1 fast-track consumer cloud telco advantage now Your business technologists. Powering progress
2 Right now, consumer cloud services offer telcos the chance to boost their appeal with customers, using their unique assets to achieve clear stand-out from new market players. 2 Consumer Cloud
3 The opportunity is now If you are helping shape the future of a telecommunications company today, then you know that nothing is certain. Voice revenues decline and basic text and data services become pure commodities. Customer loyalty wavers as new players undermine the established rules. It s a battlefield. But there is good news too and it s all about new consumer cloud opportunities. As a telco operator, you have a choice to make. Either you can accept commoditization across the voice and data landscapes or you can make your ability to add value to commodity services key to your future. If you choose the former, then only improved efficiency will offset tumbling margins. If you choose the latter, then you will create the conditions under which you can compete on more favorable terms while building new and extended relationships with your customers. The consumer cloud landscape offers telcos a clear and immediate opportunity to create new and compelling market propositions. Most significantly, the new consumer cloud gives you the opportunity to turn legacy data, processes and skills from a burden into a differentiating strength. To date, the new players on the market the over the top (OTT) entrants have been able to take advantage of the fact that they do not need to manage traditional client data and process. But as an established operator, you can now turn your end-to-end consumer relationships to direct and profitable advantage. Perhaps most importantly, the consumer cloud now gives you the chance to be cool and compelling. It gives you the chance to redefine how consumers regard your brand and their relationship with it and that has got to be the foundation for enduring success. Content, context and continuity The telco consumer is no stranger to cloud services. Basic back-up and restore services are now part of the standard landscape, and are a recognizable scenario in most commercial propositions: don t worry if the family dog eats the CD-ROM with all the wedding photos - everything s safe. The situation is changing rapidly however, as personal digital content increases dramatically in both volume and value while for all consumers, everything goes mobile. Digital content is no longer simply old media objects in new media formats. Because digital is instant, it becomes a wrapper for our daily lives it becomes part of the basic fabric of how people relate to each other, both as individuals and groups. And for the telco, this is the game changer. Why? Because you have the opportunity to create value by managing: The volume and media diversity of personal content The context and frequency with which it is used Monetization of continual digital experience life is not a sequence of disconnected clicks, after all. Consumer Cloud 3
4 Consumer cloud as transformation Even five years ago, it would have been unimaginable. But the reality is that we are moving inevitably into a post-pc world a world in which the consumer is abandoning computers, dedicated telephones and TVs in favor of ergonomically advanced tablets and smart-phones. And this is the space in which as a telco, you will carve out sustained success with consumer cloud. Consumers are using a wider range of devices and producing growing volumes of increasingly rich personal content. In many cases, the life of the content far exceeds the life of the device on which it was generated. In seeking simple means to protect and retain personal media files, consumers want a new kind of content custodian, and their established communications service providers are perfectly positioned the take this responsibility. This transformation is something to celebrate. It disrupts traditional voice and data revenues, but in their place creates a vast new market. Gartner estimate that by 2015, the consumer market for digital information and entertainment services will be worth around $3 trillion and the consumer cloud will be at the core of this shift. MISSED OPPORTUNITY OPPORTUNITY TELCO So why is the consumer cloud so central to this shift, and why is it such an opportunity for the established telco? giving value away operator commoditizes while OTT gains from advertising, B2B partnerships, consumer data creating and retaining value building on existing services and relationships to give consumers control over their content the consumer shift For the consumer, content and the action must live consistently across the different devices they use. People want access to their personal content anytime, anywhere and on any device. This joined-up experience demands synchronization across devices and an end to siloed or purely local content storage. the telco opportunity Established operators manage massive volumes of consumer accounts and this is the key. Consumers desire simplicity, and the operator can deliver it by acting as a broker and gateway to multiple cloud services, multiple cloud services, increasing revenue, profile and loyalty. The benefits of platform diversity The new diversity of platforms and devices benefits both the consumer and the telecommunications company. Consumers appreciate the choice, while the telco reduces dependency on a single platform and boosts negotiating power with individual platform vendors. 4 Consumer Cloud
