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M.O.VE on the Move: Mobile Operators Take to Cisco’s New Mobility Strategy

At Mobile World Congress last month we introduced our M.O.VE strategic framework and we’re already seeing the message take off.   We recently announced our relationships with major mobile operators, MegaFon in Russia and Reliance Communications in India.  Both of these operators are taking advantage of solutions within the M.O.VE strategic framework.

M.O.VE, with its targeted approach to helping operators monetize and optimize their mobile networks while enhancing the video experience, appears to be the right framework at the right time, and speaks to operators’ technical, financial, and business needs in a comprehensive and tangible way.

With the introduction of our first three M.O.VE solutions - Mobile Videoscape, Adaptive Intelligent Routing, and Service Provider Wi-Fi - we’re bringing practical innovations to market that can provide mobile operators with real benefits today.

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Onward from Mobile World Congress 2011

As mobility becomes a characteristic of an increasing number of networking services, Cisco is not just driving advancements with its mobile internet architecture, but as the MOVE announcements highlight, it is about interconnecting the mobility technology brought in last year with the acquisition of Starent with the routing and switching and video technology to create cross architectural differentiation.

For closing thoughts on Cisco at MWC 2011, I caught up with Kit Beall, VP of World Wide SP Mobility Sales, to discuss where Cisco mobility has been, how it is perceived by the customers today, and where it’s going next year:

Earlier, I also had a quick exhange with Nick Adamo, SVP of World Wide SP Sales where we talked about some of the feedback we heard during our customer meetings this week on Cisco’s vision for mobility and the network architecture:

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Capturing the Mobile Cloud Opportunity and Mobile World Congress 2011

In case you weren’t able to join us at Mobile World Congress show this week, I wanted to share what we are highlighting at our booth and during my presentation. Thanks to a Cloud delivery model paired with an intelligent end-to-end network, we believe that our SP customers are positioned well to Monetize and Optimize their services over the network from the data center more flexibly while offering richer experiences for their customers versus their OTT competition.

Cisco has the ability to enable a Mobile SP service via the Cloud from multiple angles:

  • Tested and deployed Cloud-enablement solutions (Hosted Collaboration Solution and Infrastructure as a Service)
  • Professional design and implementation support from the first-class Cisco Advanced Services group
  • The industry’s best-of-breed ecosystem partners for orchestration, virtualization, and storage

What follows is the presentation I gave earlier today at Mobile World Cogress during the App Planet Forum Series:

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Mobile Service Provider Growth Priorities

As the Mobility industry converges upon Mobile World Congress in Barcelona this week, I wanted to talk to you about subjects we will all be talking about at MWC – monetization, optimization, and the video experience.

There’s been considerable speculation about the demands that are placed on today’s mobile infrastructure and how rocketing traffic volumes will impact the network operator’s business model.

We decided to explore service provider’s expectations for the ongoing development of the mobile Internet. More specifically, their thoughts on monetization and network optimization, especially around bandwidth-intensive applications, like mobile video.

So we commissioned a market research study that was recently performed by Heavy Reading.  Based on interviews with over 50  mobile operators from around the world (the interview subjects did not know that this was a Cisco-sponsored survey), here is a summary of what they told us (full report embedded at the end of this post):

Charting a Profitable Growth Strategy

  • Growing an active, paying, mass market mobile broadband subscriber base is seen as a pre-condition for more sophisticated monetization strategies.
  • Operators view “Tiered Services” as the most attractive monetization use case. This is especially the case in HSPA+ and LTE networks which now have enough capacity that operators can start segmenting their service offerings.
  • Other use cases that operators can use to drive data penetration and usage were also favorable viewed, e.g., group data plans and session/day pass or other time-based charging services.
  • Models that can help meet the dual goals of subscriber growth and generate better yield from existing and higher-end subscribers are most attractive. Maintaining a balance between those two objectives is, of course, preferred.

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For Service Providers, the Opportunity to MOVE to Greater Profitability

Mobile data traffic will surge through 2015, growing 26-fold to 75 exabytes per year.  A remarkable 66% of that traffic will be video!  (Source:  Cisco VNI Mobile Data Traffic Forecast, 2010-2015).  My family uses an iPad or iPhone to watch Netflix movies and YouTube video clips and I see a lot of smartphone and tablet users doing the same.

This explosion in mobile data and video traffic creates challenges for service providers and mobile operators.  First, to reliably provide a user experience that is “more” – more personal, more visual, more social, more collaborative, and more productive.  Second, to efficiently manage the sudden increase in data traffic while concurrently expanding the number and kinds of services offered.  AND, as if that weren’t enough, to do all this while decreasing costs and increasing revenues.

Definitely not business as usual… in fact, “challenging” may be an understatement.

Fortunately, the networks creating these challenges can also turn these challenges into opportunities with a new set of solutions we’ve named “Cisco MOVE” (Monetization, Optimization, and Videoscape Experience).   We asked ACG, a respected analyst firm, to verify Cisco’s MOVE value propositions.  Here are some of their key findings:

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