Today I’m in Seattle, participating in the mid-course correction meeting of the CTIA Wireless Internet Caucus Leadership Council. The topic is “Openness: Understanding Each Other’s Expectations.” In his introduction, the vice president who leads WIC, Mark Desautels, remarked that while today’s discussion might not lead to agreement among all participants about the exact meaning of “openness,” the exchange of views should help clarify different viewpoints. I’ve written previous entries about openness for the Mobile Internet.Hamilton Sekino, of Nauta Capital and formerly of Diamond Management &Technology Consultants, keynoted the discussion by presenting his work on Wireless Open Models. The model divides the value chain into five segments: Access, Device, Platform, Content and Applications, and Customer Ownership. The representative from Microsoft took exception to representing Google Android as a good example of an open platform when it’s not yet available, while Windows Mobile runs on devices from multiple manufacturers, supports hundreds of applications, and connects to multiple mobile networks. When it comes to open, Microsoft sometimes sails into a PR headwind, but he raises a fair point. From my point of view, Sekino’s model seems rather binary, with each segment black or white as either “open” or “closed,” while the real world is more often a shade of gray. Also, it seems too linear, along a value chain. Perhaps multi-dimensional molecular models would provide a better analog, to describe the relationship among customers, operators, vendors, content creators, advertisers, and so forth. Read More »
In prior posts, I’ve submitted for your consideration some thoughts as to why now is the time for managed services and how today’s end user community is primed like never before to adopt managed services.An important aspect to the Managed Services 3.0 migration is change. Telecom carriers, VARs, system integrators and other major players are each facing unprecedented market challenges:
- Telecommunications carriers’ traditional wire-line services are experiencing a rapid shift in demand. Customer acquisition and retention for traditional telecom services has never been more difficult. Therefore, it is imperative for network service providers to create new ways to deliver differentiated and higher value services to their customers in order to achieve a more defensible position in the market.
- Wireless service providers are seeking new ways to raise average revenue per user as the number of incremental new users plateaus in developed markets around the world.
- VARs are also witnessing declining demand for their traditional services. Customers have grown impatient with extended deployment cycles and reactive support programs. They must develop a new value-proposition which enables them to become a trusted advisor, offering proactive support -- rather than simply a technology supplier.
- Systems integrators are also facing growing customer frustrations with extended projects which often fail to achieve their original business objectives. They must devise a method of establishing an ongoing relationship with their customers -- rather than merely respond to finite projects.
Following up my earlier entry about the NGMN conference in Frankfurt, founding-member Sprint just indicated they will leave the group. Intel will follow suit. During the Frankfurt conference, the NGMN Board announced the selection of LTE as the first approved technology which broadly meets NGMN requirements. Given the commitment of Sprint and Intel to WiMAX, this selection probably made their ongoing participation in NGMN untenable.While understandable, this schism undermines the original NGMN vision of multiple operators collaborating on a coherent view of what the community would require beyond 2010, creating “one integrated network for the seamless introduction of mobile broadband services.” Even as the old battle between CDMA2000 and WCDMA fades, a new division widens between the OFDMA standards, LTE and WiMAX (Qualcomm UMB seems all but abandoned).The polarization over radio standards seems somewhat backwards looking. As discussed in a previous entry, radio access technologies seem sure to multiply and change rapidly, so the design emphasis should shift to a stable foundation in the core network, built using IP. Both LTE and WiMax, plus other radios from 3G femtocells to WiFi, can serve as useful components in the Mobile Internet.Meanwhile, Apple introduced the iPhone 3G last week. It sold over 1 million units in its first weekend, generating an estimated $330 million in revenue according to some estimates. Impressive results, but more impressive still is this experiment to determine, Will It Blend?
When I speak with customers or at conferences, I often speak about data trends and applications as input to dimensioning a service and network. These data are being transmitted over a network; and, this fact highlights Cisco’s”Network as the Platform.” Three trends are converging today:1. Entertainment content is collapsing onto a common, digital source Music, film and print are all now just a string of O’s and 1′s.2. We have the global, Internet Protocol network that allows us to distribute and share digital content around the world.3. Finally, with digital content devices are freed from being tied or locked into a single distribution network.We now have phones that act as cameras, newspaper readers and portable music players.This shift fundamentally changes our relationship with entertainment content and empowers us to consume entertainment when, where, and on the device of our choice.Further, Web 2.0 drives greater consumer choice, participation and control as the Internet is now surpassing TV in terms of media usage. When we add applications like interactive gaming, broadcast TV and HDTV MPEG-4, planning and dimensioning the services and underlying network are critical for the Service Provider. Assuring quality of service, security, and implementing overall network management will be pivotal towards service level agreement compliance.These issues are opportunities for the industry as a whole.In the meantime, I will be hosting a plenary panel at the Broadband World Forum in Hong Kong on July 16 2008.Stay tuned for more!
For managed services providers, a combination of market forces for today’s end user businesses have combined to create a ‘tipping point’ that offer a new opportunity for a variety of providers to capitalize on the promise these services. These forces include changes in the business environment which are making customers more receptive to the idea of ‘out-tasking’ specific day-to-day responsibilities so they can focus on their core business and more strategic business initiatives. At the same time, advancements in remote network management technology are also making it possible for xSPs to deliver more robust managed services to a broader set of potential customers.A series of macro-market trends have combined to fundamentally change customer attitudes about managed services, and create a new opportunity for innovative MSPs to deliver differentiated solutions to their customers. Some of these can only be done by an xSP or at least done more efficiently.
- Globalization and e-commerce have opened new opportunities for business expansion, and created new competitive pressures for companies of all sizes, but have created the need for global delivery of services.
- Acceleration of new applications such as mobility has permitted workers to do their jobs anywhere, and created new challenges encouraging employee collaboration and protecting valuable data.
- Escalation of application access, performance and reliability expectations of workers at all times from wherever they are.
- Expectation of cost savings and improved efficiencies for IT delivered as a service.