Thursday, October 28, 2010
"Wireless Neutrality" as a Competitive Weapon
Interesting article by Tim Chang of Northwest Venture Partners in VentureBeat in which I am quoted.
New Revenue for SPs Opportunties in Internet Video
Internet-based video consumption is booming all over the world, but most telecommuni-cations operators are not benefiting from it. They must sustain the infrastructure costs needed to support this fast-growing traffic, but they have not been able to create associated incremental revenues. Service providers are trying to find ways to turn this potential threat into an opportunity by generating new, profitable revenue streams from the rise of Internet video.
Cisco IBSG suggests that service providers have the opportunity to turn Internet video costs into profits, initially through a two-sided business model that offers:
1. High-quality content delivery services to content providers
2. A “TV-ready broadband” service for consumers that delivers Internet video with quality equivalent to that of traditional television
Cisco IBSG analysis shows that access-based telecommunications operators can develop a highly profitable business by offering these two services together, with expected earnings before interest, taxes, depreciation, and amortization (EBITDA) margins above 70 percent.
Today, Internet video accounts for less than 2 percent of the total time Americans spend watching video. But with more sophisticated video services coming from the Internet, and with Internet-connected TVs, the time consumers spend watching Internet video could rise significantly—potentially reaching 50 percent of their overall video viewing time in 10 to 15 years. Now is the time for service providers to begin realizing the opportunity of Internet video.
Download the complete document
Cisco IBSG suggests that service providers have the opportunity to turn Internet video costs into profits, initially through a two-sided business model that offers:
1. High-quality content delivery services to content providers
2. A “TV-ready broadband” service for consumers that delivers Internet video with quality equivalent to that of traditional television
Cisco IBSG analysis shows that access-based telecommunications operators can develop a highly profitable business by offering these two services together, with expected earnings before interest, taxes, depreciation, and amortization (EBITDA) margins above 70 percent.
Today, Internet video accounts for less than 2 percent of the total time Americans spend watching video. But with more sophisticated video services coming from the Internet, and with Internet-connected TVs, the time consumers spend watching Internet video could rise significantly—potentially reaching 50 percent of their overall video viewing time in 10 to 15 years. Now is the time for service providers to begin realizing the opportunity of Internet video.
Download the complete document
A New Operating Model for Next Generation Managed Services
The market for fixed and mobile voice services in the economically developed world is nearly saturated. Revenue growth is flat to negative, seriously impacting service provider (SP) profits. Tough economic times only amplify this situation. To maneuver in this challenging business climate, SPs must reinvent their business models by offering new, profitable, next-generation managed services such as web-based video conferencing and collaboration, along with other unified communications solutions. These new services can help SPs realize revenues incremental to those from network-based legacy services such as access and transport, and offer the potential for rapid return on investment.
Next-generation managed services provide attractive opportunities for SPs because they can be integrated into their current product and services portfolios. Not only will these services enhance SPs’ offerings—they will also generate pull-through revenue by combining existing capabilities such as audio with, for example, web-based collaboration.
The market for next-generation managed services is growing fast—the compound annual growth rates (CAGR) of web-based video conferencing and collaboration segments in the United States and Europe are forecast to reach 19 percent and 15 percent, respectively, by 2015. By adding next-generation managed services to their existing portfolios, SPs can provide customers with a rich collaboration environment that includes content sharing, instant messaging, and webcam video—all in a single communications session.
Download the complete document
Next-generation managed services provide attractive opportunities for SPs because they can be integrated into their current product and services portfolios. Not only will these services enhance SPs’ offerings—they will also generate pull-through revenue by combining existing capabilities such as audio with, for example, web-based collaboration.
The market for next-generation managed services is growing fast—the compound annual growth rates (CAGR) of web-based video conferencing and collaboration segments in the United States and Europe are forecast to reach 19 percent and 15 percent, respectively, by 2015. By adding next-generation managed services to their existing portfolios, SPs can provide customers with a rich collaboration environment that includes content sharing, instant messaging, and webcam video—all in a single communications session.
