Managed services and hosting Analysis and Forecasts Report 2008-2013

Managed services and hosting Analysis and Forecasts Report 2008-2013

As operators look for more innovative ways to gain competitive advantage and increase operating profits, the outsourcing of network operation, application hosting and service delivery is gaining increasing traction. Is this something that will benefit your organisation? What is the most effective approach to take? One report has the answers you need to succeed in this.

Operators worldwide are becoming attracted by the cost saving and other advantages promised by adopting a Managed Services strategy. What exactly are these benefits and how can Managed Services help you achieve your business goals? What are the hidden costs and risks associated with this approach? This brand new in-depth report will tell you.

Visiongain has found that over the coming years, more and more operators will re-evaluate their value chain to identify their core competencies and use Managed Services for profitable growth. Hosting and Managed Services will converge as vendors shape their service strategies in the coming years. Are you prepared to take advantage of this growth?

The report answers all your key questions, including:

• What is driving the Managed Services market?
  
  
• What CapEx and OpEx savings can be realised through Managed Services?
  
  
• What are the typical timeframes of Managed Services projects?
  
  
• How does the speed of service deployment and problem resolution with Managed Services compare to more traditional methods?
  
  
• What effect does outsourcing mobile content have on data ARPU?
  
  
• How will the growth of applications hosting differ by PoC, MIM, MMS, LBS, TV and other services?
  
  
• Which companies are working towards IMS hosting?
  
  
• What role will Managed Content Enablers (MCEs) play?
  
  
• Which vendors are best positioned to benefit from the expected growth of Managed Services?
  
  
• How do vendor solutions compare to one another?
  
  
• What is the total addressable market for Managed Services globally?

This 140+ page report provides a comprehensive step-by-step framework that mobile network operators need to consider when deciding on and adopting their Managed Services strategies. In addition, it provides a detailed analysis of the market, including regional and global forecasts for network operations outsourcing, applications hosting and services delivery. Buy this report today to ensure you do not lose out on the significant market opportunity.

Plus other key questions answered such as:

• What % of operators will be using managed services and hosting by 2013, and what will be the associated revenues?
  
  
• Where are the biggest market opportunities for you?
  
  
• What current models exist, are they successful and which ones will account for the biggest market?
  
  
• What form of managed services and hosting are most likely to succeed over the short, medium and long-term?

Ericsson has officially announced more than 100 managed services contracts with operators worldwide by March 2008. According to Ericsson, it is managing networks that serve a total of 185 million subscribers worldwide through its managed services deals.

Who needs to read this report? Directors, VP and Senior managers in:

• Mobile/ Cellular carriers and operators
  
  
• Digital and Mobile content agencies
  
  
• Mobile Search companies
  
  
• Handset manufacturers
  
  
• Mobile content providers
  
  
• Managed service or hosting providers looking to tap into the mobile industry

The report provides global forecasts for future revenue generation and subscriber uptake of services in this area of the industry.

