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The Era of Telco 4.0:
Embracing Digital Transformation with Data in Motion
Kai Waehner
Field CTO
contact@kai-waehner.de
linkedin.com/in/kaiwaehner
@KaiWaehner
www.confluent.io
www.kai-waehner.de
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
1. The rise of Telco 4.0 and the future forward
2. Data in Motion in the Telco industry
3. Real-world Fintech and Payment examples powered by
Data in Motion
Agenda
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
1. The rise of Telco 4.0 and the future forward
2. Data in Motion in the Telco Industry
3. Real-world Fintech and Payment examples powered by
Data in Motion
Agenda
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Telco need to transform everything
“The biggest hurdle to
overcome with digital
transformation is to
understand that it isn’t just a
simple technology challenge
– it covers every part of the
telco business.”
https://www.huawei.com/en/about-huawei/publications/winwin-magazine/plus-intelligence/telco-digital-transformation
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
5G enables new business models
https://www.youtube.com/watch?v=A9DDe0alvGo
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
5G Network Slicing Use Cases
https://www.youtube.com/watch?v=A9DDe0alvGo
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
5G Success Criteria
https://medium.com/open-5g-hypercore/open-5g-hypercore-episode-i-166a89805c08
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Dish builds a Cloud-Based 5G Network
Greenfield standalone network with pure 5G and cloud native from the start, rather than retrofitting a 4G core
Combination of Dish’ OSS and BSS with AWS Local Zones / Outposts, Kubernetes, ML and 3rd party services
Free from the security limitations of traditional 2G, 3G and 4G technologies.
“As DISH deploys its network, the company is
partnering exclusively with vendors offering
cloud-native technology, bringing them
together on AWS to provide DISH customers
greater flexibility and control of their 5G-
enabled solutions.
As a new carrier, leveraging AWS and its
extensive network of partners enables us to
differentiate ourselves by operating our 5G
network with a high degree of automation.”
https://awsinsider.net/articles/2021/04/26/dish-taps-aws-for-its-5g-network.aspx
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Real-time Data beats Slow Data.
9
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
https://www2.deloitte.com/content/dam/Deloitte/it/Documents/technology-media-telecommunications/Next%20Gen%20Telco%20Architecture_2017_final.pdf
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
1. The rise of Telco 4.0 and the future forward
2. Data in Motion in the Telco Industry
3. Real-world Fintech and Payment examples powered by
Data in Motion
Agenda
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
This is a fundamental paradigm shift...
12
Infrastructure
as code
Data in motion
as continuous
streams of events
Future of the
datacenter
Future of data
Cloud
Event
Streaming
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Data in Motion in the Telco Industry
Your Business as Streams of Events, powered by Kafka
Continuous
Proactive Network
Monitoring
Incident
Management
Reporting
Data
Normalization
Middleware
Telemetry
Data
OSS
Infrastructure
Example
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Apache Kafka is the Platform for Data in Motion
MES
ERP
Sensors
Mobile
Customer 360
Real-time
Alerting System
Data
warehouse
Producers
Consumers
Streams and storage of real time events
Stream
processing
apps
Connectors
Connectors
Stream
processing
apps
Supplier
Alert
Forecast
Inventory Customer
Order
14
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
From purpose-built hardware to generic hardware and elastic scale
From monoliths to decoupled, independent services
https://www2.deloitte.com/content/dam/Deloitte/it/Documents/technology-media-telecommunications/Next%20Gen%20Telco%20Architecture_2017_final.pdf
(Network Function Virtualization)
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Event Streaming for
traditional and new innovative use cases
in the telecommunications industry
Real Time Processing Digital Transformation Strategic Goals
Move data from OSS fixed,
mobile, cable into various
systems
Innovative OTT Services
Proactive network
monitoring
CDR
(Call Detail Record)
processing
Fleet management and connected
car solutions
Customer service
(e.g. chat bots) and social
Integration
Cloud-native network
simulation, planning and
deployment
Personalized
messages and
recommendations
Fraud detection
Predictive maintenance
across networks and
infrastructure
Nationwide
security
infrastructure
(SIEM / SOAR)
Augmented
reality
Spanning different
business units
(TV, analytics, video
platform, sales and
services)
OSS-BSS integration
and middleware
modernization
Regulatory
reporting
Customer churn and
cross- / up-selling
Merger after
acquisitions
Omni-channel customer
360
Converged
billing solution
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
OSM - Open Source MANO
(NFV Management and Orchestration)
Addressing challenges with orchestration, interoperability and performance optimization
Based on ETSI (European Telecommunication Standards Institute) NFV standards and Information Model
Interoperability among different service provider NFV infrastructures or OSS systems
Apache Kafka asynchronous communication between OSM components and decoupling introduction of new pluggable modules
https://osm.etsi.org/news-events/blog/30-open-source-mano-addressing-interoperability-challenge-in-nfv
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Global IP Network @ NTT Com
https://imply.io/post/kappa-architecture-at-ntt
Challenges
• Blackbox
• Not scalable
• Limited ad-hoc analysis capabilities
Real-time visibility into global traffic
• Technical: Capacity planning, traffic engineering, etc.
