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Smart Cities Are a $7.5 Billion Annual Opportunity for Technology Providers

Cities around the globe are beginning to build out new digital services such as smart lighting, traffic, waste management and data analytics to reduce costs, tap new sources of revenue, create new innovation business districts and improve the overall quality of urban life. The previous blog (“How to Make Money from Smart Cities”) identified the great opportunities for the technology vendors and partners to help to create and operate these digitally smart cities of the future.

The Cisco Smart City Business Architecture identifies a set of essential requirements in a number of different business layers essential for delivering and operating a successful smart city initiative.  In order to measure this opportunity, we developed a detailed economic model based on the business architecture.  We chose Seattle in the USA as a representative city, with roughly 3 million people in the greater metropolitan area, to quantify the potential opportunity available to technology providers.  Our model smart city initiative included covering 30 per cent of the city area with a Wi-Fi network and four key smart city solutions -- traffic incident management, smart lighting, smart parking, safety & security.  In addition, we included the technology platforms, operational capabilities, and services in the Smart City Business Architecture. All of the services and solutions were modeled as managed services, generating an annual revenue stream to the provider. Read More »

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How to Make Money from Smart Cities

As cities around the world grow in size, we are beginning to see that strained resources, infrastructure, and services are causing natural limits to urban growth, which in turn limits the economic growth opportunity.  To combat this, cities as diverse as Barcelona, Nice, Kansas City and Songdo in South Korea, are starting to leverage advanced technologies and data analysis to create smart, connected cities.  These cities, and others around the globe, are building out new digital services such as smart lighting, traffic, waste management and data analytics to reduce costs, tap new sources of revenue, create new innovation business districts and improve the overall quality of urban life.

Not only will the creation of smart cities generate huge value for the cities and their inhabitants, but great opportunities will also exist for the vendors and partners who help to create and operate these digitally smart cities of the future.  However, the question is where and how can partners such as infrastructure providers, technology and services companies, and communication providers participate?  And, what types of revenues can they generate from helping to create smart cities?

Based on Read More »

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Fresh Perspectives on Monetization in Programmable Service Provider Networks

bioShot-sWritten By Wayne Cullen, Senior Manager, Service Provider Architectures

Agility. Scalability. Automation. Orchestration. Programmability. Service providers are exploring such an array of new and exciting capabilities these days! You hear a lot about lowering costs by increasing efficiency and decreasing complexity.

But what about monetization? More specifically, do programmable networks help make you money while also saving it? What are the competitive benefits that lead to higher revenues from service agility and faster time-to-market? According to a 2013 Heavy Reading study, that’s a top expectation of service providers when asked about the potential benefits of software-defined networking (SDN). The Open Networking Foundation (ONF) has also promoted monetization opportunities based on SDN through new service creation and the enhancement of existing ones due to faster service creation, easier scalability, and mass customization.

Enhanced Revenue Generation with SDN-enabled Applications and Services Read More »

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Next Generation Mobile Monetization

As I described in my previous blog How the Mobile Industry Will Make Money in the Future, the history of the mobile industry has involved huge and successful waves of revenue growth.  Lucrative revenues from the first wave of voice and the second messaging wave have crested and are now in decline.  Mobile data access has taken up much of the shortfall, comprising well over one-half of the total revenue of most MNOs.  However, the crest of this third growth wave is visible on the horizon as critical industry disruptors begin to shape a new mobile world.

The question for mobile operators everywhere is, what is this fourth, or next, wave of mobile growth?

Unfortunately there is no obvious tsunami-size fourth monetization wave cresting on the horizon for mobile operators. Unlike the preceding three waves, there will be no gold rush created by a single killer app, such as voice, messaging, or data. A lot of gold still remains in the mobile business, but it is going to come from multiple sources and require some sophisticated mining techniques.

Cisco believes that there are four key strategic thrusts, or monetization areas, for operators to create new value from their mobile business.

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1. Cost Optimization Read More »

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How Will Mobile Operators Make Money in the Future?

The mobile market continues to evolve at a blindingly fast pace. It seems as though new faster, sleeker, and more powerful mobile devices are launched every day. And new categories of mobile devices are created almost overnight. The number of applications available to run on these revolutionary new mobile devices is staggering, numbering in the millions. The insatiable demand for mobile devices and new bandwidth-hungry applications is generating enormous amounts of mobile data. The Cisco Visual Networking Index™ (Cisco VNI™) predicts that these trends will cause global mobile data traffic to increase 11-fold from 2013 to 2018, surpassing 15 exabytes per month by 2018.

In spite of this phenomenal growth and insatiable consumer demand, many MNOs are struggling to profit from this mobile gold rush. Mobile operators are watching as their average revenue per customer (ARPU) flattens or declines. Despite increasing customer appetite for mobile data, minutes of use in their cash-cow voice business are falling off sharply, and usage of text messaging is peaking. In fact, Ovum predicts that 2018 will mark the first year of revenue contraction in the history of the global mobile market. Following four years of less than 1 percent growth between 2012 and 2017, revenues will decline by 1 percent in 2018, ending the year $7.8 billion lower than in 2017.

This mobile paradox -- huge growth and customer demand, yet Read More »

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