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Executive Summary

E1: Operators are adopting Innovative Strategies to gain Competitive Advantage

E2: Operators are moving from Vertical to a Horizontal Structure

E3: Risk Sharing Model

E4: Business Proposition for Managed Services

E5: Cost benefit analysis for Managed Services

E6: The Current Position of Managed Services

E7: Future of Managed Services

1. Introduction

Figure 1.1: Traditional Operator Value Chain

1.1 Traditional Business Model

1.2 Changing Business Model

Figure 1.2: Changing Operator Value Chain Table

1.1: Factors Fuelling the Growth of Managed Services

1.2.1 Subscriber Saturation and falling ARPU

1.2.2 Increasing Network Complexity

1.2.2.1 Legacy Networks

1.2.3 Increasing Costs of Internalisation

1.2.4 Success of MNVO’s

1.2.5 Focus on Relationship Marketing

1.2.6 Need for rapid deployment of new Products and Tariffs

1.2.7 Broadening Wireless Value Chain

1.2.8 Demand for Advanced Services and Applications

1.2.9 Flattening Growth

Figure 1.3: Business Case for Managed Services

1.3 What is Managed Service?

1.3.1 Is Managed Service the same as Network Operations Outsourcing?

1.3.2 Defining Managed Services

1.3.2.1 Defining Managed Service Providers (MSP)

1.3.2.2 Activities that come under Managed Services Table

1.2: Managed Services Solutions

1.4 Aim of the Report

1.5 Questions Answered by this Report

1.6 Report Scope

2. Strategic Appraisal

2.1 Why Strategic Appraisal is essential before commencing a Managed Services Programme?

2.2 Evaluate the Environment

2.2.1 PEST Analysis

Table 2.1: PEST Factors that Support Managed Services Strategy

2.2.1.1 Regional Analysis

2.2.1.1.1 Western Europe

Chart 2.1: Typical Western European Savings from Network Related Managed Services

2.2.1.1.2 US

2.2.1.1.3 Asia Pacific, Latin America and Africa

2.2.2 Five Forces Analysis

Figure 2.1: Five Forces Analysis for Network Operators

2.2.3 Sector Analysis

2.2.3.1 New Entrant Sector (Tier 2 operators)

2.2.3.2 Incumbents or (Large Operators)

2.2.3.3 MVNOs

2.2.3.4 Content Providers

2.3 Internal Analysis (Resources and Competence)

2.3.1 Tangible Resources

2.3.2 Network Infrastructure

2.3.3 Legacy Systems

2.3.3.1 2G Networks

2.3.4 Skilled Workforce

2.3.5 Company Culture

2.3.6 Company's Outsourcing Experience

2.3.7 Analyse the Core Competence

2.3.8 Making a Strategic Choice

Table 2.2: Critical Questions that must be considered by Operators

Table 2.3: Benchmarking guidelines for Managed Services Proposition

Table 2.4: Forming a Managed Services Strategy

3. Identifying the Key Areas of Managed Services

3.1 High Level View of Managed Services

3.1.1 Outsourcing and its use in Telecoms Industry

3.1.2 Outsourcing Explained

3.1.3 Specialised Outsourcing: Managed Services Table

3.1: Detailed list of Managed Services being used by Operators

3.1.4 Managed Services in an IT Context

3.1.5 Push from Telecoms Vendors for Managed Services

3.2 Traditional Managed Services Areas

3.2.1 Network Operations as Managed Services

3.2.2 Network Optimisation

3.2.3 Capacity Management

3.2.4 Network Maintenance

3.3 Newer Forms of Managed Services

3.3.1Managed Services for Convergent Networks

3.3.2 Hosting Services

Table 3.2: Elements of Hosting Services

Table 3.3: Categories of Hosted Services offerings by vendors

3.3.3 Type of Managed Hosting for Operators

3.3.3.1 Platform Hosting

3.3.3.2 Platform Operation outsourcing

3.3.3.3 POC/PTT as a hosted solution

Chart 3.1: PTT Revenues (2008-2013)

3.3.3.4 Mobile IM as Hosted Solution

Chart 3.2: Global MIM Services Revenues (2008-2013)

3.3.3.5 Location Based Services as Hosted Solution

Chart 3.3: Worldwide Location Based Services Revenues (2008-2013)

3.3.3.6 Mobile Music as Hosted Solution

3.3.3.6.1 Why Mobile Music as Hosted Solution is becoming Popular

3.3.3.7 Hosted Mobile TV Solution

3.3.3.8 Hosted over the air (OTA) Technologies

3.3.3.9 Content and Media Management

Chart 3.4: Mobile Content Growth (2008-2013) 3.3.3.10 MMS as a Hosted Solution

Chart 3.5: Global MMS Revenues (2008-2013)

