Posts tagged ‘spotify’

TeliaSonera CCO says operators have two choices: dumb pipe or ‘next gen telco’ #telcocloud

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TeliaSonera’s chief commercial officer Hélène Barnekow told BCN sister publication Telecoms.com that operators can either remain the provider of dumb pipes or become a ‘next gen telco’ as the industry continues to change to a more software and services driven, converged market.    

Barnekow: Operators need to embrace a more
software-defined, cloud-centric world

While technology innovation is playing its role in the changing face of the industry, Barnekow says the real driver of the transformation is the customer. “The [industry] landscape is changing very quickly, and I actually try to frame that change from two angels,” she says. “One is from the customers’ point of view because it’s not that technology is driving customers, customers are driving us.”

“Their expectations are increasing so quickly that it’s actually mind-boggling, and of course this is because technology has enabled them to do things they couldn’t do before so they can put higher demands on us. But their expectations on us [operators] keeping them connected all the time, seamlessly, always-on, making it easier and easier to stream, to download things are constantly increasing.”

According to Barnekow, increasing demands for data and the industry becoming more saturated with IT, as well as the emergence of IoT and M2M are blurring the lines between sectors and changing the traditional telco. She says this leaves operators with one of two choices. “I think you almost have two choices as an operator: either you say that you can be very, very efficient with pipes and that somebody else can deal with all of that and you’re going to have the lowest cost and the best quality on my pipe, transmit as much data as possible.”

“Or you say you want to be a value-added provider to your customers and then you want to be very customer-focused and provide the customer with what they want. We’ve decided to be the second, and we call that the next-generation telco.”

With this in mind, TeliaSonera has put in place a two-tiered strategy, first announced at the operator’s Capital Markets Day in September. Under this strategy the telco says it focuses on enhancing the core business on one hand and on the other exploring opportunities close to the core, including IoT/M2M, music, mobile financial services, TV and security.

While OTT partnerships play an important role for TeliaSonera, with Barnekow especially emphasising its collaboration with Spotify, the operator has also launched an OTT TV service of its own in Finland and Denmark in December, with other markets set to follow.

“We’ve had a pay-TV offer in Sweden, Denmark, Finland, Estonia and Lithuania for quite some time. Originally it has of course been very much linked to our fibre business, and of course it’s an attractive offer with 1.5 million subscribers. This is a healthy business for us and an important one, but the way in which consumers consume TV services is changing and OTT TV is definitely accelerating.”

Barnekow says she’s confident in TeliaSonera’s ability to compete against such service providers as Netflix, claiming being able to deliver local-language content is one important factor, along with subscribers being able to have the service under the same account as mobile subscription. “We have noticed that local language content for kids is especially attractive to customers,” she says.

TeliaSonera operates in the Nordics and Baltics, as well as in the emerging Eurasian region (Kazakhstan, Azerbaijan, Georgia, Moldova, Tajikistan, Uzbekistan and Nepal), and although none of these markets have yet fully embraced convergent offerings, Barnekow says this is very close to happening in the mature markets in Europe.

“These [Spotify and the OTT TV offer] are the first steps we’ve taken [towards convergence] and we will build on that. What we do believe is that convergence becomes very, very important part of our strategy of our core offering. Especially for the more mature markets like Sweden and Finland, but also Estonia which is very much at the fore-front. We are working on it [convergent offering] as we speak, we haven’t launched it yet but we’re very close to.”

Source: Business Cloud News

_______________________________________________________________________________________imageedit_14_3273410547Join Speaker David Andreasson, Head of Product and Technology from TeliaSonera at the Telco Cloud Forum taking place in London on 27-29 April 2015.

Registration is free of charge for telecom operators and enterprises.

Free exhibition open to all!

