Vodafone Idea’s universal cloud

Vodafone Idea’s universal cloud earns it Red Hat award

by | May 25, 2020 | Technology, Telecom

The telco’s universal cloud deployment over an 18-month long period has helped it handle vagaries of data traffic like a breeze.
Share to lead the transformation

An old proverb is that when the going gets tough, the tough get going. In the challenging times of Covid-19, it applies well to the telecom sector at large and Vodafone Idea Limited (VIL) in particular. The latest feather in VIL’s cap happens to be the ‘Innovator of the Year’ title. It’s a well-earned accolade that has its roots in Vodafone Idea’s universal cloud deployment announced on 21 October 2019 in a Red Hat release. (The actual work is understood to have started much earlier.)

Vodafone Idea Limited claimed the top honors at the Red Hat Summit 2020, for orchestrating the vision of a single, universal cloud into reality. The telco now owns the largest cloud deployment of its kind in India, linking its IT, network, and third-party applications using open source infrastructure.

The initiative

This cloud initiative, which VIL had kickstarted around 18 months ago, had started bearing fruits even before the pandemic had hit the scene. It had helped VIL transform its network infrastructure by a great measure and made it highly scalable and agile. The pandemic merely tested its limits.

When it did, VIL’s network seems to have responded quite impressively. Not only was it able to accommodate a multifold rise in traffic but also managed to handle the overnight shift in demographic patterns.

It is a known fact that after the pandemic-induced lockdowns, a majority of enterprises rushed to enable their employees to work from home. This amounted to near-zero traffic demand originating from the business clusters while a massive surge in demand happened from residential areas.

Moreover, as communication and entertainment became the lifeline for netizens during lockdowns, VIL’s network experienced a year’s worth of traffic growth within a week of lockdown. With the cloudifaction carried out over the past several months, the telco was able to scale up elegantly enough.

Not surprisingly, the company’s stock rose 86% between 1 April and 20 May, from Rs 3.04 to Rs 5.65 a share. On the day of writing this analysis, the stock traded had last traded at Rs 5.53 a share on the BSE.

The build-up

Vishant Vora

Vishant Vora: Driving cloud transformation

Vodafone Idea says it took on the challenge of transforming its network to make it future ready and building a ‘Universal Network Cloud’ that is workload agnostic from core to edge. The cloud enables Vodafone Idea to better serve its more than 300 million subscribers by simplifying and transforming its IT and telecom network operations. The new platform is deployed across many distributed Vodafone Idea cloud microsites across India, as well as its central IT operations.

Vodafone Idea’s universal cloud initiative was to rapidly transform the 100-plus data centers of the erstwhile Vodafone and Idea entities, through a shared software platform. The Red Hat OpenStack Platform was used to design efficient ‘pods,’ which could be geographically distributed and taken closer to the end- users, helping to reduce latency and enable an optimal user experience.

Better World sees these ‘pods’ as akin to microservices that leverage containerization techniques and could be orchestrated using the open-source Kubernetes container-management system.

Recognition a shot in the arm?

Vodafone Idea considers the Red Hat award to be a recognition of its early adoption of emerging technologies for enterprise and retail customers. The cloud deployment has helped the telco in reducing latency in carrying multiple workloads and optimizing costs.

VIL is now also gung-ho about its future potential, especially with regard to next-generation services like internet of things (IoT) and blockchain.

Vishant Vora, Chief Technology Officer, Vodafone Idea said, “A distributed universal cloud centrally orchestrated is an ambitious project for us, representing a vision for the telco future where “pods” could be geographically distributed across the country. Our vision is to build a universal cloud that will not only carry the traditional telco workloads but also carry IT and enterprise offerings for our customers. This will also position VIL very well for the nextGen services like IoT, Blockchain etc. These capabilities need to be accommodated with a versatile and scalable platform offering flexibility and control as an organization. We are extremely proud of receiving this prestigious award.”

