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The Digital Telecom. Cloud Services


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Cloud is one of that kind of digital services that is already here and materialized. Cloud services landscape is becoming more and more dense but still there is a chance for telecom players to take part in that field. Unfortunately, Communication Service Providers are late to come in and therefore it is not sufficient to put computing capacities and just sell them anymore. The economy of scale reached by current industry leaders can barely be beaten even by the largest CSPs. Therefore, some other smarter options should be found to compete with likes of Amazon, Microsoft and Google. This ppt paper is just an effort to think of CSPs role in cloud services domain and any ideas and suggestions for further discussion is very welcome.

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Published in: Technology

The Digital Telecom. Cloud Services

  1. 1. The Digital Telecom Cloud Services In Search of New Streams Parviz Iskhakov, January, 2016
  2. 2. Growth in traditional telecom in developed and developing markets is stagnant with declining ARPU and prices. The OTT players are long affecting CSPs by substituting voice and messaging services, placing significant strain on the CSP data networks and grabbing consumer mind share, and thus weakening the CSPs’ relationship with their user communities. Thus, CSPs find themselves under increasing pressure, they not only want to protect their core business and their relationship with consumers, but have to seek new revenue opportunities in nontraditional markets. CSPs are beginning to partner with alternative partner types to fill gaps in their service portfolios and accelerate the time to market of new services. In contrast to aggressive, competitive and alienating tactics to address OTT vendor threats, CSPs can benefit substantially from pursuing these more collaborative approaches. SMS and OTT Messages
  3. 3. 0 2 4 6 8 10 12 14 16 Cloud and Hosting Rich Media Mobile Finance M2M/IOT Healthcare Security Big Data EMM Comm and Collab Other CSPs are focusing on IoT, Rich Media and Cloud New Digital Domains CSPs are Focusing on The figure is approximate and is based on Gartner’s research - Market trends: Eight innovative CSPs embark on digital service transformation - CSPs’ market trends and digital transformation strategy
  4. 4. Today, cloud technologies are the basis of nearly all next- generation IT discussions • Software as a service • Public Web APIs • Microservices • Shadow IT and bimodal IT • Self-service virtualization • Big data • Omnichannel • IoT • DevOps Globally, cloud apps will account for 90% of total mobile data traffic by 2019, compared to 81% at the end of last year. Mobile cloud traffic will grow 11-fold from 2014 to 2019, attaining a compound annual growth rate (CAGR) of 60%. Importance of cloud services is growing in the wake of continued digitalization of lifeCloud - Software as a Service - “End-Product” - Platform as a Service - “Design and Development” - Infrastructure as a Service - “Exploitation”Major Drivers of Cloud Services
  5. 5. Consumer concerns are abstracted from provider concerns through service interfaces that are well defined. The service can scale capacity up or down as the consumer demands at the speed of full automation (which may be seconds for some services and hours for others). Services share a pool of resources to build economies of scale. Services are tracked with usage metrics to enable multiple payment models. The service is delivered using Internet identifiers, formats and protocols, such as URLs, HTTP, IP and representational state transfer Web-oriented architecture. Scalable and elastic Shared Metered by use Characteristics of Cloudiness. And How CSP’s Differentiate from Others?Cloud Service-based Uses internet technologies Security Customization Customer Service SLA and QoS Advantages CSPs can promise on top of other players’ cloud propositions
  6. 6. • According to data from Gartner, the global cloud services market is worth more than $150 billion, up 19% from 2013 • Even though the CAGR is going to decline starting from 2015 it forecasted to stay double-digit in the coming years, bringing the market to a size of $210 billion by 2016. • The global SaaS market is projected to grow from $49B in 2015 to $67B in 2018, attaining a CAGR of 8.14%. Global infrastructure-as-a-Service (IaaS) spending globally is projected to grow from $23B in 2015 to $34B in 2018, attaining a CAGR of 10.27% in the forecast period.* • 47% of marketing departments will have 60% or more of their applications on a cloud platform in two years. Cloud is in RiseCloud *Source: Technology Business Research presentation The Developer’s Coup: 2015 Applications Development Demands and Vendor Opportunities.
  7. 7. Network Centric • SaaS (Software as a service) • BPaaS (Business Process as a Service) • Digital Services • SaaS (Software as a Service) • IaaS (Infrastructure as a Service) • Brokerage • Colocation • Connectivity • Security • PaaS (Platform as a Service) • IaaS (Infrastructure as a Service) Cloud Services Strategies CSPs Can Develop Cloud Solution Centric Aggregation Centric An alternative where a CSP provides networks and data centers that enable others to offer cloud computing services. IaaS – compute, storage as a service CSP’s solutions that are aimed at satisfying needs of the complete functions, domains or industries, such as healthcare, education or government CSP’s cloud strategy where cloud services brokerage enables value-added intermediation capabilities between third-party SaaS and other cloud services providers and the customer
