Post on 31-Jul-2015
transcript
Information Security Level 2 – Sensitive© 2014 – Proprietary and Confidential Information of Amdocs
Israel Mobile Summit: Value Chain Effects from Google, Apple and Facebook (“GAFA”)
Information Security Level 2 – Sensitive© 2014 – Proprietary and Confidential Information of Amdocs2
Traditional Value Chains: Network Access and Digital Services Tightly Bundled
Advertiser Customer
Vid
eoV
oice
& T
ext
Industry Value Chain
Communication Service & Device
BrandsConsumer
s
Content Creation
Content Curation
Distribution Screen
Ad Agenc
ies
Consumers
Consumers
Information Security Level 2 – Sensitive© 2014 – Proprietary and Confidential Information of Amdocs3
Today’s Value Chains: Modularizing due to IP and Market Disruptors and Squeezing the Role of CSP
AdvertiserAd
PlatformContent
Service &Aggregation
OperatingSystem
ConsumptionMedium
Customer
Vid
eoV
oice
& T
ext
Network
Cur
atio
n
Scr
een
Com
ms
Acc
ess
Dev
ice
OS
Dev
ice
Set
-top
-box
Agg
rega
tion
Acc
essBrands
Consumers
Consumers
Ad
Age
ncie
s
Pro
duct
ion
Str
ateg
y
Information Security Level 2 – Sensitive© 2014 – Proprietary and Confidential Information of Amdocs4
Google, Amazon, Facebook & Apple (GAFA)The financial advantage the innovation gap
2 8 7 14
155
62
Facebook GoogleAppleAmazonVerizonAT&T
1%
23%29%
24% 27%
36%
2.5
6.6
1.4
4.5
8.0
~1.5
Cash & Marketable Securities
Operating Profit Margin, FY13
R&D ($B), FY13
19%
9%
55%
22%
4%1%
YoY Growth
129 121
74
8
183
60
Revenues, FY13
-73-101
4 14
120
57
Net Cash
GAFA’s profitability is similar to CSPs, however they are growing at a much faster rate
… they have more available cash and are heavily investing in R&D
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Apple: historically focused on devices but evolved into a high-end consumer lifestyle platform
197
0’s–
2000
AdvertiserAd
PlatformContent
Service &Aggregation
TransportNetwork
AccessNetwork
AccessProtocol
OperatingSystem
ConsumptionMedium
Customer
200
0–20
0920
10–
2014
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Apple is now defending its position against low-end disruptors like Android (and Spotify…and Netflix)
Unconnected(non-consumption)
• AppleSIM could potentially be disruptive and further commoditize Access
• Yet unknown if Apple TV will grow to viable alternative to current Pay-TV offerings
• Unified Comms strategy via iMessage and Facetime erodes core communications revenue
Source: Gartner, IDC
20%
60%
40%
20122010 2013 2014E2011
Market shares of devices, installed base
657650686710702
254276320380441
2014E2010 2011 2012 2013
Average selling price of iOS, Android handsets
disrupted by
Information Security Level 2 – Sensitive© 2014 – Proprietary and Confidential Information of Amdocs7
Google and Facebook have much stronger motivations to invest in improving internet access
Ad Funded
Consumer Funded
Market focus Upmarket DownmarketCompeting with non-consumption
Benefit from improving access
Limited – unconnected unlikely to consume Apple/Amazon products
High - Connecting unconnected translates to more ad revenues
Low/indirect – higher bandwidth could mean more consumption of media
Medium – more bandwidth means more consumption of content and ads
EM:
DM:
To be determined: has access has moved from an “experiment” to a full line of business for Goolge
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Facebook is posing a rising threat to CSP revenue streams with Whatsapp and internet.org initiative
AdvertiserAd
PlatformContent
Service &Aggregation
TransportNetwork
AccessNetwork
AccessProtocol
OperatingSystem
ConsumptionMedium
Customer
201
0–20
1420
04–
2009
• Currently focused primarily on social platforms and disrupting communications via WhatsApp
• An unpredictable threat in Access, but proclaiming a global mission to improve internet access to
all
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Google: a key disruptor with assets spread across the new value chain
199
9–20
03
AdvertiserAd
PlatformContent
Service &Aggregation
TransportNetwork
AccessNetwork
AccessProtocol
OperatingSystem
ConsumptionMedium
Customer
200
4–20
0920
10–
2014
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Google’s platform businesses result in even greater market power, with Access in the middle
199
9–20
03
AdvertiserAd
PlatformContent
Service &Aggregation
TransportNetwork
AccessNetwork
AccessProtocol
OperatingSystem
ConsumptionMedium
Customer
200
4–20
0920
10–
2014
Monetization platform
Development Platform
Contentplatform
Access “ClosesThe Loop”
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What Steps Should the Telcos Take?
● Strong shift to consolidation and multi play● AT&T & DirectTV (45bl), Voda Spain & Ono (7.2bl), Vivo Brazil and GVT (9.3),
Charter acquires TWC (55bl) and Bright House (10bl), BT acquires EE….
● Need to leverage connectivity and local capabilities as innovation angles. Areas of focus beyond connectivity:● Managed security service (‘clean pipe’)
● Cloud enablement and virtualization
● Connected everything● App to door (physical access control)
● Flow designed for IoT for service design
● Matrix.org
● Connected Car
● Connected Home
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Information Security Level 2 – Sensitive© 2014 – Proprietary and Confidential Information of Amdocs13
The Importance of ADT Pulse
Pulse Take Rate across the Years (New/Resale)
New Entrants (Telcos) bringing
innovation, lifestyle services
ADT US Resisting To New Entrants with Pulse
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Designed To Support 100’s of Use-Cases
14
Watch your Baby upstairsTemperature control Lightning control
TV, DVD, Home Theatre Get your pack deliveredControl your blinds
Temperature control Pillbox dispenser
PERS Personal
Emergency Response System
Nurse Easy Access
Remote Surveillance
Motion/Presence controller
Act on smoke detection
Act on intrusion
Know when kid back school
Stop a water-leak Check your doorRecord who’s ringing
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5
An Open, Scalable and Standards-Based SolutionA layered architecture to cover multiple home services silos