3.4 New forms of Managed Services Solution

3.4.1 Service Adoption Management

3.4.2 Managed Security Services

3.5 How to Track and Identify the Areas for Managed Services?

Figure 3.1: Evaluate the Core Areas across the Value Chain

Table 3.4: Primary Functions in the Operators Value Chain

Table 3.5: Secondary Functions in the Operators Value Chain

3.5.1 Decide the Scope of Managed Services

3.5.2 Deciding the Course for Managed Services Strategy

Table 3.6: Top Level Considerations for Managed Services for Operators

4. Identify Desired Outcomes and Benefits

4.1 Benefits for Operators and Content Providers

4.1.1 Gain Competitive Edge

4.1.2 Risk Share with Vendors

4.1.3 Reduce the need to partner with several content and application providers

4.1.4 Reduce CAPEX and OPEX

4.1.5 Maintain and Improve Network Quality

4.1.6 Manage Network Complexity

4.1.7 Manage Resources Effectively

4.1.8 Improve cash flow

4.1.9 Improve Business focus

4.1.10 Capitalise on short technology lifecycle

4.1.11 Summary

Table 4.1: Benefits that can be realised across different areas of the value chain with Managed Service Solution

4.2 Desired Outcomes and Consequences

4.2.1 Why is it better to take end-to-end approach to Managed Services?

4.2.2 Why hosted solution is a better option?

4.2.3 How can managed services providers make any improvements at all in terms of CAPEX?

4.2.4 How does Managed Services affect Operators Position in the Wireless Value Chain?

4.2.5 Why are vendors pushing for Managed Services?

4.2.6 Why Operators can outsource Network Operations?

4.2.7 Why Managed Application Solution is the best way going forward?

4.2.8 Why is operators' core competence changing?

4.2.9 How does Managed Services affect Vendors Position in the Wireless Value Chain?

4.2.10 What is the Difference between Managed Services and Hosting?

4.3 Risk associated with Managed Services

Table 4.2: Risks with Managed Services and Hosting

4.3.1 Disruptions to Network Operations

4.3.2 Fixed contracts can lead to a deadlock

4.3.3 Vendor monitoring costs

4.3.4 Use of single NOC

4.3.5 Failing to form relevant KPIs

4.3.6 Getting locked with Single Vendor

4.3.7 Vendor's creation of pipeline for its own products

4.3.8 Losing technology expertise

4.3.9 Hosting may result in Revenues Loss

Chart 4.1: Economics of Hosting

5. Vendors and Solutions Selection

5.1 Managed Services Vendors

Table 5.1: Key MSP’s

5.1.1 Ericsson

Table 5.2: Ericsson's Managed Services Clients

5.1.1.1 Ericsson's Managed Capacity Services

5.1.1.2 Ericsson's Hosting Services

Table 5.3: Ericsson's Hosting Services Customers

5.1.2 Motorola

5.1.2.1 Motorola's Hosting Services

5.1.2.2 Motorola's Performance in Managed Service Market

5.1.2.3 Recent contract wins - Shanghai Unicom

5.1.3 Nokia Siemens Networks (NSN)

5.1.3.1 NSN's Mobility Hosting Solutions

Table 5.4: NSN's Key Contracts for Managed Services

5.1.3.2 Recent contract wins - Deutsche Telekom

5.1.4 Alcatel-Lucent

Figure 5.1: Alcatel-Lucent's Managed Services Model

5.1.4.1 Alcatel-Lucent's Hosting Solution

5.1.4.2 Recent contract wins - Bouygues Telecom

5.1.5 Huawei

5.1.6 NEC

5.1.7 End2End

Table 5.5: End2End's Key Customers

5.1.7.1 End2End's Customers

5.1.7.2 MSN and End2End

5.1.8 Volantis

5.1.8.1 Volantis Operator solutions

5.1.8.2 Volantis Content Provider solutions

5.1.8.3 Service Provider Solutions

5.1.9 Codetoys

Table 5.6: Codetoys’ Managed Services Customers

