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Monetizing B2B2X Partner Relationships: It%s Complex and It%s Not for Everyone 

  • April 2016
  • -
  • Frost & Sullivan
  • -
  • 12 pages

Summary

Table of Contents

Monetizing B2B2X Partner Relationships: It's Complex and It's Not for Everyone

Introduction

Communications service provider (CSP) revenue from fixed-line voice and data has been in global decline for some time. Mobile voice and data is trending the same way. New revenue streams, not just cost controls, must offset these losses and the expenses from an increasing volume of data that traverses all CSP networks. New customer service offerings are driving the need for faster network technology, greater load carrying capacity, vastly improved energy consumption targets, and a reduction in the latency of any network delivery pathway.

These requirements are pushing the development of 5G, which will be a mobile operator deployment focus for the next several years. Mobile technology is bringing customer needs to the forefront of CSP business opportunity. These opportunities now go well beyond the simple resale of partner-provided apps or software-as-aservice (SaaS) resale offerings. Additionally, today’s customer drivers—everything in real time, ondemand, always connected, self-service, and social—are pushing all industries to take a major stake in the promise of making life better for consumers and business customers. Better, through personalized services involving contributions from application developers, cloud-based solution suppliers, network operators, Internet of Things (IoT) providers, content developers, and even advertisers.

Multi-partner ecosystems enabling new services that not only provide high customer value, but that yield new revenue streams with positive year-over-year growth are now happening. Partner ecosystems are here to stay. Many of the most successful brick and mortar corporations, in addition to Internet-based companies, rely on partner ecosystems for business success. Think about the multiplicity of components that come together within the digital electronics industry to provide customers with smartphones, TVs, gaming consoles, appliances, and even household tools. In each case, partners work together to make these complex devices a customer reality.

Think again about the automobile industry and the number of partners that work together to create a marketable product—auto ownership or as a service—now with mobile connectivity. Think also about digital services from successful Internet companies such as Airbnb, Alibaba, Apple, Amazon, Facebook, Google, Netflix, Uber, and the list goes on. What is common with each of these organizations, regardless of industry? Partner ecosystems, accurate accountability of partner-contributed assets, and appropriate revenue sharing between partners with each customer service payment.

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