role of operators in the mobile app delivery ecosystem

Role of Operators in the Mobile App Delivery Ecosystem

© Copyright 2013 Antenna Software, Inc. All rights reserved.

Presented by:

• Jim Somers, Chief Marketing & Strategy Officer,

ANTENNA

• Bill Lambertson, CTO, Telecommunications Industry,

IBM

July 30, 2013

Confidential. Do not distribute.

WELCOME & INTRODUCTIONS

Your Presenters Agenda

2 © Copyright 2013 Antenna Software, Inc. All rights reserved.


Jim Somers

CMO

Antenna Software

Wanna hear this webinar LIVE? Go to >> http://info.antennasoftware.com/MMWS-Library.html

Bill Lambertson

CTO, Telecommunications Industry

IBM

• What’s happening in the enterprise mobility marketplace?

• How have mobile app platforms evolved to meet market needs?

• What role do operators currently play in the mobile app delivery ecosystem?

• What’s the untapped opportunity for them as the market evolves?

• How are some operators best monetizing on this opportunity?

THE CHALLENGE



THE OPERATOR’S DILEMMA



Source: Strategy Analytics, Handset Data Traffic (2001-2017), July 3, 2013

Strategy Analytics predicts strong growth in data traffic to

mobile phones for the coming 5 years … present[ing] network

challenges for carriers to ensure end user satisfaction with data-

hungry smartphones.

Handset Data Traffic to grow over 300% by 2017 to 21

exabytes

THE OPERATOR’S DILEMMA



Handset Data Traffic to grow over 300% by 2017 to 21

exabytes

“The reports of my death have been greatly exaggerated.”



- Mark Twain

FUNDAMENTAL RETHINK REQUIRED

“Either learn to live

with the utility

business that

pushes margins

downwards by 30-

50% …”- Mobile Internet 3.0, Chetan Sharma,

2012

Operators have a fundamental choice to make ...



FUNDAMENTAL RETHINK REQUIRED

Operators have a fundamental choice to make ...

“Or selectively compete

and/or collaborate with

the OTT players where

they can offer compelling

solutions and packages to

their customer base and

beyond.”- Mobile Internet 3.0, Chetan Sharma, 2012



Life SciencesCPG / Retail ManufacturingFinancial Services

Telco

INDUSTRY BREADTH



Antenna has worked with literally dozens of operators around the world on a sell-to, sell-with and sell-thru basis.

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THE OPPORTUNITY



NEW WAVE OF TECH DISRUPTION

11 © Copyright 2013 Antenna Software, Inc. All rights reserved.Confidential. Do not distribute.

ENTERPRISE APP DISTRIBUTION

Device Capability

Con

ten

t D

istr

ibu

tion

SMS BREW Java Symbian Blackberry iOS Android Windows Phone

Carrier (Consumer) Storefronts(Public, Multi-OS support)

OS Storefronts(Public, Single-OS support)

EnterpriseStorefronts

(Private, Multi-OS support)

Messaging Feature Phone OS Smartphone OS

The first content stores were SMS services that users could subscribe to receive data alerts

As wireless data expanded beyond

messaging, feature phone operating

systems emerged and carriers created content stores to

support them

Apple changed the distribution model with its iPhone, creating an

ecosystem for consumer apps. OS

vendors followed with their stores.

Today’s smartphone is a mini-computer,

enabling businesses to create enterprise apps

for their workforce, distributed through enterprise stores

The capabilities exist in today’s devices – now users want

apps!


ENTERPRISE APP DISTRIBUTION

Device Capability

Con

ten

t D

istr

ibu

tion

SMS BREW Java Symbian Blackberry iOS Android Windows Phone

Carrier (Consumer) Storefronts(Public, Multi-OS support)

OS Storefronts(Public, Single-OS support)

EnterpriseStorefronts

(Private, Multi-OS support)

Today’s smartphone is a mini-computer,

enabling businesses to create enterprise apps

for their workforce, distributed through enterprise stores

The capabilities exist in today’s devices – now users want

apps!