Chris Wright, senior vice president and chief technology officer, Red Hat, noted, “We want to extend congratulations to Vodafone Idea Limited for receiving the 2020 Red Hat Innovator of the Year award. Vodafone Idea’s journey in building a Universal Cloud, hosting both Network and IT workloads, based on open standards, is truly impressive. By adopting Red Hat OpenStack Platform, Vodafone Idea Limited and its customers can more quickly adapt to changing market conditions. We are proud to be working with Vodafone Idea Limited on this shared vision and we look forward to continuing our work with them as they look to build out additional offerings on this flexible platform.”

As part of Red Hat Innovation Awards each year, a panel of industry expert judges select the top five winning projects from a pool of global nominations. These five projects are selected based on the set of criteria for outstanding and innovative usage of Red Hat solutions. From the five winners, the Red Hat Innovator of the Year is selected by the community through online voting.

MORE FROM BETTER WORLD

Tech M joins UNGC club on climate action

Tech M joins UNGC club on climate action

Digital transformation, consulting and business re-engineering services provider Tech Mahindra has signed a joint declaration with UN Global Compact (UNGC), urging governments to align their Covid-19 recovery efforts with latest climate science. Incidentally, Tech M joins UNGC club on climate action on World Environment Day.

The UN Global Compact provides a universal language for corporate responsibility and provides a framework to guide all businesses regardless of size, complexity or location.

Tech Mahindra has joined 155 global companies in calling for policies that will build resilience against future shocks by supporting efforts to hold global temperature rise to within 1.5°C above pre-industrial levels, in line with reaching net-zero emissions well before 2050. The statement comes as governments around the world are preparing trillions of dollars’ worth of stimulus packages to help economies recover from the impacts of the coronavirus pandemic, and as they prepare to submit enhanced national climate plans under the Paris Agreement.

Tech Mahindra said that this declaration was an effort to reinforce its commitment toward reducing carbon footprints, emission and will conserve energy using new-age technologies such as internet of things, artificial intelligence and blockchain. The company has also claimed to implement an internal Carbon Price of $10/ton CO2 to boost green investments and have also adopted a low emission technology path to increase the use of renewable energy from 1.7% in 2016 to 18% in 2020. Moreover, it has also taken targets to increase the renewable source of energy to 50% by 2025.

CP Gurnani, MD & CEO, Tech Mahindra, said, “Covid-19 has allowed all of us to reconfigure our priorities and understand the importance of building a sustainable world – by focusing on healthcare and leveraging technology to enable new ways of working. At Tech Mahindra, we are committed towards building a sustainable business with responsibility and by creating value for our stakeholders, while also keeping in mind the long-term impacts on the environment. It’s time to focus on and implement technology-led solutions that will help us reboot.”

The United Nations Global Compact has stated that the 155 signatories span across 34 sectors and have a combined market capitalization of more than $2.4 trillion, representing 5 million employees. The business voices are convened by the Science Based Targets initiative (SBTi) and its Business Ambition for 1.5°C campaign partners, the UN Global Compact and the We Mean Business coalition.

Sandeep Chandna, Chief Sustainability Officer, Tech Mahindra, said, “Covid-19 has made businesses realize the importance of adopting strategies which will deliver innovative solutions without adversely affecting the environment. Our commitment towards going carbon neutral, conserving, and deploying resources efficiently will enable helps us to accelerate our transition to a low carbon economy while creating sustainable value for our stakeholders. As part of our TechMNxt charter, we have incorporated reduction of emissions as a key aspect to every function’s mandate and our overall business strategy.”

Tech Mahindra also works closely with partners and customers to help them increase energy savings, digitize and automate operations and create collaborative work environments addressing the need for sustainable practices. This includes solutions like micro grid as a service, smart city solutions, smart grid, smart data hubs, smart street light, smart bin, smart energy management, smart metering and analytics, intelligent electric vehicle charging system (IEVCS), and community action platform for energy (CAPE).

Abu Dhabi fund Mubadala invests in Jio for 1.85% stake

Abu Dhabi fund Mubadala invests in Jio for 1.85% stake

Reliance Industries Limited and Jio Platforms Limited have announced that Abu Dhabi-based sovereign investor Mubadala Investment Company, will invest ₹ 9,093.60 crore in Jio Platforms. As Mubadala invests in Jio Platforms, the total investment in Jio goes up to ₹ 87,655.35 crore from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, and Mubadala in less than six weeks (See: Telecom deals will transform mobile payments in India.)

