Co-sponsored feature: Alcatel-Lucent
Bringing together combined network and IT experience provides an efficient means to address
operators’ needs to transform business. The Alcatel-Lucent and Hewlett-Packard (HP) alliance,
now established for over a year, unlocks the potential to perform that transformation more
effectively, explains Andreas Herzog, president of Alcatel-Lucent’s Managed Services Division
Achieving competitive advantage through proven
business transformation and outsourcing strategies
Andreas Herzog: Bringing together
IT and telecoms expertise addresses
the strategic imperatives operators
face
Operators today face a multitude of process, organisa-
tional and technological issues as their networks expand
and product portfolios grow. They face operational
difficulties from both absorbing organic growth and
the integration burden of renewed mergers and acqui-
sitions in the sector. These issues are compounded as
operators deal with heightened competition from both
legacy and new service and content providers.
In order to meet these new challenges effectively,
operators need to institute fundamental change across
their businesses. Change is required in five key areas:
n Developing strategic partnerships around technology
n Integration of multiple domains such as IT, the
network and customer relationship management
n Establishment of business processes that are more
end-user centric
n Optimisation of capital and asset management
n Adaptation of the operator organisation to become
more agile
The HP and Alcatel-Lucent alliance combines a com-
prehensive set of capabilities and processes that system-
atically align to offer operators the most effective man-
aged services solutions as they transform to converged,
next generation service providers. There are no other
similar alliances in the industry that bring together
the IT and telecoms expertise of the participants to
offer a portfolio of solutions targeting specific strategic
imperatives operators are now facing. These include:
102 Global Telecoms Business CEO and CFO Guide to Managed Services: September/October 2010
Multi-country operations and governance
Multi-country operators are looking to unify opera-
tional models, either on a regional or global basis,
depending on the type of operations they run. The
alliance provides end-to-end managed services solu-
tions to support all domains and business units of
operators from tier 1 to tier 3 in multi-country envi-
ronments. Solution strategies address the consolida-
tion and optimisation of different operating companies
under a single governance and management umbrella
for network and IT — excluding core business pro-
cesses, such as end customer marketing and sales.
The total telecom framework
HP and Alcatel-Lucent have designed a joint frame-
work for complete outsourcing of operators’ revenue
generating infrastructure. The framework encom-
passes end-to-end design, plus the build and transi-
tion into managed services or outsourced solutions.
The framework covers and supports potentially all
domains and business units within an operator and
enables them to take the strategic solutions they need
to reach their specific business goals.
Solution strategies for business transformation
These deliver transformation services that span from
the network to IT, service management and opera-
tional processes and tools to ensure a smooth, effec-
tively-integrated transition of the operator business.
In-country operator mergers and acquisitions
These solutions support operators as they manage
the integration burden of mergers and acquisitions.
An example of such a scenario would be the merger
of fixed and mobile operations. The alliance provides
end-to-end managed services solutions to support all
domains and business units in one specific country
environment to optimise and consolidate multiple
service providers. The solutions exclude core business
processes like end customer marketing and sales.
The value proposition
Depending on the strategic managed services engage-
ment, the Alcatel-Lucent HP Alliance can achieve the
following typical improvements:
Incremental decreases in total operational expendi-
ture by up to 3% compared to the alternative of
managing multiple contracts. This can be achieved by
reducing IT and network costs for a total customer pro-
gramme and removing the costs of duplicated functions
such as programme management, service desks, etc.
www.globaltelecomsbusiness.com

Improvement of time-to-market and enhanced
speed of innovation from months to weeks by provid-
ing open application developer ecosystems for new
service offerings in both consumer and enterprise
segments, ensuring solutions are pre-integrated and
backed by an end-to-end validation process. This is
also accomplished by removing operators’ internal
overheads that inhibit rapid service — or system —
introduction.
Reduction of subscriber acquisition and retention
costs can be achieved through the alliance’s sin-
gle Business Intelligence (BI) operations framework
that correlates network, IT and customer man-
agement along with enhanced subscriber profiling
for improved end-user quality of experience and
understanding of customer segmentation. Greater
customer satisfaction can be achieved through more
responsive end-user centric business processes.
