Role of Operators in the Mobile App Delivery Ecosystem

Role of Operators
in the Mobile App
Delivery Ecosystem
© Copyright 2013 Antenna Software, Inc. All rights reserved.
Presented by:
• Jim Somers, Chief Marketing & Strategy Officer, ANTENNA
• Bill Lambertson, CTO, Telecommunications Industry, IBM
July 30, 2013
Confidential. Do not distribute.

WELCOME & INTRODUCTIONS
Your Presenters Agenda
2 © Copyright 2013 Antenna Software, Inc. All rights reserved.Confidential. Do not distribute.
Jim Somers
CMO
Antenna Software
Wanna hear this webinar LIVE?
Go to >> http://info.antennasoftware.com/MMWS-Library.html
Bill Lambertson
CTO, Telecommunications
Industry
IBM
• What‟s happening in the enterprise
mobility marketplace?
• How have mobile app platforms
evolved to meet market needs?
• What role do operators currently
play in the mobile app delivery
ecosystem?
• What‟s the untapped opportunity
for them as the market evolves?
• How are some operators best
monetizing on this opportunity?

THE CHALLENGE
© Copyright 2013 Antenna Software, Inc. All rights reserved.Confidential. Do not distribute.

THE OPERATOR’S DILEMMA
Source: Strategy Analytics, Handset Data Traffic (2001-2017), July 3, 2013
Strategy Analytics predicts strong growth in data traffic to mobile phones
for the coming 5 years … present[ing] network challenges for carriers to
ensure end user satisfaction with data-hungry smartphones.
Handset Data Traffic to grow over
300% by 2017 to 21 exabytes

THE OPERATOR’S DILEMMA
Handset Data Traffic to grow over
300% by 2017 to 21 exabytes

“The reports of my
death have been
greatly exaggerated.”
- Mark Twain

FUNDAMENTAL RETHINK REQUIRED
“Either learn to live
with the utility
business that pushes
margins downwards
by 30-50% …”
- Mobile Internet 3.0, Chetan Sharma, 2012
Operators have a fundamental choice to make ...

FUNDAMENTAL RETHINK REQUIRED
Operators have a fundamental choice to make ...
“Or selectively compete
and/or collaborate with the
OTT players where they can
offer compelling solutions
and packages to their
customer base and beyond.”
- Mobile Internet 3.0, Chetan Sharma, 2012

Life SciencesCPG / Retail Manufacturing
Financial
Services
Telco
INDUSTRY BREADTH
Antenna has worked with literally dozens of operators
around the world on a sell-to, sell-with and sell-thru basis.

THE OPPORTUNITY

NEW WAVE OF TECH DISRUPTION

ENTERPRISE APP DISTRIBUTION
SMS BREW Java Symbian Blackberry iOS Android Windows Phone
Carrier (Consumer) Storefronts
(Public, Multi-OS support)
OS Storefronts
(Public, Single-OS support)
Enterprise
Storefronts
(Private, Multi-OS support)
Messaging Feature Phone OS Smartphone OS
The first content stores
were SMS services that
users could subscribe to
receive data alerts
As wireless data expanded
beyond messaging,
feature phone operating
systems emerged and
carriers created content
stores to support them
Apple changed the
distribution model with its
iPhone, creating an
ecosystem for consumer
apps. OS vendors
followed with their stores.
Today‟s smartphone is a
mini-computer, enabling
businesses to create
enterprise apps for their
workforce, distributed
through enterprise stores
The capabilities exist in today’s devices – now users want apps!

