Mobile Cloud Computing Industry Outlook Report: 2011-2016

• Publication date: December 2011

Understanding the Mobile Cloud Conundrum Until recently, cloud computing has been thought of within the context of the evolution of the Web and PC. In 2011, we are seeing a paradigm shift in business models, with mobile becoming a key feature in cloud computing conundrum.  Mobile cloud has the potential to change the life of consumers and enterprises beyond what can be conceived today. We believe that the size of the mobil...

Understanding the Mobile Cloud Conundrum

Until recently, cloud computing has been thought of within the context of the evolution of the Web and PC. In 2011, we are seeing a paradigm shift in business models, with mobile becoming a key feature in cloud computing conundrum. 

Mobile cloud has the potential to change the life of consumers and enterprises beyond what can be conceived today. We believe that the size of the mobile cloud market is poised to reach over $45 billion by 2016.

Our research suggests that the mobile cloud ecosystem is rapidly evolving. With new, complex and secure products available on the market, cloud players and enterprises want to capitalise on the opportunities offered by this burgeoning market. 

Mobile cloud is being used by both the Consumers and the Enterprises

The cloud market has gone through major changes in 2011, in the consumer market, services and apps being offered include the Gmail and Facebook for mobile users. On the enterprise side, mobile cloud services are changing the entire structure of the IT industry. This is where the greatest action in terms of revenues generated and technological changes will take place during the forecast period of this report.
Mobile Cloud Market Dynamics

Mobile network operators are at the forefront of monetizing the cloud opportunities. We believe MNOs can replace CAPEX with OPEX and offer new revenue-generating services. They can also move real-time communications services (voice, video and messaging) to the cloud. This option opens up new business models with compelling ROI. Although these models remain untested, they offer the promises of positioning the operators as an important player in the mobile cloud value chain.

Our research suggests that by offering branded mobile cloud services, operators have a chance to improve ARPU and profit margins. Visiongain believes that MNOs need to identify the suitability, feasibility and acceptability of the cloud strategy in their particular markets.

Other market players can also effectively monetize the cloud and increase their revenues. 

What is Different about this Report?

If you are interested in gaining a strong understanding of the mobile cloud computing market, our research offers a detailed analysis of the mobile cloud ecosystem and how the market players are leveraging cloud to enable their strategies and business models. It also provides a detailed overview of the mobile cloud technology, along with the market drivers, impediments to mobile cloud adoption, geographical differences, market size data and operator strategies. 

The report establishes the current figures for commercial mobile cloud markets. With reference to market developments over the 2009-2010 period, social, political and economic factors are analysed to forecast figures for the period 2011-2016. The overall aim is to provide the reader with enough data and analysis on this subject so they can derive a clear picture of all aspects of mobile cloud computing specific to their unique business requirements.

Further, the report defines the mobile cloud market and cloud classifications. We believe this will help our clients to understand the technology, market segmentation and geographic breakdown, evaluate suppliers, and map potential usage to the available technologies. Our research will help you to understand the rapidly evolving mobile cloud market.

We conducted an independent and unbiased non-vendor affiliated assessment of the Mobile Cloud Computing topic. We interviewed key industry players in order to gain an in-depth view of the market. We believe such a research will help you in assessing the market potential of Mobile Cloud Computing.
Some of the key points that emerged from this research include:
• Mobile Cloud Computing is one of the fastest growing segments of the cloud computing paradigm.
• Apple and Google are the major players both influencing and enabling the developments in the mobile cloud.
• By 2014, users will access their professional and personal contents from one cloud based mobile device.
• Mobile operators have the most to gain through cloud services.
• The Mobile Cloud Computing adoption is bound to increase as the tablets and smartphone further penetrate the market.
• Expansion of cellular connected devices beyond smartphones and laptops (MIDs, netbooks and smartbooks is also a driving factor for the growth of mobile cloud services.
• By 2016, 60% of the enterprises in the developed markets will be accessing IT services from the cloud and paying for access on a per-use basis.
• The mobile cloud providers will be successful in North America, Western European market, Asia and Latin America from 2011-2016.
• Brazil, Poland, China, Japan, Russia and India will generate regional mobile cloud providers.
• Mobile cloud computing will promote successful partnership between content providers, developers, mobile marketers, enterprises and MNOs on a regional or global scale.
• Mobile Cloud Computing offers a set of new business model opportunities that are still in an early stage of development.
• Enterprise applications will account for the majority of mobile cloud app revenues.

