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How Service Providers Can Capture Seven Times Their Mobile Investment

By Henky Agusleo, Vertical Manager, and Neeraj Arora, Director, IBSG Service Provider

With nearly a billion smartphones and tablets in use today, the time is ripe for service providers (SPs) to invest in cloud-based Connected Life services for mobile devices. The Cisco® Internet Business Solutions Group (IBSG) projects a direct mobile cloud service opportunity of more than $60 billion worldwide by 2016. So far, the first-mover advantage has gone to over-the-top (OTT) players such as Google, and device makers such as Apple. However, service providers (SPs) are well positioned to capture significant revenue in the growing market for cloud-based mobile services. With the right investment and implementation strategies, they can more fully realize this crucial avenue for growth and cost savings.

Cisco IBSG sees consumers demanding mobile-cloud services that fall into four key categories:

  1. Learn and Play: Gaming, video, information, productivity-enhancing services
  2. Communicate: Video calls, social networking
  3. Shop and Pay: Payments, healthcare, travel, location, context-based ads, mobile retail
  4. Monitor and Control: Home automation, surveillance

Sevenfold Revenue Return on Investment

Despite the $60 billion opportunity, mobile operators have been slow to make the investment necessary to develop these cloud-based services. One reason for this lag could be concern about profit margins, which tend to be significantly lower than for traditional mobile services. A number of factors could explain the lower profit margins, including: Read More »

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