Download the complete document
Wednesday, October 27, 2010
Vodafone Adopts a New Operating Model for Next Generation Managed Services
The market for fixed and mobile voice services in the economically developed world is nearly saturated. Revenue growth is flat to negative, seriously impacting service provider (SP) profits. Tough economic times only amplify this situation. To maneuver in this challenging business climate, SPs must reinvent their business models by offering new, profitable, next-generation managed services such as web-based video conferencing and collaboration, along with other unified communications solutions. These new services can help SPs realize revenues incremental to those from network-based legacy services such as access and transport, and offer the potential for rapid return on investment.
Next-generation managed services provide attractive opportunities for SPs because they can be integrated into their current product and services portfolios. Not only will these services enhance SPs’ offerings—they will also generate pull-through revenue by combining existing capabilities such as audio with, for example, web-based collaboration.
The market for next-generation managed services is growing fast—the compound annual growth rates (CAGR) of web-based video conferencing and collaboration segments in the United States and Europe are forecast to reach 19 percent and 15 percent, respectively, by 2015. By adding next-generation managed services to their existing portfolios, SPs can provide customers with a rich collaboration environment that includes content sharing, instant messaging, and webcam video—all in a single communications session.
Service providers face a number of challenges in designing and bringing next-generation managed services to market and providing after-sales support. This Point of View from the Cisco® Internet Business Solutions Group (IBSG) examines these challenges and illustrates how one company—Vodafone—is successfully deploying next-generation managed services via an innovative partner ecosystem model that helps SPs streamline and improve their operations processes, deploy new services quickly and effectively, and reduce costs.
Download the complete document
Next-generation managed services provide attractive opportunities for SPs because they can be integrated into their current product and services portfolios. Not only will these services enhance SPs’ offerings—they will also generate pull-through revenue by combining existing capabilities such as audio with, for example, web-based collaboration.
The market for next-generation managed services is growing fast—the compound annual growth rates (CAGR) of web-based video conferencing and collaboration segments in the United States and Europe are forecast to reach 19 percent and 15 percent, respectively, by 2015. By adding next-generation managed services to their existing portfolios, SPs can provide customers with a rich collaboration environment that includes content sharing, instant messaging, and webcam video—all in a single communications session.
Service providers face a number of challenges in designing and bringing next-generation managed services to market and providing after-sales support. This Point of View from the Cisco® Internet Business Solutions Group (IBSG) examines these challenges and illustrates how one company—Vodafone—is successfully deploying next-generation managed services via an innovative partner ecosystem model that helps SPs streamline and improve their operations processes, deploy new services quickly and effectively, and reduce costs.
Download the complete document
Next-Generation Managed Services: A Window of Opportunity for Service Providers
Growing at 20 percent annually, managed services is one of the fastest-growing sectors for service providers. Often relegated to supporting commodity “dumb pipes” (also known as “unintelligent networks”) and simple services by systems integrators, SPs need a way to increase their value-add, define a differentiated role that emphasizes solutions rather than commodity services, and reap the benefits of higher margins.
Next-generation managed services provide SPs a platform on which to expand their business models to include higher-order services that achieve greater margins and realize business goals. Industry analysts estimate that the entire managed services market (which comprises the network, computer, and application layers) will be driven by advanced managed services within the computing and application layers and will exceed US$60 billion by 2010. Getting there, however, will not be simple. Service providers must navigate the pitfalls of history and mitigate the efforts of competitors.
If SPs can learn from the past and influence the future, they will profit from next-generation managed services for years to come.
This Point of View, by the Cisco® Internet Business Solutions Group (IBSG), introduces a new managed services concept and hierarchy, providing a comprehensive map of the current market to encourage SPs to think beyond traditional managed services and the role they play in the world of next-generation managed services.
Download the complete document
Next-generation managed services provide SPs a platform on which to expand their business models to include higher-order services that achieve greater margins and realize business goals. Industry analysts estimate that the entire managed services market (which comprises the network, computer, and application layers) will be driven by advanced managed services within the computing and application layers and will exceed US$60 billion by 2010. Getting there, however, will not be simple. Service providers must navigate the pitfalls of history and mitigate the efforts of competitors.
If SPs can learn from the past and influence the future, they will profit from next-generation managed services for years to come.