• Economical: Resource optimization, revenue leak detection, etc.
• Security
Traffic matrix
Representation of all traffic among all possible pairs of sources and destinations in a given
internet domain
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Cyber Intelligence Platform
leveraging Kafka Connect, Kafka Streams, Multi-Region Clusters (MRC), and more…
https://www.intel.com/content/www/us/en/it-management/intel-it-best-practices/modern-scalable-cyber-intelligence-platform-kafka.html
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
8x8 – Customer 360
Voice over IP (VoIP) provider
Cloud-based voice, contact center, video, mobile and
unified communications for >1 million business users
• Confluent to build a multi-tenant, scalable, elastic SaaS
contact center solution
• Strict data separation and secure, GDPR compliant data environment to
handle sensitive caller information
• Collection and processing of billions of metrics in real-time
• Replication between data centers for disaster recovery
• Real-time analytics for Dashboards and Machine
Learning
• Key customer experience metrics such as customer wait time and first-call
resolution rates
• Proactive alerts (for example, an issue with a local ISP)
• Prediction of staffing needs
• Predict contact center call volumes for the next 12 hours based on current
and historical data
https://www.confluent.io/customers/8x8/
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Hotstar – OTT for millions of cricket fans in India
https://www.confluent.io/kafka-summit-san-francisco-2019/scaling-for-indias-cricket-hungry-population/
https://www.confluent.io/customers/disneyhotstar/
@
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
1. The rise of Telco 4.0 and the future forward
2. Data in Motion in the Telco Industry
3. Real-world Fintech and Payment examples powered by
Data in Motion
Agenda
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Telecom Fintech Innovation is Spreading
Mobile wallets for online shopping, money savings/transfer, utility billing integration, next best offer + location-based trigger,
…
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
“We look at events as running our
business. Business people within
our organization want to be able to
react to events—and oftentimes it's
a combination of events.”
VP of Streaming Data Engineering
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Fraud Detection
at Scale in Real-Time for Billions of Messages
https://www.infoq.com/presentations/paypal-data-service-fraud
https://conferences.oreilly.com/strata/strata-ny-2018/public/schedule/detail/69459.html
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Bank Mandiri Indonesia
Full retail & corporate banking services in Indonesia
26
• Improve omnichannel and personalized merchant and retail customer
communications
• Identify upsell and cross-sell opportunities
• Greater stability and reduced risk of downtime/outages
• Reduce technical costs
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Fraud Detection @ Grab
GrabDefence SaaS service build with Confluent Cloud, Kafka Streams and ML for stateful stream processing
Billions of fraud and safety detections performed daily for millions of transactions (1.6% is lost in fraud in Southeast Asia)
Data science and engineering platform to search for anomalous and suspicious transactions and identifying
high-risk individuals
Example: An individual who pretends to be both the driver and passenger, and makes cashless payments to
get promotions
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
10X Banking
Cloud-native Core Banking Platform
https://videos.confluent.io/watch/ip69LsbDX8JpERSP1soNXo
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Why Confluent?
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
The Rise of Data in Motion
2010
Apache Kafka
created at LinkedIn by
Confluent founders
2014
2020
80%
Fortune 100
Companies
trust and use
Apache Kafka
30
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
I N V E S T M E N T & T I M E
V
A
L
U
E
3
4
5
1
2
Event Streaming Maturity Model
Initial Awareness /
Pilot (1 Kafka
Cluster)
Start to Build
Pipeline / Deliver 1
New Outcome
(1 Kafka Cluster)
Mission-Critical
Deployment
(Stretched, Hybrid,
Multi-Region)
Build Contextual
Event-Driven Apps
(Stretched, Hybrid,
Multi-Region)
Central Nervous
System
(Global Kafka)
Product, Support, Training, Partners, Technical Account Management...
31
Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de
Car Engine Car Self-driving Car
Confluent completes Apache Kafka. Cloud-native. Everywhere.
Kai Waehner
Field CTO
contact@kai-waehner.de
@KaiWaehner
www.kai-waehner.de
www.confluent.io
linkedin.com/in/kaiwaehner
Questions? Feedback?