Mubadala’s investment will translate into a 1.85% equity stake in Jio Platforms on a fully diluted basis. The deal comprises an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am delighted that Mubadala, one of the most astute and transformational global growth investors has decided to partner us in our journey to propel India’s digital growth towards becoming a leading DIGITAL NATION in the world. Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy. We look forward to benefitting from Mubadala’s experience and insights from supporting growth journeys across the world.”

Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: “We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities. We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India’s digital growth journey. With Jio’s network of investors and partners, we believe that the platform company will further the development of the digital economy.”

Mubadala invests and partners to advance Abu Dhabi’s diversified, globally integrated economy across sectors that are driving global growth and addressing critical challenges. A significant aspect of this mandate is transformative information and communications technology investments which include cognitive computing, ICT infrastructure, telecoms, and satellite operations.

The transaction is subject to regulatory and other customary approvals.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.

Jio Platforms Limited is a wholly-owned subsidiary of Reliance Industries Limited, and is the parent company to Reliance Jio Infocomm Limited.

Telecom deals will transform mobile payments in India

Telecom deals will transform mobile payments in India

Ahead of monsoon’s arrival, the Indian telecom sector is pepping up for an enthralling deals season. While the spotlight is on Jio Platforms, investment speculations are abuzz for Vodafone Idea and Airtel too. These strategic investments (between global internet giants and Indian telcos) have the potential to transform mobile payments in India.

While the Facebook-Jio deal announced on 22 April continues to be a towering one, other significant deals involving Jio Platforms have also taken place. Abu Dhabi-based Mubadala Investment Company has announced to invest ₹ 9,093.60 crore for a 1.85% equity stake in Jio Platforms on a fully diluted basis.

More such investments in Jio Platforms are understood to be brewing.

The Jio Platforms deals have stoked similar developments for other telecom players as well. Earlier, there was a buzz around Google mulling a stake in Vodafone Idea Limited (VIL) and now a likely investment by Amazon in Bharti Airtel is the talk of the industry.

The landfall

It all started with Facebook buying a stake of 9.9% in Jio Platforms, which is a parent to RJio, India’s biggest telco by subscribers as well as revenues. The deal was valued at Rs 43,574 crore.

Four other significant stake purchases in Jio Platforms followed within a month’s time by various global majors, mostly investors. These were: Silver Lake (1.15% stake for Rs 5,656 crore), Vista Equity Partners (2.32% stake for ₹11,367 crore), General Atlantic (1.34% for ₹6,598 crore), KKR (2.32% for ₹11,367 crore), and Mubadala Investment (1.85% for ₹ 9,093.60 crore).

Thus, in a span of just six weeks, a total of ₹87,655.35 crore has flown into Jio Platforms’ coffers for a stake sale of 18.97%. It is understood that the amount would be used by super parent Reliance Industries Limited (RIL) to pare a sizable chunk of the debt it took for the RJio telecom services subsidiary.

Why so bullish on Indian telcos?

With India’s telecom average revenue per user (ARPU) being among the lowest worldwide and the telcos being neck-deep in debts, the enthusiasm of foreign investors seems mystifying at first sight.

In the last few years, several consolidations and shakeouts have brought down the number of private-sector telecom players from around 15 to just three. A number of foreign investors have lost their monies in the process. There even have been speculations that the sector could end up being a duopoly in the long run.

It is also a well-acknowledged fact that not only voice but even data is now commoditized. This means that investments made into pure-play voice or data networks could take very long periods to recoup. In fact, given the high cost of assets (including spectrum and licenses) and the consistently low ARPUs, it is even likely that those investments may never find a profitable return.

This newfound enthusiasm and rush of foreign investors then can’t imply confidence in India’s telecom story. It has to be something much more promising and bigger.

It’s the mobile payments story

A look at the investments made in Jio Platforms shows that the mobile-payments factor has played a driving role. If Google and Amazon decide to invest in VIL or Airtel, that too would be driven by a mobile payments consideration.

As noted in another Better World story (See: Will FB–Jio deal create magic?), while Reliance Jio already has a UPI license for its Jio Money payments platform, WhatsApp is yet to receive a license for rolling out a payment service for all its users in India.

