Siemens – We Make the Internet Mobile
Dr. Ralf Adelseck, director for strategic marketing, Siemens AG, Germany, Batic IT Review 2 '2000
The article ir prepared based on Siemens AG strategic marketing materials and reviews the latest developments in the world of Internet and mobile services, considering them from the perspective of global business operations.
<big>The Internet protocol – driving mobile business</big>
Customer mobility is forcing public and private networks to change. In order to operate successfully in a mobile business environment, carriers, ISPs and enterprise network operators are converting their infrastructures to the Internet protocol.
<big>Mobile business</big>
Providing services and infrastructure for the user on the move – that is the major task for mobile business. This means that the resources and applications which the user enjoys at home or in the office follow the user on the road virtually. No matter which network they use , whether fixed or wired – users can access all their data at any location, any time they wish. Mobile business is not device-dependent. Regardless of whether the user employs a cell phone, a notebook or a PDA, information and communications are there for you.
The Internet protocol (IP) has started a revolution which is culminating in nothing less than the global modernization of public and private communications networks. The aim of this conversion process is to establish an infrastructure which serves as a foundation for E-commerce and successor mobile businesses.
Whereas local corporate data networks long ago adopted IP to replace such proprietary protocols as SNA and IPX, the time has now come for public networks and the telephony infrastructures of the enterprise sector to convert with the IP world. The change to packet-oriented networks will be accompanied by an introduction of new applications and services. High-revenue markets will be opened up, and corporate business processes will be optimized. By providing a uniform transport protocol, moreover, IP reduces the costs involved in the operation of separate voice and data networks.
These aims can be met without sacrificing existing investments. Modern solutions, indeed, allow the existing resources to become an integral part of the new structures. Siemens, for example, provides two concepts for integrating existing investments in an IP environment – Surpass, which is a platform for carriers and ISPs, and Hipath – a communications concept for the business sector. These solutions endow existing installations with the flexibility of the IP world and develop links between them with the reliability levels of voice networks.
The benefits for the customer are obvious. "IP is a sound investment, because this protocol will play a decisive role for at least the next 10 years. That will be true for both voice and data transmission," according to Jean-Louis Previdi, vice president and service director for global network strategies at the Meta Group. Previdi points out another reason why the further development of IP is inevitable: "Applications based on IP can be developed much faster than those based on other protocols." This is an important factor for carriers and ISPs that want to offer new services to customers which combine data and voice services. IP-based telephony that is deployed in-house, for example, can provide a framework for unified messaging.
<big>IP platforms – cost savings and new market opportunities</big>
For carriers, there is a considerable cost benefit in migrating to IP-based structures: "Until now carriers have had to build a separate network for every service. By contrast, IP provides the opportunity for mobile services, voice transmission and data transfer to operate in a seamless environment," observes Thomas Rambold, chief technology officer at Siemens ICN (Information & Communication Networks). This feature also allows ISPs to enter the profitable voice business. By using Surpass, they can enhance their networks to add voice transmission to the other range of offerings.
The introduction of IP into public and enterprise networks points the way to holistic information processing. Differences between voice and data will disappear as the two types of information converge in new applications. This will produce synergy in terms of network operations, because the management of data and voice separately will give way to a uniform management approach.
It is true that real-time information such as voice and video data requires different transmission methods from those that are used, for instance, to transmit E-mail or Word documents. Even so, IP can provide links between the two worlds as a uniform transport protocol. All applications employ a common base, which allows carriers, ISPs and enterprise network operators to develop applications in a standardized environment.
<big>Voice and data – sharing the information highway</big>
The challenge which faces carriers and Internet service provides is the need to converge IP-based services and voice services so that they interoperate harmoniously. Siemens’ solution, Surpass, brings the two worlds together, enabling the creation of next-generation networks with profitable new applications.
The IP-based communications platform Surpass supports service and content provisioning. Carriers also receive everything that is required for operations – network management and billing systems, as well as access servers and broadband access.
CTBC Telecom in Brazil has already laid a groundwork for convergence. The South American carrier has procured a Surpass total solution from Siemens to interlink its voice and data networks efficiently. "We are confident that we have chosen the right option for converging our networks," declared Eduardo Rabboni, head of the CTBC’s Planning Department. He added: "What makes us feel so sure is the fact that it enables us to reuse the resources which were already invested in our infrastructure and, at the same time, to offer new value added services."
The example of CTBC Telecom Brazil shows that the convergence of the voice and IP worlds is no longer a pipe dream. By adopting Surpass, the company is protecting its investment while significantly expanding its business activities by becoming able to offer convergent services.
Surpass also addresses the needs of Internet service providers which are seeking to gain a foothold in the profitable market for voice transmission. The Surpass total solution allows ISPs to offer voice services in their networks and, in addition, to link these to data services. This enables providers to offer, for instance, Web applications enhanced with telephony functions.
<big>Only an open architecture guarantees the protection of the investment</big>
The functionality of Surpass includes an application programming interface (API), which gives the system the openness which is typical of a flexible total solution. The API enables third-party vendors to develop additional functions such as "E-Mail Waiting Indication" or "Call Waiting Internet Busy".
Surpass provides for a phased migration to IP-based infrastructures, with timing and the technicalities of the changeover depending on the requirements of the ISP or carrier. With its open IP architecture, Surpass can incorporate existing network elements while leaving it up to the customer to choose future components. The modular system can be adapted to suit the customer’s needs and technological requirements so that the migration can be individualized and evolutionary, in line with operational requirements.
