|By Claire McMahon||
|January 11, 2014 03:00 PM EST||
OTTs may be the customers' friends but they're a burden to revenue-stricken telecom operators who have watched these small players evolve into a major threat to their existence.
The impact of OTT players is spreading throughout the telecom value chain, adversely impacting traditional operator revenues, particularly in certain markets and age groups. Free from the constraints of expansive overheads, they're adaptable and willing to experiment. This has often culminated in innovative services which are superior to what operators can offer. In the US and top 5 EU countries, IP messaging penetration of smartphones now averages 35%  and Strategy Analytics predicts that operators could lose over $3 billion in mobile messaging revenues alone in the next five years.
Let's just remind ourselves of what OTT stands for: Over The Top. These players are operating above the realms of traditional distribution, and the only benefit they give to operators is revenues from data usage. Whilst a percentage of operators are satisfied with this role, given they provide a reason for customers to buy bandwidth, for others, it's seen as far from a symbiotic relationship.
However, that does not mean operators can never generate considerable revenues from OTTs. Beyond being a very effective channel to the market, operators possess attributes OTTs need in order to make their market profitable: scale of subscriber base, established customer and billing relationships, comprehensive customer insight, access to network as well as advanced back-office systems in which most OTTs struggle to invest or lack the expertise to operate. At present, the OTT market is rich in innovation, but lacks a prevailing business model. Therefore, there lies an opportunity for operators to support this industry by providing marketing, billing and distribution.
In recent weeks we've seen the formation of several ‘app and op' partnerships: Deutsche Telekom and Twitter, Telecom Italia and Amazon, VimpelCom and WhatsApp. These partnerships share a similar foundation, being ‘strategic' deals designed to increase usage for both parties. For example, DT's deal will see its customers being able to access Twitter from their home-screen, whilst the benefit for DT is heightened data usage and preferred partner status. However, it seems the potential to develop (potentially) lucrative partnerships has not yet been fully tapped.
Why? Well, one factor is the complexities inherent, for both parties, in developing such partnerships. At present, there is a lack of an IT enabled collaboration platform which can get rid of several operational complexities involved in executing telco-OTT partnerships of various forms and sizes. Such a platform enables operators to open up their back-office OSS/BSS systems to OTT players. This would radically simplify the process of creating ‘mash-up' products (i.e combination of telecom and OTT products), and also enable scalability.
Operators need the revenue potential of the digital economy to maintain profitability. OTTs require a trusted relationship with customers and a channel to market that promises massive scale. Apps and ‘ops' (i.e Operators) may have sometimes been foes, but in order to fuel future growth they need to become friends. A platform which vastly simplifies the creation of such partnerships would cement this friendship and expand the benefits available to both parties.
- Analysys Mason, ‘Digital economy strategies: new revenue streams, new operations' webinar, November 2013
- Strategy Analytics ‘A Vertical View of Mobile Messaging Apps', October 2013.
Aug. 30, 2016 11:15 PM EDT Reads: 4,950
There's a lot of things we do to improve the performance of web and mobile applications. We use caching. We use compression. We offload security (SSL and TLS) to a proxy with greater compute capacity. We apply image optimization and minification to content. We do all that because performance is king. Failure to perform can be, for many businesses, equivalent to an outage with increased abandonment rates and angry customers taking to the Internet to express their extreme displeasure.
Aug. 30, 2016 08:45 PM EDT Reads: 2,471
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 30, 2016 08:00 PM EDT Reads: 2,031
Before becoming a developer, I was in the high school band. I played several brass instruments - including French horn and cornet - as well as keyboards in the jazz stage band. A musician and a nerd, what can I say? I even dabbled in writing music for the band. Okay, mostly I wrote arrangements of pop music, so the band could keep the crowd entertained during Friday night football games. What struck me then was that, to write parts for all the instruments - brass, woodwind, percussion, even k...
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Right off the bat, Newman advises that we should "think of microservices as a specific approach for SOA in the same way that XP or Scrum are specific approaches for Agile Software development". These analogies are very interesting because my expectation was that microservices is a pattern. So I might infer that microservices is a set of process techniques as opposed to an architectural approach. Yet in the book, Newman clearly includes some elements of concept model and architecture as well as p...
Aug. 30, 2016 07:45 PM EDT Reads: 10,930
Modern organizations face great challenges as they embrace innovation and integrate new tools and services. They begin to mature and move away from the complacency of maintaining traditional technologies and systems that only solve individual, siloed problems and work “well enough.” In order to build...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
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This complete kit provides a proven process and customizable documents that will help you evaluate rapid application delivery platforms and select the ideal partner for building mobile and web apps for your organization.
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Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
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Thomas Bitman of Gartner wrote a blog post last year about why OpenStack projects fail. In that article, he outlined three particular metrics which together cause 60% of OpenStack projects to fall short of expectations: Wrong people (31% of failures): a successful cloud needs commitment both from the operations team as well as from "anchor" tenants. Wrong processes (19% of failures): a successful cloud automates across silos in the software development lifecycle, not just within silos.
Aug. 30, 2016 03:15 PM EDT Reads: 2,226
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 30, 2016 01:00 PM EDT Reads: 3,245
Let's just nip the conflation of these terms in the bud, shall we?
"MIcro" is big these days. Both microservices and microsegmentation are having and will continue to have an impact on data center architecture, but not necessarily for the same reasons. There's a growing trend in which folks - particularly those with a network background - conflate the two and use them to mean the same thing.
They are not.
One is about the application. The other, the network. T...
Aug. 30, 2016 09:45 AM EDT Reads: 4,776
[session] Architecting for the Cloud By @RagsS | @CloudExpo @IBMBluemix #Cloud #Docker #Microservices
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Aug. 30, 2016 09:45 AM EDT Reads: 1,090
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Aug. 30, 2016 09:45 AM EDT Reads: 903
The following fictional case study is a composite of actual horror stories I’ve heard over the years. Unfortunately, this scenario often occurs when in-house integration teams take on the complexities of DevOps and ALM integration with an enterprise service bus (ESB) or custom integration. It is written from the perspective of an enterprise architect tasked with leading an organization’s effort to adopt Agile to become more competitive. The company has turned to Scaled Agile Framework (SAFe) as ...
Aug. 30, 2016 09:30 AM EDT Reads: 1,005
If you are within a stones throw of the DevOps marketplace you have undoubtably noticed the growing trend in Microservices. Whether you have been staying up to date with the latest articles and blogs or you just read the definition for the first time, these 5 Microservices Resources You Need In Your Life will guide you through the ins and outs of Microservices in today’s world.
Aug. 30, 2016 08:45 AM EDT Reads: 5,265
This is a no-hype, pragmatic post about why I think you should consider architecting your next project the way SOA and/or microservices suggest. No matter if it’s a greenfield approach or if you’re in dire need of refactoring. Please note: considering still keeps open the option of not taking that approach. After reading this, you will have a better idea about whether building multiple small components instead of a single, large component makes sense for your project. This post assumes that you...
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Monitoring of Docker environments is challenging. Why? Because each container typically runs a single process, has its own environment, utilizes virtual networks, or has various methods of managing storage. Traditional monitoring solutions take metrics from each server and applications they run. These servers and applications running on them are typically very static, with very long uptimes. Docker deployments are different: a set of containers may run many applications, all sharing the resource...
Aug. 30, 2016 06:00 AM EDT Reads: 2,147
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Aug. 30, 2016 05:30 AM EDT Reads: 3,267