Questions Answered by this Report

• What is the enterprise mobile cloud computing market's worth?
• What is the consumer mobile cloud computing market's worth?
• Technologically, what will it take for cloud to become a widely accepted business model? Approximately, what will this cost?
• What are the key drivers for mobile cloud computing?
• What are the main risks of migrating to a cloud-based solution?
• Who are the primary and supporting cloud ecosystem players? And what are their strategies?
• Which operators have voiced an interest to become cloud service providers?
• Which operators should not enter into cloud service providing arena and why?
• How will mobile cloud in enterprises evolve over the forecast period?
• What are the road blocks that may hamper the successful transition to cloud business model?
• When will mobile cloud phone appear on the market?
• What are the differences between a cloud phone and a smartphone?
• How are the vendors positioned to take advantage of the mobile cloud opportunities?
• How best can network operators develop double-sided revenue streams in the cloud space?
• What will be the key growth areas in the mobile consumer cloud sector?

Who needs to read this report?

• Fixed operators;
• Mobile Network Operators;
• Mobile device manufacturers;
• PC, notebook and netbook manufacturers;
• Applications developers;
• Gaming software houses and hardware manufacturers;
• Companies in the social networking value chain;
• Media companies and other content owners;
• Developers, cloud service providers and other software and service companies;
• Web companies; and
• Hardware manufacturers.

Increase your understanding of this exciting market by ordering Mobile Device Management Report 2011-2016 today

Visiongain is a trading partner with the US Federal Government
CCR Ref number: KD4R6 

Global IT Hosting Industry

Table of Contents

Executive Summary
E1. Mobile Cloud Unlocks New Value Propositions
E2. LTE offers Opportunities for Mobile Cloud Service Providers
E3. MNOs will play an Important Role in the Cloud Ecosystem
E4. Mobility is Getting Ingrained in All Aspects of Our Lives
E5. Dynamics of the Global Mobile Cloud Market
E6. Need for a Robust Ecosystem
E7. Evolving Mobile Cloud Apps Market
E8. HTML5: a Saviour to Mobile Cloud Paradigm
E9. Monetising the Cloud
E10. Major Findings of the Report

1. Introduction
1.1 Defining Cloud Computing
1.1.1 What Does Cloud Computing Essentially Signify?
1.1.2 Key Attributes of Cloud Computing
1.1.3 Analysing the Fundamentals of Cloud Computing
1.1.3.1 Types of Cloud Computing
1.1.3.1.1 Infrastructure-as-a-service (IaaS)
1.1.3.1.2 Platform-as-a-service (PaaS)
1.1.3.1.3 Software-as-a-service (SaaS)
1.1.3.1.4 Communications-as-a-service (CaaS)
1.1.3.1.5 Network as a Service (NaaS)
1.1.3.2 Modes of Cloud Computing
1.1.3.2.1 Public Cloud
1.1.3.2.2 A private cloud
1.1.3.2.3 Hybrid Cloud
1.1.3.2.4 Personal Cloud
1.1.3.2.5 Difference between Public, Hosted and Private IT
1.1.3.2.6 Comparing and Contrasting Hosting and Cloud Services
1.1.4 Market Segmentation
1.1.4.1 The Consumer Cloud
1.1.4.2 Enterprise Cloud
1.1.4.2.1 Driving Factors for Cloud Computing Adoption in Enterprises
1.1.4.3 Cloud Services and Visibility to End Users
1.1.5 How Cloud Computing has evolved?
1.2 Mobile Cloud Computing Conundrum
1.2.1 Defining Mobile Cloud Computing
1.2.2 Cloud Removes the Smartphone Barriers
1.2.3 Mobile Cloud is More Flexible than Fixed Cloud
1.2.4 Mobile cloud is being used by both the Consumers and the Enterprises
1.2.5 Industry Verticals where Mobile Cloud is Being Used
1.2.6 Factors that are Fuelling the Growth of Mobile Cloud Computing
1.2.7 Why is Mobile Cloud Computing Creating Significant Buzz in the Industry?
1.3 Aim of the Report
1.4 Structure of the Report
1.5 Report Scope
1.6.1 Questions Answered by this Report
1.7 Methodology
1.8 Target Audience

