Cloud Asia overview
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Cloud Asia overview

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Short overview of telecom cloud activity, service launches, cloud brokerage and bundling approaches.

Short overview of telecom cloud activity, service launches, cloud brokerage and bundling approaches.

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Cloud Asia overview Cloud Asia overview Presentation Transcript

  • The role of telecom operators in developingprofitable customer-centric cloud servicesCamille MendlerCamille.mendler@informa.comInforma Telecoms & MediaCloud AsiaMay 2013
  • Services from…Cloud means a new role for many2EnterprisesWebI/MSP / hosterTelcosSoftwareDevicesGovernmentsCloud vending machineHardwareEveryone is becoming a cloud supplier!May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comIntegrators
  • Telcos aim to win a bigger slice of the ICT pie3May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comThe ICT expenditure ‘pie’Maintenance& support services80% of ICT budget can migrate to network-powered clouds.Networking& PBX equipmentWirelesscommunicationsFixed voice & dataHosting & appsservicesStaff / admin(on payroll, training)
  • Cloud is reinvigorating old telco norms4Connected ‘things’ converse via the cloud.May 2013© Informa UK Ltd. All rights reserved.www.informatandm.com
  • There is a telco gold rush to offer cloud services5May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comAsia Pacific49Eastern Europe& CIS39Western Europe63Africa10Middle East13Latin America& Caribbean20North America23ImplicationToday more than 220 telecom operators offer at least one cloudservice. Asian operators like KT, NTT and Singtel entered thecloud market early and are a leading force.CSPs* active*CSP: Communication service provider including integrated, fixed, cable, mobile operatorsSource: Informa Telecoms & Media
  • Telecom operators are driving a datacenter boom6Globally, telecom operators have over 800,000m2 under construction*x 110 x 3*Operators datacenter projects announced since 2010. Source: Informa Telecom Cloud MonitorOld Trafford Bird’s NestMore than half of this construction is happening across Asia.May 2013© Informa UK Ltd. All rights reserved.www.informatandm.com
  • Example: China - some like it HohhotThe Inner Mongolian city of Hohhot is receiving US$8 billion incloud-related investment – chiefly from telecom operators.$1.8B $1.9B $1.8BPicture: Flickr/Civitas Veritas7May 2013© Informa UK Ltd. All rights reserved.www.informatandm.com
  • 0 50 100 150 200 250 3002009201020112012Number of service launchesCSP cloud service launches by customer segmentConsumerSMEEnterprisePublic sectorMultiple segments8May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comImplicationMore attention on consumer cloud (often freemiumstorage to tie in broadband subs), but also focus on mid-market enterprises with SaaS and IaaS.Source: Informa Telecoms & MediaNote: Includes service upgradesTelcos are launching more cloud services
  • IaaS and UC&C are the primary focus areas9May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comIaaS20%Unified comms &collaboration19%Storage, backup14%Departmental apps8%Security7%Professionalservices6%Saas marketplace4%Vertical apps6%Mobile devicemgmt3%ITmanagement3%Generic businessapps3%Other7%2012: Cloud services launched by CSPsn=298 servicesSource: Informa Telecoms & MediaSurge inpublic cloudlaunches
  • Cheap ExpensiveTelcos versus AWS? Please KISS* my IaaS*Keep it simple stupid10May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comImplicationThe devil is in the details – and price is NOT the main issue.Ability to compare contracts for supposedly commoditizedservices still a challenge. Telcos are no better than non telcos.0.04 0.050.070.090.120.150.140.100.080.15 0.140.070.190.000.050.100.150.20NorthAmericaAsia Pacific WesternEuropeAfrica Latin America EasternEurope & CISMiddle EastUS centsPublic cloud servicesLowest cost per hour (US cents)Non-Telco TelcoBase: 34 cloud service providers (telcos and non-telcos) across 24 countries.Source: Informa Telecoms & Media, CSP@IaaS Pricing Benchmark.
  • Who is disclosing revenues? Some examplesTelecom operator ‘Cloud-related’ revenues NotesNTT Communications US$1.1 billion FY2012, for cloud computing‘platforms’ – eg: includes hostingChina Telecom US$665 million For all datacenter/cloud servicesT-Systems / DeutscheTelekom (Germany)US$523 million Targeting US$1.3 billion by 2015Interoute (UK) US$270 million Claims 55% of revenues from cloud-based servicesOrange BusinessServices (France)US$146 million Target is US$650 million by 2015 (whichit believes it will easily hit)Rostelecom (Russia) US$100 million Expected 2012; boost from G-cloudprojectImplicationAcquisitions have helped telcos stake a position in thecloud market. Buying systems integrators and datacenter /hosting firms is a key tactic.11May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comSource: Informa Telecoms & Media
  • Many telcos are becoming cloud service brokers12May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comImplicationMost telcos’ cloud offers are designed for a generic white-collaremployee working in a fixed office. This excludes manyenterprises whose employees work outside traditional contexts.*Percentage of telcos with one or more business SaaS offer in this category. Base: 51 telcos, 1018 SaaS offers.Source: Informa Telecoms & Media, CSP@SaaS Pricing Benchmark.
  • Cloud service brokerage: Telco strategiesThe Catalog ModelTypically:• Assumes cloud buyers will pick and mixservices• Assumes a level of technical expertise andcomfort with the cloud model• Often assumes self serve, credit cardpurchase, may not be integrated on thecompany’s telco bill• Telco voice / data propositions keptseparate – and often managed byseparate teamExample: Chungwha (Taiwan)13May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comImplicationThe most common approach currently in use amongtelcos. An online marketplace where SMEs are supposedto come to buy.
  • Cloud service brokerage: Telco strategiesThe Clustering ModelTypically:• Provides a simple cluster of services thatcertain types of SMEs may use• Focus on SaaS – again – broadband /voice is un-integrated (often assumptionthat this is upsell for existing customers)• Some services ‘exclusive’ to existingcustomers• Limited discounting on buying a cluster(same pricing if bought individually)Example: Orange (France)14May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comImplicationSome telcos are now exploring this more verticalizedapproach – which Informa believes can build greaterdifferentiation and retention.
  • Cloud service brokerage: Telco strategiesThe Vertical ModelTypically:• Fully integrated value proposition to atargeted SME mass vertical• Aims to capture a high percentage of totalICT expenditure• Mobile (and fixed) voice / data /application bundle addressing mainbusiness processes• Elements can be unbundled• Cloud + M2M (after all, a cloud service)• In this case, a challenger strategyExample: Maxis (Malaysia)15May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comImplicationStill rare, but an opportunity for telcos to build morefocused ICT bundles – if their structural and operationalprocesses allow it.
  • 16Mars 2013© Informa UK Ltd. All rights reserved.www.informatandm.com• Telcos may all look alike, but they’re not• Judge them by what they can prove: certifications,processes, customer service commitments and bundles - notjust how big they are• Don’t get caught in the race to the bottom• Pay peanuts, get monkeys• Demand end-to-end cloud service accountability• But be prepared to recompense those who can provide itTakeaways
  • 17For more information:Camille MendlerPrincipal Analystcamille.mendler@informa.com+44 77 66 13 15 28Twitter | Slideshare | Blog