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Telecom Cloud Services Predictions

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The slide set I presented at Telco Cloud Services Summit at London 2013.

The slide set I presented at Telco Cloud Services Summit at London 2013.

Published in: Technology, Business

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  • 1. 5 Reasons How Telco Cloud WillFailAlper CelikGroup Product ManagerTele2 BusinessIdeas presented here are my own and nothing to do with my employer
  • 2. Tele2 has 34 million customers in (11) 10 national marketsMarket areasTele2 Nordic: Sweden and NorwayTele2 Western Europe: Netherlands, Germany and AustriaTele2 Russia: RussiaTele2 Central Europe & Eurasia: Estonia, Latvia, Lithuania, Croatia,KazakhstanTele2 Group Financials - SEKSales 2012:SEK 43.8 bnEBITDA 2012:SEK 10.9 bnSales 2011:SEK 41.0 bnEBITDA 2011:SEK 11.2 bnNumber of customers: 34million2
  • 3. Tele2 offers cutting edge products and servicesChallenger telecom operatoroffering mobile and fixedtelephony, broadband andrelated servicesFront row player within newtechnology 4GBroad range of products andservices to residential andbusiness customers3
  • 4. www.celikalper.com1- Do not partner, do it all by yourselfCSPs loosing control over the value chain. User and service experience are becoming fragmented. In the value chain,network is becoming a conventional infrastructure thus decreasing its valueServices Connectivity DevicesFromOldGame……To NewGameServices Connectivity DevicesOSS / BSSOTT ServicesTelco ServicesTelco Network- Smartphones- Tablets- Laptops- M2MControlled by telcoDevice ManagementOSS / BSS4
  • 5. www.celikalper.comKnow where you are strong at and where to start the cloud2- Do not involve the customer into product developmentTraditional SME Office SME Office via Cloud5
  • 6. www.celikalper.comWork with smaller and agile companies. Do not create a “dumb-cloud” model by all re-selling the same productRevenue &Profit Potentialfrom the PartnerHighLowPartner’s Potential to Help YouDevelop Your CompetenciesLow HighEarningPartnerLimitedPartnerStrategicPartnerLearningPartnerSource: Kosnik and Montgomery (1994), “Managing Cross Cultural Alliances: Can Trust be Achieved in a Polygamous World?”IaaS Partner/VendorSaaS Partner/VendorCloud Enabler/Vendor3- Work with wrong partners/vendors6
  • 7. www.celikalper.comThe packaging of Cloud services should rely on some guiding principles which varies between the customer segments1. Brand focus1. Brand focus Strong ISV brands Telco brand2. Initial objective2. Initial objective Volume Profit4. Application portfolio4. Application portfolio Small Large5. Service packaging5. Service packaging BundledsolutionsSeparate services6. Price model6. Price model Fixed prices Variable prices3. Main services3. Main services Applications Infrastructure, Development0-4 employees5-19 employees20-200 employees4- Build one size fits all bundles7
  • 8. Is your sales channel willing to and able to sell Cloud services?SizeofenterpriseMicroSmallMediumService ComplexityLeast Complex Most ComplexOnline3rd-partyStoreTelco StoreDistributorTelesales AgentFace to Face via Sales RepDirect Indirect1-45-1920-2005- Waste time with wrong sales channels8
  • 9. www.celikalper.comConcluding Remarks- Shift from voice to data & app driven customer acqusition- Cloud (SaaS) should be data driven: 4G is coming and we need to be able tocharge for it- Develop product together with your sales teams by putting the customer in the core- Smaller ISVs are much more dynamic and responsive. Give them a chance!- Market data is always more appealing than product data!- Dumb cloud is emerging just after “dumb pipe”9
  • 10. www.celikalper.comThank YouAlper CelikGroup Product ManagerTele2 Business

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