Mobile Consumers Reach for the Clouds

The collision of two powerful trends—mobility and cloud computing—is radically altering the way people live, work, learn, and play. To help SPs better understand the impact of the mobile cloud on consumers, Cisco Internet Business Solutions Group (IBSG) conducted a Mobile Cloud Watch survey of 1,016 U.S. mobile users.

From our findings, one thing is clear—mobile consumers are reaching for the clouds. Highlights from the research include:

· Consumers are already embracing the cloud with more than 50 percent of respondents currently accessing web-based email, updating their social networks, and shopping from their mobile devices.

· Mobile consumers anticipate using even more advanced features over the next one to two years including watching and recording video, video calling, accessing documents, and storing content.

· There is a high level of interest in several next-generation cloud-based services including a virtual desktop interface and a service that would allow users to access personal content stored on their home computers or laptops from their mobile devices.

Fortunately, mobile operators are well positioned benefit from the mobile cloud. On average, respondents rated their level of satisfaction with the overall mobile experience a 7.8 out of 10. By studying the findings and implementing the recommendations described in this paper, SPs can benefit from the mobile cloud by understanding the size of the opportunity, developing strategies for growth, and differentiating their offerings. Note: This is one in a series of papers that evaluate the survey results from four distinct perspectives: overview (this paper), business users, devices, and consumers.

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The Mobile Cloud: When Two Explosive Markets Collide

Mobility and cloud computing are colliding. So, what does this mean for the future of mobility? What types of mobile cloud services do users want most? How can service providers (SPs) enhance their competitive position by delivering cloud and managed services?

While research has been conducted on mobile and cloud computing as separate trends, to date very little data has existed on the impact of mobility and cloud together. To understand this dynamic market better, Cisco Internet Business Solutions Group (IBSG) surveyed 1,016 U.S. mobile users to understand their current and future needs with regard to the mobile cloud.

Findings from the research may surprise you. For example:

·        Cloud-delivered services (e.g., storing, sharing, conferencing) are expected to explode in the near future. In fact, 70 percent of all mobile users expect to consume these capabilities in the next one to two years.

·        Mobile users want more than just mobile access to wired cloud services. Ideally, they would like to exploit the cloud to experience new services that combine the unique capabilities of their mobile devices with the benefits of mobility.

·        Business users are already much bigger users of PC-based cloud services—for example, photo and video sharing, file storing, and web conferencing—than consumers. Business users’ familiarity with the value of PC-based cloud services will make them key adopters of similar and next-generation services over the cloud.

Mobile operators are well positioned to benefit from the mobile cloud. On average, respondents rated their level of satisfaction with the overall mobile experience a 7.8 out of 10. By studying the findings and implementing the recommendations described in this paper, SPs can benefit from the mobile cloud by understanding the size of the opportunity, developing strategies for growth, and differentiating their offerings.

Note: This is one in a series of papers that evaluate the survey results from four distinct perspectives: overview (this paper), business users, devices, and consumers.

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Digital Megatrends 2015: The Role of Technology in the New Normal Market

In the “new normal” economy, typified in part by slowed growth in developed markets, new global competitors and overall heightened risk, executives and government leaders must rethink their strategies to become more responsive to rapidly shifting market forces. At the same time, the downturn has hastened the adoption of key technologies—mobility, cloud computing, business intelligence and social media—that are transforming businesses and sparking a new wave of wealth creation, particularly in the emerging world.

This research summary, produced in cooperation with AT&T, Cisco, Citi and SAP, offers a first glimpse into the findings of a global study of more than 360 executives, and highlights the key economic and technology trends that are reshaping how companies do business and how markets will transform over the next five years. The study highlights four key digital megatrends:
• Mobile devices reach ubiquity
• Cloud computing comes of age
• The rise of on-demand business intelligence
• Social media and collaboration become the norm

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Smart Mobile Cities: Opportunities for Mobile Operators to Deliver Intelligent Cities

The twin challenges of rapid urbanization and climate change are contributing to the scarcity of resources in cities in both developed and developing markets. Cities around the world are suffering resources constraints in energy supply, road capacity, water reserves and even clean air for their citizens to breathe. New solutions are urgently required to cope with these resource challenges to ensure that the city of the future is a safe, healthy and desirable place for its citizens to live, work and play.

