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Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 1 Leveraging the New Diameter Network to Monetize and Manage Mobile Data John Lenns, Senior Director, Product Management September 2013

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John Lens Oracle Focus Day

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  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 1

    Leveraging the New Diameter Network to Monetize and Manage Mobile Data

    John Lenns, Senior Director, Product

    Management

    September 2013

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 2

    Cautionary Statement Regarding Forward-Looking Statements

    This document contains certain forward-looking statements about Oracle and Tekelec, including statements that involve risks and uncertainties concerning Oracle's proposed acquisition of Tekelec, anticipated customer benefits and general business outlook. When used in this document, the words "anticipates", "can", "will", "look forward to", "expected" and similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Oracle or Tekelec, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this document due to a number of risks and uncertainties. Potential risks and uncertainties include, among others, the possibility that the transaction will not close or that the closing may be delayed, the anticipated synergies of the combined companies may not be achieved after closing, the combined operations may not be successfully integrated in a timely manner, if at all, general economic conditions in regions in which either company does business may deteriorate and/or Oracle or Tekelec may be adversely affected by other economic, business, and/or competitive factors. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Oracle or Tekelec. You are cautioned to not place undue reliance on forward-looking statements, which speak only as of the date of this document. Neither Oracle nor Tekelec is under any duty to update any of the information in this document.

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 3

    New Business Models Driving Diameter Signaling

    Growth Areas Service Provider

    Revenue/Subscriber

    New Diameter Network

    Identity and Security Broker $ 3-6

    Advertising/Payments $ 3-4

    OTT/Cloud Services $1-5

    Machine-to-Machine $1-2

    QoS Services $1-4

    Analytics $5-$15

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 4

    Digital Lifestyle Services: Telefnica

    Source: Mobile 4th Wave: Evolution of the Next Trillion Dollars, Chetan Sharma

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 5

    Diameter Signaling Traffic Growing Twice as Fast as Mobile Data Traffic

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 6

    Asia Pacific will reach 35

    Million Diameter MPS by

    2017 the second highest region globally

    behind North America

    Australia, Japan, Korea,

    China and Singapore to

    drive growth throughout

    the forecast period

    Asia-Pacific LTE Diameter Signaling by Use Case

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 7

    Diameter Signaling Growth Challenges

    Partner

    Networks

    PCRF

    PCRF

    PCRF

    CSCF

    CSCF

    CSCF

    IMS

    Video

    Optimization

    Gateway

    EIR DPI

    Cloud/OTT

    Charging

    Policy

    Control

    Inter-Carrier

    Roaming

    MME

    EPC

    SBC PGW

    Subscriber

    Data

    Traffic

    Optimization

    Simplification

    Scalability

    Reliability

    Robustness

    Fault Handling

    Security

    Traffic Management

    Load Balancing

    Flexibility

    Interworking

    IOT

    Visibility

    Troubleshooting

    Future-proofing

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 8

    A New Diameter Network Is Required

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 9

    Meets the Key Requirements for LTE Success

    MME I/S-CSCF

    Foreign LTE Domain

    Home LTE/IMS Domain

    Foreign LTE/3G/OTT Domain

    ABMF RF

    vSGSN

    vS4-

    SGSN

    vPCRF

    Diameter

    Agent

    vMME

    Diameter

    Agent

    IP-SM-GW

    PGW

    OCF

    AF

    OFCF

    SS7

    PCRF P-CSCF

    EIR AAA HSS DSC

    Simplified addressing

    Network scaling

    Ease of interworking

    EPC element failure protection Flexibility and future proofing

    Improved network visibility

    Reduced network complexity

    and increased robustness

    Simple, secure network

    interconnect

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 10

    And Enables LTE Roaming & Service Portability

    Key roaming requirements: Secure interconnect, policy-enhanced

    roaming steering, topology hiding, MAP/Diameter interworking

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 11

    Control Layer Virtualization and Software-Defined Networks

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 12

    Control Layer Virtualization and SDN Logical PCRF Node

    NFV Orchestrator

    DSC

    PCRF

    App

    VM IP 1

    PCRF

    App

    VM IP 2

    PGW

    Diameter

    Traffic

    Cloud Manager

    Diameter

    Routing

    Table

    Application layer routing

    algorithm

    - IMSI based

    - Round robin

    - Prioritized etc.

    Node level feedback

    NFV

    Orchestrator

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 13

    Control Layer Virtualization and SDN

    NFV Orchestrator

    DSC

    Cloud Manager

    Information about

    new element

    (IP, capability)

    SDN

    API

    Orchestrator must

    have application

    knowledge

    PGW

    NFV

    Orchestrator

    Diameter

    Routing

    Table

    Diameter

    Traffic

    PCRF

    App

    VM IP 1

    PCRF

    App

    VM IP 2

    PCRF

    App

    VM IP 3

    Logical PCRF Node

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 14

    Control Layer Virtualization and SDN

    NFV Orchestrator

    DSC

    Cloud Manager

    1.) Establish SCTP connection

    2.) Establish Diameter Connection

    3.) Modify Diameter routing table

    4.) Modify Diameter load leveling

    5.) Modify Diameter congestion control

    DSR is an integral

    part of signaling

    layer SDN PGW

    NFV

    Orchestrator

    Diameter

    Routing

    Table

    Diameter

    Traffic

    SDN

    API

    Logical PCRF Node

    PCRF

    App

    VM IP 1

    PCRF

    App

    VM IP 2

    PCRF

    App

    VM IP 3

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 15

    Policy is the Key for Orchestration Decisions

    Policy-based

    Decision

    Engine

    SDN Controller

    Network Flow

    Rules

    Subscriber

    information

    Real-time

    session

    information

    Application

    Load

    (in addition to

    server load)

    Traffic

    characteristics

    Cloud Manager

    PCRF

    App

    VM

    IP 1

    PCRF

    App

    VM

    IP 2

    PCRF

    App

    VM

    IP 2

    NFV

    Orchestrator

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 16

    Critical for Evolving to Intelligent Networks 3rd Party Analytics

    Client events Big Data

    Application Servers

    Network Event Listener

    Policy

    Server

    Orchestrator/SDN

    Controller

    IP Signaling

    Transport

    Network

    IP Bearer

    Transport

    Network

    Real-time model

    (network, services etc.)

    Event

    Report

    New Diameter Network

    New Diameter Network

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 17

    And Delivering Digital Lifestyle Services

    Mobile Digital Lifestyle

    + Targeted Advertising + Sports Package

    + Promotion

    + 25% Revenues Promos & Loyalty

    Analytics

    Advertising

    YouTube

    TV Network

    Subscriber

  • Copyright 2013, Oracle and/or its affiliates. All rights reserved. Confidential Oracle Restricted 18

    Thank You!