Big Data and Enterprise Mobility by Richard Hurst, OVUM

www.ovum.com
© Copyright Ovum. All rights reserved. Ovum is part of Informa Group.
Big Data and Enterprise Mobility
Richard Hurst
Senior Analyst, Enterprise
27th August 2014

2
Agenda
Ovum introduction
Macro economic outlook
Global mobile overview
Africa and South Africa mobile overview
BYOD among South African SMEs
Big data case study - from the telco perspective
Summary

3
We integrated two complementary ITM businesses
Telecoms & Media Research
60+ analysts
Telecoms & IT Research
120+ analysts

4
The result – a market leading business
1.No. 1 telecoms research provider by scale and content depth and breadth.
2.The leader in regional media research
3.A tier 1 provider of IT research and advisory
4.Truly global with 180 analysts in 23 offices
5.Unique in covering IT, telecoms & media in depth

5
Agenda
Summary

6
Macroeconomic outlook
-6
-4
-2
0
2
4
6
8
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
GDP % growth
Advanced economies
Major advanced economies (G7)
European Union
ASEAN-5
Latin America and the Caribbean
Middle East and North Africa
Sub-Saharan Africa

7
Economic and capex trends
Capex has remained steady with average growth of 1% across the globe.
Operators confidence in the economic opportunity in emerging markets has been reinforced together with the promise of mobile broadband and the need for new infrastructure have had a greater impact.
Source: Ovum
8%
8%
-8%
8%
-4%
8%
12%
-1%
-19%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
North
America
SCA (ex-
Brazil)
Brazil
Europe (ex-
Russia)
Russia
Mid-East &
Africa
China
India
Asia Pacific
(ex-CI)
1Q13
1Q14
1Q14 YoY growth

8
Agenda
Summary

9
Global mobile uptake continues
The global mobile market will rise to 8.4 billion by 2018 at a CAGR of 4% over the 2014 to 208 period.
Asia pacific dominates the mobile market aided by China.
Africa will have the highest growth rate of 7% over the period.
-
500 000 000
1 000 000 000
1 500 000 000
2 000 000 000
2 500 000 000
3 000 000 000
3 500 000 000
4 000 000 000
4 500 000 000
5 000 000 000
2012
2013
2014
2015
2016
2017
2018
Africa
LatAm
Asia Pac
Europe
Middle East
USA /Canada

10
Fixed line decline
-
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
450 000
500 000
2012
2013
2014
2015
2016
2017
2018
North America
LatAm
Europe
Asia Pacific
Middle East
Africa
The global fixed line market will decline by -4% over the 2014 to 208 period.
The decline will be driven by network operators and users are the move to mobile and wireless platforms gain traction.

11
The African network mix in 2020: an Ovum view
Source: Emerging Telecoms Markets in 2020: an Updated Perspective
5-10% of population mostly urban income of >$60 a day,
20-25% of population mainly urban
on $10-60 a day
40-45% of population majority rural on $2-10 a day
15-20% of population rural/remote <$2 a day
2G network coverage 2013 2020
3G network coverage 2013 2020
4G network coverage 2020
Fixed BB network coverage 2013 2020

© Copyright Ovum. All rights reserved. Ovum is part of Informa Group. 12
3G and 4G mean more capacity at lower costs, but..
FORECAST PRODUCT VOLUMES
FY07 FY08 FY09 FY10 FY11 FY12
Fin Year
Annual MB (UL+DL)
Unit Cost Down Total Volumes Up
Source: Broadband pricing strategies

13
Data traffic challenges arise
Source: Ovum

© Copyright Ovum. All rights reserved. Ovum is part of Informa Group. 14
Managing the mobile data traffic explosion
Eco-system Relative Gains
Converged Access
Converged O&M
Small Cells /
Femto
Transport
Capacity /
Performance
Coverage
Incremental
Medium
2010
Dynamic carrier
Switch Off
CPC
2010
2G/3G controller
64QAM
Motive
2009
2009
2008
Network Sharing
2G/3G
Portal
HSUPA
WNG
Home
Femto 64 QAM
Active
Converged
RNC/BSC/MME
Advanced Controller
Capacity
VoIP
Antenna
WCDMA Flat IP 64QAM+4x4 MIMO
MBMS
Advanced IP
Transport ?
Femto
LTE
DC HSUPA
Interference
cancellation
VAMOS
LTE 1.8 GHz
16 QAM UL
Important
META
Distributed
NodeB
SON
Hybrid IP
Dynamic
Power Save
900 MHz
2011
2012
SNAP
2011 2012
XSON
XMS
Relays
DC or 2x2 MIMO
SON
700MHz
Digital Dividend
DC + 2x2 MIMO
Converged
O&M
Native IP
Enterprise
Metro
Femto
MC-RRH / MC-TRX
Source: Ovum