Smart cities employ innovative digital services layers, that use sensing & control, analytics and ubiquitous communications, to optimize scarce resources. Empowered to make better decisions about how to travel or transport goods more efficiently and to understand the real time cost of using electrical appliances, the city’s citizens and businesses will make better use of these resources. As a result, cities will allocate resources more efficiently; in parallel saving costs and transitioning to a low carbon economy.

Mobile operators have a fundamental role to play in this emerging multibillion dollar value chain. Operators collectively own the network infrastructure best placed to deliver digital urban services to future citizens. Operators are also well positioned to provide the technology platform from which these future services can be delivered, and in some markets, to deliver end-to-end services direct to consumers. Beyond the technology challenge, there is also a significant need to orchestrate the disparate ecosystems, which is something that operators are well placed to achieve. However, they need to act soon to seize this opportunity, as competition is intense in all layers of smart city services provision.

A recent report that I co-authored with Accenture and the GSM Association identifies mobile payments and ticketing, intelligent energy management and analytics and commercial insight as the initial opportunities that operators should look to pursue in cities around the world. These services combine the largest benefit with the greatest ease of implementation, and are therefore most applicable opportunities for near-term, large-scale pilots. Download the complete report

Observations from 2011 Mobile World Congress

I attended the 2011 Mobile World Congress in Barcelona. The following are my observations from the show based on my conversations with operators, customer meetings, colleagues and walking the floor.

1. Optimism – Based on people’s feedback, the number of attendees and the general buzz, I would say that a general sense of optimism about the economic situation and the industry has returned from the previous years.
2. Devices – The days of seeing different and innovative handsets is over. They all look like iPhones now. In fact, you have to look closely to make sure that it not. There may be differences in the processer, the operating system, etc. but everything has converged to the same form factor. And everyone seems to have them. Including Huawei and other companies that you have never heard of. I did get to play with LG’s 3D device which can take pictures in 3D and run apps like games, all without the use of special glasses.
3. Femtos Are Out and WiFi Offload is In – Once the evil, most carriers now see WiFi as a blessing to help with offloading their network traffic. And every vendor, from the big guys to the obscure company with the small booth in the corner is there to help. I say very few Femto cell vendors and most people seem to think that they are now relegated to niche solutions.
4. There’s An App For That – Apps are everywhere. Google had a huge booth with various Android app providers. (The lime green everywhere was a little overpowering. And they had a slide that you could go down and have your picture taken. Neither one of which are good things after late nights in Barcelona). The majority of the floorspace of the vendor/device manufacturers (e.g., RIM, Samsung) was taken up by applications for their devices.
5. China - It is just amazing the presence that the big Chinese vendors have (e.g., Huawei, ZTE) not just in terms of floorspace but also advertising and things like a fleet of cars to chauffer their major customers around. Plus I heard that they threw a number of extravagant parties. It reminds me of the earlier days when the Koreans were just starting to build up an international presence. Samsung went from the back corner of these shows to being the number 1 exhibitor in a matter of a few years. That is where the Chinese are now. I am also astounded at Huawei. Every time I visit them at one of these shows I see something new that I never knew that they did before. This time they were demonstrating telepresence and Connected Home, not to mention a string of tablets, handsets, STBs, and dongles. What will they add next to the portfolio?
6. LTE – No surprise but LTE was the talk of the show and all of the vendors were parading their solutions and capabilities in LTE. Verizon Wireless (an operator which never showed up at these things) had a big displaying showcasing LTE.
7. Everyone’s Got a Tablet – Seems as if you’re a nobody unless you have a tablet. Again companies who I never would have imagined had their own tablets in their booths. And like the handsets they all look relatively indistinguishable with the same form factors. With the exception of Blackberry the majority of them are running Android.
8. Spectrum – Getting more spectrum from new sources was on everyone’s mind. Always an issue for mobile operators, but with the advent of 4G and exponential increases in demand this is becoming a particularly acute problem. And they are looking for ways to make more effective use of the spectrum that they have. Plus making their networks more efficient through such things as tower sharing and software defined antennae
9. Collaboration Between MNOs and OTTs - Something that we have been talking about for some time, I feel is finally becoming a reality in the minds of the network operators. I get the sense that they have resolved that they are first and foremost in the network business and that becoming another Apple or Facebook is not in their corporate DNA, and that it is better to cooperate than fight. My prediction is that 2011 will be the watershed year where MNOs retract back to their core business and selectively look for opportunities to collaborate with OTTs.
10. Mobile Payments May Finally Be Here - We have been talking about leaving your wallet home and letting your phone do the paying for years. But it may finally be there. The GSMA launched a Near Field Communications (NFC) initiative, the SIM manufactures were demonstrating SIM-based NFC solutions, lots of mobile payment type apps, and of course Apple and Google indicating that they are building NFC and payments into their OS. 2011 may be the year where wallets finally start to collect dust on the dresser?

