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 © Copyright Ovum. All rights reserved. Ovum is part of Informa Group.

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


We integrated two complementary ITM businesses

Telecoms &

Media Research

60+ analysts

Telecoms & IT

Research

120+ analysts


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


Agenda

Ovum introduction






Summary


Macroeconomic outlook

-6

-4

-2

0

2

4

6

8

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

GD

P %

gro

wth

Advanced economies Major advanced economies (G7)European Union ASEAN-5Latin America and the Caribbean Middle East and North AfricaSub-Saharan Africa


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

NorthAmerica

SCA (ex-Brazil)

Brazil Europe (ex-Russia)

Russia Mid-East &Africa

China India Asia Pacific(ex-CI)

1Q13 1Q14 1Q14 YoY growth


Agenda

Ovum introduction






Summary


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


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.


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


majority rural

on $2-10 a day


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


3G and 4G mean more capacity at lower costs, but..

FORECAST PRODUCT VOLUMES

FY07 FY08 FY09 FY10 FY11 FY12

Fin YearA

nn

ua

l M

B (

UL

+D

L)

FORECAST PRODUCT VOLUMES

FY07 FY08 FY09 FY10 FY11 FY12

Fin YearA

nn

ua

l M

B (

UL

+D

L)

Unit Cost Down Total Volumes Up

Source: Broadband pricing strategies


Data traffic challenges arise

Source: Ovum


Managing the mobile data traffic explosion

Relative GainsEco-systemConverged 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

HomeFemto 64 QAM

Active

2011

2012

Converged RNC/BSC/MME

Advanced Controller Capacity

VoIP

Antenna

WCDMA Flat IP 64QAM+4x4 MIMO

20122011

MBMS

Advanced IP Transport ?

Femto LTE

DC HSUPA

Interference cancellation

VAMOS

LTE 1.8 GHz

16 QAM UL

Important

META

2009

Distributed NodeB

SON

Hybrid IP

20092008

Dynamic Power Save

900 MHz

2011

2012

SNAP

20122011

XSON

XMS

Relays

DC or 2x2 MIMO

SON

700MHz

Digital Dividend

DC + 2x2 MIMO

Converged O&M

Native IP

EnterpriseMetro Femto

MC-RRH / MC-TRX

Relative GainsEco-systemConverged Access

Converged O&M

Small Cells / Femto

Transport

Capacity / Performance

Coverage

Incremental

Medium

2010


CPC

2010

2G/3G controller

64QAM

Motive

2010


CPC

2010

2G/3G controller

64QAM

Motive

2009

2009

2008

Network Sharing

2G/3G Portal

HSUPA

WNG

HomeFemto 64 QAM

2009

2009

2008

Network Sharing

2G/3G Portal

HSUPA

WNG

HomeFemto 64 QAM

Active

2011

2012



VoIP

Antenna


20122011

MBMS


Femto LTE

DC HSUPA


VAMOS

LTE 1.8 GHz

16 QAM UL

Active

2011

2012



VoIP

Antenna


20122011

MBMS


Femto LTE

DC HSUPA


VAMOS

LTE 1.8 GHz

16 QAM UL

2011

2012



VoIP

Antenna


20122011

MBMS


Femto LTE

DC HSUPA


VAMOS

LTE 1.8 GHz

16 QAM UL

Important

META

2009

Distributed NodeB

SON

Hybrid IP

20092008

Dynamic Power Save

900 MHz

META

2009

Distributed NodeB

SON

Hybrid IP

20092008

Dynamic Power Save

900 MHz

2009

Distributed NodeB

SON

Hybrid IP

20092008

Dynamic Power Save

900 MHz

Distributed NodeB

SON

Hybrid IP

20092008

Dynamic Power Save

900 MHz

Distributed NodeB

SON

Hybrid IP

20092008

Dynamic Power Save

900 MHz

2011

2012

SNAP

20122011

XSON

XMS

Relays

DC or 2x2 MIMO

2011

2012

SNAP

20122011

XSON

XMS

Relays

DC or 2x2 MIMO

SON

700MHz

Digital Dividend

DC + 2x2 MIMO

Converged O&M

Native IP


MC-RRH / MC-TRX

SON

700MHz

Digital Dividend

DC + 2x2 MIMO

Converged O&M

Native IP


MC-RRH / MC-TRX

700MHz

Digital Dividend

DC + 2x2 MIMO

Converged O&M

Native IP


MC-RRH / MC-TRX

Source: Ovum


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


Agenda

Ovum introduction






Summary


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.


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..


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


Agenda

Ovum introduction






Summary


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.


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


Agenda

Ovum introduction






Summary


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.


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.


Agenda

Ovum introduction





Big data case studies - from the telco perspective

Summary


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

© Copyright Ovum. All rights reserved. Ovum is part of Informa Group.

Thank you…. any questions?

Richard Hurst

[email protected]

Tel: +27 (0)11 465 7136

mailto:[email protected]


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


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 EducationFinance GovernmentHealthcare InsuranceIT/Software ManufacturingMedia and entertainment Retail and wholesaleTransport and logistics UtilitiesOther

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


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.

Date post:	12-Jan-2015
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