2. Exploring the Mobile Cloud Computing Proposition
2.1 Traditional Mobile Cloud Services
2.2 Unique Mobile Cloud Services
2.3 Life Cycle Stage of Mobile Cloud Computing
2.4 Mobile Challenges that can be addressed using Cloud Computing Principles
2.5 Factors Helping Mobile Cloud Computing to Gain Traction
2.6 Cloud Service Delivery Value Chain
2.7 Enabling Technologies
2.7.1 4G
2.7.1.1 Possibilities of Cloud Applications over LTE
2.7.2 HTML5 and CSS3
2.7.2.1 Defining HTML5
2.7.2.2 Important Fundamentals of HTML5
2.7.2.3 What is CSS3?
2.7.3 Hypervisor
2.7.4 Cloudlets
2.7.5 Virtualisation
2.8 Enabling Platforms
2.8.1 Smartphones
2.8.1.1 Considering Thin Clients
2.8.1.1.1 Advantages and Disadvantages of Thin Clients
2.8.2 Advanced Browsers are the key to Mobile Cloud Computing
2.8.2.1 Active and Third-party Mobile Web Browsers
2.8.3 Tablets
2.8.4 M2M Devices
2.8.4.1 Use Case Examples of Cloud and M2M Devices
2.8.5 Cloudphones
2.8.5.1 Low Cost Handsets will be Cloud-Friendly
2.9 Applications Available On Mobile Cloud
2.9.1 Mobile Gaming in the cloud
2.9.1.1 Pando Networks
2.9.1.2 Pocket Cloud
2.9.1.3 Mobile Cloud Gaming and Analytics
2.9.2 Social Networking
2.9.3 Storage
2.9.4 Mobile Cloud Music
2.9.4.1 Wyse Technology
2.9.5 Web Based Services
2.9.6 Home Security
2.9.7 Advantages of Mobile Cloud based Apps
2.10 Limitations of Mobile Cloud Computing
2.10.1 Trust and Security
2.10.1.1 Data Transit Vulnerabilities
2.10.1.2 Vulnerability to Massive Outages
2.10.2 Information Security
2.10.2.1 Cloud Commoditisation
2.10.3 Bandwidth Issues
2.10.4 Interoperability Issues
2.10.5 A Huge Value Chain
2.11 Summary
2.12 Standards and Regulations
2.12.1 Network Fragmentation
2.12.2 GSMA's OneAPI
2.12.3 The Wholesale Applications Community (WAC)

3. Mobile Cloud Ecosystem
3.1 Stakeholders in the Mobile Cloud 'Partner Ecosystem'
3.1.1 Consumers
3.1.2 Enterprises
3.1.3 Providers
3.1.3.1 Network Operators
3.1.4 Web and Application Developers
3.1.5 Device Manufacturers
3.1.5.1 Huawei's Cloud Phone
3.1.5.2 Alibaba Group
3.1.5.3 Yulong Technologies
3.1.5.4 Samsung
3.1.5.5 Motorola
3.1.6 Infrastructure Providers
3.1.6.1 Platform Vendors
3.1.7 Facilitators
3.1.8 Aggregators
3.1.8.1 Transaction Network Services (TNS)
3.1.8.2 NeuStar
3.1.9 Regulators
3.2 Market Dynamics
3.2.1 Small software Firms Leveraging on Mobile Cloud Computing
3.2.2 Rising Demands for Mobile Cloud Services
3.3. Key Market Players and their Strategies
3.3.1 Google
3.3.1.1 Google's Mobile Cloud Offerings
3.3.2 Apple
3.3.2.1 Apple's iCloud
3.3.3 Microsoft
3.3.4 Facebook
3.3.4.1 Facebook on Mobile
3.3.4.2 Facebook's Mobile Growth
3.3.5 Flickr
3.3.6 Amazon
3.3.7 Private Planet
3.3.8 Net Flix
3.3.9 Model Metrics
3.3.10 Diino
3.3.11 Nomadesk
3.3.12 Oodrive
3.3.13 Box.net
3.3.14 Rackspace
3.3.15 Salesforce
3.3.16 Netsuite
3.3.17 Sony
3.3.18 Activision-Blizzard
3.3.19 Soonr
3.3.20 GAIKAI
3.3.21 Sugar 6
3.3.22 Oracle