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A Cloud on the Horizon and a Fork in the Road – Pt.2 #clouldwf @ServiceSourceEU

A Practical Guide to Transition your Business into the Cloud – Pt.2

Martin Moran, Executive VP Global Selling Services, ServiceSource

In part one of our series we looked at the challenge of cloud transformation, and asked the question of whether traditional technology companies are ready to become successful SaaS enterprises. Here we explore what a successful SaaS company looks like in our new cloud economy.

New business models and changing mindsets

The cloud throws a sizable monkey wrench into an entrenched business model – and culture – that’s comfortably thrived for over two decades. In a premise-world, customers buy hardware or software and receive ongoing support from the IT vendor through yearly payments – based upon typically 18-20 percent of the list price of their total spend.

In today’s pay-as-you-go, cloud, or subscription economy, companies focus less on selling discrete “things” and more on gaining longstanding customers and recurring revenue.   IT vendors aren’t the only industries and companies affected by this shift. Companies such as Netflix, Spotify and Zipcar are redefining how entertainment, music and rental cars are consumed.

Realigning and reorienting to a new business model creates significant ripple effect across a company. As seen in Figure 1, the business drivers for a subscription or cloud model are markedly different than traditional premise-based hardware and software.

Figure 1: Renewals vs. Subscription business challenges

Upon initial sale of a solution, premise-based software /hardware vendors move to the “next big opportunity” and rely upon their renewal revenue stream – which is typically the lifeblood of the earnings model. This model is characterised by consistency, high profit margins and aligned with key customer satisfaction metrics. Vendors will offer varying levels of service associated with upgrades, bug fixes and support in return for a yearly annuity payment from the customer. Typically, IT vendors make 40 percent of their revenues and 40 – 50 percent of their profits from hardware and software renewals.

In a cloud/subscription model, preventing churn – not new product sales or renewals – drives the business. Since companies can easily swap vendors in the cloud, SaaS providers are always at risk of imminent replacement. As such, subscription models must demonstrate value – early and often – and drive increased adoption. End-users that derive real utility and value from the cloud service become engaged customers and open to additional functionality provided by upgrade modules.

Even across SaaS companies, differences managing churn exist (see figure 2). For example, enterprise SaaS companies providing ERP and CRM capabilities, the primary challenge is managing eventual churn over an extended period of time, requiring deeper discovery into adoption and utilisation rates. For the utility SaaS vendors providing lightweight services such as collaboration, immediate churn is the primary focus.

As such, the utility SaaS vendors require immediate utilisation and segmentation analytics combined with more frequent customer touch points. To maximise recurring revenue with a focus on preventing churn, SaaS vendors are now faced with a host of unique challenges not typically seen within a premise-based world.

Specifically:

  1. Responding to a more demanding customer base: Premise-based customers have invested a lot in time and money in their hardware, and software deployments – swapping out vendors also takes significant time and expense. Contrast this scenario with the lower switching costs and reduced time associated with a SaaS deployment. As a result, SaaS providers must demonstrate continuous innovation and rapidly respond to customer needs.
  2. Focusing exclusively on adoption: For a SaaS company, closing the sale is only half of the battle. To protect the recurring revenue stream associated with any new sale, the SaaS vendor must now ensure frequent utilisation and value-recognition from the customer.
  3. Gaining more insight from the customer base, more often: SaaS applications allow vendors to capture more data on end user. This day-to-day data becomes a strategic component to manage the customer relationship and associated recurring revenue streams.
  4. Using data to be able to predict churn before it happens: Using customer data, SaaS vendors need predictive analytics and insight. With an accurate picture of the customer base – including “early warning” systems when customers are unhappy – SaaS vendors can better prevent churn and attrition while maximising recurring revenue.

In our final blog we will look at how to successfully transform, compete, and succeed in the Cloud – from fostering a new culture, proper data management and best practices.

10 things we learned at 2013 Big Data World Congress

Spotify speaker

No matter how “big” it may be, the idea of Big Data itself (as far as being a congress-worthy topic at least!) is still arguably in its infancy; with many still speculating on its ramifications and possibilities.