5 Proposition and partnership The Atos consumer cloud proposition for telecommunications operators is end-to-end. Atos acts as a business accelerator in this critical area: you can adopt our fully managed, fully integrated consumer cloud capability with a ready for revenue approach. Because the opportunity is immediate, the sooner you can commercialize, the sooner you begin to boost profile and win new revenues. The Team Crafting your new consumer cloud proposition crosses many professional disciplines. To maximize success, Atos recommends the initiative is driven through a focused, multi-disciplinary team combining business, marketing, strategy and technical expertise. Typically, our business and technical consultants will work in close partnership with members of the CTO team responsible for technical strategy and enterprise architecture; with security and compliance specialists; and with product development and customer experience experts. Your accelerated journey to consumer cloud adoption falls into four distinct phases. Opportunity analysis Every engagement begins by making a qualified business case. No two operators are the same and local market conditions and regulations do vary. The opportunity analysis will reveal how you can take maximum advantage of the consumer and network data you own. It will take the status quo into full consideration: every operator has already made some inroads into consumer cloud. Our analysis of the relationship between the consumer s personal content and the operator s service management processes will underpin your success. Operational and commercial model Atos is increasingly asked to engage with operators using new models of partnership. This is especially relevant in consumer cloud. Both in terms of technical and commercial operation, the ability to manage and monetize vast volumes of real-time data is critical. This is a core capability for Atos, who are ready to take full responsibility for all aspects of consumer cloud CRM and billing and of multi-service data aggregation. Wherever personal data exists, compliance and security must be managed with rigor, and here too, Atos is able to provide a fully managed service, if desired. The Atos consumer cloud commercial model is designed around high-tech transactional processing, and will generally be based on the number of active users. Design and implementation Your new consumer cloud will be designed both to extract the greatest value from current assets and to anticipate future developments. Atos is expert in managing complex variables, and these will include both the number and type of applications you use as an operator and their associated data stores. Our system integration skills and knowledge of both OSS and BSS give stand out value during design and implementation. The Atos storage model is also likely to feature prominently. Grid-based and massively scalable, it offers a storage platform ready for dramatic growth as your customers increase their cloud usage. Atos storage is also compliant with all security levels, with the SLAs needed for these services. Continuous innovation Your immediate goal is to create new value for your customers and your company by combining personal content with usage and management data to deliver a secure, easily accessible personal cloud to your customers at clear and transparent cost. Your consumer cloud strategy will evolve rapidly and technologies and practices change. Just think, for example, of what social networking or gaming are going to look like five years from now. Atos will not deliver a static consumer cloud solution. Engaging with us means automatically buying in to continuous innovation. The Atos scientific community, for example, will feed you bulletins on breaking trends while our Business Technology Innovation Centers act as a forum for new ideas. Industrialized and personalized Although Atos offers its consumer cloud capability as an end-to-end proposition, this is not a solution in a box. Every telecommunications operator starts from a different heritage position, and wants to leverage that difference in establishing new consumer cloud services. For some operators, for example, it makes sense to retain all data hosting and simply acquire additional cloud-management, billing and CRM services. For others, and especially for MVNOs, it makes more sense to consider a fully-hosted service. With our consumer cloud proposition, we balance industrialized best practice with the ability to craft each solution to suit the character and market conditions of the individual operator. This approach gives you the maximum in agility, while driving accelerated adoption: the opportunity is now. Atos, for example, already manages over 30 million mail boxes for telco consumers. If you want mailbox management to be part of your consumer cloud proposition, then this industrialized capability gives you a fast track to adoption with a minimum of investment. Consumer Cloud 5
6 Atos in Action Atos consumer cloud services are already a working reality. We have delivered the endto-end consumer cloud capability to leading operators, and are actively engaged in providing both fully-hosted outsourced services and nested consumer clouds for clients wishing to retain independent data center operations. As always, Atos spans the entire cycle, adding particular value in helping its clients build the business case, implement and follow through with ongoing management covering all the complexities of interoperability with existing systems and processes. Create Manage Monetize This well-established and respected telecommunications brand needed to create a genuinely differentiated consumer cloud proposition. Speed was essential. They needed to compete against both peers and relatively new entrants, including Google and Apple. The Atos approach allowed our client to take center stage as the cloud broker. This created two clear advantages: Joined-up consumer experience a single point of reference for all services is mirrored by a corresponding simplicity in payment, contract and billing The operator retains a controlling service management position, and takes a correspondingly higher proportion of the earnings In addition to acting as a gateway to third party services, the solution bundles archive, storage, mail and collaboration all as directly monetized consumer services. Not only is the service a real hit with customers it opens up new opportunities for partnership and advertising revenues from across a growing ecosystem of cloud service providers. Cubits anybody? Systems of measurement change and in consumer cloud we are at a point of transition. Today, most telco offerings are still presented in terms of gigabytes, texts and talk times. Indeed, most existing consumer cloud propositions are promoted, sold and billed by volume. As consumer cloud usage evolves, we can expect changes here. (When you go to a movie or listen to a song, you measure it in minutes not megabytes.) We cannot predict how consumption will be