A 9.9% stake in Jio Platforms opens the possibility for Facebook to process mobile payments over WhatsApp using Jio Money as an enabling platform. This could mean a world of difference for Facebook, which has silently watched Google Pay and Amazon Pay amass significant user base and gross transaction values.

According to the National Payments Corporation of India (NPCI), the UPI payments market, including mobile payments, stood at Rs 2.18 trillion for the month of May 2020 alone. Also, Google Pay is understood to be having more than 65 million active monthly users.

Facebook is eyeing a big slice of the UPI pie in India, which as per Better World estimates, will be more than Rs 25 trillion in FY2020-21.

Clash of titans awaited

Despite a strong foothold in India, Google can’t risk undermining Facebook’s capabilities. It will certainly like to bolster its position further in the mobile payments market. Amazon too would like to protect and grow its market share.

So if Facebook has taken a stake in RJio’s parent Jio Platforms, it may be logical for Google and Amazon to identify strategic investment opportunities with other pan-India telcos. The obvious choices would be VIL and Airtel. However, while Airtel hold a UPI license, VIL doesn’t have one (it surrendered the M-pesa license last year). Nevertheless, VIL continues to be the second-largest telco by number of subscribers.

On the BSE, stocks of VIL and Airtel rose 6.41% and 3.89%, respectively, on 4 June, while the Sensex closed marginally lower by 0.38%.

It is another matter that while a 5% stake sale could get Airtel cash worth USD2 billion, a similar stake sale would get VIL just around USD110 million at current valuations. So while a stake sale would enable Airtel to pare a significant part of its debt, for VIL it would only amount to a short lease of life.

This also means that for a VIL deal to be strategically meaningful, a larger stake sale would be required. It remains to be seen if VIL would embrace such an idea, especially at a time when the telco has witnessed some green shoots in the recent months.

That consideration apart, there is a high potential that telecom deals will transform mobile payments in India. This will also change the dynamics between telcos and over-the-top (OTT) companies at large. More about that later.

India gears up for AI leap in post-Covid-19 era

India gears up for AI leap in post-Covid-19 era

Emerging technologies such as artificial intelligence (AI) and robotic process automation (RPA) are swiftly disrupting almost every aspect of our lives. It is about time that India gears up for AI leap too.

The capabilities of AI, in particular, are being widely tested by global organizations for automating tedious tasks, improving decision-making skills, and providing exceptional experience to their users. AI enables processing of data to provide intelligent insights and identify various prediction models. (See Accenture fortifies AI know-how with Byte Prophecy buy)

With the technology expected to transform several mundane jobs in future, the Indian government too seems to have woken up to the benefits of AI. It is making strong efforts to develop a robust ecosystem around AI, which is also touted to be a technology to watch for in the post-Covid-19 world. The technology has already been leveraged by many countries, including India, to fight the Covid-19 crisis and expediting the search for its treatment or prevention.

A new AI portal is born

Taking a cue from the global governing bodies, India has recently launched a National Artificial Intelligence Portal (http://www.ai.gov.in.) to promote and showcase the local AI-related advancements. The website has been developed by the National Association of Software and Service Companies (Nasscom) in consultation with the National e-Governance Division of the Ministry of Electronics and Communications Technology (MeitY).

This digital platform is part of the Indian government’s extensive focus on AI. It is expected to bring all the stakeholders—MeitY, NITI Aayog, Nasscom, and Department of Telecom (DoT), among others, on a single platform. It’s a much-needed initiative that could enable a regular dialogue with businesses and state departments around AI’s potential. This would also encourage private firms to develop innovative applications and new modules.

“India must be a leading country in the development of Artificial Intelligence in the world, leveraging upon its vast Internet-savvy population and data it is creating. India’s AI approach should be of inclusion and empowerment of human beings by supplementing growth and development rather than making human beings less relevant,” Ravi Shankar Prasad, Minister for Electronics & IT, Law & Justice, said, while addressing the delegates at the launch event of website.

India had earlier announced to launch the AI task force to develop strategies around AI. The government had also committed a significant proportion of Rs 3,063 crore Digital India budget toward AI advancement in the country.