  8. 8. Network Centric Possible value propositions and initiatives of some CSPsCloud Solution Centric Aggregation Centric Valuechain Margin AT&T and Digital Realty are broadening AT&T's colocation service offerings by expanding their alliance, enabling AT&T to incorporate Digital Realty colocation capacity into its solutions. The alliance will span Digital Realty's global portfolio of data centers, enhancing AT&T's existing product offerings of network and managed services. This complements AT&T's existing Colocation Services network of 38 locations in 16 countries. ‘Business Together as a Service’ is a 100% cloud-based global unified communications services with end-to-end service level agreements and customer support. Since it launch in 2011 it allows unified communications solutions to be offered via the cloud, using an ‘as a service’ model that lets enterprises to quickly and cost-effectively access communication and collaboration tools. Business Together as a Service Solution In 2015, China Telecom and SAP announced the general availability of the SAP Anywhere solution in China. SAP Anywhere is the first front-office solution specifically tailored to the e- commerce needs of small and midsize businesses (SMBs) with 10 to 500 employees. SAP Anywhere offers SMBs inventory control and insight, online marketplace management and business and customer engagement. The Business Marketplace launched in 2012 by DeutscheTelecom has thousands of registered small and medium-sized companies and provides them cloud-based secure solutions from major providers. The customers receive all services from a single source. Telekom provides the software and the service. The users receive a single bill for all ordered applications on a monthly basis. for instance, popular cloud applications such as Office 365 from Microsoft, collaboration applications such as iMeet and Box, as well as security software, e.g., from Symantec, and many other are available. Singtel's PowerOn serves 150,000 business users and 800 companies
  9. 9. Cloud Marketplaces Can Make All the DifferenceCloud Business Together as a Service Solution Valuechain Margin • Many CSPs are focused on providing collocation services and building their own data center capabilities. However, these services are already commoditized and huge economies of scale are needed to compete. • To solve this issue, carriers can create their own cloud services offering and marketplace for their customers, and populate them with third-party services, often with degrees of customization for each carrier. Hiding technical complexities from customers as much as possible and delivering service guarantee and quality together with affordable monthly fees can make all the difference.
  10. 10. Disadvantages of Cloud StrategiesCloud • Inability to leverage existing capabilities** due to: - Capital constraints for R&D - Complex organisations (e.g. separating IT-related initiatives from non-IT initiatives) - The inability to integrate complex services because of different product and marketing organisations - The inability to communicate between internal telco business and client organisations, which leaves potential service opportunities untouched - The inability to see the bigger, longer-term opportunity • Solution-Centric approach is people intensive Network Centric Networks and data centers that enable others to offer cloud computing services. IaaS – compute, storage as a service PaaS - Platform as a service Solution Centric Solutions that are aimed at satisfying needs of the complete industries, such as healthcare, education or government Aggregation Centric Cloud services brokerage that enables value-added intermediation capabilities between third-party SaaS and other cloud services providers and the customer • Network centric approach if adopted will face very fierce competition since it is dominated by pure-player competitors • 57% of IT architects and tech professionals are running apps on the Amazon Web Services (AWS) platform today. Rightscale’s 2015 State of the Cloud Report found that AWS adoption is over 4X greater than Microsoft Azure IaaS and 5X that of Rackspace Public Cloud*. *Rightscale State of the Cloud Report, 2015 **Cloud-enabled telco opportunities, PwC Research, 2013 • No premium pricing in Aggregation-Centric approach since prices are fully transparent • High responsibility but limited authority Digital Turnaround
  11. 11. Note: Dimension Data, Terremark, Keane, and Hughes Telematics are represented at 50 per cent of acquisition value to fit onto the chart Source: MergerMarket, press searches, August 2012 Approaches in Building Cloud CapabilitiesCloud • Cloud Enablers, System Integrators, e.g. Vmware, Citrix, Cisco, HP, IBM, EMC • SaaS Marketplaces • IaaS (Hybrid Cloud) Gallerie VPN Resell or Brokerage Buy Build • Acquisition of smaller IT companies and startups
  12. 12. The Digital Telecom Cloud Services In Search of New Streams Thank you! Should you have any questions please reach me out @