Hadoop Makes Shareholders Happy

The World's Largest Telcos are Driving Business Performance with Hadoop at the Center of an Enterprise-Wide Modern Data Architecture Juergen Urbanski CEO, Tech Alpha Board Member Big Data & Analytics, BITKOM (German IT Industry Association)

Agenda

Telco Data Management Challenges Hadoop Business Value 21 Telco Use Cases for Hadoop Network Infrastructure Service and Security Sales and Marketing New and Adjacent Business

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Telco Data Management Challenges

Limited Insight: Schema On Write Data In Silos

Limited Scale: Not Designed to Scale Not Affordable at

ScalePhysicalInfrastructure

Presentation &Application

Data Access

Data Management

EngineeredSystems

Shared Storage Systems

OLTP OLAPTraditionalAnalytics =

=

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Business Value of Hadoop

Data Access Layer

Data Management Layer

Hadoop Core Capabilities:

Broader Insights: Allows simultaneous access by and

timely insights for all your users across all your data

Irrespective of the processing engine, analytical application or presentation

Enabled by schema on read and enterprise-wide pool of data

Unlimited Scale: Allows to acquire all data in its original

format and store it in one place, cost effectively and for an unlimited time

Affordable and performing well into the 100+ petabyte scale

=

=

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A New Approach for Broader Insights

HADOOPIterate over structure

Transform and analyze

Hadoop Approach Apply schema on read Support range of access patterns to

data stored in HDFS: polymorphic access

Batch Interactive Real-time

Right Engine, Right Job

In-memory

Traditional Approach Apply schema on write Heavily dependent on IT

Determine list of questions

Design solution

Collect structured data

Ask questions from list

Detect additional questions

Single Query EngineSQL

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Compelling Economics Allow Scale

0 5 10 15 20 25 30 35 40

SAN

EDW / MPP

Engineered System*

NAS

HADOOP

Cloud Storage

MinMax

Fully Loaded Cost per Raw TB DeployedUS$ 000s

Hadoop Provides Highly Scalable Data Storage at 5% of the Cost of Alternatives

36 to 180

20 to 80

12 to 18

10 to 20

0.250 to 1

0.1 to 0.3

* E.g., Oracle Exadata 6

Technical and Business Drivers

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Foundation for a modern data architecture

New data types

Sensors

Machine Generated

Geolocation

Documents, Email,

Voice to Text

Social Networks

Web Logs, Click Streams

Operational excellence E.g., Network Maintenance

Compliance & Risk Mgt. E.g., Fraud Reduction

Customer Intimacy

E.g., 360o View of Customer

New Business E.g., Data as a

Product

Business drivers

n Network capacity planning n Network upgrades n Network maintenance n Network performance management n Network traffic shaping

21 Telco Use Cases for Hadoop

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Use Case

Network Infrastructure

Function

n Customer experience analytics n Contact center productivity n Field service productivity n Data protection and compliance n End-user device security

Service and Security

n 360-degree view of customer value n Personalized marketing campaigns n Upselling and cross-selling n Next-product-to-buy (NPTB) n Churn reduction

Sales and Marketing

n New product development n Actionable intelligence serving:

l Advertisers l Merchants/retailers l Payment processors l Federal governments l Local governments

New and Adjacent Business

Network Care Sales

New Biz

Hadoop in Network Infrastructure

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Business Problem n Network capacity planning n Network upgrades n Network maintenance n Network performance management n Network traffic shaping

n Hadoop is used to optimize the rollout of 4G coverage in time and space to match the likely pick-up in service revenue, allowing an operator to defer more than 10% of capex for the same resulting revenue.

n Hadoop helped detect that only a small number of congested cable network nodes were responsible for the majority of churn, and could thus be prioritized for maintenance and upgrades.

n Network function virtualization, software defined networking and unified all IP networks vastly increase the amount of machine and log data relevant for trouble shooting. Hadoop helps with root cause analysis and may even be used to reason on the data in real-time.

Value Realized

Network Care Sales

New Biz

Hadoop in Service and Security

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Business Problem n Customer experience analytics based

on call detail records (CDRs) n Contact center productivity n Field service productivity n Data protection and compliance n End-user device security

n With Hadoop, one operator detected that 25% of callers were contacting the call center merely to have their late fees on the monthly bill waived. Clearly a case for call deflection to interactive voice recognition and online self-service.

n Contact center agents had insufficient ways of diagnosing what was wrong with customers, leading to many unnecessary truck rolls. Hadoop helped avoid these.

n 3% of smartphones account for 10-15% of traffic because of malware (notably on Android phones) and some fair use violations. Hadoop helps detect that so operators can take remedial action.

Value Realized

Network Care Sales

New Biz

Hadoop in Sales and Marketing

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Business Problem n 360-degree view of customer value n Personalized marketing campaigns n Upselling and cross-selling n Next-product-to-buy (NPTB) n Churn reduction

n Telesales revenue increase by 50% by tracking competitors web-sites visited and counter offers to products searched

n +20% conversion rate increase by optimizing and personalizing the path-to-transaction

n $1.65 ARPU increase for 1 million customers boosts topline by $20 million per year.

n Reducing cable subscriber churn (cord cutting). Every 100,000 subscribers equates to customer lifetime value of $1 billion

n Churn model quality increase n Price related churn down by 40%

Value Realized

Network Care Sales

New Biz

Hadoop in New and Over-the-Top / Adjacent Businesses

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Business Problem n New product development n Actionable intelligence serving:

l Advertisers

l Merchants/retailers l Payment processors l Federal governments

l Local governments n Hadoop-as-a-Service

n Telcos are well positioned to provide big data as a service to retail, hospitality and logistics customers. This can generate $50-100m in annual revenue for each medium-sized country.

Value Realized

Network Care Sales

New Biz

Makes capital investments more efficient

Leads to a better customer experience

Lowers churn

Increases conversions

Strengthens security

Opens up new markets

Hadoop Drives Business Outcomes for the Worlds Telcos and Cable Companies!

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Questions? Email juergen@techalpha.com for a copy of the presentation. LinkedIn: juergenurbanski Download 200-page BITKOM / Forrester Guide to Big Data Technologies (in German): http://www.bitkom.org/files/documents/BITKOM_Leitfaden_Big-Data-Technologien-Wissen_fuer_Entscheider_Febr_2014.pdf