Applications of Internet of Things (IoT), Big Data and Cloud Services in 4G-based Mobile VAS

Applications of Internet of Things (IoT),
Big Data and Cloud Services
in 4G-based Mobile VAS
By ALI Saghaeian
Chief Analyst & Consultant
Telecoms, IT and Media
Ali.Saghaeian [at] gmail.com

Objectives
• The need to transform fundamental business
and operating model
• What are Market Opportunities for Cloud
Monetization
• What are the Impacts of Big Data on Business
over the next 5 to 10 Years
• Big Data Monetization and Transformation
• What is the Visions for Internet of Things (IoT)
• How to Exploit 5G for Advanced IoT

Agenda
• Use Cases for Cloud Services
• Types of Monetization for Cloud Services
• Business Model for Big Data
• Big Data Enables the Telco Digital Transformation
• 3 Waves of Big Data Strategy for Global Operators
• Internet of Things: Potential Applications
• Possible Strategies in M2M / IoT / Digital Services
• Sigfox: A global network just for things!
• Examples for IoT Applications
• 5G characteristics in IoT perspective

Megatrends are disrupting the ICT industry
2 As
As
Emerging and existing competitors
Changing consumption models
Advancing technologies
Escalating demands
Cloud internet of things
Mobility
Big data
By 2020:
30
billion
devices
40
trillion GB
data 10
million
mobile apps
8
billion
people
…for
Service providers must transform

$1T in New ‘Converged’ Services by 2020
$130B in SaaS
$40B in IaaS
$30B in PaaS
Increase revenue per enterprise by 35%
+ $200B new cloud services
+ $200B new video services
$150B in CDN, SLA, Analytics
$30B in Rental/purchase
$20B in subscription
Cloud video ARPU: $11/mo
Cloud DVR ARPU: $4/mo
+ $600B* new mobile services
$530B in M2M
$40B in sponsored data
$30B in targeted ads
New mobile services ARPU uplift: $2/mo

Fundamental business and operating model
transformation required
Credible, converged offer17
New product offering, revenue & cost structure New internal capabilities & partnering approaches
Telco/cloud convergence at the center of SMB strategy Recharge core telco revenues
Focus on x-sell fixed/mobile
Increase loyalty through lock-in Drive new revenues
Share revenues from IT-service portfolio
Participate in professional service delivery
Business Model Transformation High-performing sales force & support
Channel mix optimization
Implementation & support organization Efficient service provisioning
Flexible BSS
Cloud-like business processes
Operating Model Transformation

Types of Monetization for Cloud
Indirect Monetization
Advertizing
Offers
Referrals
Direct Monetization
e/m-commerce
Freemium/Causium
Pay as you Use
Free to use Pay for Services
Premium Content
Subscriptions
Reselling
Indirect Value-Add
Classic Business Protection
IT Projects
Company Image
Keep Customer Data
(Big Data Monetization)

Market Opportunity for Cloud Monetization
is Expected to Reach $141 Billion by 2017
0
50
100
150
200
250
300
350
400
2018
2017
2016
2015
2014
SaaS (33% CAGR)
IaaS (13% CAGR)
PaaS (21% CAGR)
Installed Workload in Millions
Spending on public cloud services compared to traditional IT
CAGR from 2014-2018 for content management/productivity applications
6X
38%
42%
Of IT decision makers are planning to increase spending on cloud computing in 2015
59% of total cloud workloads will be SaaSworkloads by 2018
Software as a Service
Infrastructure as a Service
Platform as a Service

Use Cases for Cloud Services – Traditional vs.
Digital
Managed VPN services &
Customer Premise Equipment (CPE)
Mobile Evolved Packet Core
Wi-Fi Infrastructure
Virtual Managed Services (vMS)
Cloud VPN service for SMBs
Virtual Packet Core
Public Mobile Broadband Cloud-managed Wi-Fi
Traditional
Digital

Data is Key in Operators’ Initiatives
Subscription data
Operator
Locat
Stat
Pre-paid
Post-paid
Business
Dynam
Consumer
End date
Time
Hour
Day
Time zone
􀀹
Device
Brand
Type
Capabilities
Group
Keywo
Sear
y g
User demographics
Age
tion
tic
Gender
City
Country
mic
Income Indicator
...
Behavioural
Ads seen
Ads clicked
Ads responded
Sites Contextual
visited
Content category
Mobile channel
ords
rch

