2015 communications trends

Download 2015 Communications Trends

Post on 17-Jul-2015

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ERA OF MOBILE ADDICTIONThis has major impacts on how Communications Service Providers manage their systems & run their businesses

Mobile connectivity has moved from luxury to necessity to addiction within half a generation Consumer expectations for service quality, availability and cost have undergone a similarly swift advance

CONSUMERS: DEMAND FOR BANDWIDTHWORLDWIDE, the amount of traffic on electronic networks is exploding and thats before the Internet of Things fully comes online

THE MOBILITY PARADOX:Within three years, traffic from wireless/mobile devices will exceed traffic from wired devices

Consumers demand even more powerful unplugged connections so they can remain plugged into work, home and entertainment

CONSUMERS: WEARABLESTODAY: Prototypical, limited smartphone augmenters rather than replacements

CONSUMERS: WEARABLESTOMORROW: Huge potential for truly connected devicesWho will bill consumers for all these devices? Apple, Google, wireless providerssomeone new?

CONSUMERS: SELF-CAREWeb-based customer management and self-care functions improves the quality of sales and support Ability to quickly introduce new products and servicesAllows for any service to be offered at any time to a customer baseConsumers want everything and they want it now!

IMPROVED USER EXPERIENCE

CONSUMERS: CONTENT CONTENT CONTENTAs more portable content is available:Laptops, tablets and smartphones poised to dominate TVs as primary viewing device will declineRise in time-shift offerings via streaming sourcesConsumers want convenience: the ability to choosewhat, when and how they want to watch contentThe way content is being consumed is changing dramatically12

CONSUMERS: WORLD OF APPLICATIONSor even to apps beyond all my friends are thereSmartphones, tablets and PCs now open platforms for communication servicesHuge impacts on monetization

DECLINING LOYALTY TO PROVIDERS

PROVIDERS: DEMAND FOR BANDWIDTHand at an increasing rateDriven in part by new services crowding onto old networks Online video streaming on the rise with free video viewership growing at an exponential rateBy 2018, mobile data traffic is estimated to reach a staggering 16 EB per month equivalent to streaming over 36,000 HD movies per secondTOTAL IP TRAFFIC IS GROWING

PROVIDERS: CLOUD CLOUD COMPUTINGDelivery of hosted computing services from a central resources poolShift CapEx to OpExTake advantage of stiff competition in cloud spaceVIRTUALIZATIONDecrease hardware costs by housing multiple applications and operating systems on a single physical serverVirtualization ratio (up to 10-to-1) significantly reduces both OpEx and CapEx& VIRTUALIZATIONPROVIDERS: MACHINE2MACHINEM2M is the engine powering the Internet of ThingsDevices can cross-communicate across wired or wireless connections, with impacts to industry, municipalities and nations (defense)Forward-looking providers are investing now in M2M to enable new services in healthcare, connected vehicles, etc.Business models are deeply in flux and ecosystem still complex partnerships can help spread risk and test innovation

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PROVIDERS: NEW BUSINESS MODELSShifting CapEx to OpEx: Lean balance sheet & optimum cash flowConnected cloud ecosystems will be used as a launch pad to next-generation business models, including anything as a service (XaaS)Products need to get to market quickly and must be flexible and adaptable to changeSmart Revenue Sharing by integrating with partners in industry-related markets to meet consumer needsSaaS, PaaS and IaaS will continue to be in heavy growth mode 18PROVIDERS: OTT COMPETITIONOTT chat apps like WhatsApp are putting pressure on telcos because they offer social networks that retain user loyaltyThis pushes customers to choose smaller voice/text plans with a big data planProviders must look for partnerships and reinvent their offerings to include embedded connectivityThe telecom industry will lose ~$400 BILLION between 2012 and 2018 from customers using Over The Top voiceand messaging applications

PROVIDERS: LEGACY SYSTEMSAll this growth and change surpassing the capacities of networks and capabilities of back office systems as they are todayCarriers are competing with Internet challengers at Internet speeds but with legacy systems that have been marginally modernized, if at allModern telecommunications industry changing faster than ever

PROVIDERS: REVENUE/TRAFFIC DECOUPLINGCommunication Service Providers (CSPs) are facing a major challenge:

Traffic is going upbut revenue is going downWe are almost here21

MARKET: MERGERS & ACQUISITIONSPROVIDERSCrossing borders and expanding internationally means facing new regulation challenges

In-country consolidation with significant IT consolidation and business process challenges

Expanding non-core business to provide new products and services

MARKET: MERGERS & ACQUISITIONSVENDORSLarge and small vendors come together, complementing capabilitiesAcquisition spree among companies:

Celcite ManagementActix

VolubillAscade

TelcocellTeleOSS ConsultingConceptWave

Over 4 million IT jobs are predicted to be created in 2015, and demand for digital business jobs will increase five fold by 2018

China and India producing many qualified people, but Western nations much less aggressive

There will be an increase in demand and competition for top talent in-house data scientists, developers and designers, but there will be a scarce amount of these digital skills in 2015

MARKET: SKILLED WORKFORCE SHORTAGE

MARKET: BIG DATA & ANALYTICSTHE NEXT FRONTIER FOR ACHIEVING COMPETITIVE ADVANTAGE

Enables organizations to develop more accurate and timely forecasts Understand customers Predict their behaviors Change their behaviors Improve targeting and reduce churn

Huge potential upside for the industry