Your SlideShare is downloading. ×
The role of telecom operators in developing profitable customer centric cloud services
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The role of telecom operators in developing profitable customer centric cloud services


Published on

Cloud Asia Singapore 15 May 2013

Cloud Asia Singapore 15 May 2013

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. The Role of Telecom Operators in DevelopingProfitable Customer-centric Cloud ServicesCamille MendlerCamille.mendler@informa.comInforma Telecoms & MediaCloud AsiaMay 2013
  • 2. 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
  • 3. 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)
  • 4. Cloud is reinvigorating old telco norms4Connected ‘things’ converse via the cloud.May 2013© Informa UK Ltd. All rights
  • 5. 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
  • 6. Telecom operators may hold the best cards6PersonalconnectivityBrand recognitionWide areaconnectivityDatacentersDistributionSecuritycertificationsBillingWithout a network, there is no cloud.May 2013© Informa UK Ltd. All rights
  • 7. Telecom operators are driving a datacenter boom7Globally, 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
  • 8. 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 Veritas8May 2013© Informa UK Ltd. All rights
  • 9. 0 50 100 150 200 250 3002009201020112012Number of service launchesCSP cloud service launches by customer segmentConsumerSMEEnterprisePublic sectorMultiple segments9May 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 services
  • 10. IaaS and UC&C are the primary focus areas10May 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
  • 11. Cheap ExpensiveTelcos versus AWS? Please KISS* my IaaS*Keep it simple stupid11May 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 commodity servicesremains a challenge. Telcos are no better than non telcos.0.04 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.
  • 12. Who is reporting 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 >70% from UC; target is US$650million by 2015 (which it believes itwill easily hit)Rostelecom (Russia) US$100 million FY 2012; boosted by G-cloud projectImplicationAcquisitions have helped telcos stake a position in thecloud market . Buying systems integrators anddatacenter / hosting firms is a key tactic.12May 2013© Informa UK Ltd. All rights
  • 13. Many telcos are becoming cloud service brokers13May 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.
  • 14. 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)14May 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.
  • 15. Cloud service brokerage: Telco strategiesThe Clustering ModelTypically:• Provides a rudimentary cluster of servicesthat certain types of SMEs may use• Focus on SaaS – again – broadband /voice is un-integrated (often assumptionthat existing customers will buy)• No discounting on buying a cluster (samepricing if bought individually)Example: Orange (France)15May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comImplicationMany telcos are now examining the potential for thisapproach.
  • 16. 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• Voice / data / application bundleaddressing main business processes• Elements can be unbundled• Cloud + M2M (after all, a cloud service)• In this case, a challenger strategyExample: Maxis (Malaysia)16May 2013© Informa UK Ltd. All rights reserved.www.informatandm.comImplicationStill rare, but an opportunity for telcos to be more focused– if their structural and operational processes allow it.
  • 17. 17May 2013© Informa UK Ltd. All rights• Telcos may all look alike, but they’re not• Judge them by what they can prove: certifications,processes, customer service commitments, not just how bigthey 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
  • 18. 18For more information:Camille MendlerPrincipal 77 66 13 15 28Twitter | Slideshare | Blog