This Point of View, by the Cisco® Internet Business Solutions Group (IBSG), introduces a new managed services concept and hierarchy, providing a comprehensive map of the current market to encourage SPs to think beyond traditional managed services and the role they play in the world of next-generation managed services.
Download the complete document
Leaving the Walled Garden: How Mobile Operators Can Survive in an Open World
The recent high-profile announcement regarding the upcoming launch of Google’s open Android mobile platform, coupled with evolving requirements in the U.S. 700-MHz spectrum auctions for open access, will serve to alter dramatically the mobile industry as we know it.
Traditionally, mobile devices have been tightly tied to a particular mobile network. All devices had to be approved by the provider through a long, arduous “black box process” before they were allowed on the carrier’s network.
Tightly coupling the device and platform to the network has served mobile operators well:
• Brand Identification: consumers associate the device with the mobile provider
• Switching Costs: contracts made it harder for consumers to leave
• Product Differentiation: exclusive offers for “cool” devices (e.g., RAZR, iPhone)
• New Revenue Sources: high-margin services such as ringtones available only from operators
It was also a beneficial model for consumers, as they enjoyed heavily subsidized devices that were guaranteed to work and be supported. The move to more open platforms and increasing customer demand for new and cool devices, however, are making many mobile operators nervous about their future.
The erosion of the traditional, “walled-garden” world will fundamentally change the operators’ business and their relationships with customers. We believe that mobile operators who embrace the new opportunities of an open world will find that the benefits far outweigh the risks.
Download the full document
Traditionally, mobile devices have been tightly tied to a particular mobile network. All devices had to be approved by the provider through a long, arduous “black box process” before they were allowed on the carrier’s network.
Tightly coupling the device and platform to the network has served mobile operators well:
• Brand Identification: consumers associate the device with the mobile provider
• Switching Costs: contracts made it harder for consumers to leave
• Product Differentiation: exclusive offers for “cool” devices (e.g., RAZR, iPhone)
• New Revenue Sources: high-margin services such as ringtones available only from operators
It was also a beneficial model for consumers, as they enjoyed heavily subsidized devices that were guaranteed to work and be supported. The move to more open platforms and increasing customer demand for new and cool devices, however, are making many mobile operators nervous about their future.
The erosion of the traditional, “walled-garden” world will fundamentally change the operators’ business and their relationships with customers. We believe that mobile operators who embrace the new opportunities of an open world will find that the benefits far outweigh the risks.
Download the full document
Tuesday, October 26, 2010
Next Generation Managed Services Enable Retailers to Innovate
Online competition and access to price information has been squeezing already thin retailer profit margins for some time now. Combined with the added pressures of the economic crisis, many retailers are being pushed to the edge. Sadly, familiar names, such as Circuit City, have already been pushed over the edge.
To survive this crisis forward-looking retailers need to focus on:
1. Efficiency – making every part of the business as lean and efficient as possible, especially in the supply chain;
2. Cost Removal – driving out costs everywhere, especially in labor, their second biggest cost after the goods that they sell
3. Customer Experience – seeking ways to differentiate an increasingly homogeneous shopping experience
Salvation in Managed Services
Retailers have traditionally been very closed to the idea of managed services provided by third parties. Razor thin margins have made them very risk adverse. There is a general skepticism of service providers, large IT firms, and their understanding of retail or their ability to adequately serve retailer needs.
Those fears and biases are beginning to fade as the reality of economic pressures for cost reduction and competitive pressures for differentiation bite harder than ever before. Retailers are now exploring how managed services allow them to address these monumental challenges. Research by Cisco IBSG (the company’s strategic consulting arm) reveals that successful providers of managed services must address retailer core buyer values:
• Proven Reliability – to manage risk and complexity
• Cost Effective – pay for performance
• Tailored Solutions – specific to the retailing industry
• Focus on Customer Experience – enabling competitive differentiation
• Speed to Market – deliver benefits immediately
Managed Services Enable In-Store Innovation
Many retailers are aggressively applying managed services to innovate. Digital Signage, or the ability to provide targeted multi-media messaging to customers, is being used by retailers such as WalMart and Eddie Bauer to influence buying decisions at the point-of-sale and to increase store traffic. The complexity involved in the deployment, underlying network and operations means that retailers are increasingly turning to proven, managed end-to-end solutions.
