Mobile Cloud & Mobile Ticketing

Transcription

1 Mobile Cloud & Mobile Ticketing T Network Services Business Models Lecture Antero Juntunen Researcher

2 Contents Mobile Cloud Introduction Drivers Restraints Conclusions Mobile Ticketing Introduction Service Technology Organization Finance Conclusions 2

3 Mobile Cloud 3

4 Mobile Cloud Introduction(1) What is mobile cloud? Virtualized computing infrastructure where both the data storage and the data processing happen outside of the mobile device and are accessed using web technologies Besides accessing normal web applications in the cloud, the mobile client can send computationally intensive tasks to the cloud. For example automatic image processing tasks such as image improvement, face / pattern recognition OCR, Google Voice search In this context, mobile devices are constrained to mobile phones with cellular connections. 4

5 Mobile Cloud Introduction (2) Bright future predicted for cloud computing in general: Erik Schmidt (Google CEO): [Cloud Computing] is the centerpiece of our 2010 strategy. Steve Ballmer (Microsoft CEO): We re all in. Predictions for mobile cloud in 2014: Juniper Research: market size to increase from $400 million in 2009 to $9.5 billion in 2014 ABI Research: $20 billion annual revenues in 2014, subscribers to increase from 2.8 million in 2008 to nearly 1 billion in

6 Mobile Cloud Drivers (1) Utilizing feature phones Feature phones: non-smartphones (proprietary operating systems, limited support for third-party software, less powerful processors) Most of the world uses feature phones and their role is especially important in developing markets Mobile application use growing, but feature phones are a large untapped market Transferring data processing to the cloud and using mobile browsers may allow feature phones to run a wider selection of applications Cloud can t solve all the problems, however (screen size, input, usability, connections, browsers) 6

7 Mobile Cloud Drivers (2) Solution to fragmentation The problem: mobile world is much more fragmented than the desktop world (number of OSs, handset manufacturers, handset models) Mobile cloud computing one way to address this issue: applications used with mobile browsers, and hosted on the cloud Development and standardization of mobile browsers and web technologies a key concern 7

8 Mobile Cloud Drivers (3) Developer community It s much more difficult to find developers for creating applications to a specific mobile platform (e.g., Symbian) than it is to find developers for applications using generic web technologies Developers familiar with a specific platform are also more expensive Using web technologies also allows companies to reuse their existing developer base in developing mobile apps However, the developers still need to be aware of the restrictions the mobile devices impose on application development 8

9 Mobile Cloud Drivers (4) Other drivers Scalability of resources, lower up-front investments Helps especially start-ups and SMEs End-user demand Consumer demand for mobile applications has finally taken off Companies may utilize mobile cloud to bring desktop applications for their mobile users Usage of context information End users and devices providing more and more context information, but processing this data may require more computational capacity than the handsets possess: mobile cloud may help Open APIs of the networks and devices help create context-aware applications 9

10 Mobile Cloud Restraints (1) Mobile Networks High-speed connections important for mobile cloud applications, congestion or high latency may prevent an application from functioning properly Lately, the usage of mobile data has significanty increased, causing congestion and resulting in lowerthan-advertised network speeds Limited geographical coverage Solutions: Caching, HTML 5 (Only helps if the service was used before) LTE (may only help for a while, could also become congested) 10

11 Mobile Cloud Restraints (2) Pricing Usage-based pricing problematic: users can t estimate how much bandwidth they use, especially with mobile cloud applications Flat-rate pricing thus a prerequisite However, flat-rate pricing may lead to wasteful use and congestion International roaming fees currently restrict data use abroad Prevents applications from functioning in all countries Prevents applications aimed at tourists and other travelers 11

12 Mobile Cloud Restraints (3) Trust and data security Users data not stored on the handset but in the cloud Users need to be able to trust that the service provider: Has taken the necessary steps to protect the data from security threats Has sufficiently backed up the data in case of failures Does not misuse the data itself Widely publicized incidents can have a significant negative impact on users perception of cloud security and privacy T-Mobile Sidekick has had both security issues (Paris Hilton s account hacked in 2005) and availability issues (wide service outage in 2009) Nevertheless, security and privacy issues can be solved in the cloud computing world 12

13 Mobile Cloud Restraints (4) Other restraints Usability of generic applications Overcoming fragmentation by designing generic applications that can be used on all platforms may pose usability problems Standardization Interoperability of clouds from different vendors Standardization of mobile browsers Cheap handset storage capacity Storage capacity in handsets increasing faster than network connections: backing up a handset completely in the cloud may be impractical 13