Impact of Big Data on Business over the next
5 to 10 Years

The Telco Industry is Actively Working in
Partnerships using their Data & Location Assets
10% of operators claim to have a big data initiative in place to drive
external revenue streams*
Source: Telecoms.com Industry Survey 2014

Business Model for Big Data
Advertisement
E-commerce
Retail
Finance
Travel
Government

Big Data Monetization and Transformation
Data Monetization
Business Optimization
Business Insights
Business Monitoring
Measures the degree to which your organization has integrated big data and advanced analytics into
your business model

Big Data Enable the Telco Digital
Transformation
Diversified
Business
Digital Enabler: Data as A Service
Digital Infrastructure
3
2
1
Big Data
Video
Aggregate ecosystem
Agile innovation
Analytical excellence
Adaptivearchitecture
Digital
Scale
Simple
Smart
Speed
VGS
Digital life & vertical services
Service & Platform
Digital lifestyle
Smart Life
Digital identity
Smart Pipe
Smart
Connectivity
NEXT Commerce
Big Data Enable the Telco Digital Transformation

The proliferation of customer channels is driving
a significant amount of Big Data investment
 Understanding the customer’s interaction history
requires a high degree of cross-channel connectivity and
intelligence.
 New techniques and technologies are required to
gain insight from today’s complex customer data
landscape.
 Big Data is an aspect of the Business Intelligence
continuum focused on addressing the challenges and
opportunities related to massive datasets.
 Big Data is not all about technology; the human
factor is the most significant and transformative factor.
 Using Big Data to beget and support Big Ideas!

3 Waves big data Strategy for Global
Operators
1stWave：
Improving In-house Operations
•Precision Marketing
•Network Planning & Optimization
•Customer Experience Uplifting & Retention
•Improve Operational Efficiency
2ndWave：
New Revenue Stream:
Open available the Telco data to external parties
•Sales of Telco’s data to external parties
•Open the API
3rdWave：
Be an enabler for the Digital Business Transformation:
Business participation thru 3rd-party partnership
Business Value Improvement
E.g.：BgData @ IoT
Big Data @ Video
External
Monetization Curve
Internal
Monetization Curve

Internet of Things: Potential Applications

Global Machine-to-Machine Growth and
Migration to 3G and 4G

Three Possible Strategies in M2M / IoT /
Digital Services
Possible roles of CSP in M2M business, Source: Gartner
Smart connectivity provider
Ecosystem / Aggregator provider Digital Service Provider *
Sell only connectivity services to partners
Provide additional services for partners such as billing for applications
Sell comprehensive services directly to customers

What does it take to cross the IoT chasm?
Solution Analytics Integrated Solution Device Application
Platform Support
Connectivity Management
Authentication
& Security
Revenue Management Device Management Portal E2E Solution Integration M2M Application
Device Manufacturing Service Enablement & Delivery
Customer & Partner Care
Account Management Portal
Device Management Application Analytics Offer & Order Management Device Data Acquisition & Aggregation
Work Force Management HW & SW Infrastructures
Device Software
Device Supply Chain Mgmt
Operational Monitoring & Reporting Connectivity Service Provider

Visions of IoT often look like this

Sigfox: A global network just for things!

Examples: Industrial Applications

Examples: Agriculture Applications

Examples: E-health Applications

Generic Case Scenario: Wow Effect
Applications

And many more applications…

Exploiting 5G for Advanced IoT:
The 5G requirements scenario
1-10Gbps connections to end points in the field (i.e. not theoretical maximum)
1 millisecond end-to-end round trip delay (latency)
1000x bandwidth per unit area
10-100x number of connected devices
(Perception of) 99.999% availability and 100% coverage
90% reduction in network energy usage
Up to ten year battery life for low power, machine-type devices
The 5G requirements scenario

Some distinguishing characteristics of 5G in
IoT perspective

Any Questions?

Applications of Internet of Things (IoT), Big Data and Cloud Services in 4G-based Mobile VAS

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