Companies like Best Buy and Home Depot are trialing Telepresence kiosks that allow them to enhance the shopping experience by bringing expertise directly to their customers in their stores -- in a scalable and cost effective manner. Service providers that install and deliver these solutions become valued partners who offer unique value-added solutions specific to the retail industry.
The current economic crisis will re-shape the retail business. Resilient retailers who survive and thrive will be those that proactively embrace next generation managed services as a means to attain competitive differentiation. Inventive managed services providers will deploy unique solutions that help to position retailers for the long term.
This article was published in Business Technology Roundtable
To survive this crisis forward-looking retailers need to focus on:
1. Efficiency – making every part of the business as lean and efficient as possible, especially in the supply chain;
2. Cost Removal – driving out costs everywhere, especially in labor, their second biggest cost after the goods that they sell
3. Customer Experience – seeking ways to differentiate an increasingly homogeneous shopping experience
Salvation in Managed Services
Retailers have traditionally been very closed to the idea of managed services provided by third parties. Razor thin margins have made them very risk adverse. There is a general skepticism of service providers, large IT firms, and their understanding of retail or their ability to adequately serve retailer needs.
Those fears and biases are beginning to fade as the reality of economic pressures for cost reduction and competitive pressures for differentiation bite harder than ever before. Retailers are now exploring how managed services allow them to address these monumental challenges. Research by Cisco IBSG (the company’s strategic consulting arm) reveals that successful providers of managed services must address retailer core buyer values:
• Proven Reliability – to manage risk and complexity
• Cost Effective – pay for performance
• Tailored Solutions – specific to the retailing industry
• Focus on Customer Experience – enabling competitive differentiation
• Speed to Market – deliver benefits immediately
Managed Services Enable In-Store Innovation
Many retailers are aggressively applying managed services to innovate. Digital Signage, or the ability to provide targeted multi-media messaging to customers, is being used by retailers such as WalMart and Eddie Bauer to influence buying decisions at the point-of-sale and to increase store traffic. The complexity involved in the deployment, underlying network and operations means that retailers are increasingly turning to proven, managed end-to-end solutions.
Companies like Best Buy and Home Depot are trialing Telepresence kiosks that allow them to enhance the shopping experience by bringing expertise directly to their customers in their stores -- in a scalable and cost effective manner. Service providers that install and deliver these solutions become valued partners who offer unique value-added solutions specific to the retail industry.
The current economic crisis will re-shape the retail business. Resilient retailers who survive and thrive will be those that proactively embrace next generation managed services as a means to attain competitive differentiation. Inventive managed services providers will deploy unique solutions that help to position retailers for the long term.
This article was published in Business Technology Roundtable
Transforming Healthcare with Creative IT Solutions
Healthcare is constantly in the spotlight as aging populations, technological advances and high-costs threaten the very fabric of the current system. Both healthcare providers and insurers are under constant social, political and shareholder pressure to both improve quality of delivery and lower operational costs.
To proactively evolve, forward-looking insurers and providers need to focus on:
1. Access – ensuring that patients are properly insured and the facilities are available to treat them;
2. Affordability – driving down costs across all parts of the system;
3. Quality – ensuring quality and successful treatment outcome;
4. Sustainability – focus on managing labor force resources and green issues.
New Approaches to Technology Driven Transformation
Despite being an industry heavily dependant on the use of the latest in medical technologies, healthcare has traditionally been slow to use information technology and services to improve their business processes. Healthcare has some of the most stringent concerns about privacy and security, and regulatory constraints. It is a highly fragmented industry, with over 70% of healthcare typically dispensed by autonomous health care professionals.
This unique industry structure has resulted in both a lower uptake of technology and the desire for high-cost in-house IT development and operation. Research by Cisco IBSG (the company’s strategic consulting arm) reveals that this is beginning to change.
To-date most of the focus has been on using information technology to address the eHealth, or patient records issue, with mixed results. In contrast, Cisco IBSG believes that implementing next generation managed services, outside of the clinical area, can have a significant transformational impact.
