Although India is one of the fastest growing mobile and broadband markets in the world, telcos in India face challenges on a number of fronts: an intensively competitive market with a large number of players, declining fixed-line revenues, increasing mobile customer churn brought about by mobile number portability, declining mobile revenue per user and minutes of usage due to the nature of the customer being acquired, and onerous regulatory oversight spurred by recent telecom scandals. Almost all telcos are pinning their hopes on the growing mobile value-added services (MVAS) market as a source of significant incremental revenue generation and increasing mobile revenue per user. Such services include multimedia messaging and global positioning applications. Although the MVAS market presents an attractive market opportunity given India’s demographics and market size, telcos in India would be prudent to systematically address the cloud computing services market for the small- and medium-sized business (SMB) segment in India as a another source of incremental revenue generation. Telcos are well-positioned to tap into this opportunity as they have invested substantially in bandwidth creation, and currently the market has excess capacity. Telcos also have the infrastructure in place for accelerated cloud adoption; however they have limited experience with addressing the SMB segment of the market.
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Telco Datacenter and Cloud Services Market—Translating New Capabilities into New RevenueScope & LimitationsScope & LimitationsTelco Evolution from 3.0 to 4.0 to be a digital transformation solution provider Traditional revenue streams for Telcos like mobile data, voice declining; creating complexity in achieving top and bottom line growth for Global TelcosImpact of Telco evolution—From 2.0 to 4.0: radical changes in Telco product offerings preparing Telcos for a future comprising convergence, consolidation and integrationThe Telco 4.0 Business Model supports delivery of new digital services that transform key metrics of industry leadership & operational excellenceRevamp portfolio to Telco 4.0 frameworks to include new services; become digital SPs* by leveraging existing network capabilities that could be future sustainable business modelsCloud & datacenter Services in the Telco offering helps offer digital infrastructure to power digital servicesTelcos Portfolio Technology essentials to provide digital services—Cloud & datacenter services are uplift factor for growth & foundation to offer all digital services solutionsValue chain for Enterprise cloud solutions comprises Telcos & IT Service Providers. Traditional IT SPs* offered end to end IT/cloud solutions…… Telcos network strength to be plus point to address enterprise segment and increase their revenuesTelcos understand SMB buying behavior better than any other providers in the value chain; have designed solutions according to their unique needsPotential Vertical opportunities Telcos can address through cloud and datacenter servicesTelco Cloud & datacenter/cloud offerings impact various industries to achieve their digital transformation objectives by improving efficiencies and leadership indexesTelco Cloud & datacenter/cloud offerings impact various industries to achieve their digital transformation objectives by improving efficiencies and leadership indexesVerticalization opportunities—For telcos across cloud & datacenter services immense; market demands solutions that emerge from standard Telco product platforms be verticalizedCurrent Telco portfolios and their strengthsCurrent telco offering in DC* / cloud space help Telcos compete with traditional IT SPs. Their portfolios now cover entire enterprise DC lifecycle from on-premise to hosted servicesTelco Colocation Services for enterprise interconnection—Connect enterprise partner & distributor supply chains. Also, attract sustainable revenues by targeting global enterprises making presence in India; provide hosting platform for cloud SPsTelco private cloud solutions provide ITIL best practices of uptime management to enterprises to ensure their internal & customer facing applications are always available Telcos’ public cloud different since it bonds network with cloud seamlessly with unified SLAs which other IT service providers cannot provide by themselvesGlobal telco strategy for cloud solutions that Indian Telcos can adoptGlobally, Telco portfolio strategies span across build, provision, enable and manage to provide cloud solutions to enterpriseAbility to provide end to end solutions from design, build, assessment, integration is positioning global Telcos at a competitive edge in the enterprise SP landscape Global telco Cloud services strategies—Century Link strategy hinges on offering hybrid cloud solutions to address mid-market segment only ….Global telco Cloud services strategies—British Telecom’s 'Cloud of Clouds' vision to allow users to access cloud apps and services…Global telco Cloud services strategies—Interoute focuses on emerging technologies like cloud, unified communications and strong network ownership…Global telco Cloud services strategies—NTT communications has global DC assets, SDN networks underpin cloud services agility…Global telco Cloud services strategies—Telstra’s Cloud Gateway is its simple way to connect multiple clouds, and create hybrid environments…Future of Telcos’ role in the Digital Transformation Services industryWith the Telco 4.0 model, Telcos will evolve to be an end-to-end cloud player providing thereby impactful customer experiences across industries Telcos will cater to new market segments while they tie revenues to assets, embrace OTT providers by finding a niche and build new customer/partner ecosystemsAnnexure: Our ServicesMaximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic OpportunitiesOur Growth Consulting CanvasLegal Disclaimer