4. MNOS and the Mobile Cloud
4.1 Need to Adopt New Business Models
4.2 How Operators should Leverage the Cloud?
4.3 Analysis of Operators' Potential role in the Cloud
4.3.1 Becoming a Trusted Cloud Service Provider
4.3.2 Exploiting the Monopoly on the Valuable Network Assets
4.4 Types of cloud computing service (Telco Specific)
4.4.1 PaaS offerings by Telco
4.5 Telco's Cloud Strategies
4.5.1 Cloud Partnerships
4.5.2 Mobile Cloud Value Chain (Telco Specific)
4.5.3 Telco Strategies will differ from Market to Market
4.5.4 Leading Global MNOs and their Cloud Computing Strategies
4.5.4.1 Telstra
4.5.4.2 SFR
4.5.4.2.1 SFR's Approach
4.5.4.2.2 IT improvements
4.5.4.3 Verizon
4.6 What could be the Pitfalls of Embracing Cloud Computing by MNOs?
4.7 Vendors and Solutions for Cloud MNOs
4.7.1 IBM
4.7.2 HP
4.7.3 Alcatel Lucent
4.7.4 Funambol
4.7.5 Aepona
4.9.6 Huawei
4.9.6.1 Cloud Data Centre Solutions
4.9.6.2 Cloud Application Solutions
4.9.7 RealNetworks

5. Business Case for Mobile Cloud Computing
5.1 Mobile Market is Immense in Size
5.1.1 Broadband Subscriber Growth
5.1.2 Smartphone User Growth
5.1.3 Data Traffic Growth
5.1.4 Growth of Tablets
5.1.5 Availability of HTML5-based browsers
5.1.5.1 Market for HTML5
5.1.6 Growing Popularity of Mobile Applications
5.1.6.1 Delivery and Openness of the Cloud will promote Adoption
5.2 Cloud Facilitates the Enrichment of the Mobile Market by
Overcoming Several Constraints
5.2.1 Limited Processing Power of Mobile Devices
5.2.1.1 Cost of Smartphones
5.2.2 Limited Storage Capacity
5.2.2.1 Use of Multiple Devices
5.3. Customer Demands driving the Mobile Cloud Market
5.3.1 Demand for Mobility
5.3.2 Demand for Symbiotic Web
5.3.3 Growing Demand and Use in Enterprises
5.3.3.1 IBM Survey Points at Growing Popularity of Cloud Computing in Enterprises
5.3.3.2 Business Case for Enterprise Cloud Computing
5.3.3.2.1 Cost Benefit Analysis
5.3.3.2.2 Cloud Scenarios in Enterprises
5.4 Telecom Service Providers Market Share of Cloud Services
5.5 Investments in Cloud Infrastructure by Operators
5.6 Return on Investments

6. Global and Regional Mobile Cloud Markets: Forecasts and Statistics
6.1 What Constitutes the Mobile Cloud Market?
6.2 Traditional Cloud Market
6.2.1 Cloud Service Revenues from Key Geographies
6.2.2 Cloud Services: Enterprise vs. the Consumer Market
6.2.2.1 Cloud Services: Consumer Market
6.3 Mobile Cloud Market and Statistics
6.3.1 Mobile Cloud Service Revenues
6.3.2 Cloud Apps and the Mobile Marketplace
6.3.2.1 Mobile App Revenues
6.3.2.2 MCC App Revenues
6.3.3 Consumer vs. Enterprise MCC Market Revenues
6.3.3.1 MCC Consumer Market
6.3.3.2 MCC Enterprise Market
6.3.4 Mobile Cloud Users
6.3.5 Data Traffic Generated From Mobile Cloud
6.3.6 Mobile Cloud Computing Market Share by App Type
6.4 Cloud Market Share by for Players in the Value Chain
6.4.1 Vendor Share
6.4.1.1 Infrastructure Providers
6.4.1.2 Service Providers
6.4.1.3 Other Players
6.5 Cloud Phone Market Share
6.6 Regional Markets
6.6.1 Western Europe
6.6.1.1 Regulations Remain a Barrier to Cloud Popularity in Western Europe
6.6.1.2 Fragmentation Remains an Issue
6.6.1.3 Unified Standard Needed
6.6.1.4 Contractual agreements are Imperative
6.6.2 Australia
6.6.3 North American
6.6.4 India
6.6.4.1 Aircel
6.6.4.2 Interest in the Indian Market
6.6.6 Africa
6.7 Summary

