Tellabs Blog

In our latest STL Research report, we outlined several moves operators can make to profit from skyrocketing mobile Internet growth. They need to provide more valuable services that others are willing to pay for–which requires a smart network. One specific way operators can deliver value is by building their own Content Delivery Network (CDN) in addition to their mobile network, and charging cloud providers for access.

Cloud providers want to deliver services that scale rapidly at a higher performance--so they can capitalize on the rapid mobile Internet growth, too. Mobile operators can build subscriber-aware networks. Cloud providers have the content that mobile users want. If operators build their own CDN, they can bridge that gap--and provide benefits that cloud providers would be willing to pay for. 

Cloud application acceleration
When users are accessing content in the cloud, the bottleneck is the latency in the mobile network. When this happens, you see a spinning clock on your iPhone, for example. You can have the biggest, fattest cloud with a lot of capacity and this will still happen.

To make apps work faster, mobile operators equipped with a CDN can move a slice of the application closer to the edge of the network and provide very low latency access. This is called virtual machine extension. It offers tremendous value to cloud providers because it improves the user experience.

Content caching and adaptive streaming
Another advantage to delivering cloud services over a mobile CDN is the ability to implement content caching and adaptive streaming. This technology solves a problem that's unique to mobile networks: dynamic adaptation of content bit-rates based on the availability of network bandwidth.
With a mobile CDN, you can cache content at the mobile CDN edge and deliver it from there. This is transparent to the user--all they see is a higher quality content delivery.

Subscriber-aware tiered services
With their own CDN, operators can enable cloud providers to deliver traditional content, customized on a subscriber basis through policy services. This would enable cloud providers, such as Netflix, to provide different tiers of service. This is possible because operators have subscriber-level information and can use that to provide different levels of service on a per session basis.
This subscriber-aware delivery also enables privacy-protected advertising. Operators can provide subscriber analytics with better insight--another valuable feature for cloud providers--while still protecting subscriber privacy. This enables operators to work with cloud providers to deliver relevant and useful (and consequently more effective) advertising.

Distributed security perimeter
Centralized security works well for personal, computer-based access. But this model breaks down when you try to apply it to millions of smartphones accessing cloud-based services.

With mobile CDN, operators can move security to the edge of the network. This enables operators to prevent attacks right at the edge of the network so they don't travel all the way back into the cloud.

This is valuable for cloud providers because otherwise they're focusing their resources into scaling their infrastructure and protecting it. If they can relegate security to the service provider they'll be able to focus more on scaling their cloud infrastructure.

Mobile CDNs enable operators to monetize their networks and consequently, enable new business models. These new models benefit the operator, cloud service provider and the end user:

• Operators can better manage capex, control network functions and create additional revenue.
• Users experience better quality of experience, personalization and privacy protection.
• Because users are happier, the cloud service provider sees an uptick in demand for services and consequently revenue.

Mobile CDNs enable cloud providers to deliver a service in the most optimal fashion over an operator's network, and enables all parties to share revenues.

Find out more at MWC 2012
As you can imagine, cloud computing will be a key feature at next year’s Mobile World Congress. On Tuesday, Feb. 28, I will participate in a panel discussion called “Operators Fight Back: Cloud and Network Intelligence.” We’ll look at how the cloud combines with network intelligence to boost the operators’ position in the telecoms food chain. I hope to see you there.