Creative Solutions for Challenging Times
We are now seeing both healthcare providers and insurers exploring the potential benefits of managed services to streamline their operations and to improve the overall customer experience. Insurers are eager to encourage competition amongst providers, to drive down costs. IBSG research indicates insurers are experimenting with using healthcare-specific telepresence solutions to remotely deliver healthcare, reducing costs and improving overall customer experience.
For example, United Healthcare recently installed a HealthPresence managed service at Cisco’s main San Jose, California campus. This allows employees to conveniently access medical support at their place of work, and enables United Healthcare to deliver it using less expensive medical resources in a more streamline process.
Healthcare providers are using managed services to address the cost and quality impacting issues. A hospital wide wireless RFID solution allows caregivers to quickly locate wheelchairs, trolleys and critical equipment, saving not just time and money, but often someone’s life. Similar examples exist with locating doctors, identifying their availability, and across other parts of the medical supply chain.
Healthcare providers need to compete on service quality and loyalty. Providers are turning to next generation managed services as a means to enhance their offerings. For example, hospitals using telepresence kiosks to create in-house concierge services to aid both patients and visitors to improve their overall hospital experience.
Transforming healthcare is going to require radical change. Managed services outside of the traditional clinical area have great potential. However, service providers must work with both insurers and health care providers across all aspects of their business -- to develop unique IT solutions that help them to deliver lasting business advantage, and reduce operational costs.
This article appeared in Business Technology Roundtable
To proactively evolve, forward-looking insurers and providers need to focus on:
1. Access – ensuring that patients are properly insured and the facilities are available to treat them;
2. Affordability – driving down costs across all parts of the system;
3. Quality – ensuring quality and successful treatment outcome;
4. Sustainability – focus on managing labor force resources and green issues.
New Approaches to Technology Driven Transformation
Despite being an industry heavily dependant on the use of the latest in medical technologies, healthcare has traditionally been slow to use information technology and services to improve their business processes. Healthcare has some of the most stringent concerns about privacy and security, and regulatory constraints. It is a highly fragmented industry, with over 70% of healthcare typically dispensed by autonomous health care professionals.
This unique industry structure has resulted in both a lower uptake of technology and the desire for high-cost in-house IT development and operation. Research by Cisco IBSG (the company’s strategic consulting arm) reveals that this is beginning to change.
To-date most of the focus has been on using information technology to address the eHealth, or patient records issue, with mixed results. In contrast, Cisco IBSG believes that implementing next generation managed services, outside of the clinical area, can have a significant transformational impact.
Creative Solutions for Challenging Times
We are now seeing both healthcare providers and insurers exploring the potential benefits of managed services to streamline their operations and to improve the overall customer experience. Insurers are eager to encourage competition amongst providers, to drive down costs. IBSG research indicates insurers are experimenting with using healthcare-specific telepresence solutions to remotely deliver healthcare, reducing costs and improving overall customer experience.
For example, United Healthcare recently installed a HealthPresence managed service at Cisco’s main San Jose, California campus. This allows employees to conveniently access medical support at their place of work, and enables United Healthcare to deliver it using less expensive medical resources in a more streamline process.
Healthcare providers are using managed services to address the cost and quality impacting issues. A hospital wide wireless RFID solution allows caregivers to quickly locate wheelchairs, trolleys and critical equipment, saving not just time and money, but often someone’s life. Similar examples exist with locating doctors, identifying their availability, and across other parts of the medical supply chain.
Healthcare providers need to compete on service quality and loyalty. Providers are turning to next generation managed services as a means to enhance their offerings. For example, hospitals using telepresence kiosks to create in-house concierge services to aid both patients and visitors to improve their overall hospital experience.
Transforming healthcare is going to require radical change. Managed services outside of the traditional clinical area have great potential. However, service providers must work with both insurers and health care providers across all aspects of their business -- to develop unique IT solutions that help them to deliver lasting business advantage, and reduce operational costs.
