Impact on Carriers and Vendors Network Operators Struggling against becoming the “dumb pipe” Networks filling up Revenue per bit falling Relying on professional & managed services like never before Vendors Struggling against supplying commodity boxes Needing to diversify revenue sources Racing to provide managed & professional services like never before
The Rise of Vendor Services Always Been There…to an extent Deployment Technical support Increased complexity necessitates more skills; more services Technology migrations M&A/asset management More services makes outsourcing convenient and/or efficient
Benefits to Operators Fills Knowledge Gaps Business Issues Technology Issues Increased Efficiency OpEx reduction at every turn
What Differentiates? Traditional measures: Number of people in places Number of distributed NOCs True enough, but… yawn! Recent concepts Packaged offerings Sustainability Optimization Transformation
What Differentiates? At the end of the day: Solving problems… …Lots of Different Problems!
What Current Analysis Thinks Contracts Size Scope Range of capabilities Packaged offerings Partner ecosystem
What Current Analysis Sees Optimization Transformation Network Equipment Performance & Provisioning Supply Chain & Inventory Services (QoE) Provisioning & Activation QoS SLA enforcement Business Process Front Office Back Office Network Equipment Migrations Integrations Services Software/Middleware Business Process Use of Analytics
The Managed Services Dilemma “Now that you’re responsible for servicing another company’s equipment, how are you going to maximize the value – and use – of assets to your clients’ satisfaction and at the lowest cost to you?”
Visibility into Asset Classes Client Spares Pools Open Market WEEE flows Deinstall Repair Centers Carriers VARs OEMs
Visibility and Asset Intelligence Carriers OEMs More efficient approach to managing multi-vendor service contracts Greater control over all assets Ability to reduce material leaks and protect intellectual property on the global secondary market Opportunity to increase compliance with existing and emerging regulations related to the environmental impact of material disposal Control costs associated with network management Recover value from decommissioned assets relative to network upgrades Improve management of excess inventories and access to secondary market Leverage just-in-time inventory management practices for reducing stranded assets and lowering capital to revenue ratios
The Typical Product Lifecycle Procurement Vendor/ProductSelection Deployment EvaluateProducts LittleReuse Some Resale Majority Scrapped Service Provisioning Disposal Monitoring Decommissioning Maintenance & Repair
Extended Product Lifecycles Procurement Vendor/ProductSelection Deployment Save to Spares Redeploy EvaluateProducts SecondaryMarket Service Provisioning Reuse Recycle IncrementalDecommissioning Monitoring Maintenance & Repair
Sustainability & Ecology Management Desire to be environmentally-conscious is pushing business relationships in a new direction. There’s significant value in helping clients be ‘greener’ Few environmental positives associated with millions of assets sitting idly in a large warehouse consuming energy, shipped without a plan from one location to the next, melted down or worse. For those in a position to make the highest and best use of their network equipment, environmental stewardship represents an opportunity – at little upfront cost – to: Improve cash flow Market share Streamline regulatory compliance
Sustainability & Ecology Management Transportation Events Use visibility into asset inventories to dictate movement of assets from one location to the next based on fuel consumption and carbon emissions. Waste Streams Identify excess stocks and then resell them on the secondary market to reduce the flow of material to recyclers. Warehousing Knowing where surplus assets can be used contributes to a measurable savings in storage and other physical plant costs. Regulatory Compliance Mandates governing the disposal of equipment are on the rise, visibility can prove to be a mitigating factor in the level of ‘cradle-to-grave’ accountability required to assure compliance.
Thank You Jason Marcheck Director of Custom Research | Current Analysis firstname.lastname@example.org Ed Mitchell Chief Technology Officer | Trade Wings email@example.com