B2B “PUSH” B2C “PULL”

ENTERPRISE APP STORE

More than 1 in 3 surveyed said they are currently working on an Enterprise App Store.

Mobile App Management (MAM)

Mobile Device Management (MDM)

Partner-facing App

Enterprise App Store

Mobile Website/Portal

Employee-facing App

Customer-facing App

0% 10% 20% 30% 40% 50% 60% 70% 80%

21%

31%

37%

37%

50%

60%

67%

Dramatic increase over the 14% that claimed they were working on or planning to start work on their own apps stores in 2012

2012 14%

Source: Antenna Mobile Business Forecast, 2013



WHEN DO THEY USE OPERATORS?

What mobile services are you using your carrier/operator for?

Other

Mobile device management

Mobile security

Mobile strategy

Mobile app enablement or delivery

Mobile app store

Telecom expense management 24%

21%

21%

18%

18%

18%

9%

Source: Current Analysis, Inc.



WHAT’S THE BIG IDEA?



Service Provider Service Innovator

NOT GETTING THEIR FAIR SHARE


Dataconnectivity

Mobile App

LicencesConsultancy

Integration &

Development

SupportServices

Mobile Application Value Chain

Operator Rev Share

Partner Rev Share

Many operators struggle to extend their value proposition beyond the devices, data connectivity and basic messaging.

• Only focused on 20% of available opportunity

• Subject to continued price pressure and ARPU ceiling

Dataconnectivity

Mobile App

LicencesConsultancy

SupportServices


Operator Rev Share

Partner Rev Share

A BROADER VALUE PROPOSITION


With an enabling platform, operators can extend their value proposition and provide a more complete lifecycle of solutions.

Integration &

Development

SupportServices

• Has potential to capture revenue along the entire mobile app lifecycle

• Less exposure to commodity pricing factors

WHO DO THEY TRUST?

“The largest percentage (38%) selected the mobile operator as their prime supplier.”

Many enterprise developers look to Operators for mobile software and deployment expertise …

Source: Yankee Group


OPERATOR AS A MOBILE PARTNER

… and Operators are in a great position to respond because …

• Enterprise Contract – The enterprise may already be under contract to sell airtime and devices with the operator; applications become an upsell

• Mobile Expertise – Operators are experts in wireless technologies because of their role and influence in the mobile ecosystem

• Data Centers – Operators have data centers in close proximity to the enterprise user and wireless network, ensuring high availability and performance

Mobile enterprise application development and distribution becomes the core of many services that can be enabled by an operator – these become Cloud Services.

Enterprise Apps

Storage

Comm

Computing


OPERATOR COMMERCIAL MOTIVATION

ProductDescription

BrandEquity

Incremental Value

Creation

Price Sensitivity

Complexity

Carrier providing direct branded

mobile applications & application services

HighCarrier ‘owns the

glass’ irrespective of device brand

HighBundling opportunity including device, app

& network service

LowBundling obscures

components. Must be directly matched by

competition

MediumBundled product

offerings similar to existing voice

products

Direct bearer services utilizing

device browsers and data cards

LowDifferentiation only

by speed & quality of service

LowValue is directly & solely based on

network utilization

HighSubject to

commoditization/ market pressures

LowInnate capability of

every carrier, to provide network

service

Affiliation program involving certification

and access to catalog

LowPuts ISV Partner brand forward of

Carrier

MediumValue is based on ISV effectiveness and data services

(see left)

HighSubject to individual

ISV effectiveness and market position

HighEffectiveness dependent on

managing program elements

Carrier providing solutions based on middleware solution

MediumPuts SI partner on par or above the

carrier

HighBundling opportunity

including device, solution & network

services

MediumCustom solution costs put pricing

pressure on other components

HighSolution sale and

implementation not core competence

Data Provider Application Service Delivery

Partner Catalog Enterprise Reseller

21© Copyright 2013 Antenna Software, Inc. All rights reserved.Confidential. Do not distribute.