This article appeared in Business Technology Roundtable
Transforming Governments Through Next Generation Technology
Governments around the world are struggling with unprecedented challenges. Not only are they to trying to reignite a global economy in freefall, but they are grappling with crumbling infrastructure, aging populations, declining quality in education and healthcare, and a heightened social concern about preserving the environment. All, in a world of declining tax revenues and tightening budgets.
Like the private sector, governments are now turning to technology to help them to improve both the delivery of government services and to promote overall economic growth.
Building 21st Century Economies
Like the waterways and highways of previous centuries, governments around the world recognize they have an important role to play in building the technology infrastructure to fuel innovation-led growth and prosperity. High-speed broadband is seen as a core infrastructure for encouraging economic development but we need the services that run on top of this to create demand, encourage further investments and deliver economic benefits. For example, Germany has committed €4.6 Billion to install and connect telepresence capabilities throughout its schools to improve the quality of its education system, while reducing costs.
Similar to access to electricity and the telephone, governments not only recognize the social equity of providing broadband access to the underprivileged and unde-served, but they are beginning to understand the importance to economic development. Using technology to improve the quality of inner-city schools, encourage more tele-commuting and increase the productivity of rural economies delivers significant social and economic benefits.
Delivering 21st Century Public Services
Most of us have become accustom to using technology to interact with banks, retailers, utilities and, even our employers. Not only have we grown use to it, but we expect and demand it.
There are significant opportunities for governments to adopt similar technologies to:
• Reduce Costs of Delivery – delivering online services, collaboration tools, and video, not only lowers costs to serve but enhances the overall customer experience
• Empower Citizens – employing Web 2.0 capabilities, such as collaboration and social networking, allows citizens to more easily interact with their government and directly help each other
• Improve Levels of Service – installing solutions such things as kiosks, Telepresence units, or VoIP enabled call centers for 311 calls, raises service levels and the overall experience
Creating 21st Century Governments
Governments have a role now, more than ever, in solving our pressing issues. Both taxpayers and public servants recognize that they must operate very differently than they have, and that technology plays a critical role to play in this transformation. There is a fantastic opportunity for technology providers to partner with governments on this journey.
Research by Cisco IBSG (the company’s strategic consulting arm) reveals that the public sector has a number of unique requirements:
• Funding Models – given budget constraints and limited money to invest, companies need to find creative new ways to pay for the new technologies, such as managed services and public-private partnerships
• Skill Shortages – hiring freezes and lack of skills, means that governments typically require significant help in design, implementation and management of technology solutions
• Integrated Solutions – new solutions require integrating not just across multiple departments and levels of government, but also with not-for-profits, agencies, multiple partners and other parties
• Innovation – governments are looking to the private sector to bring new and innovative solutions to their problems
Managed Services offers a great way to deliver the new and innovative solutions that are going to transform governments for the 21st century. However, to be successful service providers will need to recognize the unique needs of the public sector and to partner with them to address their pressing challenges.
This article appeared in Business Technology Roundtable
Like the private sector, governments are now turning to technology to help them to improve both the delivery of government services and to promote overall economic growth.
Building 21st Century Economies
Like the waterways and highways of previous centuries, governments around the world recognize they have an important role to play in building the technology infrastructure to fuel innovation-led growth and prosperity. High-speed broadband is seen as a core infrastructure for encouraging economic development but we need the services that run on top of this to create demand, encourage further investments and deliver economic benefits. For example, Germany has committed €4.6 Billion to install and connect telepresence capabilities throughout its schools to improve the quality of its education system, while reducing costs.
Similar to access to electricity and the telephone, governments not only recognize the social equity of providing broadband access to the underprivileged and unde-served, but they are beginning to understand the importance to economic development. Using technology to improve the quality of inner-city schools, encourage more tele-commuting and increase the productivity of rural economies delivers significant social and economic benefits.
Delivering 21st Century Public Services
Most of us have become accustom to using technology to interact with banks, retailers, utilities and, even our employers. Not only have we grown use to it, but we expect and demand it.