The Big Data World Congress this December however was an assuring sign of maturity with industry leaders, scientists and regulators coming together to provide a highly in-depth case for the business value in Big Data; led with practical examples, advice and evidence.

Here are the top 10 things we learned in the form of quotes from the event courtesy of Professor Mick Yates – who, apart from being a Big Data guru and all-round nice guy, has a great leadership blog here.

1. “Fortune 500 Companies only use 12% of the data that they currently have.” – Forrester Research

2. “Big Data allows us to create a single view of each truck over its lifetime.” – Volvo 

3. “Is there an alternative to Hadoop? No. Hadoop is replacing itself as we speak and it’s open source so it will keep fresh.” – Cloudera 

4. “We will always need human oversight of machine generated insight.” – Cloudera 

5. “How to hire a Data Scientist? Test him or her with 1) real business data, 2) a Kaggle competition or 3) artificially generate (challenging!) data.” – Laboratory for Web Science

6. “Unstructured data is just data that’s not structured yet …” – Amazon Web Services

7. “We need to explain Big Data and Internet of Things in an easy way to get people to accept them”. – Member of the European Parliament

8. “We are moving from “mobile first” to “mobile only” – Google makes no distinction between mobile and non-mobile”. – Google Enterprise

9. “When the sign-up button says ‘listen to music’, we get 3x more customers than when it says ‘download’”. Spotify

10. “The number of Hadoop nodes needs to grow in direct proportion to your business” Criteo

What do you think?

Google moving towards mobile only? Will the general population ever be comfortable with the “datafication” of their everyday lives?

We love your opinions so please share on Twitter (#BigDataWC) or Linkedin – here’re a collection of tweets from the day to get you going…

Let us know!

Big Data leaders – 4 traits they all seem to share

Big Data blog ImageWith the Big Data World Congress nearing kick-off, we thought we’d get in the mood for what the likes of Volvo, Google. Amazon, Paypal and others say on the subject with some traits that many of you are touting as of late…

Leaders are more…

1. …more internet-centric

On average, 42 percent of total revenue of the ROI leaders came from customer orders received via the Internet, compared to just 29 percent for the laggards.

This may not be a big surprise; many of the early Big Data technologies such as the Hadoop Big Data system came from Internet companies themselves such as Yahoo and Google. Internet companies face many digital interactions, so they need Big Data technologies and people to sort through their click-stream data. Yet ROI leaders in our study also included telecoms, retailers, banks and high-tech companies. You don’t have to be an Internet company to generate outsized returns on Big Data.

2. … are panned for gold in several places

ROI leaders see greater potential from Big Data to improve a number of marketing, sales, research and development, and service activities.

Companies such as Procter & Gamble and Netflix are using Big Data to identify new product opportunities. Leaders also believe Big Data holds much greater potential than do underperformers for improving four marketing activities: monitoring and improving customers’ experience in offline channels (such as stores); discerning competitors’ moves beyond pricing; monitoring external perceptions of the brand; and marketing based on customers’ physical location (which is why it’s become important for many companies to buy mobile data). This last activity helps explain the appeal of Big Data to a growing number of retailers.

3. … are more aggressive in exploiting unstructured and external data

Unstructured data, or digitized text, video, machine and other data that doesn’t easily fit into traditional databases, is hard for computers to analyze. That’s changing, however, as analytics tools come to market for performing such compute-intensive chores as discerning sentiments from text.

4. … are more likely to create a home for their big data professionals

Instead of embedding data scientists in business functions, ROI leaders centralized their analysts. Some 79 percent of the ROI leaders put their analysts in a dedicated Big Data group or in IT versus 68 percent of laggards.

Don’t forget…

For live coverage from tomorrow’s Big Data World Congress, follow us on Twitter @BigDataWS or join the official LinkedIn group to see what the likes of CERN, Spoitify, Amazon and others are saying on the above.

Tag Cloud

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