15
Capex battle for operators
Urban
Low density/ rural areas
Sub-urban
Remote rural areas
3G/2.5G
4G/3G
Capacity/
Network upgrades
Expanded Coverage
Source: Ovum, Strategies for the next billion

16
Agenda
Summary

17
Africa voice trumps data
0
10 000 000
20 000 000
30 000 000
40 000 000
50 000 000
60 000 000
70 000 000
80 000 000
2012
2013
2014
2015
2016
2017
2018
Data
Voice
Voice will be the dominant app across mobile platforms for Africa for the immediate future.
Voice revenues will reach $52 bn by 2018 and data revenues will reach $18 bn by 2018.
However, data will have a higher growth at 15% CAGR versus voice with a CAGR of 2% over 2014 to 2018.

18
South Africa: data gains at a quicker pace
-
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
8 000 000
9 000 000
10 000 000
2012
2013
2014
2015
2016
2017
2018
Mobile Voice
Mobile Data
In South Africa mobile data will rise by a CAGR of 17% over the period to just over $5 bn while voice will decline by 9% dropping to $4.1 bn..
Data will account for 55% of revenues by 2018..

19
South Africa mobile devices
0
5 000 000
10 000 000
15 000 000
20 000 000
25 000 000
30 000 000
35 000 000
2013
2014
2015
2016
2017
2018
1xEV-DO
GSM
HSPA
LTE
In South Africa HSPA will be the dominant platform for devices followed by LTE

20
Agenda
Summary

21
Mobile service current and future uptake
What type of mobile services and technology does your organization use and/or plan to use within the next 12 months?
As expected, mobile broadband and mobile voice dominates the SME mobile landscape. However, the next 12 months will see a surge in the uptake of MDM, MAM, TEM and mobile security as the BYOD phenomenon gains further traction among businesses in South Africa. Other areas of mobile services that will gain over the next 12 months will be the rise of in office WiFi and public WiFi. Takeaway: The rise of the mobile app will gain massive prominence in the SME sector; the ability to position and show value of these mobile apps will be crucial in winning customers and wallet share among the SMEs.

22
South Africa BYOD Among SMEs
Please indicate below your plans to support employee- owned smartphones and tablets.
Which work-related activities and applications can employees use now on smartphones and tablets?
South African SMEs have clearly taken notice of the BYOD phenomenon , and have embraced it with 43% support for employee owned corporate approved devices, with 35% supporting employees owned any devices. Both of these types of services will rise significantly over the next 12 months. Services such as email and calendar as well as Office productivity suites are viewed as must have apps on mobile devices. Other services on the increase are IM and Internet telephony, which serves to highlight that SME are looking at cost and always on connectivity. Takeaway : BYOD is a fact of life for SMEs, implying that issues such as security and MDM will come rapidly to the forefront of SME ICT priorities.
N = 210

23
Agenda
Summary

24
Telefonica: bold steps in big data
October 9, 2012, Telefonica announced that it was setting up Telefonica Dynamic Insights (TDI) as a new global business unit, dedicated to identifying and unlocking the potential opportunities for creating value from Big Data.
Telefonica wants TDI to become a provider of analytical insights to companies and public sector organizations around the world. TDI will use anonymized and aggregated data from Telefonica’s networks, including machine-to-machine (M2M) data, to develop a range of products and services.
Smart Steps – in the UK in October 2012. Smart Steps monitors how many people visit an area, separating the data according to time, gender, and age. TDI then analyzes the data using proprietary algorithms and data science extrapolation techniques. Telefonica customers will not be able to opt out of being tracked.
TDI is looking to target retailers, sporting venues, local councils, and public safety organizations with this product.

25
Market reaction to Telefonica
Reaction has focused on privacy concerns. In the UK, the Information Commissioner's Office, which polices the Data Protection Act, said: “so long as individuals’ personal information cannot be identified from this service, we don't have any problem with it”.
However, in May 2012, the UK Department of Health stated that the anonymization of data may not be sufficient, suggesting that organizations may need to get permission from users before using their data.
In May 2011, the EU’s Article 29 Working Party said that geolocation information (i.e. identifying where a person has been) should qualify as personal data and be protected by EU data protection laws.
Telefonica abandoned plans to launch Smart Steps in Germany following strong opposition from the German government over consumer privacy concerns. While the German government was prepared to allow the use of anonymized or consented customer data for value-added services such as monitoring traffic flow, the Federal Ministry of Economics and Technology stated that trading of location data is prohibited.