The operators’ go-to-market capability is expanded
by accessing the combined expertise of HP and Alca-
tel-Lucent in the enterprise segment. The operator’s
network services can be used to support new applica-
tions for enterprise-verticals such as cloud services,
application enablement or hosting, to name a few.
In addition, joint marketing campaigns that target
industry specific solutions such as tele-healthcare
can be created.
Optimisation of capital and asset management
occurs through proactive capacity management
across all technology landscapes, access to on-demand
capacities, skills and resources and access to financial
instruments. This optimisation helps to mitigate
start-up costs of transformation projects from both
capital and operational expenditure perspectives.
A managed services approach enables operators to
combine best in class IT, network technologies and
business operational processes to achieve the best
business outcomes.
Key business problems solved
The telecommunications industry is looking for
growth in mature markets across the world. This has
manifested itself in the form of new services. Yet, tra-
ditionally, the industry has been focused on deploying
and maintaining state of the art infrastructure.
The problems created in mature markets by this
shift in the demands made upon operators are clear:
n Operators now need to launch new services far
more rapidly than ever before,
n The infrastructure and processes needed to deliver
these services must offer previously unseen flex-
ibility, and
n Infrastructure spend needs to be re-aligned to
relate to service development.
In emerging markets, or where start-ups or new
licenses have been acquired, the challenge is to:
n Rapidly build out the infrastructure and business
processes,
n Manage them thereafter at minimum cost, and
n Provide differentiated services at launch while
being fully aligned to the business strategy.
While the emphasis will be different in each market
regardless of the type of business, the truth is that an
operator will need help in using network and IT skills
to manage growth, to maximise the capabilities of the
www.globaltelecomsbusiness.com Global Telecoms Business CEO and CFO Guide to Managed Services: September/October 2010 103
Co-sponsored feature: Alcatel-Lucent
network and IT infrastructure as a differentiator and to
increase efficiency and innovation in order to compete.
Why HP and Alcatel-Lucent?
The HP and Alcatel-Lucent alliance combines a
comprehensive set of capabilities and processes that
systematically align to offer operators the most effec-
tive managed services solutions.
The benefits that operators can derive from the
joint HP and Alcatel- Lucent partnership include:
n A committed partnership for the next 10 years that
will result in consolidated, industry leading net-
work and IT innovation to help remove duplicate
network and IT functions and costs.
n Improved time-to-market by making use of the
largest technology and service capabilities, such as
research and development, that include long-term
roadmap collaboration and access to the joint inno-
vation lab that addresses technology, application
and process development.
n Mitigated implementation risk that delivers
reduced operational complexity across functional
domains through a single delivery model and with
a single point of accountability.
n Elimination of hidden project and management
costs through removing overhead associated with
managing multiple contracts and dependencies
across functional domains thereby avoiding dupli-
cation of projects and effort.
n Improved business management through more
accurate end-to-end business analytics and data
mining that enables: quality of experience indica-
tors across functional domains including the CTO,
CIO, CMO functions and business units; service
performance indicators across technology layers
comprising the network, IT, OSS, BSS, CRM,
CPE, SDP and applications; and metrics for tar-
geted marketing and cross-selling campaigns.
n Optimised capital expenditure investments through
new service models such as hosted value added ser-
vices that can bring the operator into an enterprise
IT cost curve whilst maintaining the reliability
demanded of a telecom infrastructure.
The HP and Alcatel-Lucent approach
The alliance recognises that every customer is dif-
ferent and is bringing together its local sales and
delivery teams to work with customers to identify
areas where the alliance can serve them more effec-
tively than it can individually. The local teams are
backed by worldwide and regional alliance resources
that support the creation of joint solutions and carry
the experience from joint engagements from one cus-
tomer opportunity to another.
The alliance brings together its strengths in the areas
of network and IT managed services which include:
n A clear engagement model comprised of a local joint
engagement with customised delivery to match cus-
tomer needs, backed by a 10 year worldwide alliance,
n Jointly developed managed services governance
model designed to accommodate the multivendor
environment, and
n Strong Alcatel-Lucent and HP executive sponsor-
ship and willingness to engage in any managed
services opportunity. n