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Open Source Business Models for Mobile Media Gateway Node Manager
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Ericsson Media Gateway for Mobile Networks (M-MGw) 1/2 The M-MGw is one part of a core network entity called
the MSC– The MSC operates between different mobile and fixed
networks– Handles both user plane and control plane traffic
In layered architecture the MSC is split in two: MSC-S and M-MGw
– M-MGw handles the user plane traffic– MSC-S performs control plane activities controlling the M-
MGw
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Horizontally Layered Architecture
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M-MGw in Core Network
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Ericsson Media Gateway for Mobile Networks (M-MGw) 2/2 Main functions:
– Payload processing– Bearer control– Media conversion
O&M functionality: – Built in the node with an API– Three layers:
The Network Management Layer The Sub-Network Management Layer The Element Management Layer
– One single M-MGw is managed on element management layer with the Node Manager
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The Node Manager
An element management layer tool Written in Java
– Can be run on any platform in any enviroment
Provides a GUI for the O&M functions in the M-MGw– A node can be managed both remotely and locally
Used for– Configuration management– Software and hardware management– Fault management– Troubleshooting– Collecting performance data
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Open Source 1/4What is it exactly?
A software development method and ideology Utilizes the power of process transparency and shared
peer review Efficiency increases with the number of developers Details depend on the chosen license
– However, the license only defines the rules and boundaries, a framework for operations
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Open Source 2/4Licensing?
Open Source Initiative (OSI) approves licenses that are in line with the open source definition
– Nearly 60 approved licenses to choose from– Naturally, a number of licenses exist without OSI trademark
Copy-left vs non-copy-left An open source license defines:
– The right to modify the software– The right to distribute both the original and modified
software freely– The ownership of intellectual property rights– Warranty, liability etc.
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Open Source 3/4How does it work?
The open source process is based on free distribution It costs nothing to give away a piece of software
already written Getting something valuable in return is likely Win - win situation Open source applications:
– Google Android– Mozilla Firefox– MySQL– Linux
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Open Source 4/4Why?
Open Source programs are:– Diverse– Reliable– Usability improves constantly– Can be obtained free of charge– Can be freely modified
Examples in PC and Internet environment prove that: – The open source software development method can
produce good programs– Open source methods generate also revenues when
correctly utilized
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Benefits
Diversity– More functions available
Higher quality– More bugs being spotted and fixed– More reliable and stable
More customized solutions– Lower OPEX– More complex features possible to implement
Responsiveness– Customization made locally– No time wasted in organizational steps
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Open Source Business
1. Businesses are not sustainable, only few survive over decades
2. Software businesses are not superior to other types of businesses when revenues and profits are compared
3. At least few of the popular open source projects have been successful for quite a long time. These businesses seem to be equally or even more sustainable than traditional ones
4. The future of open source seems bright, the process may change over time, but the ideology remains. Open source, free software and proprietary are going to coexist in the near future.
5. Open source can make money. It is only a matter of strategy to make an open source project profitable.
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Open Source Business Strategies
Support sellers (Red Hat: Linux) Loss leader (Microsoft: Xbox) Sell it, free it (Google: Browser) Widget frosting (Nokia: Mobiles) Accessorizing (O’Reilly Associates: Books) Service enablers (Teleoperators: Mobiles) Branding (Red Hat: Linux) Aggregating and enhancing (Sourcefire: Security) Commecializing with a dual license(MySQL: Database)
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Open Source and Ericsson
Clear demand for customization– Open source could be the way of implementation
Widget frosting strategy recommended for Ericsson– Later support sellers should be considered
Fist mover advantage– Create strong bond with customers
Positive publicity if successful– May create requirements for other products as well– Failure may result in negative publicity
Open sourcing a program is not just throwing the code over the wall
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Outbound Open Source Software Development Model
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Objectives
Increasing hardware and maintenance sales– Competitive advantage
Customer switching costs and lock-in effect– Customer satisfaction
Lower OPEX Customization
Organizational learnign– New way of working
Refocus of energy– Innovation
More people, multidiciplinary views
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Risks
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Conclusions
Open source is an intriguing opportunity Increases customer satisfaction
– Decreases the number of lost customers– However, no new HW sales expected– OPEX could be the key to success
Organizational learning May contain high costs
– Uncertainty and risks involved
Time is not ripe for this solution– Not enough potential users yet– New inspection after 12-18 months– User profile needs re-definition
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