There are significant opportunities for governments to adopt similar technologies to:
• Reduce Costs of Delivery – delivering online services, collaboration tools, and video, not only lowers costs to serve but enhances the overall customer experience
• Empower Citizens – employing Web 2.0 capabilities, such as collaboration and social networking, allows citizens to more easily interact with their government and directly help each other
• Improve Levels of Service – installing solutions such things as kiosks, Telepresence units, or VoIP enabled call centers for 311 calls, raises service levels and the overall experience
Creating 21st Century Governments
Governments have a role now, more than ever, in solving our pressing issues. Both taxpayers and public servants recognize that they must operate very differently than they have, and that technology plays a critical role to play in this transformation. There is a fantastic opportunity for technology providers to partner with governments on this journey.
Research by Cisco IBSG (the company’s strategic consulting arm) reveals that the public sector has a number of unique requirements:
• Funding Models – given budget constraints and limited money to invest, companies need to find creative new ways to pay for the new technologies, such as managed services and public-private partnerships
• Skill Shortages – hiring freezes and lack of skills, means that governments typically require significant help in design, implementation and management of technology solutions
• Integrated Solutions – new solutions require integrating not just across multiple departments and levels of government, but also with not-for-profits, agencies, multiple partners and other parties
• Innovation – governments are looking to the private sector to bring new and innovative solutions to their problems
Managed Services offers a great way to deliver the new and innovative solutions that are going to transform governments for the 21st century. However, to be successful service providers will need to recognize the unique needs of the public sector and to partner with them to address their pressing challenges.
This article appeared in Business Technology Roundtable
Can Managed Services Rescue Financial Services?
Turmoil and struggles in the financial services sector are splashed daily on the front page of newspapers around the world? The industry faces a number of monumental challenges that are threatening and shaping its future. To remain competitive, forward-looking firms need to:
● Reduce costs
● Improve cross-sell and up-sell results from existing customers
● Shift capital expenditures to operational expenditures through variable costing and on-demand capabilities
Progressive companies in the financial services sector are aggressively using managed services technology to address some of these current challenges.
Serving Market Growth
The financial services sector currently spends more than 2.5 times more on technology than other industries. The way they can attack challenge number one is to shift the management of desktops, data centers, and call centers to a managed services model. Companies are using this option not just to reduce costs, but as a way to reallocate investment into growth initiatives.
One regional U.S. bank came to Cisco ISBG (the company’s strategic consulting arm), wanting to quickly enter a new niche market faster than a competitor and increase its market share. Its tactic: deploy an end-to-end managed service, including both technology and business processes.
The economics of managed services lower the barriers of entry to niche markets that might not have been economical before; it also helps them determine success or failure more quickly, and act accordingly.
Managed Services Increase Customer Ties
In developing markets, companies are looking to use managed services to target customers who might not have used banks at all previously. A managed service that offers the underlying network infrastructure, including phones, provides them with an on-demand and scalable service that they can roll-out ahead of competitors.
To increase the amount of business conducted with customers, financial services firms are looking beyond the traditional world of financial transactions and services. One large bank we’re working with wants to expand its relationship with its small and midsize customers by providing them with essential services as payroll, procurement, and human resources.
Because the bank wants to roll out these services quickly, they will be created, delivered and managed by another entity through a managed services model.
Next generation managed services offer a real opportunity to transform the financial services sector. But success will require creative thinking, as well as both the development of strategic partnerships with managed services providers and proper governance models.
This article appeared in Business Technology Roundtable
● Reduce costs
● Improve cross-sell and up-sell results from existing customers
● Shift capital expenditures to operational expenditures through variable costing and on-demand capabilities
Progressive companies in the financial services sector are aggressively using managed services technology to address some of these current challenges.
Serving Market Growth
The financial services sector currently spends more than 2.5 times more on technology than other industries. The way they can attack challenge number one is to shift the management of desktops, data centers, and call centers to a managed services model. Companies are using this option not just to reduce costs, but as a way to reallocate investment into growth initiatives.
One regional U.S. bank came to Cisco ISBG (the company’s strategic consulting arm), wanting to quickly enter a new niche market faster than a competitor and increase its market share. Its tactic: deploy an end-to-end managed service, including both technology and business processes.
The economics of managed services lower the barriers of entry to niche markets that might not have been economical before; it also helps them determine success or failure more quickly, and act accordingly.