ENTERPRISE APP DISTRIBUTION
SMS BREW Java Symbian Blackberry iOS Android Windows Phone
Carrier (Consumer) Storefronts
(Public, Multi-OS support)
OS Storefronts
(Public, Single-OS support)
Enterprise
Storefronts
(Private, Multi-OS support)
Today‟s smartphone is a
mini-computer, enabling
businesses to create
enterprise apps for their
workforce, distributed
through enterprise stores
The capabilities exist in today’s devices – now users want apps!
B2B “PUSH” B2C “PULL”

ENTERPRISE APP STORE
More than 1 in 3 surveyed said they are currently
working on an Enterprise App Store.
21%
31%
37%
37%
50%
60%
67%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Mobile App Management (MAM)
Mobile Device Management (MDM)
Partner-facing App
Enterprise App Store
Mobile Website/Portal
Employee-facing App
Customer-facing App
Dramatic increase
over the 14% that
claimed they were
working on or
planning to start
work on their own
apps stores in 2012
2012 14%
Source: Antenna Mobile Business Forecast, 2013

WHEN DO THEY USE OPERATORS?
What mobile services are you using your carrier/operator for?
Other
Mobile device management
Mobile security
Mobile strategy
Mobile app enablement or delivery
Mobile app store
Telecom expense management 24%
21%
21%
18%
18%
18%
9%
Source: Current Analysis, Inc.

WHAT’S THE BIG IDEA?
16
© Copyright 2013 Antenna Software, Inc. All rights reserved.
Confidential. Do not distribute.
Service Provider Service Innovator

NOT GETTING THEIR FAIR SHARE
Data
connectivity
Mobile
App
Licences
Consultancy
Integration
&
Development
Support
Services
Mobile Application Value Chain
Operator Rev Share
Partner Rev Share
Many operators struggle to extend their value proposition beyond
the devices, data connectivity and basic messaging.
• Only focused on 20% of available opportunity
• Subject to continued price pressure and ARPU ceiling

Data
connectivity
Mobile
App
Licences
Consultancy
Support
Services
Operator Rev Share
Partner Rev Share
A BROADER VALUE PROPOSITION
With an enabling platform, operators can extend their value
proposition and provide a more complete lifecycle of solutions.
Integration
&
Development
Support
Services
• Has potential to capture revenue along the entire mobile app lifecycle
• Less exposure to commodity pricing factors

WHO DO THEY TRUST?
“The largest
percentage (38%)
selected the mobile
operator as their
prime supplier.”
Many enterprise developers look to Operators for mobile software
and deployment expertise …
Source: Yankee Group

OPERATOR AS A MOBILE PARTNER
… and Operators are in a great position to respond because …
• Enterprise Contract – The enterprise may already
be under contract to sell airtime and devices with
the operator; applications become an upsell
• Mobile Expertise – Operators are experts in
wireless technologies because of their role and
influence in the mobile ecosystem
• Data Centers – Operators have data centers in
close proximity to the enterprise user and wireless
network, ensuring high availability and performance
Mobile enterprise application development and distribution
becomes the core of many services that can be enabled by
an operator – these become Cloud Services.

OPERATOR COMMERCIAL MOTIVATION
Product
Description
Brand
Equity
Incremental
Value
Creation
Price
Sensitivity
Complexity
Carrier providing
direct branded
mobile applications &
application services
High
Carrier ‘owns the
glass’ irrespective of
device brand
High
Bundling opportunity
including device, app
& network service
Low
Bundling obscures
components. Must be
directly matched by
competition
Medium
Bundled product
offerings similar to
existing voice
products
Direct bearer
services utilizing
device browsers and
data cards
Low
Differentiation only
by speed & quality of
service
Low
Value is directly &
solely based on
network utilization
High
Subject to
commoditization/
market pressures
Low
Innate capability of
every carrier, to
provide network
service
Affiliation program
involving certification
and access to
catalog
Low
Puts ISV Partner
brand forward of
Carrier
Medium
Value is based on
ISV effectiveness
and data services
(see left)
High
Subject to individual
ISV effectiveness
and market position
High
Effectiveness
dependent on
managing program
elements
Carrier providing
solutions based on
middleware solution
Medium
Puts SI partner on
par or above the
carrier
High
Bundling opportunity
including device,
solution & network
services
Medium
Custom solution
costs put pricing
pressure on other
components
High
Solution sale and
implementation not
core competence
Data Provider Application
Service Delivery
Partner Catalog Enterprise Reseller

