controlling & Orchestration

BSS Suits

Control Cloud

Hypervisor + Cloud OS

MME

SGSN

IMS

PCRF

HSS

AAA

SDN

Controller

Hypervisor + Cloud OS

IPTV

CRBT

SMS

MMS

Game

Music

3rd

apps

Service Cloud

Hypervisor + Cloud OS

SRC

RNC

S/P-GW GGSN BRAS

SDN

Controller

SBC

FW DPI

CDN

3rd apps

CloudDSL/OLT

Hypervisor + Cloud OS

ADSL VDSL G.Fast

CloudBB

Hypervisor + Cloud OS

GSM UMTS Hetnet

ROADs 1.Real time

5.Social 4.DlY

3.All online 2.On demand

Multimedia Service

Platform

Business Enabling

Platform

Cloud Service

Platform

Better Experience Internet Style

Network Operation

Video and Audio Cloud Application

Education

E-commerce

Home Multimedia Service Platform

Video

(IPTV & OTT) TV APP Conference

Communications

Information-

enabled Services

Content &

Applications

Video service helps carriers monetize pipe

traffic. A good Home Multimedia Service

Platform will be a differentiation competition

base

IPTV & OTT integrated solutions, multi-

screen experience, QoE guarantee will help

carriers address OTT challenges

Support the multicast and broadcast (eMBMS)

capabilities of LTE, thus helping carriers

enhance LTE video services

Customers Partners Carrier operation

Unified User Touch

Service Characteristics

Full ICT service

AWS-like experience, but

enriched with telco capability

Win-Win with partner

System Characteristics

SOA

Best of module, Best of suit

Open architecture

Distributed cloud DC based

Network Resources

IES

( from OSS )

Service Orchestration Engine

Resources Control, Automation & Orchestration

Big Data BES

( from BSS )

Apps & Services

Internet Enterprise Consumer API

Open

Aggregate global enterprises & industry apps

Build Enterprise Cloud Service Platforms

Provide SMEs with services that include computing,

storage, communications, video, conferencing, etc.

Integrate the value chain to provide one-stop ICT

services for enterprises

Engage on mutual development with carriers

Support flexible cooperation modes, including buy-

sell, revenue sharing, pay-as-you-go/use, ODM

mode, and strategic alliance

Server Storage

Cloud OS ( Openstack FusionSphere )

Operation Management (ManageOne/CSB)

Business

Consulting

Assistant

Operation

VAS

BSS OSS

MSS

VDI

IaaS

SaaS

PaaS Marketplace

Network

All IP

IPv4, IPv6

Dynamic & Flexible

Cloud Data Center

Storage Network & Security

Cloud OS (FusionSphere)

Compute

Network

Controller

Enterprise App

Mgmt &

Orchestration

Telco App

SDN

NFV

Agile Business Environment (Fast TTM, Reduce TCO, High Operational Efficiency)

Network Perspective:

SDN/NFV are the manifestation for ICT transformation

and Data Center is a key prerequisite for implementation

Architecture Perspective:

New public cloud services, cloud-based OSS/BSS, and

NFV all reside in the transformed Data Center

Operation Perspective:

User experience and 3rd party integrated services rely

on an open network platform supported by a converged

Data Center

Business Perspective:

Traditional services and VAS cloudification are enabled

by Data Center

Operation Cloud for Agile IT

Control Cloud for Network Support

Control Edge

Distributed Cloud Data Center

Service Cloud

for Digital Services

4000+ Patents Licensed

In Cloud Computing Field, 685

Patents are Licensed in China,

226 in Europe, and 107 in the

USA

3000+ Server Patents

10,000+ R&D Engineers in IT

Domain

3,000+ Services Experts

10,000+ R&D Engineers in

Network Domain

8 R&D Centers Worldwide

3 Global Labs

150+ International Standards

Organizations

5000+ Proposals Submitted in

2013 Global Excellent

Telecom Cloud

Solution Provider of

Year 2012

Cloud OS (FusionSphere)

Virtualization Automation

Parallel Heterogeneous

Infrastructure

Server Network Storage Security

Facilities

Open API Distributed

Cloud Data Center Open API

Green Energy Green Coldness High Efficiency Cooling In-server Cooling

Full-Stack DC2 Professional Services

Consulting Service

IT & Network & Facilities Coordinated

Planning

Flexible Design

Simulation & Verification

Global Market Insight

Local Service Design

Precise Financial Analysis

IT&CT Converged Mgmt

Heterogeneous, Multi-DC Unified

Mgmt

Integration Service

Managed Service

Operation Cloud Control Cloud Service Cloud

78 Operators, 400+ Data Centers, 120+ Cloud Data Centers

Agile ICT Infrastructure Green DC Facility Efficient Network Control

1 Hour to Build a Virtual DC

20 Mins for App Provisioning

TCO Saved by 54% in 3 Years

4 DC Innovated Services

Service Links Optimized 60X

DC Utilization Improved 30%

Telefonica UNICA China Telecom SDN

PUE Declined by 15%

Maintenance Fee Fell by 21%

Electricity Fee down by 50%

Mexico Alestra

30+ Services

1000+ Enterprises

China Mobile

Business Innovation

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Comprehensive

Solutions

Service

Capabilities

R&D

Strengths

Constant

Innovation