Managed Services Increase Customer Ties
In developing markets, companies are looking to use managed services to target customers who might not have used banks at all previously. A managed service that offers the underlying network infrastructure, including phones, provides them with an on-demand and scalable service that they can roll-out ahead of competitors.
To increase the amount of business conducted with customers, financial services firms are looking beyond the traditional world of financial transactions and services. One large bank we’re working with wants to expand its relationship with its small and midsize customers by providing them with essential services as payroll, procurement, and human resources.
Because the bank wants to roll out these services quickly, they will be created, delivered and managed by another entity through a managed services model.
Next generation managed services offer a real opportunity to transform the financial services sector. But success will require creative thinking, as well as both the development of strategic partnerships with managed services providers and proper governance models.
This article appeared in Business Technology Roundtable
Imperatives for Managing High Mobile Data Traffic
After years of industry pundits preaching about mobile data, it has finally arrived. Those shifting hockey stick graphs projecting rapid adoption have become a reality as the Internet goes mobile. Fast networks, user-friendly devices, and a growing catalog of useful—and not so useful—applications have resulted in significant data growth. The general industry move to openness will only heighten this demand as more devices and applications boost usage.
Be Careful What You Wish For
Cisco projects that global mobile data traffic will double every year, increasing 66 fold between 2008 and 2013. This phenomenal growth is not without challenges:
• Revenues are not increasing anywhere near the speed of traffic growth. In fact, mobile data revenue is growing at 10 to 20 percent per year compared to annual traffic growth of 100 to 200 percent. How can mobile operators monetize this growth?
• Delivering a good customer experience on an increasingly congested network is going to be a challenge. A single user accessing BitTorrent, or some other bandwidth-intensive application, threatens to destroy the experience for all users.
• Operational excellence will be paramount as mobile operators run their networks “hotter” to cope with the rapid increase in traffic. How can operators get the most out of their networks without threatening the business?
New Network and Business Imperatives
Our research indicates there are five important imperatives for operators to consider in designing and operating their networks to successfully manage these challenges and the new demands placed upon their networks.
1. Broadband Ubiquity: Broadband connectivity is increasing all around us. Whether using Wi-Fi in Starbucks, a 3G data card on the train, or tapping away on an iPhone while boarding a plane, our ability to access fast networks is growing. Successful carriers will provide real value by making network access transparent to the user, seamlessly integrating across licensed-unlicensed and narrowband-broadband networks.
2. Bring Your Own Device and Application: Two years ago at the Mobile World Congress, Vodafone’s Arun Sarin pronounced that his company would reduce the number of operating systems it supported from five to one or two. That has not happened. In fact, with the introduction of Google, Apple, and others, it has gone the other way. Complexity is increasing exponentially as new devices and applications find their way onto mobile networks. The opportunity for mobile operators is not in trying to reduce this complexity, but in managing it to enhance the customer experience. Creating a common infrastructure (or service delivery platform) based on common IP standards will be key to managing this complexity and making the mobile operator relevant.
3. Everything Has to be Secure: The rise of application stores has been great for users, but how do we ensure that these innovative apps are secure and won’t threaten networks or destroy data on devices? As more and more devices become dual-mode, Wi-Fi, and mobile, we need to ensure that we can provide a safe and secure environment on unsecure networks. Equally, we now have more than five browsers, numerous operating systems, and multiple runtime environments to support. Consumers and corporate IT groups are going to look to operators for assurance that everything from content and sessions to personal information is secure.
4. Network Protect Thyself: Unlike the wireline world, there is no shared bandwidth in the mobile environment. Networks need to self-optimize in real time to protect themselves against excessively heavy demands that threaten network integrity. Employing capabilities that dynamically investigate traffic type and make real-time decisions based on policies and priorities is an effective means of doing this.
5. Convergence: Today, services like the iPhone are implemented in stovepipes across wireless, wireline, and other networks. As we move to an n-screen world, operators need to be able to implement a service only once but deliver it across multiple platforms. Service routing will be essential to deliver the “any content anywhere” experience that customers demand.
By understanding these key imperatives, we can truly embrace and profit from the long-awaited rise of mobile data and deliver the seamless and quality experience that customers demand.
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