Mobile Cloud Will Redefine Mobility As We Know It

Mobility and cloud services are two of the fastest growing areas in communications and technology today. Combining cloud services with mobility will not only accelerate the uptake of mobility, but it will expand the overall value of mobility. By placing the majority of the storage, processing and intelligence in the cloud, the functionality of mobile devices can be greatly increased at a much lower cost. Cloud services will not only “make smart phones smarter”, but offers to “bring smart phones to the masses.” The recent launches of business-friendly tablet devices clearly demonstrates how the cloud can readily deliver the power of Telepresence, collaboration and communications directly into the hands of the mobile user.

Unique research of mobile users by Cisco IBSG reveals that mobile users are embracing the mobile cloud and the enhanced functionality that it can deliver. Respondents indicated that they wanted the same functionality across multiple devices and the ability to readily mix business and personal use, whether they were in the office, on the road, or working from home. They viewed cloud services not only as a means of achieving this vision but as a way to reduce the cost and size of their devices without having to invest in new, expensive devices.. Our survey revealed that a significant portion of mobile users are already using cloud services such as applications (SaaS), email, storage and entertainment services. And, they predict that they will not just use more, but that they will adopt more advanced, cloud services to increase their business and personal effectiveness and to allow them to better manage their twin personas.

Our research predicts an exciting future for mobile cloud. Not only can it help to meet the high demands of business users, but it is very friendly to enterprise IT organizations. Mobile cloud is an effective means for IT departments to meet their challenging demands for simplicity, security and device management, combined with lower costs. Consumers indicate that they like the business model of being able to pay just for what they use. Cisco believes that there is also a huge emerging category of mobile services that exploit some of the unique features of mobile devices (e.g., cameras and location) to create a whole host of new consumer and business solutions.

Cisco IBSG’s research indicates that customers view mobile operators in a unique position to differentiate their mobile cloud offerings by leveraging their network to provide better security, guarantees and enhanced offers. We believe that not only is mobile cloud the next big mobile opportunity, but that it will completely redefine mobility as we know it.

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The Next Wave for Service Providers - A Vision Towards 2015

The service provider (SP) industry no longer exists as we once knew it. With the advent of the Internet and the proliferation of digital content, the industry now consists of much more than traditional telcos and network providers. It incorporates all aspects of the new, digital value chain, including content creation and management, devices, advertising, and traditional network transport and service provision.

Despite increasing consumer demand and network growth, the SP industry’s future is far from clear. How much longer will this phase continue? How will it ultimately unfold? And, what will ultimately replace it? These are the questions on CEOs’ minds as they determine the strategies and actions they should take to ensure future success.

Cisco developed a number of plausible scenarios that provide a framework for SP executives to evaluate the future and rationally assess strategic options under different conditions. Cisco developed these scenarios based on an extensive global survey of more than 4,600 Cisco employees, in addition to supplemental research and interviews with industry experts.
Cisco firmly believes that some variant of the SP industry’s future is described by these scenarios. They provide tools and insights to help SPs become better informed and more prepared for the future, and to respond more quickly to conditions as they deviate from the industry norm. The scenarios’ true value comes from encouraging SPs to map out a strategy that helps them shape the future, rather than having it shape them.

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