The document discusses the rise of Communications as a Service (CaaS) platforms and how they are disrupting traditional operators. It notes that mobile is a new world compared to desktop, with more capabilities and contextual considerations. This turmoil creates opportunities for new types of apps and services. Everything is becoming a service, delivered via APIs. CaaS platforms make it possible to add real-time communications features to apps easily. The market for CaaS platforms is projected to reach $4.7 billion by 2018. Operators must partner with innovative startups to keep up, as they cannot emulate startups' agility. The core of operators' business can transition to providing high-quality data services on-demand.

1. Operator Transformation &
The Rise of CaaS Platforms
Roberto Moctezuma
Monetising OTT Services
March, 2014

2. About Voxofon + Bit6
Multi-Device Support
Communication Services
App Integration Services
Voxofon Apps
The Bit6 Platform
Handles millions of global calls & messages
Real-time voice, text, photo, video, files, locations
Synchronous and asynchronous
Advanced services: identity, social map, wallets, security
Launched beta for 3rd parties in SXSW a week ago.
The Voxofon Apps
Top15 grossing (iTunes Social Net & Google Play)
1M+ users; 6k downloads/day; all major devices
Best in class 4.5 user rating; numerous awards
The Company
Founded in 2008, headquartered in Texas
Named 6th fastest growing tech company in Houston
Accelerating: MAU up 8x in last 12 months
Profitable and cash-flow positive since 2010

3. 1. EVERYTHING IS DATA

4. Your business became data...
Structural
Cost
The Internet
Operator
Operator
Operator
Operator
Everything is data
Discontinuity

5. ... but so did everyone else's
Stores
Movies
Books
School
Appliances
UtilitiesTV
Home
Electronics
Art
Digital
goods
Smart
industries
Cars
Music
Voice
SMS

6. 2. MOBILE IS A NEW WORLD

7. Mobile ≠ "Small Desktop"
More capabilities
Complex environments
Contextual considerations
Simpler user interface
Broader adoption (download & play)

8. $1T+ value being created
Today’s Mobile Market
$1.65 Trillion*
Dominated by voice and data
access revenue streams
$3 Trillion+*
Mobile Market in 10 years
Mobile digital
services
SaaS
OTT
Apps
Content
Services
Internet of Things
CloudBig Data M2M
Traditional operator
services (voice,
SMS)
Traditional software,
content & services
'Desktop Internet'
apps & services
New apps &
services
*Source: Chetan Sharma Consulting, 2013

9. 3. TURMOIL = OPPORTUNITY

10. App Hyper-specialization
Mobile rewards 'simple' and punishes
'complex'

11. WebRTC and Cloud RTC Platforms – Communications as a Feature; Smiths Point Analytics – Feb 2014
2,000,000 apps in iTunes and Google Play
56% of developers want to add
communications services
Communications as a feature

12. We are only getting started...

13. 4. EVERYTHING AS A SERVICE

14. "Solutions” “Building Blocks”
vs.

15. Maps Payments Analytics

16. ?I C E
Voice + Video Calling
Texts & Messaging
Photo, Video, Location, Files
Communications

17. 5. THE RISE OF CAAS PLATFORMS

18. Mobile Apps Web Applications
Communication Services
App Integration
Services
Calling Messaging Identity Social
Map
Wallet
API
Platform
Build a communications app in days, not years!

19. Voice Calling & Messaging
Picture/Video Messaging Web Calling & Messaging
Voice Memo Sharing
…
Voice Calling
… …
…
Communications Platform
API API
API API
API
Add communications capabilities to an app in days!

20. Cloud Security Services2
Solar Energy Storage3
Real-Time Communications
Platform Market1
2X Larger than:
Similar to:
3-D Printing4
Crowdsourcing5
1 Smith’s Point Analytics, Feb 2014
2 Gartner, Oct 2013
3 NanoMarkets, Jan 2013
4 Freedonia Group, Dec 2013
5 Massolution, April 2013
$4.7 Billion
by 2018

21. 6. PARTNER OR DIE

22. Operators vs. OTT?
Operators can't "compete with OTT", it would mean competing against an
entire ecosystem, from small app developers to Google, Facebook and Apple.

23. The discontinuity has very high barriers - both ways!
– Speed  Apps created in weeks
– Risk tolerance  Brand, financial, operational, ...
– Size Relevance  Revenue vs. market cap metrics
– Business model disruption  Revenue stream impact
– "Startup DNA"  Fast, customer-centric iterations

24. Infrastructure services
• Core services (data)
– High quality streaming  sporadic
– Priority vs. cost (low burn transfers)
– Edge infrastructure & gateways
– Yearly contracts to on-demand activation
• Additional services
– Billing & payment
– Go-to-market footprint
– Support & installation capabilities
– Customer base (authentication, analytics, marketing, groups, etc.)

25. Innovate, test and scale
• Easy to consume: "productized services-as-a-
service"
• Aggregate or partner to align with customers• Leverage startup model
– Past ≠ future
– De-risk exploration
– Innovate quickly!

26. End user solutions
All solutions must be aligned with the customer and brand identity
– Consumer communications
– Enterprise-level & embedded communications
– Vertical solutions (tele-presence, industrial,...)
And leverage owned + third party components

27. Summary
• Mobile is disrupting the Internet – and it's just the beginning
– New technologies (wearables, connected car/home, ...) will drive it even further
• This disruption creates a fantastic opportunity, but we must change our world view
– "Over-the-top"/operator is a restrictive, telecom-centric view of the world
– The value is in the broader world of Apps, Content & Services
• The characteristics of mobile are such, that a "Cambrian explosion" of apps is inevitable
– Key to thriving in this new world are building blocks that can be combined easily
• This is giving rise to CaaS platforms that simplify, aggregate and repackage capabilities
– They are your best partners and worst competitors
• Software startups and operators are very different – none can emulate the other
– In this new environment, it's "Partner or Die"
• A few ideas for operators
– Core data services can be offered in many ways
– There are interesting additional services that leverage operator capabilities
– Any end user solutions must be aligned with the brand and the customers
– Leverage startups to move quickly and with lower risk

28. Q&A
Roberto Moctezuma
@rmoctezuma
roberto@bit6.com