26
Agenda
Big data case studies - from the telco perspective
Summary

27
In summary
Mobile capex will continue to rise- Operators are investing in the promise that mobile broadband will bring. However, operators are challenged to balance investment against lower cost per unit and the anticipated volumes of uptake.
Mobile data on the rise – mobile data will continue to rise at double digit growth.
High speed smarter devices proliferate – the tipping point has been reached in terms of smartphones and high speed mobile devices, prompting consumers and enterprise to adopt a proactive approach to BYOD.
Big Data and mobile uptake co hand in hand - the rise of mobility will spur the use of big data applications.

www.ovum.com
Thank you…. any questions?
Richard Hurst
richard.hurst@ovum.com
Tel: +27 (0)11 465 7136

29
Cloud Revenues – South Africa
19
29
41
54
78
104
97
112
137
157
172
189
74
83
96
109
123
139
0
100
200
300
400
500
2013
2014
2015
2016
2017
2018
US$M
PaaS
SaaS
IaaS
Cloud services are currently at $190m.
Cloud services will attain a CAGR of 18% in revenue terms over the next five years, rising to $431m in 2018.
The bulk of revenues are from software-as-a-service (SaaS) with $97m (51% of the total), followed by infrastructure-as-a-service (IaaS) with $74m (39%) and platform-as-a-service (PaaS) with $19m (10%).
PaaS will increase to 24% of revenues while IaaS will experience a decline to around 32% of revenues from its current share of 39%.
The focus on SaaS and PaaS will occur as enterprises move from infrastructure investments to services and the cost reductions.
Source: Ovum

30
South Africa vertical segment cloud revenues
22.8
15.2
24.7
7.6
11.4
20.9
30.4
22.8
11.4
9.5
7.6
3.8
1.9
Business services
Education
Finance
Government
Healthcare
Insurance
IT/Software
Manufacturing
Media and entertainment
Retail and wholesale
Transport and logistics
Utilities
Other
Vertical split cloud revenues 2013
56.2
30.2
51.8
21.6
34.6
43.2
60.5
47.5
30.2
25.9
21.6
4.3
4.3
Business services
Education
Finance
Government
Healthcare
Insurance
IT/Software
Manufacturing
Media and entertainment
Retail and wholesale
Transport and logistics
Utilities
Other
Vertical split cloud revenues 2018
In South Africa the top vertical sectors that has adopted cloud services is the IT/Software vertical. This is followed by Business Services and Manufacturing. This split is in line with other similar developing markets.
Source: Ovum
Source: Ovum

31
Recommendations
BCX scored well particularly when looking at local competitors such as Dimension Data, Bytes and EOH. BCX should naturally play to these strengths in the market and highlight the ability to address the key concerns of South African enterprises as they seek to adopt cloud services.
BCX should look to enabling enterprises in developing their cloud strategies – enterprises will need to take a long term view of cloud but acting now is important. BCX can assist enterprises in being able to redefine and relate to their IT assets.
Be aware the competitive environment is changing. An example of this is the rise of the telcos in the cloud computing space as well as international players. Seek partnership opportunities to negate any competitive edge that may be developed.
Share experiences. SIs and ICT led companies such as BCX should seek to share their experiences of transforming their own business into cloud based entities.
Cloud service providers looking to tap into the South African market should work on alleviating enterprise concerns surrounding security and confidentiality. These issues can and have been addressed via close partnerships with security software and hardware vendors.
The go-to-market challenge for service providers is to effectively position their services for the enterprise segment, which might require partnerships with entities that have exposure to and a track record with enterprises. An example would be local hardware value-added resellers (VARs) looking to move up the stack of services and extend into cloud. Entities should look at this as a long term issue and developing their own ecosystems for cloud services.

Big Data and Enterprise Mobility by Richard Hurst, OVUM

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (19)

Similaire à Big Data and Enterprise Mobility by Richard Hurst, OVUM

Similaire à Big Data and Enterprise Mobility by Richard Hurst, OVUM (20)

Plus de itnewsafrica

Plus de itnewsafrica (20)

Dernier

Dernier (20)

Big Data and Enterprise Mobility by Richard Hurst, OVUM