5.1.9.1 Mobile Content Provisioning Service

5.1.9.2 Mobile Content Provisioning Service for Content Providers and Portals

5.1.9.3 Mobile Application Hosting and Operator Integration Service.

5.1.9.4 Mobile Games Service for Connected Games

5.1.10 Harris Stratex

5.1.11 XIUS-bcgi

5.1.12 Comverse

5.1.13 VeriSign

5.1.13.1 VeriSign Mobile Alerts Service

5.1.14 iLoop Mobile and OpenMarket

5.2 Mobile Virtual Service Enablers (MVNEs)

5.2.1 Benefits of the MVNE

5.2.1.1 Advanced MVNE Services

5.3 MSP for Content Providers

5.3.1 Air2Web

5.3.2 iTagg

5.3.3 Motricity

5.3.4 Logica

5.3.4.1 Ringback Tone ASP (Application Service Provisioning)

5.3.5 Mobilaris

5.4 Summary

Table 5.7: Key Managed Services Vendor Profiles and Analysis of their Portfolio

5.5 Case Studies

5.5.1 Hutchison's 3 (3)

5.5.1.1 3's strategy

5.5.1.2 3 Italy

5.5.1.3 3 Scandinavia

5.5.1.3.1 Hosted Messaging Solution

5.5.1.3.2 Hosted PoC

5.5.1.3.3 Hosted Email

5.5.1.3.4 Benefits Derived by 3

5.5.2 E-Plus, Germany

5.5.3 Mobily, Saudi Arabia

5.5.4 Vodafone, Netherlands

6. Implementing Managed Services

6.1 Define the Scope and Objectives for Managed Services Clearly

6.1.1 Scope

6.1.2 Objectives

6.2 Long-term Managed Services Strategy

6.3 Change Management

6.3.1 Big Bang Approach

6.3.2 Step by Step Approach

6.3.3 Other aspects of change management

6.4 Monitor and Control

6.4.1 Service Level Agreements (SLA)

6.4.2 Building flexibility

6.4.3 Benchmarking

7. Assessing the Profitability from Managed Services: Market Forecasts

7.1 Critical Success Factors

7.1.1 Select the right vendor

7.1.2 Form strong relationship with the vendor

7.1.3 Quality improvements

7.1.4 Building Flexibility, Scalability and Adaptability in the Managed Services Solution

7.1.5 Working out ROI with the vendor

7.2 Vendor Strategies

7.2.1 Focus on the right business model

7.2.2 Challenges and Barriers for Vendors

7.3 Pricing Models

Table 7.1: Costs involved in Managed Services Table 7.2: Pricing Models for Managed Services

7.3.1 Fixed Pricing

7.3.2 Risk and Revenue Share Model (Gain-Share)

7.4 Time Frames for Managed Services

Figure 7.1: Time Frames for Managed Services Programme

7.5 Business Case for Managed Services

7.5.1 Market Analysis

7.5.1.1 Higher Revenues do not always translate to higher Profits in Saturated Markets

7.5.1.2 Emerging Markets

7.5.2 ROI

7.5.3 OPEX Savings

7.5.3.1 Cost Savings Scenarios

Chart 7.1: Cost and Profit analysis for the Network Operators

7.5.4 Opportunities for Vendors

Chart 7.2: Wireless Infrastructure Vendor Sales (2008-2013)

7.5.5 Market Share

Chart 7.3: Key Vendor Market Share in Managed Services (2008)

Chart 7.4: Key Vendor Market Share in Managed Services (2013)

7.5.5.1 Ericsson's Position

7.5.5.2 NSN's Position

7.5.5.4 Alcatel-Lucent’s position

7.5.5.5 Motorola's Position

7.5.5.6 Other Players

7.5.6 Market Segmentation for Managed Services based on Region

Chart 7.5: Managed Services Market Segmentation by Region (2008)

Chart 7.6: Managed Services Market Segmentation by Region (2013)

7.5.7 Market Segmentation by Operator type

Chart 7.7: Managed Services Revenues by Customer Type (2008)

Chart 7.8: Managed Services Revenues by Customer Type (2013)

7.5.8 Market Potential by Region

Chart 7.9: Western European Market for Managed Services (2008-2013)

7.5.9 Global Market Potential

Chart 7.10: Market Potential for Managed Services (2008-2013)

