IBM Drives Telecommunications Industry with On Demand Computing

Open, integrated solutions fused with business insight help reduce costs, generate revenue for service providers

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Hong Kong - 01 Dec 2002: e-business on demand technology and solutions, which will help telecommunications service providers reduce costs, retain customers and generate new revenue through open standards and business transformation services, are the focus of IBM's participation in ITU Asia.

IBM will show how on demand computing will help customers take advantage of the next phase of e-business to become more efficient, flexible and quicker to respond to market conditions.

"The breadth of solutions that IBM can deliver to the telecommunications industry is hard to beat," said Richard Stomp, vice president, IBM Global Telecommunications Industry. "Now, customers will be able to take advantage of business insight and innovative technology to prepare for the next wave of voice and data convergence."

He continues, "IBM is helping telecommunication service providers be major players in the delivery of on demand computing services by coupling their next generation network infrastructure with our open framework Service Provider Delivery Environment (SPDE). We believe that this will open up a whole new revenue opportunity for service providers."

Some of Asia Pacific's leading service providers are working with IBM's WebSphere Telecom Application Server (WTAS), an extension of WebSphere Application Server based on the Parlay open network programming specification to help service providers develop and deploy new revenue generating services quickly and cost effectively. Examples include:

Said Mr Hui Weng Cheong, SingTel's Vice-President (Consumer Products): "SingTel keeps a close eye on new technologies in the market, such as Parlay, to see how these could be deployed to benefit developers, software vendors and our customers. Parlay offers the potential for a standard development interface for independent software vendors. It also makes it easier for vendors to deploy applications across multiple operators' networks. We are happy to be working with IBM and Ericsson on this trial of Parlay on our networks."

Current IBM telecommunications on demand offerings focus on an open, integrated, virtualized and autonomic computing environment. They include:

Open Standards Framework. The ability to introduce and integrate new services quickly, easily and at a lower cost is the fundamental benefit of IBM's on demand computing offering for the telecommunications industry called IBM Service Provider Delivery Environment (SPDE - pronounced "speed-ee"). Based on open standards technology and IBM WebSphere Internet infrastructure software, IBM SPDE allows service providers the flexibility to bring new voice, text and Internet-based services to their customers faster, easier and at a lower cost, while substantially reducing the complexity of application and business process integration.

Business Transformation. As telecommunications service providers seek ways to reduce expenses, business transformation and outsourcing is increasingly important as a strategy for cost reduction and efficient operations. Based on IBM's own business transformation and IT value management experiences, business transformation combines IBM hardware, software, services and third party applications to help service providers improve their relationships with customers, suppliers, employees, partners, distributors, and shareholders via customized portals. Solutions include CRM A.S.A.P., IT Value Management, Dynamic Workplace, and Procurement Transformation.

Linux for Telecommunications: IBM is helping carriers and network equipment providers put Linux to work in telecommunications to lower costs and deliver higher performance. IBM has optimized its technology for the Linux platform -- from its WebSphere software to its DB2 data management software to the full line of IBM eServer systems. IBM is leading the way to bring carrier grade Linux to the telecom network with telecom-specific products, including industry standard servers designed for next-generation network applications. Through its Linux Service Provider Lab, IBM is helping developers and customers test telecommunications service applications on Linux including softswitch, wireless infrastructure applications, unified messaging and network services.

Grid Computing for Telecommunications. IBM is working with service providers on grid computing initiatives that will allow them to deliver services to their customers and across their own internal organizations on an 'as needed' basis by sharing resources. Currently, many data centers and IT resources have low utilization rates of only 10 to 50 percent. IBM is leading global initiatives to extend the industry's current distributed computing capability into a new grid computing model to flexibly run applications across a "virtualized" IT infrastructure that can share computational power from many locations. This results in higher throughputs at lower costs with more computational flexibility. For example, most service providers have multiple legacy billing systems that must interact together. IBM also is working with service providers to implement grid computing to balance workload capacity and avoid over-provisioning. In the near future, grid computing will help service providers take advantage of autonomic computing features such as self-diagnosis, self-healing and self-protection characteristics as these evolve.

In addition, IBM is helping bring next generation telecommunications solutions to customers by building relationships with key venture capital firms and their respective companies who will use IBM technologies and develop joint go-to-market strategies in specific areas.

IBM is currently working with 3i, a leading international venture capital company that concentrates on early and later stage technology investments across all sectors; Mayfield, a venture capital firm with domain expertise in enterprise software, networking and communications technology and Worldview Technology Partners, a venture capital firm which specializes in investments in telecom, enterprise infrastructure and semiconductor companies focused on building leading US technology companies as well as business development offices in Japan, Asia and Europe.

Examples of companies that will be working with IBM technology include:

Intelliden, a 3i invested company, that will use IBM technology around its device management software suite that enables leading service providers and enterprises to reliably and profitably configure heterogeneous routers and LAN/WAN switches, firewalls and optical devices,control network costs and support new services. With the Intelliden R-Series, time-consuming, manual network configuration tasks are eliminated, and network changes are dynamically made in accordance with business priorities. The end result is faster service creation, improved network security and increased network reliability.

Convedia, a Mayfield invested company and leading supplier of media processing platforms, will work with IBM technology to enable telecommunication service providers to reduce service delivery costs and increase revenues through new approaches to enhanced services. Convedia's multi-protocol servers consolidate the functions of traditional announcements servers, interactive voice response (IVR/VRU) units, conference bridges, messaging platforms and speech platforms into a multi-service, open standards compliant solution for network and enhanced services media processing.

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