7. Conclusion
7.1 Mobile Cloud is in its Infancy Stage
7.2 MCC will Remain restricted to SaaS model until 2014
7.3 Acquisitions and Cloud Market Dynamics
7.4 Scenarios Analysis: Mobile Cloud Computing in 2016
7.4 Ranking the Cloud Service Providers
7.4 Smartphone Applications in the Cloud
7.5 Cloud Ecosystem and its Deliverables
7.6 Critical Success Factors
7.7 Opportunities in Mobile Cloud Computing
7.8 Recommendations
7.8.1 Device Manufacturers
7.8.2 OS Providers
7.8.3 MNOs

8. Glossary

Appendix A
About Visiongain

Appendix B
Visiongain report evaluation form 

List of Tables

Table 1.1: Key Characteristics of Cloud Computing
Table 1.2: List of Market Players delivering SaaS/PaaS/IaaS
Table 1.3: Use cases of SaaS, PaaS, IaaS
Table 1.4: Comparison of Various Cloud Deployment Modes
Table 1.5: Difference between the Public, Hosted and Private IT Delivery
Table 2.1: Challenges Addressed by Mobile Cloud
Table 2.2: Driving Factors for Mobile Cloud Computing Growth
Table 2.3 – LTE Broadband Speed vs. Legacy Wireless Standards Speeds
Table 2.4: Advantages and Disadvantages of Thin Clients
Table 2.5: Examples of M2M Cloud Applications
Table 2.6: Applications and their Requirements from the Cloud
Table 2.7: Advantages of Mobile Cloud Based Applications
Table 2.8: Limitations of Mobile Cloud Computing
Table 2.9: Factors that Negatively Impact MCC
Table 4.1: Mobile Market Evolution, operator strategies, positioning and revenues
Table 4.2: Key MNOs Assets and its Usefulness in Cloud Strategy
Table 4.3: MNO Opportunities in Cloud
Table 4.4: Major Pitfalls in Embracing Cloud by MNOs
Table 5.1: Business Case for Enterprise Cloud Computing
Table 5.2: Enterprise Cost Benefit Analysis for Cloud Computing
Table 6.1: Mobile Cloud Market Definition
Table 6.2: Global Cloud Services Revenues (2008-2016)
Table 6.3: Share of total cloud services revenues by major geographical market (%), 2016
Table 6.4: Mobile Cloud Market by App Type ( %)
Table 6.5: 3G Penetration by Geography
Table 6.6: Mobile Cloud Computing Market Share by Geography (2016)
Table 6.7: Global Mobile Cloud Services Market Statistics (2011-2016)
Table 7.1: Mobile Cloud Services Market Scenarios
Table 7.2: Ranking of Cloud Services Providers
Table 7.3: CSF for Carriers in the Cloud

