SAP Mobile Services: Long live SMS


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SAP Mobile Services: Long live SMS

  1. 1. Long Live SMS SAP Mobile Services, Operator Guide 2013 William Dudley, Group Director, Product Management, SAP Mobile Services
  2. 2. Long Live SMS Mobile industry watchers have been predicting the death of the humble text message for over a decade, but a raft of recent research confirms that SMS is very much alive and kicking…
  3. 3. Long Live SMS Persuasive and personal – why SMS is still so popular “SMS is THE most ubiquitous, non-verbal communications medium in the history of mankind.”
  4. 4. Long Live SMS In developing countries, SMS plays a special role, transforming lives and economies at an amazing scale. Innovation in these regions also allows companies, organisations and governments to harness simple text messaging and achieve extraordinary results. In developed markets, SMS is by far the most effective way for people to communicate with each other and connect with companies. Whether chatting with friends, or receiving alerts from banks and favorite brands, text is the primary communications tool.
  5. 5. Long Live SMS The continuing tide of text – smartphone users and teenagers
  6. 6. Long Live SMS Even the advance of smartphones hasn’t changed consumers’ dependence on text messaging to connect with the world around them. More consumers than ever prefer texting, with the vast majority (90 percent) of smartphone users sending at least one text message per day. Another trend that shows no signs of slowing is text use among teenagers. Research firm Nielsen, reports that texting has tripled, with teenage girls sending 40 per cent more text messages than boys.
  7. 7. Long Live SMS The impact of OTT – will SMS decline? New messaging capabilities bundled with iPhones and Android phones, as well as the advance of OTT messaging services and applications are among the root causes for the recent dip in SMS volumes in mature markets such as Philippines and Taiwan. News that OTT player WhatsApp reported hitting the milestone of ten billion messages a day further suggests operators could be vulnerable to this new competition. However, analysts estimate that companies like WhatsApp and BlackBerry will generate 35 percent of the total messaging traffic in 2016 but only 8 percent of the revenues. SMS will continue to dominate messaging and revenues, generating 42 percent of the traffic and some 65 percent of total income.
  8. 8. Long Live SMS Open rules – what keeps SMS going
  9. 9. Long Live SMS Open rules – what keeps SMS going This flies in the face of what communications is all about, and presents opportunities for mobile operators to bridge the gap. There are exciting and lucrative options for mobile operators to work with OTT players. The future for OTT providers, however, is not quite so positive. Spoiled by choice and delighted by the freedom to communicate with anyone (and not just people that use that the same application), consumers will no doubt vote with their feet. It’s clear that many of the OTT players will simply fade away.
  10. 10. Long Live SMS Positive outlook - the future is bright for SMS
  11. 11. Long Live SMS Coca-Cola declared that SMS is the “number one priority” in its comprehensive strategy to reach a global audience and increase customer engagement. Analysts termed it a “bombshell announcement” because other marketers quickly followed suit, launching strategies with mobile messaging at the center. Brands and marketers, as well as application developers, are harnessing SMS to extend the life of their apps, keeping their users posted on updates, breaking news, location-based opportunities, campaign perks and other important information.
  12. 12. Long Live SMS The humble text message that just celebrated its 20th anniversary has seen a lot of changes since the first SMS was sent in 1992. From a business perspective, SMS is expected to remain a significant source of revenues and traffic for mobile operators on a global basis for years to come. The bottom line: the advance of an all-IP world will transform SMS, but text messaging will also continue to be alive and well.
  13. 13. Long Live SMS For the complete article, updates and to join the conversation please visit: Download the complete guide here:
  14. 14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see for additional trademark information and notices. ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 14