The superior design of Surpass allows ISPs and carriers to respond rapidly to their competitive environment. By changing over to IP-based structures with Surpass, the customer can introduce innovative services and generate new sources of revenue.
The proprietary age is drawing to a close, and services are taking over the dominant role in network operations. "For any company which has E-business as a strategic aim, there is no alternative to IP. Today it is possible to build end-to-end IP-based infrastructures without having to compromise. With our product portfolio, we can offer, as of now, a reliable and ‘future-proof’ total solution," says Professor Winfried Büttner, head of the Siemens Wireline Network Communication Unit.
<big>Racecourse for the wired world</big>
For any business, smoothly flowing information to partners and customers is as important a factor as central heating or electricity. Demand for these utilities, however, does not usually increase by five, ten or one hundred times every year. With the explosion of data traffic of all kinds, pressures on networks are continuing to build, presenting challenges both for businesses and for the network operators which serve them. If a company’s operations face a bottleneck because of data traffic jams in the network, this means trouble both for the company and for the network provider.
In long distance networks, the key issue is providing massive amounts of bandwidth at a competitive price. Business requirements for bandwidth are increasing constantly – often in multiples of 100 or more. This does not mean, however, that customers are willing to accept anything more than a modest increase in price in exchange for massive increases in capacity. Carriers are under severe pressure to deliver huge bandwidth increases which containing costs.
In metropolitan networks, the situation is different. Rapidly evolving technologies have created a mismatch between commercial campus environments and the metropolitan networks which connect them. Gigabit Ethernet and other services used within campus networks often exceed the capacities of the metropolitan networks which connect one facility with another one on the other side of town. This is reminiscent of someone’s trying to drive a multi-unit trailer truck down a narrow alley.
<big>Flexible solutions for soaring traffic</big>
New advances in optic network technology are transforming the transport network – the delivery system which allows data to reach its destination. New networks are providing the capacity to accommodate soaring demands for bandwidth, while supporting future growth by many orders of magnitude. Solutions are based on Dense Wavelength Division Multiplexing (DWDM) – a transmission technique which increases the capacity of existing fiber optic lines may times over by enabling the simultaneous transmission of numerous optic signals over a single fiber. A beam of light which passes through an optic fiber is divided into different colors, each of which can carry data. The bottom line – new capacity without the need to bury new fiber into the ground.
For the first time, DWDM is now available as a seamless, integrated solution from the local edge network through the long distance backbone. The new model is a like a highway system which can expand readily as traffic grows. New "lanes" can be added in seconds, intersections supporting thousands of data streams can be routed at will, and traffic can be redirected automatically in the event of an error. For businesses, the capabilities of DWDM mean that users can send and receive diverse information in the fastest and most cost-effective way possible, both today and well into the future.
<big>An integrated transport network</big>
In the long distance backbone network, smaller signals are aggregated together in pipes which carry traffic at almost unimaginable volumes, especially given the physical dimensions that are involved. Siemens has produced a system which transmitted a world-record 3.2 terabits per second, with 80 DWDM channels each transmitting 40 gigabits (billions of bits). This is the equivalent of 50 million simultaneous conversations, or 100 million typed pages per second over a single optic fiber that is narrower than a human hair.
DWDM also has a role to play in metropolitan and urban networks. As urban carriers face increased demand for high transmission capabilities, they are expected to transmit data in a variety of formats. Unlike long distance networks, the key value in metropolitan networks is flexibility and cost effectiveness, not the ability to transport as much data as possible over great distances. DWDM technologies provide clear optic channels which allow traffic to flow freely, regardless of format and protocol. ATM, IP, Ethernet, legacy communications and special video signals can all be transmitted in a transparent, multi-service network. Carriers are in a position to offer companies a smooth transition toward the emerging class of services which makes use of much larger bandwidth.
At network nodes or junction points, new optic cross-connects such as the Siemens TransXpress optic service node are able to route thousands of streams of data traffic while adapting quickly to shifting traffic patterns and customer needs. Just as DWDM allows transport that is well into the gigabit range, the optic cross-connects enable switching to handle data streams of 2.5, 10 and 40 gigabits per second and more. The optic switching of beams of light allows switching at any "granularity" – a term which refers to the size of the data stream – that is needed to meet traffic demands.
Siemens unveiled its optic cross-connect systems at CeBIT 2000, and the unit is now available for trials and testing.
<big>Rapid response and evolving requirements</big>
In today’s wired economy, success depends on one’s ability to adapt to rapid change. Fax requests for service and dispatch technicians was acceptable when a response time of a few days was considered prompt. Today things are different. Delays of more than a few minutes can have serious consequences. Siemens’ integrated DWDM networks provide automated control and protection for companies that operate in this environment. Networks can be managed and configured from a central terminal, eliminating the need for support staff to travel to remove sites to connect patch panels or hunt for errors.
As network management becomes easier and more intuitive, the next step will be customer network management, where customers by a certain amount of network reserves and manage these reserves themselves. Companies will be able to define their own configurations and bandwidth needs.
Managed DWDM solutions today are providing the infrastructure which supports the most demanding and dynamic communications needs, eliminating the scramble to keep up with bandwidth demands. With the world so very dependent on free-flowing information of all kinds, this is good news for everyone.