presentation for cloud services breakfast briefing · presentation for cloud services breakfast...
TRANSCRIPT
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Telco opportunities in cloud services
Gareth Williams
Presentation for Cloud Services Breakfast Briefing
29 March 2011
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Introduction
Defining cloud services
Stimuli for cloud services
The market opportunity
The cloud services value chain and telco strategic plays
Threats to the cloud services market
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Analysys Mason’s global presence enables us to deliver sustainable business benefits to clients around the world
• Analysys Mason is a trusted adviser on telecoms,
technology and media. We work with our clients,
including operators, regulators and end users, to:
� design winning strategies that deliver
measurable results
� make informed decisions based on market
intelligence and analytical rigour
� develop innovative propositions to gain
competitive advantage
� implement operational solutions to improve
business efficiency
� With over 250 staff in 12 offices, we are respected
worldwide for our exceptional quality of work,
independence and flexibility in responding to client
needs. For 25 years, we have been helping clients
in more than 100 countries to maximise their
opportunities
Assignments completed
Analysys Mason offices
Cambridge • Dubai • Dublin • Edinburgh • London • Madrid • Manchester Milan • New Delhi • Paris • Singapore • Washington DC
Introduction
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Introduction
Defining cloud services
Stimuli for cloud services
The market opportunity
The cloud services value chain and telco strategic plays
Threats to the cloud services market
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Cloud computing combines three concepts to offer a fully hosted solution
Infrastructure as a service
Platform as a service Software as a service
Defining cloud services
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Cloud computing incorporates different flavours
Private cloudsPublic clouds
Community clouds
Hybrid clouds
Defining cloud services
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Introduction
Defining cloud services
Stimuli for cloud services
The market opportunity
The cloud services value chain and telco strategic plays
Threats to the cloud services market
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Cloud services are being driven by recessionary factors, changing ICT demands and increasing enterprise interest
Cloud
services
Enterprises
having to
closely adhere
core business
objectives
Source: Analysys Mason
Stimuli for cloud services
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Introduction
Defining cloud services
Stimuli for cloud services
The market opportunity
The cloud services value chain and telco strategic plays
Threats to the cloud services market
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We forecast that revenue from enterprise cloud services will treble over the next five years
The market opportunity
� USD12.1 billion in 2010 growing to
USD35.6 billion in 2015
� SaaS dominated cloud shifts toward
more IaaS over next 5 years
� Channels have unique roles to play
� Telcos (CSPs) need to consider
their market opportunity and how
best to maximise it
Source: Analysys Mason, 2010
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Introduction
Defining cloud services
Stimuli for cloud services
The market opportunity
The cloud services value chain and telco strategic plays
Threats to the cloud services market
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There is a huge mix of requirements for and provision of cloud services
SMEs Mid-market Very large companies
Number of companies
Public-cloud revenue potential (estimate)
Private-cloud revenue potential (estimate)
Mostly SaaS
Mostly IaaS
Email etc. CRM/SFAERP
USD 40–50/user
USD 50–75/user
Specific solutions VirtualisationVirtualisation
BackupBackup CPU
CPU
Amazon
salesforce.com
IBM
CISCO
VMware HP
EMC
Public cloud Hybrid cloud Private cloudOff-premises
Shared serversManaged by provider
On-premisesOwned, dedicated servers
Managed by owner
SMEs Mid-market Very large companies
International deployment
OBSVodafone
Note: revenuepotential
not to scale
Revenuepotential
Company size
Service type
Company size
Cloud services value chain
Source: Analysys Mason
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So are telcos ready to take advantage of the cloud services chain?