Notably, India is not the first country to have launched a state-sponsored AI platform. In 2019, the USA had launched its ai.gov website to highlight AI initiatives taken by the Donald Trump government and federal US agencies. Similarly, countries like Singapore and Australia have already established nationwide programs in their respective countries to harness the potential of AI.

Embracing the new world

In the post-Covid-19 world, the adoption of AI-based solutions is expected to be pervasive. Not only could AI help meet new services demand, but also enable enterprises and governments to be ready for any such future crisis and ensure employee safety.

For instance, AI technology can apprise farmers and respective authorities in advance about crop anomalies by interpreting various algorithms through satellite images or sensors in advance. This can help streamline supply chains and enable farmers to take timely actions to protect their yields, especially during unprecedented times like today. Similarly, by using AI-driven predictive models, the government can also gauge the number of hospital beds required in case of the second or third wave of pandemic outbreaks in the future.

There are many enterprises that are ahead of the curve and scaling-up their conversational chat-bot capabilities to address customer queries efficiently and provide a customized experience. An example is Grofers, a leading e-commerce company in India, which has been able to deliver essential goods to its customers and record their complaints efficiently, even during the lockdown period, by investing heavily in machine learning.

Similarly, Apollo, one of the largest healthcare group in India, took some revolutionary AI measures last year that is helping them address diagnosing Covid-19 patients. It has collaborated with Israel-based company Zebra Medical Vision to integrate a machine-learning solution that evaluates computed tomography (CT) of suspected Covid-19 patients and recommends a necessary course of medical care.

In an interesting development, Reliance Industries Limited (RIL) recently unveiled the country’s first AI-enabled chatbot on WhatsApp. The chatbot address queries of stakeholders regarding RIL’s Rs 53,125-crore rights issue, through which the company plans to make its balance sheet debt-free by March 2021.

As social distancing measures and remote working are likely to remain in practice for a long enough time, technology leaders would be keenly looking at AI-based innovations to monitor the health of their employees and adapt their HR strategies in case there are increased risk to lives.

Looks like the AI technology is on an accelerated path to becoming mainstream in India. Let’s hope it helps transform our world into a safer and more prolific.

Aarogya Setu needs to overcome more privacy issues

Aarogya Setu needs to overcome more privacy issues

Aarogya Setu

Dr. Pavan Duggal

Many governments across the globe have launched contact-tracing apps as part of their several measures to contain the Covid-19 spread. These apps use Bluetooth and location-based technologies to identify people who may have been exposed to the pandemic and raises awareness among others. On 2 April 2020, India too launched a homegrown contact tracing app, Aarogya Setu, to fight the Covid-19 spread. While experts agree that the intention behind Covid-19 is good, there has also been criticism around issues related to privacy. Some have even termed the healthcare app as a sophisticated surveillance system.

In an exclusive interaction with Better World’s Jatinder Singh, Dr. Pavan Duggal, one of the top cyber law experts in the country, throws light on the overall issue and explains how the new guidelines around Aarogya Setu are a start in the right direction.

Excerpts from the interview:

Better World: The Government of India has recently made Aarogya Setu app for Android open source. Does this make Aarogya Setu less intrusive and quell the concerns being raised over privacy?

Dr. Duggal: I think making this app open source is a first step towards transparency. However, that alone doesn’t mean that it is now completely secure and transparent. I’ve yet not seen any privacy terms in the privacy module of the app describing how it (Aarogya Setu app) complies with the requirements on cyber security under the Indian IT law. Users are still not sure whether the government is putting the reasonable security practices and procedures in place with respect to their data.

It is also not clear how the app complies with ISO 27001, an information security standard that systematically examines an organization’s information security risks, threat possibilities, vulnerabilities, and impacts. So, still, a lot needs to be done.

Better World: So, in the hindsight, is it that the app was launched hurriedly and the government is now trying to play catch-up?