14 Mobile Cloud Conclusions Mobile cloud computing is predicted to have a significant impact on the way mobile applications are developed, distributed, and used in the future Cloud computing can help solve some of the problems of the mobile space: Limited processing power: move processing into the cloud Fragmentation: use web technologies Limited developer base: use web technologies Mobile cloud adoption may depend on how well certain limiting factors can be overcome: Congestion, connectivity, pricing, etc. 14

15 Mobile Ticketing 15

16 Mobile Ticketing Introduction (1) NFC Mobile Ticketing on a basic level: Bringing the travel card into the mobile phone Travel card readers cannot distinguish the mobile phone from a travel card Mobile phone works as a travel card even when the battery is depleted Purchasing tickets anywhere, anytime 16

17 Mobile Ticketing Introduction (2) General NFC Information NFC = Near Field Communication Based on RFID, aimed at mobile phones Short ranges only (< 10 cm) Three modes: card emulation, read/write, peer-to-peer Numerous potential applications for NFC: access control, mobile payment, setting up Bluetooth connections, reading advertisements on NFC tags, etc. Mobile Ticketing is one potential break-through service in the NFC ecosystem 17

18 Mobile Ticketing Service Domain (1) Service Concept 18

19 Mobile Ticketing Service Domain (2) Service Concept An application that allows the user to receive reminders about meetings and shows the route to the destination Uses open APIs (location, journey planner, calendar) The application runs on the cloud and stores the relevant data there Integrates NFC mobile ticketing and mobile payment The user could opt to receive advertisements relevant to his location and/or coupons used to receive discounts at retail locations near the planned route Other context information may be utilized (indoor location, whether the user is driving his own car) Different solutions for different kinds of phones; e.g., SMS-based route for low-end phones instead of a graphical presentation 19

20 Mobile Ticketing Service Domain (3) NFC mobile ticketing brings concrete benefits to end users: No need to carry an extra smart card with you You re less likely to forget your mobile phone Purchasing tickets anywhere, anytime Being able to check your tickets / value Possible value-added services Using a mobile phone for ticketing should be at least as easy to use as travel cards 20

21 Mobile Ticketing Service Domain (4) Users should be able to choose from multiple payment options Smart posters or NFC tags may be used to help customers buy tickets Customer service should be arranged in a clear way for the user SMS-based ticketing has been used for spur-of-themoment purchases - what about NFC? Adopting the service and buying the first ticket should be easy and quick as possible 21

22 Mobile Ticketing Technology Domain NFC compatible with ISO 14443: existing reader infrastructure can be used A lack of NFC handsets currently on the market, which is a symptom of other issues such as unclear business models UICC ( SIM card ) currently the choice for secure element Negative perceptions of the security and privacy with NFC handsets and RFID in general could be an issue Tradeoffs between different UI solutions (UI stored on the handset or the UICC) 22

23 Mobile Ticketing Organization domain (1) 23

24 Mobile Ticketing Organization domain (2) Public Transport Operators (PTOs) should benefit from mobile ticketing: Reduced handling of cash Remote ticket sales Increased customer self-service and convenience Mobile Network Operators (MNOs) have multiple roles in the value network Secure Element Issuer OTA Provider Subsidizing Handsets Transferring data Possibly: Billing and Customer Service 24

25 Mobile Ticketing Organization domain (3) Banks needed for more elaborate payment solutions as issuers of electronic money Friction between banks and MNOs one factor slowing NFC deployment: Control of customers and applications Revenue flows Security requirements and certification of UICCs Handset manufacturers balance between banks and MNOs and try to have options for different business models TSM role still unclear, might not be needed at first 25

26 Mobile Ticketing Finance Domain MNOs make the biggest investments: Ordering NFC handsets New UICCs needed MNOs have agreed to not charge transaction fees MNOs may charge rent for applications residing on the UICC Too high fees could make NFC services uneconomical Banks as co-issuers of secure elements? PTOs don t need to invest in new reader hardware 26

27 Mobile Ticketing Conclusions (1) Drivers Intuitive touch-based interaction of NFC mobile phones Mobile Ticketing provides real value for customers Compatibility with the legacy ticketing infrastructure Reduced costs in ticketing for PTOs 27

28 Mobile Ticketing Conclusions (2) Barriers Usability may always be an issue with mobile software, especially with multiple NFC applications Negative perceptions of the security and privacy of NFC and RFID technologies Uncertainties with the value network and revenue sharing Limited availability of handsets: the most immediate barrier 28