Many years ago I found myself talking to a venture capitalist about the differences between SaaS, outsourcing, ASPs, MSPs, online applications; etc. Also I noticed that my Stanford students had little understanding of the economics of software, so I developed the idea of seven business models to cover everything in the software business, remove the buzzwords and replace them with economic models.
In my previous post, I talked about the Seven Ways to Move to the Cloud. In the second issue (there’s a lot here), I’ll break this into two separate posts, discussing models one through four here, and models five through seven in the next issue publishing on Monday, March 2.
Note the dollar numbers used throughout are intended to be relatively representative.
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Tags: business models, CIO, Cloud Computing, on-premise, open source, outsourcing, SaaS
I have just returned from a very interesting and jammed-packed week at Mobile World Congress 2014 in Barcelona. More than 75,000 people were estimated to have attended this year’s MWC, and its fabulous new conference facilities proved a great place to celebrate the industry’s accomplishments and catch a glimpse of its potential future. Much has changed in the industry over the last year since I reported my observations of MWC 2013. However, what is most remarkable is how the boundaries of mobility continue to expand and morph – everything now seems to be mobile?
The following are my personal observations and extrapolations from the show, based on my conversations with operators, customer meetings, analysts, and colleagues, as well as from simply walking the show floor: Read More »
Tags: Big Data, business models, Cisco, IoT, LTE, mobile, mobile data, mobile devices, mobile networks, mobile operators, mobile world congress, monetization, Service Provider, small cells, wi-fi
Retailing has always been a tough business. But, the move to online shopping, the challenging economy and changes in shopper’s behavior has placed even more pressure on traditional retail margins. Retailers are constantly looking for ways to get more people in to their store and to spend more. Traditional retailers have long envied the massive amounts of valuable data that online retailers have available to help them better understand customer behavior and implement winning marketing tactics. Online retailers know such valuable information as: how frequently customers return, how long they spend on the site, what they looked at but didn’t buy and where they went before and after coming to the site. With this information, online retailers are able to rapidly adjust prices, promote certain items, and re-configure the layout of the site in almost real-time in order to increase the probability and value of a sale. None of these data and insights has been available to bricks-and-mortar retailers – until now. The increasing availability of Wi-Fi in retail locations is changing all of that.
Shopping malls and retailers are increasingly offering Wi-Fi to their customers as a service to connect their mobile devices to the Internet. Hidden in this Read More »
Tags: business models, Cisco, Cisco Consulting Services, data analytics, mobile, mobile data, mobile devices, mobile networks, monetization, retail. big data, Service Provider, wi-fi
In the decade or so that Wi-Fi has existed, most technologists and mobile industry executives viewed it as the “poor cousin” to licensed mobile communications. Now mobile operators around the world are asking how they can effectively use Wi-Fi to help them cope with the huge surge in mobile data traffic and to meet customer needs and expectations. In addition, they are all eager to understand how they can make money from Wi-Fi and to make the business case to justify investments in deploying Wi-Fi networks.
As many leading SPs are now discovering building a Wi-Fi network creates not only significant business value, but creates a virtuous circle that leads to ever-increasing sources of new Wi-Fi value. As the Wi-Fi Monetization Virtuous Circle outlined below shows, the reinforcing network and scale effects of Wi-Fi investments not only deliver unique business benefits at each of the levels, but also establish a valuable platform to exploit additional monetization opportunities at the next level.
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Tags: business models, Cisco, Cisco Consulting Services, mobile, mobile data, mobile devices, mobile networks, mobile operators, monetization, service providers, wi-fi
The insatiable demand for smartphones, tablets, and other connected devices is generating staggering amounts of mobile data and placing a crushing burden on networks. One barometer is the recently released Cisco Visual Networking Index (VNI), which predicts that global mobile data traffic will increase 13-fold from 2012 to 2017, reaching 11.2 exabytes per month. The study also predicted that two-thirds of all mobile traffic will be video by 2015, and an additional 20 percent of this traffic will be devoted to both the mobile web and mobile data.
In parallel, we are witnessing a “perfect storm” in both Wi-Fi availability and customer acceptance that is resulting in a worldwide rise in the popularity of Wi-Fi. Consumers can now readily use their numerous Wi-Fi enabled devices in their homes, offices and increasingly in many of the other places where they spend their lives. Mobile users are actively searching out Wi-Fi connectivity as a cost-effective and adequate substitute or complement to mobile access to the Internet.
Based on this Wi-Fi “perfect storm” and the explosion of mobile data traffic traversing their networks, Service Providers realize that they now need to pay attention to Wi-Fi. In our conversations with SPs around the world they now recognize that that Wi-Fi is more than just data-off load and needs to be Read More »
Tags: business models, Cisco, data off-loading, IBSG, mobile, mobile data, mobile devices, mobile networks, mobile operators, monetization, Service Provider, wi-fi