The document discusses the stagnant growth in traditional telecom markets and the impact of over-the-top (OTT) players on communication service providers (CSPs), leading them to seek new revenue opportunities in digital domains such as IoT and cloud services. CSPs are encouraged to adopt collaborative approaches rather than aggressive tactics against OTT threats, while the cloud services market shows significant growth potential, projected to reach $210 billion by 2016. Strategies for CSPs include developing cloud solution-centric services and aggregating third-party cloud services to enhance their offerings and capture new consumer segments.

1. The Digital Telecom Cloud Services
In Search of New Streams Parviz Iskhakov,
January, 2016

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. 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. 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. 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. • 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. 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. 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. 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. 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. 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. The Digital Telecom Cloud Services
In Search of New Streams
Thank you!
Should you have any questions please reach me out @
Parviz.Iskhakov@gmail.com