OPERATORS POISED FOR SUCCESS
Operators are in an ideal position to monetize the
mobile app lifecycle.
End-to-End Solution:
Operators can deliver the full breadth of services for customers to
build, deploy and manage mobile apps through the entire lifecycle
Growth Market:
Mobile development and management is a multi-billion dollar industry –
and enterprise customers look to operators as their trusted
Turnkey Operations:
Pairing leading mobile platform technology with enterprise systems in a
hosted offering that can be deployed into an operator‟s network, under
the operator‟s brand, as a turnkey appliance offers great value

OPERATOR “SPECIAL SAUCE”
Pricing / Billing
 Volume discounts
 Bundling
 Single bill
Financial Stability
 No “startup” risk
 Appropriate resources
 Ongoing support
Application Performance
 Full data path
 Data center optimization
 Streamlined for apps
Customer Care
 Established, predictable
 Known quantity
 Standard SLAs

BUT ENTERPRISES ARE WARY, TOO
Source: Current Analysis, Inc.
• Configuration complexities
• Massive infrastructure shifts
• Lack of flexibility
• Large capital expenditures
Mobile operators must overcome enterprise objection
hurdles …

PureSystems provides MSPs/CSPs with a simplified lifecycle for
hosting SaaS applications – lower cost, faster time to value
Streamlined:
 Pre-integrated, pre-
tested, ready to run
 Single part to order -
make hardware
procurement predictable
 Optimized configurations
with high availability
 Integrates with your
existing networking and
storage
Accelerated:
 Complete
infrastructure stack
up-and-running in
hours vs. months.
 Easily deploy new
applications and data
services
 Built for cloud -
rapidly replicate
environments, bare
metal deployment
capability
Simplified:
 Single pane of glass
with fully integrated
management –
servers, storage, netw
orking, physical, virtu
al
 Dynamically scale to
meet changing
demand – built in
workload elasticity
 Automatic failover
and high availability
Integrated:
 Integrated
update/patch
management
 Simplified problem
determination
 Single support
number, automatic call-
home capability
 Systems are
open, flexible, and
easily extensible to
grow with you
Reduced Time, Cost and Risk
Patterns of expertise

Expert integrated:
Flexible infrastructure
‒ Compute (x86 & POWER)
‒ Storage
‒ Networking
‒ Advanced Flex System
technology
Unified infrastructure
management
Built-in expertise -
Infrastructure patterns
Enabling Clients to:
Consolidate -
Optimize, Innovate -
Accelerate Cloud
deployments
Infrastructure
Delivering Infrastructure Services
54% more virtual
machines per compute
node
2x or more increase in
application performance
through smart data
placement and tiered storage
66% faster
setup time
Up to 70% fewer
cores for software licensing
costs
72% lower
systems costs over
3 years
Hybrid
Computing
IBM PureFlex System: Integrated Infrastructure is built for cloud
Flexibility to run your choice of applications and middleware

POWERING THE OPERATOR VISION
With AMPchroma and IBM under the covers, operators have the
technical depth and expertise to become service innovators.
Data
connectivity
Mobile
App
Licences
Consultancy
Support
Services
Integration
&
Development
Support
Services

END-TO-END MOBILE PLATFORM
AMPchroma is a mobility platform-as-a-service (mPaaS) for
building & managing „run-the-business‟ mobile apps.
MANAGEBUILD

THE BEST OF BOTH WORLDS
AMPchroma – Branded and Installed in an Operator’s Data Center
• Speed to market – just plug and
configure appliance
• Scalability– add new appliances
“horizontally” to expand for growth
• Cost Effective – reduced
operational expenses to certify and
manage separate components
• Additional Services – other
cloud-related services can be
added from IBM PureSystems
Operator’s Data Center
Alternatively, AMPchroma can be installed on existing hardware with a J2EE runtime environment
AMPchroma may be installed as an appliance, running on IBM
PureSystems, including hardware, software and network management for turnkey
operations.
Benefits:

LIVE PROGRAM
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Go to >> http://info.antennasoftware.com/MMWS-Library.html

FOLLOW ME AT …
@JimatAntenna
www.linkedin.com/in/jimatantenna

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