Cloud service's business model is breeding a large number of start-up companies by providing a rich personalized products to meet the expanding market on the individual needs. The reproduction is to provide venture capital, marketing, payment, logistics, customer service suite of services to their operational capabilities such as water and electricity demand for external use.
Presentation for Cloud Services Breakfast Briefing Telco opportunities in cloud services Gareth Williams 29 March 2011 Ref: 19510-85 2 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 19510-85 BLANK.POT 1 Introduction 3 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 Assignments completed Analysys Mason offices With over 250 staff in 12 offices, we are respected Cambridge • Dubai • Dublin • Edinburgh • London • Madrid • Manchester Milan • New Delhi • Paris • Singapore • Washington DC 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 19510-85 4 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 19510-85 BLANK.POT 2 Defining cloud services 5 Cloud computing combines three concepts to offer a fully hosted solution Infrastructure as a Platform as a service Software as a service service 19510-85 Defining cloud services 6 Cloud computing incorporates different flavours Community clouds Public clouds Private clouds Hybrid clouds 19510-85 BLANK.POT 3 7 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 19510-85 Stimuli for cloud services 8 Cloud services are being driven by recessionary factors, changing ICT demands and increasing enterprise interest Enterprises having to closely adhere core business objectives Cloud services 19510-85 Source: Analysys Mason BLANK.POT 4 9 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 19510-85 The market opportunity 10 We forecast that revenue from enterprise cloud services will treble over the next five years 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 19510-85 BLANK.POT 5 11 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 19510-85 Cloud services value chain 12 There is a huge mix of requirements for and provision of cloud services Revenue Vodafone OBS Note: potential IBM revenue Google salesforce. potential com EMC CISCO not to scale Amazon USD 50–75/user VMware HP Number of companies USD 40–50/user Public-cloud revenue potential (estimate) Private-cloud revenue potential (estimate) Company size SMEs Mid-market Very large companies Public cloud Hybrid cloud Private cloud Service Off-premises On-premises type Shared servers Owned, dedicated servers Managed by provider Managed by owner Mostly SaaS Email etc. CRM/SFA ERP Virtualisation Specific solutions Virtualisation Mostly IaaS Backup CPU International deployment CPU Backup Company size SMEs Mid-market Very large companies 19510-85 Source: Analysys Mason BLANK.POT 6 Cloud services value chain 13 So are telcos ready to take advantage of the cloud services chain? Network System Infrastructure Platform Application Service connectivity integration/ and hardware and hosting services software provision consulting Customer 19510-85 Source: Analysys Mason Cloud services value chain 14 Telcos should consider that cloud services is breaking the “traditional” value chain Platform services Customer provision Service 19510-85 Source: Analysys Mason BLANK.POT 7 Cloud services value chain 15 Telcos should also consider that customer requirements for telco and cloud services are different Telecom services requirements Healthcare Small Corporate customer business customer customer Cloud services requirements Healthcare Small Corporate customer business customer customer 19510-85 Source: Analysys Mason Cloud services value chain 16 Telcos should also consider that in the “telco world” customers all have different requirements The world of telco product provision in the cloud service world Healthcare Small Corporate customer business customer customer 19510-85 Source: Analysys Mason BLANK.POT 8 Cloud services value chain 17 Telcos also need to consider the provision of generic horizontal … Generic solutions Starting point PSTN Horizontal A Horizontal / cross Unified communications Horizontal B vertical products, Connectivity Horizontal C services, solutions Processing power Horizontal D Vertical packaging Vertical A Vertical B Vertical C Vertical D Vertical E Manu Gov Healthcare Retail Other Vertical products, services, solutions PSTN Horizontal A Horizontal / Unified communications Horizontal B cross vertical Connectivity Horizontal C products, services, Processing power Horizontal D solutions 19510-85 Source: Analysys Mason Cloud services value chain 18 … and bespoke vertical solutions, if they are going to benefit from the changing cloud services value chain Full vertical offering Vertical A Vertical B Vertical C Vertical D Vertical E Manu Gov Healthcare Retail Other Inventory Electro- Remote Mobile stock manage- nic ID monitor replenish- ment ment Biometric Blood Vertical Order check tracking CRM applications manage- Mobile SFA ment PSTN Horizontal A Unified communications Horizontal B Horizontal / cross Connectivity Horizontal C vertical applications Horizontal D Processing power End game 19510-85 Source: Analysys Mason BLANK.POT 9 Cloud services value chain 19 What do telcos need to do become a lynchpin in the cloud services value chain? Customer support competency Evaluate, enhance and aggregate requirements competencies • Provisioning, fulfillment • Maintenance / support Evaluate competencies • Integration Channel strategy • Customisition Technology strategy – including platform Customer segment strategy • Localisation Vertical industry strategy • Service aggregation Internal competencies may need to be enhanced: Technology support competency Build internal competencies requirements Buy-in – M&A • Application development Through partners • Application maintenance Competencies need aggregating as part of a cloud • Data centre management strategy • Hardware development / maintenance • Service provisioning • Security 19510-85 Source: Analysys Mason Cloud services value chain 20 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, Minimised costs and cost of provisioning, fulfillment process for service deployment multiple products Single point of contact for customers Increased differentiation of Opportunity to provide single sign-on services for multiple services Access to new revenue streams Increased availability of Maximising efficient use of horizontal and vertical infrastructure and support services – applications and services keeping costs down … Increased provision of bespoke solutions 19510-85 Source: Analysys Mason BLANK.POT 10 Cloud services value chain 21 Telcos must not over-extend themselves and try to offer everything to everyone, or they face a high risk of failure Platform services Telco provision Service Telcos need to aggregate the cloud competencies of many partners, but based on customers’ requirements 19510-85 Source: Analysys Mason, company websites 22 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 19510-85 BLANK.POT 11 Treats to cloud services 23 Telcos, and the market, must address cloud services market inhibitors • Registered IT partners' reluctance • Brokering resources to sell cloud services instead of (internal/external) premises-based solutions • Redeployment to value- • Explore new business models creation projects - hybrid • Target finance department / procurement Select key issues • Regulatory/compliance/governance • Security within the cloud is not issues mature • Adapt services • Provide assurance • Buy in advice / work with • Deliver the capability experts • Delineate between private and public cloud 19510-85 24 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? 19510-85 BLANK.POT 12 25 Variance in application usage is one determinant for migrating to cloud services MVNO model - excess capacity by time of day Off-peak Peak Off-peak Usage = app usage Variance in the cloud word makes applications more Week appropriate for migration Weekend 12 AM 8 AM 12 PM 6 PM 11 PM 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 19510-85 26 Thanks for your attention Gareth Williams Gareth.email@example.com 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 19510-85 BLANK.POT 13
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