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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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Closing the Small Cell Loop

Folks,

We are in the midst of exciting times. As the small cell industry gathers here in London for the annual Small Cells World Summit, I’m delighted to welcome the world-class team from Ubiquisys into Cisco.  At the same time, we’re announcing the formation of a new Small Cell Wireless Backhaul Ecosystem with the top vendors in the industry.

Let me start with an introduction, since this is my first SP 360 blog.  I’m the VP/GM of the new Cisco Small Cell Technology Group.  Cisco has been investing in both internal engineering development and external acquisitions in small cell technology for several years now, and this moment marks a milestone in our long-term strategic plan.

We have the industry leading carrier-grade SP Wi-Fi solution, and one of the largest residential femto deployments with over 1 million devices deployed by AT&T.  We’ve learned a great deal over the years about how to rapidly deploy licensed and unlicensed small cells with zero touch provisioning, keeping costs low and customer satisfaction high.

We’ve been partnering with Ubiquisys for quite some time because we see them as industry leaders and in fact one of the founders of the small cell industry.  Now that we have their expertise in-house, we’re able to rapidly roll out an expanding portfolio of licensed small cells to meet the widening array of deployment needs.  This also means that we are adding decentralized SON capability to our centralized SON proficiency gained through the recent Intucell acquisition.

In February we announced the ASR 901S, a small cell backhaul router that brings hardened network intelligence into some of the more challenging environments where small cells are being deployed.  Today we are announcing Read More »

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BYOD Spells Opportunity for Service Providers

There’s no doubt that BYOD—“bring your own device”—is a huge and growing phenomenon throughout the world. Recent research by the Cisco® Internet Business Solutions Group (IBSG) looked at BYOD and its economic impact in six countries: the United States, United Kingdom, Germany, China, India, and Brazil. In these countries alone, the number of BYOD devices is expected to more than double by 2016, to 405 million.

Clearly, introducing all those personal smartphones, tablets, and laptops into the workplace is causing complexity and uncertainty for many businesses. There is a strong appetite for BYOD, but our research shows that implementation has been largely reactive, resulting in a patchwork of ad-hoc capabilities and policies. Without a comprehensive approach, most companies are not realizing the potential value of BYOD—especially small or midsize businesses that do not have the IT resources or sophistication to manage all that complexity.

Enter the service provider (SP). BYOD opens the door to a number of SP opportunities: Read More »

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Mobile Data Traffic Is Exploding—but Who Is Profiting? How Mobile Service Providers Can Monetize Mobile Data

By Marc Latouche, Vertical Manager, IBSG Service Provider

The Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast Update projects a 13-fold increase in global mobile data traffic between 2012 and 2017 — two thirds of it video. To move all that data traffic with speed and quality, mobile network connection speeds will increase sevenfold by 2017. Clearly, mobile data services are becoming increasingly important. The question is, who will capture the revenue associated with all this activity? While mobile service providers (SPs) invest in building and maintaining the infrastructure to carry this burgeoning mobile traffic, over-the-top (OTT) content providers are benefiting from that new capacity, enabled and financed by mobile SPs.

Where are the revenue growth opportunities for service providers in this fast-changing mobile data landscape? Are there opportunities for mobile network operators to partner with OTTs, or to provide services that can extract greater value from the network? Read More »

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Business, Not Technology, Drives Cloud Adoption – Vertical Cloud Providers Can Increase Momentum

uwe1-e1341940327203By Uwe Lambrette, Director, IBSG Service Provider

Cloud adoption is accelerating at an impressive pace. To gain a deeper understanding of the current rate of change, and the dynamics of cloud’s evolution, the Cisco Internet Business Solutions Group (IBSG) engaged with wide-ranging groups of IT executives and decision makers—first in 2010, and then again in 2012. Our in-depth interviews focused on five industry verticals: government, manufacturing, financial services, professional services, and retail.

In our interviews, we encountered many examples of cloud implementation projects, which we call “adoption dynamics,” because they are nearly always part of the enterprise cloud adoption process. While there is no prescribed order, enterprises often begin with smaller, well-defined projects that fall into six categories:

  1. Consolidation of IT resources into cloud-based architectures for true cloud transformation
  2. Next-generation workspace
  3. Simple back-office business processes
  4. Software development
  5. Agile and scalable web presence
  6. Transformation of computer grids and analytics

Today: Different Industry Verticals Share Common Adoption Dynamics

The study Read More »

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