This has major impacts on how Communications Service Providers manage their systems & run their businesses
Mobile connectivity has moved from luxury to necessity to addiction within half a generation
Consumer expectations – for service quality, availability and cost – have undergone a similarly swift advance
CONSUMERS: DEMAND FOR BANDWIDTH
WORLDWIDE, the amount of traffic on electronic
networks is exploding – and that’s before the Internet of
Things fully comes online
THE MOBILITY PARADOX:
Within three years, traffic from wireless/mobile devices will exceed traffic from wired devices
Consumers demand even more powerful unplugged connections so they can remain plugged into work, home and entertainment
CONSUMERS: WEARABLES
TOMORROW: Huge potential for truly connected devices
Who will bill consumers for all these devices? Apple, Google, wireless providers…someone new?
CONSUMERS: SELF-CARE
Web-based customer management and self-care functions improves the quality of sales and support
Ability to quickly introduce new products and services
Allows for any service to be offered at any time to a customer base
Consumers want everything and they want it now!
IMPROVED USER EXPERIENCE
CONSUMERS: CONTENT CONTENT CONTENT
As more portable content is available:Laptops, tablets and smartphones poised to dominate TVs as primary viewing device will declineRise in time-shift offerings via streaming sources
Consumers want convenience: the ability to choose…what, when and how they want to watch content
The way content is being consumed is changing dramatically
CONSUMERS: WORLD OF APPLICATIONS
…or even to apps beyond “all my friends are there”
Smartphones, tablets and PCs now open platforms for communication services
Huge impacts on monetization
DECLINING LOYALTY TO PROVIDERS
PROVIDERS: DEMAND FOR BANDWIDTH
…and at an increasing rate
Driven in part by new services crowding onto old networks
Online video streaming on the rise with free video viewership growing at an exponential rate
By 2018, mobile data traffic is estimated to reach a staggering 16 EB per month – equivalent to streaming over 36,000 HD movies per second
TOTAL IP TRAFFIC IS GROWING
PROVIDERS: CLOUD
CLOUD COMPUTING
Delivery of hosted computing services from a central resources pool
Shift CapEx to OpEx
Take advantage of stiff competition in cloud space
VIRTUALIZATION
Decrease hardware costs by housing multiple applications and operating systems on a single physical server
Virtualization ratio (up to 10-to-1) significantly reduces both OpEx and CapEx
& VIRTUALIZATION
PROVIDERS: MACHINE2MACHINE
M2M is the engine powering the Internet of Things
Devices can cross-communicate across wired or wireless connections, with impacts to industry, municipalities and nations (defense)
Forward-looking providers are investing now in M2M to enable new services in healthcare, connected vehicles, etc.
Business models are deeply in flux and ecosystem still complex – partnerships can help spread risk and test innovation
PROVIDERS: NEW BUSINESS MODELS
Shifting CapEx to OpEx: Lean balance sheet & optimum cash flow
Connected cloud ecosystems will be used as a launch pad to next-generation business models, including anything as a service (XaaS)
Products need to get to market quickly and must be flexible and
adaptable to change
Smart Revenue Sharing by
integrating with partners in
industry-related markets to meet consumer needsSaaS, PaaS and IaaS will
continue to be in heavy growth mode
PROVIDERS: OTT COMPETITION
OTT chat apps like WhatsApp are putting pressure on telcos because they offer social networks that retain user loyalty
This pushes customers to choose smaller voice/text plans with a big data plan
Providers must look for partnerships and reinvent their offerings to include embedded connectivity
The telecom industry will lose ~$400 BILLION between 2012 and 2018 from customers using Over The Top voice and messaging applications
PROVIDERS: LEGACY SYSTEMS
All this growth and change surpassing the capacities of networks and capabilities of back office systems as they are today
Carriers are competing with Internet challengers at Internet speeds – but with legacy systems that have been marginally modernized, if at all…
Modern telecommunications industry changing faster than ever
PROVIDERS: REVENUE/TRAFFIC DECOUPLING
Communication Service Providers (CSPs) are facing a major challenge:
Traffic is going up…but revenue is going down
MARKET: MERGERS & ACQUISITIONS
PROVIDERS
Crossing borders and expanding internationally means facing new
regulation challenges
In-country consolidation with significant IT consolidation and
business process challenges
Expanding non-core business to provide new products and
services
MARKET: MERGERS & ACQUISITIONS
VENDORS
Large and small vendors come
together, complementing
capabilities
Acquisition spree among
companies:
Celcite ManagementActix
VolubillAscade
TelcocellTeleOSS ConsultingConceptWave
Over 4 million IT jobs are predicted to be created in 2015, and demand for digital business jobs will increase five fold by 2018
China and India producing many qualified people, but Western nations much less aggressive
There will be an increase in demand and competition for top talent in-house data scientists, developers and designers, but there will be a scarce amount of these digital skills in 2015
MARKET: SKILLED WORKFORCE SHORTAGE
MARKET: BIG DATA & ANALYTICS
THE NEXT FRONTIER FOR ACHIEVING COMPETITIVE ADVANTAGE
Enables organizations to develop more accurate and timely forecasts
Understand customers
Predict their behaviors
Change their behaviors
Improve targeting and reduce churn
Huge potential upside for the industry