Infrastructure and hosting
Platform services
Application software
Service provision
Network connectivity
and hardware
System integration/consulting
Customer
Cloud services value chain
Source: Analysys Mason
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Telcos should consider that cloud services is breaking the “traditional” value chain
Pla
tform
s
erv
ice
s
Se
rvic
e
pro
vis
ion
Customer
Cloud services value chain
Source: Analysys Mason
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Telcos should also consider that customer requirements for telco and cloud services are different
Corporate
customer
Small
business
customer
Healthcare
customer
Telecom services requirements
Cloud services value chain
Source: Analysys Mason
Corporate
customer
Small
business
customer
Healthcare
customer
Cloud services requirements
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Telcos should also consider that in the “telco world” customers all have different requirements
Corporate
customer
Small
business
customer
Healthcare
customer
The world of telco product provision in the cloud service world
Cloud services value chain
Source: Analysys Mason
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Telcos also need to consider the provision of generic horizontal …
Generic solutions
PSTN
Unified communications
Connectivity
Processing power
Horizontal /
cross
vertical
products,
services,
solutions
Horizontal A
Horizontal B
Horizontal C
Horizontal D
Vertical packaging
Manu Gov Healthcare Retail Other
PSTN
Unified communications
Connectivity
Processing power
Horizontal /
cross
vertical
products,
services,
solutions
Horizontal A
Horizontal B
Horizontal C
Horizontal D
Vertical A Vertical B Vertical C Vertical D Vertical E
Vertical
products,
services,
solutions
Starting point
Cloud services value chain
Source: Analysys Mason
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… and bespoke vertical solutions, if they are going to benefit from the changing cloud services value chain
Full vertical offering
End game
Manu
� Inventory
manage-
ment
� Order
manage-
ment
Gov
� Electro-
nic ID
� Biometric
check
Healthcare
� Remote
monitor
� Blood
tracking
Retail
� Mobile stock
replenish-
ment
� CRM
� Mobile SFA
Other
PSTN
Unified communications
Connectivity
Processing power
Horizontal /
cross
vertical
applications
Horizontal A
Horizontal B
Horizontal C
Horizontal D
Vertical A Vertical B Vertical C Vertical D Vertical E
Vertical
applications
Cloud services value chain
Source: Analysys Mason
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� Evaluate competencies
� Channel strategy
� Technology strategy – including platform
� Customer segment strategy
� Vertical industry strategy
� Internal competencies may need to be enhanced:
� Build internal competencies
� Buy-in – M&A
� Through partners
� Competencies need aggregating as part of a cloud
strategy
What do telcos need to do become a lynchpin in the cloud services value chain?
Customer support competency
requirements
Technology support competency
requirements
• Provisioning, fulfillment
• Maintenance / support
• Integration
• Customisition
• Localisation
• Service aggregation
• Application development
• Application maintenance
• Data centre management
• Hardware development / maintenance
• Service provisioning
• Security
Evaluate, enhance and aggregate
competencies
Source: Analysys Mason
Cloud services value chain
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Telcos need to think much more carefully about their relationship with partners in the context of the value chain
� Telcos should consider the value of partners in the cloud services value chain
Win-win for telco and telco partners?
� Better, more varied solutions for
customers - single ordering,
provisioning, fulfillment process for
multiple products
� Single point of contact for customers
� Opportunity to provide single sign-on
for multiple services
� Access to new revenue streams
� Maximising efficient use of
infrastructure and support services –
keeping costs down
� …
� Minimised costs and cost of
service deployment
� Increased differentiation of
services
� Increased availability of
horizontal and vertical
applications and services
� Increased provision of bespoke
solutions
Source: Analysys Mason
Cloud services value chain
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Telco
Telcos must not over-extend themselves and try to offer everything to everyone, or they face a high risk of failure
Pla
tform
serv
ices
Serv
ice
pro
vis
ion
Source: Analysys Mason, company websites
Telcos need to aggregate the cloud competencies of many partners, but
based on customers’ requirements
Cloud services value chain
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Introduction
Defining cloud services
Stimuli for cloud services
The market opportunity
The cloud services value chain and telco strategic plays
Threats to the cloud services market
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Telcos, and the market, must address cloud services market inhibitors
• Security within the cloud is not
mature
• Provide assurance
• Deliver the capability
• Delineate between private
and public cloud
• Regulatory/compliance/governance
issues
• Adapt services
• Buy in advice / work with
experts
• Brokering resources
(internal/external)
• Redeployment to value-
creation projects
• Target finance department /
procurement
• Registered IT partners' reluctance
to sell cloud services instead of
premises-based solutions
• Explore new business models
- hybrid
Select key issues
Treats to cloud services
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Telcos need to better understand their customers, not all applications are equal
� What applications are dynamic / static (changing usage throughout the day)?
� What is the spare capacity in an organisation’s “private” cloud and how can the public cloud
support?
� Are there any constraints preventing applications being migrated?
� Is the organisation ready to adopt a new “charging model”?
� Has the organisation thought about a cloud roadmap? Has it already consolidated its vendor
suppliers?
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Variance in application usage is one determinant for migrating to cloud services
� An application that has no usage variance may not be appropriate to migrate to the public
cloud
� Customers can use spare capacity in a “private” cloud and offload the rest to the public cloud
� For appropriate applications
� This is the most economic option for adopting cloud services
12 AM 8 AM 12 PM 6 PM 11 PM
Week
Weekend
12 AM 8 AM 12 PM 6 PM 11 PM
Off-peak
Week
Usa
ge
= a
pp
usa
ge
Peak Off-peak
MVNO model - excess capacity by time of day
Variance in the cloud word
makes applications more
appropriate for migration
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Thanks for your attention
Gareth Williams
Analysys Mason Limited
Bush House, North West Wing
Aldwych, London WC2B 4PJ, UK
Tel: +44 (0)845 600 5244
Fax: +44 (0)20 7395 9001
www.analysysmason.com