12/10/2011 | 1Status of Phase 1 Elizabeth A. Teracino Agenda Progress Status
12/10/2011 | 2Agenda› Phase 1 in the Activity plan (0-6 months) • Briefly, a reminder of the goal of Phase 1 • Progress with first paper and deliverables • Status / Scheduled deadlines for the future
12/10/2011 | 3“Can we predict the future? A framework for (analyzing) the convergence between the software and service providing industries” Introduction Literature Review Framework development …Framework used to analyze the: Past, Present, Future Discussion / Conclusion
12/10/2011 | 4Introduction› Define convergence: mainly three perspectives of convergence are discussed on aggregate in the literature; those summed up by Chon (2003): 1. Industry convergence via alliances and mergers 2. a combination of technology and network platforms converging into one (“one pipe”) 3. the integration of services and markets • … focus is on the 2nd definition, while it provokes the other two› Why this paper is important› Which framework will be adapted/created› Findings summary and discussion
12/10/2011 | 7Where areyou? › Before Convergence • Regulation different for each industry (telecom, broadcast, computer) / vertical • Content and access regulated • Standards via de jure / negotiation (telco, broadcast); de facto / competition (computer)SaaS • Incumbents with power, monopolistic / oligopolistic competition (unfair competition) • Technology advancing towards all the same type of data/file/transfer/pipe › Convergence • Regulation behind trajectory of technology advances (still moving forward rapidly), being reevaluated, was relooked at and some walls came down in the 90s / early 00s (US, EU) • Content and access less regulatedTelco • Standards moving towards a hybrid mix of de jure and de facto (collaborative competition) • Still some oligopolistic competition, however rebuilding phases / collaboration high › Post Convergence • Technology + Standards advancing in same direction (more and more to enter the pipe) • Regulation? • Hybrid mix of competitive collaboration regarding standards and alliances/mergers/acquisitions
12/10/2011 | 8Applying the framework into SaaS› Telco -> pipe as commodity?› Who is the most likely to become a pipe as commodity in SaaS? • SaaS vendor› What precautions can a SaaS vendor take then to avoid becoming a pipe as commodity? • Focus on being the service provider, AND, have added value chain of content -> increase ‘stickiness’ / lockinability • Reinforcing double value network (content and pipe as commodity) • Build up both sides: access to all types of software / services, but with content specific to your pipe, else you will be replicated
12/10/2011 | 9Thank you for your attention Questions??