Dr. Duggal: I think it’s [Aarogya Setu app] a work in progress. The intention of the government is noble. In fact, everyone’s intention is wise and revolves around defeating Corona. However, the earlier approach adopted by the government was neither prudent nor feasible. It was trying to compel smartphone users to download an app, which was insecure and had little attention to privacy. Now, by taking these steps, the government has become sensitive to the criticism it has received and is constructively trying to identify ways to better the Aarogya Setu app.

Better World: The government has also announced the launch of ‘Bug Bounty’ program, which states that anyone who identifies and submits a bug or suggests improvements in the Aarogya Setu app will be rewarded. How will this make the app more secure in future?

Dr. Duggal: Well, this is an implicit diversion from the earlier stand that Aarogya Setu was completely safe and secure. Realistically, no computer system across the world is completely and comprehensively secure. The announcement of the Bug Bounty program is an attempt by the government to track and identify the loopholes in the Aarogya Setu app, which are many. Once the program provides cues to more vulnerabilities, the government will potentially work on addressing those loopholes.

It is important to note that the bug bounty program has no connection with the intrinsic architecture of the Aarogya Setu app. The program just says that here is my program and here is an open source code, please attack and let me know the vulnerabilities. It doesn’t say how I can alter my architecture.

Better World: From a cybersecurity perspective, what should be the next steps that the government should take to make Aarogya Setu truly reliable?

Dr. Duggal: Right now, the challenge is that this app is speaking less and hiding more. When you read those terms and conditions before downloading the app, you know that the app is capturing data every 15 minutes. However, it says that the data will be submitted to the server only when you will be identified as distinct Covid-19 positive. Let’s suppose, you download the app today and you become Covid-19 positive after 18 days. From today, till the next 18 days, the app is collecting data every 15 minutes. But where is the data going? Where will it be stored? Who is accessing it? Nobody has an answer to these questions.

Moreover, if you look at the Aarogya Setu app, it has no end date. That means it is going to continue for a long, long time. Also, it is logical to expect that the government will keep the app active even after winning the first phase of corona. So, I believe that the privacy related issues need to be dealt with separately and independently, specifically in connection with the architecture of the Aarogya Setu.

Huawei refreshes OceanStor Pacific mass storage

Huawei refreshes OceanStor Pacific mass storage

Shenzen, China-headquartered information and communications technology (ICT) infrastructure major Huawei has announced the launch of its next-generation flash-based OceanStor Pacific mass storage series.

OceanStor Pacific mass storage

Shang Haifeng, President of Huawei Mass Storage Domain

The refreshed series delivers efficient, cost-effective, and reliable services for artificial intelligence, high-performance computing, videos, and other mass data scenarios. It claims to achieve new architectural, service, and performance boundaries, by leveraging multi-protocol interworking, next-generation elastic EC algorithm, and a series of dedicated hardware. The solution targets telecom carriers, among other industries including finance and manufacturing.

From telecom carriers’ point of view, the refresh for the OceanStor Pacific mass storage series could address their growing high-density storage needs in view of the surge in video and other data-intensive content on their networks.

OceanStor Pacific mass storage

Peter Zhou, President of Huawei Data Storage and Intelligent Vision Product Line,

The upgraded flash-based storage system has been designed in view of meeting the new-age mass data storage needs of enterprises. It enables them to collect, store, and process different types of structured as well as unstructured data. Key application examples are structured data from core services and mass unstructured data from 5G, IoT, and ultra-high density (UHD). Enterprises use AI technologies to analyze and process the massive amounts of data to convert data into knowledge and services, improving production efficiency.

Peter Zhou, President of Huawei Data Storage and Intelligent Vision Product Line, said, “Mass data will play an increasingly important role in enterprise digital transformation. Today, only 2% of global data is stored, and only 10% of the data is being mined for further value. Enterprises are facing insufficient capacity, data silos, and complex management when dealing with mass data. Our OceanStor Pacific Series is designed to answer these pain points, setting a new benchmark for efficient, economical, everlasting mass data storage, and helping us become the trusted choice for mass data.”

The Chinese technology multinational released its first generation of file storage in 2009 and has continuously invested in mass data storage ever since. Huawei says OceanStor storage has been deployed in more than 150 countries for more than 12,000 customers in a variety of sectors, including carriers, finance, government, energy, healthcare, manufacturing, and transportation.

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