OPERATORS POISED FOR SUCCESS

Operators are in an ideal position to monetize the mobile app lifecycle.

End-to-End Solution: Operators can deliver the full breadth of services for customers to build, deploy and manage mobile apps through the entire lifecycle

Growth Market: Mobile development and management is a multi-billion dollar industry – and enterprise customers look to operators as their trusted

Turnkey Operations: Pairing leading mobile platform technology with enterprise systems in a hosted offering that can be deployed into an operator’s network, under the operator’s brand, as a turnkey appliance offers great value


OPERATOR “SPECIAL SAUCE”


Pricing / Billing

Volume discounts

Bundling

Single bill

Financial Stability

No “startup” risk

Appropriate resources

Ongoing support

Application Performance

Full data path

Data center optimization

Streamlined for apps

Customer Care

Established, predictable

Known quantity

Standard SLAs

BUT ENTERPRISES ARE WARY, TOO

Source: Current Analysis, Inc.

• Configuration complexities

• Massive infrastructure shifts

• Lack of flexibility

• Large capital expenditures

Mobile operators must overcome enterprise objection hurdles …


PureSystems provides MSPs/CSPs with a simplified lifecycle for hosting SaaS applications – lower cost, faster

time to value

Streamlined: Pre-integrated, pre-

tested, ready to run Single part to order -

make hardware procurement predictable

Optimized configurations with high availability

Integrates with your existing networking and storage

Accelerated: Complete

infrastructure stack up-and-running in hours vs. months.

Easily deploy new applications and data services

Built for cloud - rapidly replicate environments, bare metal deployment capability

Simplified: Single pane of

glass with fully integrated management – servers, storage, networking, physical, virtual

Dynamically scale to meet changing demand – built in workload elasticity

Automatic failover and high availability

Integrated: Integrated

update/patch management

Simplified problem determination

Single support number, automatic call-home capability

Systems are open, flexible, and easily extensible to grow with you

Reduced Time, Cost and Risk

Patterns of expertise

Expert integrated:Flexible infrastructure

‒ Compute (x86 & POWER)‒ Storage‒ Networking‒ Advanced Flex

System technology

Unified infrastructure management

Built-in expertise - Infrastructure patterns

Enabling Clients to:Consolidate - Optimize, Innovate - Accelerate Cloud deployments

Infrastructure

Delivering Infrastructure Services

54% more virtual machines per compute node

2x or more increase in application performance through smart data placement and tiered storage

66% faster setup time

Up to 70% fewer cores for software licensing costs

72% lower systems costs over 3 years

HybridComputing

IBM PureFlex System: Integrated Infrastructure is built for cloudFlexibility to run your choice of applications and middleware

POWERING THE OPERATOR VISION


With AMPchroma and IBM under the covers, operators have the technical depth and expertise to become service innovators.

Dataconnectivity

Mobile App

LicencesConsultancy

SupportServices


Integration &

Development

SupportServices

END-TO-END MOBILE PLATFORM



AMPchroma is a mobility platform-as-a-service (mPaaS) for building & managing ‘run-the-business’ mobile apps.

MANAGE

BUILD

THE BEST OF BOTH WORLDS

AMPchroma – Branded and Installed in an Operator’s Data Center

• Speed to market – just plug and configure appliance

• Scalability– add new appliances “horizontally” to expand for growth

• Cost Effective – reduced operational expenses to certify and manage separate components

• Additional Services – other cloud-related services can be added from IBM PureSystems

Operator’s Data Center

Alternatively, AMPchroma can be installed on existing hardware with a J2EE runtime environment

AMPchroma may be installed as an appliance, running on IBM PureSystems, including hardware, software and network management for turnkey operations.

Benefits:


LIVE PROGRAM



Wanna hear this webinar LIVE?

Go to >> http://info.antennasoftware.com/MMWS-Library.html

FOLLOW ME AT …



@JimatAntenna

www.linkedin.com/in/jimatantenna

role of operators in the mobile app delivery ecosystem

Technology