Let’s connect!

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Telco 4.0 - Payment and FinServ Integration for Data in Motion with 5G and Apache Kafka

  • 1. The Era of Telco 4.0: Embracing Digital Transformation with Data in Motion Kai Waehner Field CTO contact@kai-waehner.de linkedin.com/in/kaiwaehner @KaiWaehner www.confluent.io www.kai-waehner.de
  • 2. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 1. The rise of Telco 4.0 and the future forward 2. Data in Motion in the Telco industry 3. Real-world Fintech and Payment examples powered by Data in Motion Agenda
  • 3. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 1. The rise of Telco 4.0 and the future forward 2. Data in Motion in the Telco Industry 3. Real-world Fintech and Payment examples powered by Data in Motion Agenda
  • 4. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Telco need to transform everything “The biggest hurdle to overcome with digital transformation is to understand that it isn’t just a simple technology challenge – it covers every part of the telco business.” https://www.huawei.com/en/about-huawei/publications/winwin-magazine/plus-intelligence/telco-digital-transformation
  • 5. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 5G enables new business models https://www.youtube.com/watch?v=A9DDe0alvGo
  • 6. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 5G Network Slicing Use Cases https://www.youtube.com/watch?v=A9DDe0alvGo
  • 7. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 5G Success Criteria https://medium.com/open-5g-hypercore/open-5g-hypercore-episode-i-166a89805c08
  • 8. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Dish builds a Cloud-Based 5G Network Greenfield standalone network with pure 5G and cloud native from the start, rather than retrofitting a 4G core Combination of Dish’ OSS and BSS with AWS Local Zones / Outposts, Kubernetes, ML and 3rd party services Free from the security limitations of traditional 2G, 3G and 4G technologies. “As DISH deploys its network, the company is partnering exclusively with vendors offering cloud-native technology, bringing them together on AWS to provide DISH customers greater flexibility and control of their 5G- enabled solutions. As a new carrier, leveraging AWS and its extensive network of partners enables us to differentiate ourselves by operating our 5G network with a high degree of automation.” https://awsinsider.net/articles/2021/04/26/dish-taps-aws-for-its-5g-network.aspx
  • 9. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Real-time Data beats Slow Data. 9
  • 10. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de https://www2.deloitte.com/content/dam/Deloitte/it/Documents/technology-media-telecommunications/Next%20Gen%20Telco%20Architecture_2017_final.pdf
  • 11. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 1. The rise of Telco 4.0 and the future forward 2. Data in Motion in the Telco Industry 3. Real-world Fintech and Payment examples powered by Data in Motion Agenda
  • 12. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de This is a fundamental paradigm shift... 12 Infrastructure as code Data in motion as continuous streams of events Future of the datacenter Future of data Cloud Event Streaming
  • 13. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Data in Motion in the Telco Industry Your Business as Streams of Events, powered by Kafka Continuous Proactive Network Monitoring Incident Management Reporting Data Normalization Middleware Telemetry Data OSS Infrastructure Example
  • 14. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Apache Kafka is the Platform for Data in Motion MES ERP Sensors Mobile Customer 360 Real-time Alerting System Data warehouse Producers Consumers Streams and storage of real time events Stream processing apps Connectors Connectors Stream processing apps Supplier Alert Forecast Inventory Customer Order 14
  • 15. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de From purpose-built hardware to generic hardware and elastic scale From monoliths to decoupled, independent services https://www2.deloitte.com/content/dam/Deloitte/it/Documents/technology-media-telecommunications/Next%20Gen%20Telco%20Architecture_2017_final.pdf (Network Function Virtualization)
  • 16. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Event Streaming for traditional and new innovative use cases in the telecommunications industry Real Time Processing Digital Transformation Strategic Goals Move data from OSS fixed, mobile, cable into various systems Innovative OTT Services Proactive network monitoring CDR (Call Detail Record) processing Fleet management and connected car solutions Customer service (e.g. chat bots) and social Integration Cloud-native network simulation, planning and deployment Personalized messages and recommendations Fraud detection Predictive maintenance across networks and infrastructure Nationwide security infrastructure (SIEM / SOAR) Augmented reality Spanning different business units (TV, analytics, video platform, sales and services) OSS-BSS integration and middleware modernization Regulatory reporting Customer churn and cross- / up-selling Merger after acquisitions Omni-channel customer 360 Converged billing solution
