ERA OF MOBILE ADDICTION

This 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 BANDWIDTH

WORLDWIDE, the amount of traffic on electronic

networks is exploding – and that’s 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: WEARABLES

TODAY: Prototypical, limited – smartphone augmenters rather than replacements

CONSUMERS: WEARABLES

TOMORROW: Huge potential for truly connected devices

Who will bill consumers for all these devices? Apple, Google, wireless providers…someone new?

CONSUMERS: SELF-CARE

Web-based customer management and self-care functions improves the quality of sales and support

Ability to quickly introduce new products and services

Allows for any service to be offered at any time to a customer base

Consumers want everything and they want it now!

IMPROVED USER EXPERIENCE

CONSUMERS: CONTENT CONTENT CONTENT

As 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 sources

Consumers want convenience: the ability to choose…what, when and how they want to watch content

The way content is being consumed is changing dramatically

CONSUMERS: WORLD OF APPLICATIONS

…or even to apps beyond “all my friends are there”

Smartphones, tablets and PCs now open platforms for communication services

Huge impacts on monetization

DECLINING LOYALTY TO PROVIDERS

PROVIDERS: DEMAND FOR BANDWIDTH

…and at an increasing rate

Driven in part by new services crowding onto old networks

Online video streaming on the rise with free video viewership growing at an exponential rate

By 2018, mobile data traffic is estimated to reach a staggering 16 EB per month – equivalent to streaming over 36,000 HD movies per second

TOTAL IP TRAFFIC IS GROWING

PROVIDERS: CLOUD

CLOUD COMPUTING

Delivery of hosted computing services from a central resources pool

Shift CapEx to OpEx

Take advantage of stiff competition in cloud space

VIRTUALIZATION

Decrease hardware costs by housing multiple applications and operating systems on a single physical server

Virtualization ratio (up to 10-to-1) significantly reduces both OpEx and CapEx

& VIRTUALIZATION

PROVIDERS: MACHINE2MACHINE

M2M is the engine powering the Internet of Things

Devices 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

PROVIDERS: NEW BUSINESS MODELS

Shifting CapEx to OpEx: Lean balance sheet & optimum cash flow

Connected 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 change

Smart 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

PROVIDERS: OTT COMPETITION

OTT chat apps like WhatsApp are putting pressure on telcos because they offer social networks that retain user loyalty

This pushes customers to choose smaller voice/text plans with a big data plan

Providers must look for partnerships and reinvent their offerings to include embedded connectivity

The telecom industry will lose ~$400 BILLION between 2012 and 2018 from customers using Over The Top voice and messaging applications

PROVIDERS: LEGACY SYSTEMS

All this growth and change surpassing the capacities of networks and capabilities of back office systems as they are today

Carriers are competing with Internet challengers at Internet speeds – but with legacy systems that have been marginally modernized, if at all…

Modern telecommunications industry changing faster than ever

PROVIDERS: REVENUE/TRAFFIC DECOUPLING

Communication Service Providers (CSPs) are facing a major challenge:

Traffic is going up…but revenue is going down

MARKET: MERGERS & ACQUISITIONS

PROVIDERS

Crossing 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 & ACQUISITIONS

VENDORS

Large and small vendors come

together, complementing

capabilities

Acquisition 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 & ANALYTICS

THE 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