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Seeing Revenue Opportunities through the Data Forest: Monetization & Optimization Index


October 26, 2015 - 0 Comments

1I love football, especially the NFL. I grew up in Memphis — a city without a team. Oh, yes, we had WFL and USFL teams along the way. However, their owners could never convince the NFL to expand and let them in when the other leagues folded. We even hosted – though inhospitably – the once Houston Oilers for a year as their Nashville stadium was finished for the Titans. Now I am in the Boston area and am a big Patriots fan, but I watch games with any teams almost any time.

I was watching the Thursday night game the other night and saw the ad from Verizon Wireless for NFL Mobile. It’s only available from them. It reminded me that service providers are searching for new revenue opportunities as the market is undergoing a lot of change. They are seeing consolidation, new competitors and rapid technology shifts. At the same time revenues from traditional services are flattening out or, in a number of cases, starting to erode. An important challenge is determining what new services offer good growth opportunities.

There are lots of market opinions and reports that touch upon this issue. Yet, in some ways the large amount of data makes determining the right path even harder. We have analyzed and synthesized different sources to simplify this for you, our service provider customers. We identify the key highlights. Not only do we put together the addressable market forecast, but we have segmented the opportunities into specific services and their respective per-customer revenues. We consider how new technologies and architectures can change your cost of delivering services, as well. All of this goes into our Monetization & Optimization Index (MOI).

We dig into specific services in three main areas with MOI. They are Cloud, Mobile, and Video. Once we have developed our global view of these services, we break them down, one by one, into regional pictures to show you what will happen closer to home. We even share the models online in a way that allows you to customize the inputs to your local markets and see your own results.

 

Going back to Mobile, there are new opportunities in IoT and in targeted advertising. A couple of years ago, Facebook got a stock price boost when it first cracked open this opportunity, while Google had not. Mobile operators have the data to target ads for greater impact. In North America this service could generate over $7 billion annually by 2019.

Comcast is “all-in” on promoting its new DVR services enabled by cloud technology. Customers get access to their content from wherever they connect and on just about any device. They have more storage available and more recording flexibility. We forecast cloud-based video services in Western Europe to lift the average customer revenue by €6 per month.

When you arrive at the results for the region and service you select, you can modify the model inputs to make a set of your own. There is a “fast track” enabling you to change a small set of impactful factors. Or you can choose the “expert track” that exposes more model details to modify to your liking. Either way, you will get results specific to your inputs that you can download and keep.

So check out MOI, or browse through the highlights. Let us know what you think (ps_bta@cisco.com). If you want to learn more, please contact your Cisco representative.



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