List of Charts
Chart 2.1: Social Networking User Growth (2011-2016)
Chart 2.2: Regional Mobile Penetration and Internet Access (2010)
Chart 5.1: Fixed and Mobile Broadband subscribers (2009-2016)
Chart 5.2: Total Smartphone Sales to End Users 2010-2016
Chart 5.3: Data Traffic Growth in Exabytes (2010-2016)
Chart 5.4: Data Traffic Growth by Device Type in Petabytes (2008-2016)
Chart 5.5: Service Revenue Growth (2011-2016)
Chart 5.6: Apple iPad Quarterly Sales (3Q10-4Q11)
Chart 5.7: Global Smartphone, PC & Tablet Shipments 2005 – 2016
Chart 5.8 Global App Downloads 2011 – 2016
Chart 5.9: Web Apps vs. Native App (2010-2016) in millions
Chart 5.10: Web Apps vs. Native App (Mobile internet tasks for which US smartphone users use a mobile app vs. Browser)
Chart 6.1: Global Cloud Services Revenues (2008-2016)
Chart 6.2: Share of total cloud services revenues by major geographical market (%), 2016
Chart 6.3: Total Cloud Services Revenues by Major Geographical Markets (2016)
Chart 6.4: Total Cloud Services Revenues % (Enterprise vs. Consumer Market Share) (2016)
Chart 6.5: Total Cloud Services Revenues (Enterprise vs. Consumer Market Share) (2016)
Chart 6.6: Mobile Cloud Service Revenues (2008-2016)
Chart 6.7: Revenue Generated by the Mobile App Market 2011-2016
Chart 6.8: Revenue Generated by the Cloud based Mobile App Market 2010-2016
Chart 6.9: Mobile Cloud Users 2008-2016
Chart 6.10: Mobile Cloud Market by App Type (%)
Chart 6.11: HSPA and LTE Subscribers (2009-2016)
Chart 6.12: Mobile Cloud Computing Market Share by Geography % (2016)
Chart 6.13: Mobile Cloud Computing Market Share by Geography $billion (2016)

List of Figures

Figure 1.1: Cloud Computing System
Figure 1.2: Key Elements of Cloud Computing
Figure 1.3: Cloud Visibility to End Users
Figure 1.4: Cloud Computing Evolution
Figure 1.5: Push Pull Factors Affecting MCC Deployment and Adoption
Figure 1.6: Report Framework
Figure 2.1: Lifecycle Stage of the Mobile Cloud Market
Figure 2.2: Mobile Cloud Value Chain
Figure 2.3 – LTE Broadband Speed vs. Legacy Wireless Standards Speeds
Figure 2.4: LTE Application Possibilities
Figure 2.5: Apple’s iCloud Value Proposition
Figure 2.6: Long Tail Applications and the GSMA’s One API
Figure 3.1: Wireless Value Chain
Figure 3.2: Mobile Cloud Value Chain
Figure 3.3: MNOs and their Role in MCC
Figure 3.4: MCC Benefits to App Developers
Figure 3.5: Pros and Cons of Web vs. Native Apps
Figure 3.6: Apple and Cloud
Figure 3.7: iCloud Apps
Figure 4.1: Strategic Options for MNOs
Figure 4.2: Telco’s and the Cloud Business Models
Figure 4.3: Types of Cloud Computing (Telco Specific)
Figure 4.4: Telco Cloud Offerings
 
Companies Listed

Accenture
Acer
Activision Blizzard
Adobe
Aepona
Aircel
Alcatel Lucent
Alibaba Group
Amazon
Amazon web services
Apple
AT&T
Bell
Bharti Airtel
Blizzard Entertainment
Box.net 
Broadsoft
BT
CA
Capgemini
China Mobile
Cisco
CNN
Comcast
Diino
Dropbox.com
EMC
Facebook
Flickr
Funambol
GAIKAI
Google
GSMA
HP
Huawei
IBM
iiNet
Juniper Networks
Ligthsquare
Ludicorp
mBlox
Microsoft
Model Metrics
Motorola
Mozy
Netmagic Solutions
Netsuite
Neustar
Nokia
Nomadesk
NYK Times
Oodrive
Opera
Oracle
Orange
Oxfam
Pando Networks
Pocket Cloud
Private Planet
Rackspace
Real Networks
Real Networks
Reditt
Rhapsody
RightNow
Rightscale
RIM
Rogers
Rovio 
Salesforce.com
Samsung
SFR
SK Telecom
Skyfire
Sony
Soonr
Spotify
Sugar 6
Tabbedout
Techaisle
Telcel
Telstra
Telus
TenCube
T-Mobile
TNN
TNS
United Nations
VCE.com
Verizon
Vimeo
Virtela Technologies
VmWare
Vodafone
Vodafone, Germany
Vordel
WAC
Worklight
Wyse Technology
Yahoo
Yulong Technology