New Business Models in Cloud

(1)

1 Orange Group – Presentation at TAC 2014, Barcelona

New Business Models in Cloud

Presentation at TAC ’14

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Cloud computing as already seen in the ’60s at

MIT

“Computing may someday be organized as a

public utility just as the telephone system is a

public utility. Each subscriber needs to pay only

for the capacity he actually uses, but he has

access to all programming languages

characteristic of a very large system […] Certain

subscribers might offer service to other

subscribers […] The computer utility could

become the basis of a new and important

industry.”

Professor John McCarthy

MIT’s centennial celebration ,1961

(3)

The Cloud already improving and disrupting our

economy

Improvement:

From traditional check-in to

self-service

• Growth constrained by limited access at airport • Time consuming check-in procedures

• Need for more IT

support • Need to shorten queues and increase customer satisfaction • Scalability. increase check-in thoughput buy 75% in asset constrained airports

• Need for fewer

and fewer IT staff

• Rapid

provisioning of

new services (eg. better seating) • Cost savings while improving customers service

Before

After

Cloud

Disruption:

From DVD rental business to VOD

• Inflexible model. Slow to scale number of users. Need to order DVDs by mail • Cunbersome provisioning: need physical documents • High IT/logistics support required • Difficult to move into new/adjacent businesses • Scalability. Can increase/decrease # of users instantly • Instant provisioning, users sign up instantly • Instant provision of new content • IT operated by 3rd

party, now Opex

• Ease of entering other business such as audio content

Before

After

Cloud

(4)

Cloud comes in 4 main service layers

BPaaS:

Business Process-as-a-Service

Business processes delivered as a service using Cloud architecture

E-commerce Payment processing Human resources Document mgmt. Other (e.g., industry specific)

PaaS:

Platform-as-a-Service

Platforms to develop & market apps and online services

Platform

IaaS:

Infrastructure-as-a-Service

Virtualized, highly scalable pool of IT resources (storage, processing)

Infrastructure

SaaS:

Software-as-a-Service

Applications accessed via web browser

CRM Sourcing,

Other SCM

CCC1

Office HR

Enterprise & consumer users

Mainly enterprise users

1. CCC = Content, Communications and Collaboration (e.g., enterprise content management, web conferencing) 2. DCC = Digital content creation (e.g., digital imaging, digital video) Source: Gartner, BCG

Services type – examples

Service layer

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The Cloud services with the highest foreseen

growth

0 25 50 6.7 10.4 HR Supply Management

Estimated 5-year CAGR 2011–16 (%)

10.9

F&A

Web Conf., Team Platform, Social Software 10.9 Customer Management 12.8

Cloud Payments 12.8 E-Commerce Enablement 13.6

Industry Operations 14.7

CRM 16.3

Other Application Software 18.4 Supply Chain Management 21.5 Project and Portfolio Management 22.2

Application Development 22.4

ERP 23.4

Enterprise Content Management 25.9 Business Intelligence Applications 27.4 Application Infrastructure and Middleware 28.0

Print 31.5

Digital Content Creation 34.0

Storage 36.4

Business Intelligence Platform 38.8

Compute

42.6

Database Management Systems

48.5

Office Suites

49.1

Note: Refers to public cloud services Source: Gartner (February 2013)

Services

SaaS

PaaS

BPaaS

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Cloud also comes into different Private vs. Public

flavours

Private Enterprise Cloud

Hybrid

Cloud

Private

Cloud

Public

Cloud

Current IT infrastructure Source highly standard applications at lower cost • Mail • CRM • Backup / archival Achieve "Cloud" benefits with standardized / modern architecture2 • Banking platform • SAP Retail application (customised) Maintain "core" applications on dedicated infrastructure • Storage of latest R&D designs Share data,

applications, inf. with "trusted parties" or outsourcer • eProcurement • SAP (HR, Finance, Procurement)

Within Enterprise

External to Enterprise

Access Model Examples Internet VPN Enterprise Network / VPN Control Source: BCG Estimated % of activity by 2017 < 10% 30%-50% 20%-50% 10%-20%

(7)

How are companies embracing Cloud?

already implementing

beyond 3+ years

within next 1-3 years

MS Azure/Google Apps

Data centres Storage

Compute on demand Development & test infrastructure

Private

_Hybrid

_Public

SAP/Oracle core ERP HR, CRM, Procurem. Email CRM Collaboration Analytics HR / Finance / Back Office Backup "Greenfield" Shared applications / platforms

Standardized business processes

Packaged applications

Software

as a Service

Infrastructure

as a Service

Platform

as a Service

Business

Process

as a Service

Source: BCG interviews to CIOs

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How are providers positioning themselves in the

Cloud?

Source: BCG SaaS experts Web giants SIs / IT outsourcers Enterprise SW Hosters

Telcos

Datacenter/Network

Consumers

SME

Large enterprises Industries

Software

as a Service

Infrastructure

as a Service

Platform

as a Service

Business

Process

as a Service

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Orange Group – Presentation at TAC 2014, Barcelona

What business models to seize the Cloud

opportunity?

Bus. Model

Definition

Examples

Pay-as-you-go

Pay-as-you-grow

Customer pays according to his

growth, scaled-up in the providers

solutions

Advertising

Users can store and exchange

information in the cloud for free,

thanks to advertising

Freemium

Free service for basic usage / capacity

then paying

Drive usage

Stimulate communication usage

through offering of cloud services

Bundle

Cloud is offered for free in a bundled

service such as mobile subscription

Subscription

Customer can access to the cloud

_{service for a monthly or yearly fee}

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Orange Spain delivering Cloud solutions since 2003

SaaS

IaaS

2003 2010 2013 Virtual Private Network Secure access to corporate network from any site/device Virtual Switchboard

Virtual service which emulates functions of a conventional fix

switchboard (Oficina Plus). Includes: •Personal assistant: corporate directory •Centralized call management tools •Assistant Manager:

which calls are answered/diverted •Configuration and service Administration tools Orange Cloud Residencial Orange Cloud Empresas Cloud storage solution •Securely hosted in Spain •Contact &Calendar backup •Ballena and Delfin tariffs includes 25GB free storage and 500MB data allowance Mobility applications and services for Enterprises

Selected examples

•Localization: to

know where the fleet is, optimizing routes

•Data input: to replace paper worksheets, automating processes •Sales Forces: to

increase sale team productivity through process automation •Storage: to share information in a secure environment and in an efficient way