7.5.10 Managed Network Services Potential

Chart 7.11: Market Potential for Managed Network Services (2008-2013)

7.6 Hosted Services Potential

Chart 7.12: Market Potential for Hosted Services (2008-2013)

7.6.1 Deployment Time Comparison between Traditional and Hosted solution Approach

Chart 7.13: Time required to deploying PoC Solution (In-house Vs Hosted approach)

7.6.2 Payback Period Comparison between Traditional and Hosted solution Approach

Chart 7.14: Payback period for MMS Solution (In-house Vs Hosted approach)

Chart 7.15: Cumulative Cash Flow Comparison (In-House Vs Hosted Approach)

7.6.3 Opportunities in Hosting Applications

7.6.3.1 Future for Mobile Hosting

Chart 7.16: Hosting Market Segmentation by Applications (2013)

Chart 7.17: Growth in IMS Hosting (2008-2013)

7.6.4 How Operators can enhance their position with Hosted Applications?

Chart 7.18: Worldwide Data ARPU (2008-2013)

8. Conclusions

8.1 Need to Change the Business Model

8.2 Future of Managed Services

Chart 8.1: Percentage Increase in Operators opting for Managed Services (2008-2013)

8.3 Key Findings from the Report

 
 

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More Details

Companies Listed

3 Italia

3 Denmark

3 Sweden

3 UK

Absolute Music

Accenture

Adif

Alcatel-Lucent

Alltel

Amena

Aspiro

AT&T

Auna

BASE

Belgacom

Bharti Tele-Ventures

Bouygues Telecom

Brasil Telecoms

BT

Capgimini

Carolina West Wireless

caymanone

Centennial Wireless

Centertel

Chariton Valley Wireless Services

China Mobile

Cisco

ClearMode

Codetoys

Cube80

Diveo

dtms

E-bay

EDS

Emitel

EMT

End2End

E-Plus

Ericsson

FashionTV

Fastlink

Fido

France Telecom

Gemplus

Genasys

Ghana Telecoms

Golden State Cellular

GrameenPhone

Harris Stratex

HP

Huawei

HungaroTel

iLoop Mobile

Hutchison Australia

Hutchison Essar

IBM

ICE

in&phone

Indigo Wireless

Invitel

IXI

Kamera

Lastminute.com

Logica

Lycos

M1

Manx Telecoms

Maxis

Micrososft

Midwest Wireless

Mixipix

Mobilaris

MobileCom

Mobilkom

Mobily

Mobinil

Mobistar

Monortel

Motorola

Motricity

MSN

Napster

Nawras

Nokia

Nokia Siemens Networks (NSN)

Nortel

NTS

O2

Oi

Olista

Omnitel

Oni

OpenMarket

Optimus

Orange

Orange Switzerland

Orange UK

Orange France

Orange

Pantel

PCS Wireless

Polkomtel

Proximus

PT prime

Realnetworks

Reuters

RFI

Rogers Wireless

Rural Cellular Corp

Saudi Telecoms

casaNet

SBB

Seamobile

SFR

Siemens

Sonaecom

SONOFON

Sony BMG

Sprint-Nextel

STS GmbH

Surfkitchen

Sun Cellular

SunCom Wireless

Sunrise

Surfkitchen

Swisscom

Tele2

Telecoms Argentina

Telecoms Colombia

Telecoms New Zealand

Telefonica Movil (Chile)

Telemar

Telemar/Oi

Telford, Netherlands

Telia Mobile

TeliaSonera

Telstra

TIM

TMN

T-Mobile

T-online

Trueposition

T-Systems

TV Cabo

Tyntec

Unisys

Unwired

Verisign

Verizon Wireless

Virgin Mobile

Vivo

Vodafone

Vodafone Fiji

Vodafone Netherlands

Vodafone Ireland

Vodafone UK

Warid Telecoms

Warner Music International

Wataniya Telecoms

Wateen Telecoms

Western Wireless

WestLink

XIUS-bcgi