marketed and measured five years from now. We can, however, promise that whatever change occurs, Atos will be ahead of the game. Atos is the leading exponent of complex, real-time transaction management, and will remain positioned to model and manage your CRM and billing futures whatever the emerging metrics. Device independence and data protection As an established communications service provider, you are well-positioned to create a strongly differentiated consumer cloud proposition against the OTT competitors. Some OTT players are rooted in their own brand devices, and even those that have come from a pure service background are now selling devices. You, on the other hand, are device independent. This applies not just to smart-phones, but to every other digital communications and media device people use. Your ability to help people synch and store independently of the individual device and the individual application is a winning characteristic for your customers, content will after all last longer than whatever devices they happen to be using right now. In addition, you can demonstrate a position of trust, often built over the years with local branding and service provision. The OTT provider may own data centers the size of small cities but where are they and to which regulation are they bound? For a European telco, for example, personal data will never be subject to the commercial or civil examination which is possible under the Patriot Act. 6 Consumer Cloud
7 The business case Together we will build the business case. Ideally, you will complete and validate this within weeks rather than months. Although you will want to craft the business case before starting any full scale consumer cloud initiative, there is no reason why you cannot begin to experiment with members of your team and client focus groups in parallel. The rules are simple. We will articulate: What you put in What you get out What the risks are In building the business case, Atos will pay particular attention to data protection and compliance. We will turn your regulatory experience as a telco to direct advantage with the consumer cloud proposition. Mature fraud management and audit practices, for example, help establish a differentiated position of consumer trust. The core elements of the business case will generally be presented from four perspectives: Baseline proposition We will establish scenarios built on your current market position and on local conditions and practices. The initial foundation proposition will be based on storage: Projected volume of active users An average storage capacity per user Scenarios for the telecom business model will the service be bundled with the subscription fee, or will it be sold as a premium service? Enhanced user experience We will then extend the scenario to reflect your desired target position. This will be based on how you want your customers to perceive you as a single point of contract for cloud services. It could include: Structured rich media storage, retrieval and dropbox for personal content - pictures, video, music, mail and text Access and synchronization across multiple devices smartphones, tablets and PCs/Macs Multimedia services: Content streaming Content format by device Address book management all media, SIM and phone Social network integration for personal content sharing Start-up and project We will plan and cost the project, showing the breakdown and milestones, quantifying risks, and making recommendations for collateral improvement to current and legacy process. We also set all business and technical metrics which will underpin ongoing service delivery. Partnership model Together we will explore partnership options. Most operators are keen to balance minimized capital expenditure with the protection of legacy investment. In presenting partnership models, we will explore options for shared risk and success, indicating realistic expectations and profit points for all parties. What happens now? In consumer cloud discussions with our telecommunications clients, two themes occur again and again: Urgency the window of opportunity for consumer cloud is open right now, and the longer you leave it, the harder it will be to regain lost ground. Excitement after years of concern over commoditization, the extended consumer cloud presents an area of new business transformation. (The focus today is clearly on B2C, but millions of your consumer clients are also working in banks, in hospitals, shops and government agencies and what they experience as citizens today, they will demand as employees tomorrow.) In all its business activities, Atos makes it a point of principle to encourage pilots and proof-ofconcept as a practical first step. The power of your consumer cloud proposition will be determined by the quality of thinking in these initial stages, and Atos is keen to sit down at one table with your technical, operational, security and business development experts. We have real world examples of consumer cloud to share with you, and especially welcome working visits to our Business Technology Innovation Centers where we can let imagination and invention run free. fast-track consumer cloud for telecommunications stand-out Consumer Cloud 7
8 About Atos Atos is an international information technology services company with annual 2011 pro forma revenue of EUR 8.5 billion and 74,000 employees in 48 countries. Serving a global client base, it delivers hi-tech transactional services, consulting and technology services, systems integration and managed services. With its deep technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail, Services; Public, Health & Transport; Financial Services; Telecoms, Media & Technology; Energy & Utilities. Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. It is the Worldwide Information Technology Partner for the Olympic and Paralympic Games and is quoted on the Paris Eurolist Market. Atos operates under the brands Atos, Atos Consulting & Technology Services, Atos Worldline and Atos Worldgrid. For more information: Please contact or visit atos.net atos.net Atos, the Atos logo, Atos Consulting & Technology Services, Atos Worldline, Atos Sphere, Atos Cloud, Atos Healthcare (in the UK) and Atos Worldgrid are registered trademarks of Atos SA. June Atos.