Innovation Case Study: Business Marketplace by Deutsche Telekom. Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.

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1 Innovation Case Study: Business Marketplace by Deutsche Telekom 1 Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.

2 Innovation Deutsche Telekom (DT) extended its Telekom Business Marketplace with an "Easy-to-partner" program for developers at CeBIT 2012, forming a new multichannel cloud sales community in Germany. With this program, DT has added next generation cloud solution providers to its partner eco-system to jointly target a growing business opportunity with SMEs. The target customers are SMEs that need professional business applications 'as a Service'. Business marketplace includes applications for office & administration, communication & collaboration, CRM, online storage & backup, project management, billing and accounting, ERP, marketing & sales and antivirus & security. DT business marketplace has a subscription based revenue model. SMEs has to pay a fixed per user monthly fee for each of the application they register for. For example, Office 365 is billed from 3.75/month/user. However, the price vary depending on the contract period (i.e., 24- month/12-month/1-month contract) and additional features. Service Provider Success Matrix Over 10,000 users registered for DT s cloud business marketplace in its first year of operation during which users had access to 44 cloud applications provided by 22 partners. The Business Marketplace has won several awards for its user friendliness, data protection and security. It was awarded the "Certified Cloud Security" by the tekit Consult Bonn GmbH, as well as the "Trusted Shops" quality seal. 2

3 Differentiation 30 days trial period (free of charge with no obligation to buy). A single central point of contact for all queries, help, advice and billing. A single bill for all ordered applications on a monthly basis. Certified Cloud Security" certification provided by the tekit Consult Bonn GmbH. Compatibility with the OpenStack platform that makes it easier for potential partners to integrate their solutions into the platform. Guaranteed end-to-end data privacy and data security in the cloud in accordance with Deutsche Telekom's strict standards (compliance with German and EU regulations). German-speaking customer care service for the local market. Value Generation From customer perspective, SMEs can choose applications based on their business requirements from a wide range of applications on the fully functional application store. In addition, SMEs can rely on the Deutsche Telekom s trusted infrastructure, reliable network bandwidth and consolidated billing. Through the Easy-to-partner program DT has brought on board an array of cloud applications developers and software vendors to enrich DT s cloud services portfolio. This both creates a new revenue stream from DT s existing SME customer segment and helps them to attract new SMEs. 3

4 Innovation: Uniqueness and Significance The program is unique in the sense that it focused on simplicity, community and benefits to jointly increase revenue and market share. It is a collaboration between Deutsche Telekom and its partners (application developers and independent software vendors) that operates on a number of industry differentiating fundamentals such as a multichannel approach, revenue share and longevity of contract based on customer satisfaction. Reasonable mass market significance for cloud business marketplace ecosystem as DT can offer a wide range of cloud applications to its existing customer base. This will also attract new SME customers looking for a reliable single source for all their cloud applications requirements. Uniqueness Significance 4

5 Technical Overview Deutsche Telekom's Business Marketplace is a cloud-based online application store that offers innovative and secure business applications for SMEs. Within the new Business Marketplace, SMEs can find, buy and use applications in a unified environment, with single sign-on, centralized user management and consolidated billing. Business marketplace allows the flexibility to manage and control application usage based on client requirements. SMEs can increase or reduce number of users as well as issue or revoke access rights to individual applications. The marketplace ecosystem supports the emerging free and open source cloud platform OpenStack which makes it easier for potential partners to integrate their solutions into the Business Marketplace, increasing the number of services available. Deutsche Telekom s Easy-to-Partner program enables application developers and independent software vendors to jointly (with Deutsche Telekom) market their new and innovative cloud applications faster to Deutsche Telekom s existing customers via the Business Marketplace. The advantage for these software partners includes Deutsche Telekom s ability to provide customers additional services such as a secure infrastructure, assured service levels and simplified payment services. The Easy-to-partner program ensures that Business marketplace has a wide range of applications (developed by partners) on offer for SME s. Deutsche Telekom supports its partners at all levels, from technical implementation and integration of the solutions in the Business Marketplace through marketing and support of the cloud ready applications. 5

6 Service Provider Deutsche Telekom is one of the world s leading integrated Telecommunications companies with over 142 million mobile customers, 31 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2013). The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has approximately 229,000 employees worldwide. The Group generated revenues of EUR 60.1 billion in the 2013 financial year more than half of it outside Germany. Partners 6

7 Further Information https://portal.telekomcloud.com/en/information/ https://portal.telekomcloud.com/en/information/for-partners/ 7

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