  • 17. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de OSM - Open Source MANO (NFV Management and Orchestration) Addressing challenges with orchestration, interoperability and performance optimization Based on ETSI (European Telecommunication Standards Institute) NFV standards and Information Model Interoperability among different service provider NFV infrastructures or OSS systems Apache Kafka asynchronous communication between OSM components and decoupling introduction of new pluggable modules https://osm.etsi.org/news-events/blog/30-open-source-mano-addressing-interoperability-challenge-in-nfv
  • 18. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Global IP Network @ NTT Com https://imply.io/post/kappa-architecture-at-ntt Challenges • Blackbox • Not scalable • Limited ad-hoc analysis capabilities Real-time visibility into global traffic • Technical: Capacity planning, traffic engineering, etc. • Economical: Resource optimization, revenue leak detection, etc. • Security Traffic matrix Representation of all traffic among all possible pairs of sources and destinations in a given internet domain
  • 19. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Cyber Intelligence Platform leveraging Kafka Connect, Kafka Streams, Multi-Region Clusters (MRC), and more… https://www.intel.com/content/www/us/en/it-management/intel-it-best-practices/modern-scalable-cyber-intelligence-platform-kafka.html
  • 20. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 8x8 – Customer 360 Voice over IP (VoIP) provider Cloud-based voice, contact center, video, mobile and unified communications for >1 million business users • Confluent to build a multi-tenant, scalable, elastic SaaS contact center solution • Strict data separation and secure, GDPR compliant data environment to handle sensitive caller information • Collection and processing of billions of metrics in real-time • Replication between data centers for disaster recovery • Real-time analytics for Dashboards and Machine Learning • Key customer experience metrics such as customer wait time and first-call resolution rates • Proactive alerts (for example, an issue with a local ISP) • Prediction of staffing needs • Predict contact center call volumes for the next 12 hours based on current and historical data https://www.confluent.io/customers/8x8/
  • 21. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Hotstar – OTT for millions of cricket fans in India https://www.confluent.io/kafka-summit-san-francisco-2019/scaling-for-indias-cricket-hungry-population/ https://www.confluent.io/customers/disneyhotstar/ @
  • 22. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 1. The rise of Telco 4.0 and the future forward 2. Data in Motion in the Telco Industry 3. Real-world Fintech and Payment examples powered by Data in Motion Agenda
  • 23. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Telecom Fintech Innovation is Spreading Mobile wallets for online shopping, money savings/transfer, utility billing integration, next best offer + location-based trigger, …
  • 24. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de “We look at events as running our business. Business people within our organization want to be able to react to events—and oftentimes it's a combination of events.” VP of Streaming Data Engineering
  • 25. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Fraud Detection at Scale in Real-Time for Billions of Messages https://www.infoq.com/presentations/paypal-data-service-fraud https://conferences.oreilly.com/strata/strata-ny-2018/public/schedule/detail/69459.html
  • 26. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Bank Mandiri Indonesia Full retail & corporate banking services in Indonesia 26 • Improve omnichannel and personalized merchant and retail customer communications • Identify upsell and cross-sell opportunities • Greater stability and reduced risk of downtime/outages • Reduce technical costs
  • 27. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Fraud Detection @ Grab GrabDefence SaaS service build with Confluent Cloud, Kafka Streams and ML for stateful stream processing Billions of fraud and safety detections performed daily for millions of transactions (1.6% is lost in fraud in Southeast Asia) Data science and engineering platform to search for anomalous and suspicious transactions and identifying high-risk individuals Example: An individual who pretends to be both the driver and passenger, and makes cashless payments to get promotions
  • 28. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de 10X Banking Cloud-native Core Banking Platform https://videos.confluent.io/watch/ip69LsbDX8JpERSP1soNXo
  • 29. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Why Confluent?
  • 30. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de The Rise of Data in Motion 2010 Apache Kafka created at LinkedIn by Confluent founders 2014 2020 80% Fortune 100 Companies trust and use Apache Kafka 30
  • 31. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de I N V E S T M E N T & T I M E V A L U E 3 4 5 1 2 Event Streaming Maturity Model Initial Awareness / Pilot (1 Kafka Cluster) Start to Build Pipeline / Deliver 1 New Outcome (1 Kafka Cluster) Mission-Critical Deployment (Stretched, Hybrid, Multi-Region) Build Contextual Event-Driven Apps (Stretched, Hybrid, Multi-Region) Central Nervous System (Global Kafka) Product, Support, Training, Partners, Technical Account Management... 31
  • 32. Apache Kafka in the Telco Industry – @KaiWaehner - www.kai-waehner.de Car Engine Car Self-driving Car Confluent completes Apache Kafka. Cloud-native. Everywhere.