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GIL 2011: Latin AmericaThe Global Community of Growth, Innovation and Leadership
Cristiano ZaroniDirector of Information and Communications Technologies for
Frost & Sullivan Latin America
6th December, 2011São Paulo, Brazil
360 Degree Industry PerspectiveInformation and Communications Technologies
2
Table of Contents
2. The Rise of Mobile Applications
7. Conclusions - How can we help you grow?
1. Future Connectivity and Broadband
6. Smart Devices
3. Contact Center and BPO
4. The Latin American Cloud
5. Social Networks
3
Key Opportunities in Latin American Information & Communication markets by 2020
4
Six ICT MicroTrends will have the largest impact on all business verticals in Latin America by 2020, leveraging economic growth
Agriculture
Oil & Gas
Materials
Mining
Economic DevelopmentConsumer
Products
Infrastructure
EnergyRetail
Automotive
Mobile Applications
Smart Devices
Cloud Computing
Social Networks
Contact Center & BPO
Broadband
5
Future Connectivity and Broadband
6
AsiaEurope
Latin America
North America
Africa
Oceania
Population (millions)
2025
2010
589
670
729
733352
398
4,167
4,773
43
36
1,033
1,400
By 2025, the Latin American potential market for ICT services is expected to be similar to Europe regarding the productive working-age population with a GDP per capita of $18,547.61.
Source: Population – UN estimativeGDP Per Capita – IMF and Frost&Sullivan projections
The expected increase on the Latin American GDP per capita should change consumption habits and increase demand for top end electronic devices, like smartphones and tablets.
7
Private investments and social programs driven by local governments are likely to increase Latin American broadband household penetration from 7% in 2010 to over 60% before 2020, with positive effects on workforce qualification and personal income.
One Laptop Per Child Program (Number of less than $100 laptops )
One Laptop Per Child Program (Number of less than $100 laptops )
2,600
60,000
4,000
51,0000
90,000
80,080
53,700
National Broadband Plan (PNBL)National Broadband Plan (PNBL)
• Create 30 million fixed and 60 million mobile broadband access points
• Connect all government agencies.Expenditure: US$ 15 billion
• Create 30 million fixed and 60 million mobile broadband access points
• Connect all government agencies.Expenditure: US$ 15 billion
Argentina ConnectedArgentina Connected
• Internet access for more than 10 Million households by 2015
• Connect all public schoolsExpenditure: US$ 2 billions
• Internet access for more than 10 Million households by 2015
• Connect all public schoolsExpenditure: US$ 2 billions
Vive DigitalVive Digital
• Quadruple the number of Internet connections from the current 2.2 million
to 8.8 million• Triple the number of connected cities
Expenditure: US$ 3 billions
• Quadruple the number of Internet connections from the current 2.2 million
to 8.8 million• Triple the number of connected cities
Expenditure: US$ 3 billions
National Campaign for digital inclusion Vasconcelos
National Campaign for digital inclusion Vasconcelos
• Include adults without internet access• Creation of digital Clubs to teenagers• Intensify the digital inclusion with the
teenagers promotions
• Include adults without internet access• Creation of digital Clubs to teenagers• Intensify the digital inclusion with the
teenagers promotions
National Plan for expansion of Broadband Access
National Plan for expansion of Broadband Access
• Expansion of the Broadband accessto all cities
• Increase level of education and income generation
• Expansion of the Broadband accessto all cities
• Increase level of education and income generation
Source: One Laptop per Child, Government of Brazil, Argentina, Colombia, Peru and Mexico, IRSI, Frost & Sullivan Analysis
Increase the number of
computers users
Increase the number of
computers users
Increase Broadband
Infrastructure
Increase Broadband
Infrastructure
Increase Connectivity
Increase Connectivity Income IncreaseIncome IncreaseWorkforce
qualificationWorkforce
qualification
Chilean Telecommunications Plan
Chilean Telecommunications Plan
• Reach 100% of broadband penetration in all schools by 2012
• Internet coverage to expand from 71% to 92% by 2012
• Reach 100% of broadband penetration in all schools by 2012
• Internet coverage to expand from 71% to 92% by 2012
Effects on the economy
8
Asia
Europe
Latin America
North America
Africa
Oceania
90%
41%
200%
140%
91%
200%
56%
150%
82%
112%
27%
4%
90%
56%
65%
7%
65%
11%
57%
83%
Broadband Penetration
Mobile Penetration
Source: 2009 telecommunications statistics from ITU 2020 projections from Frost & Sullivan
90%
200%
100%
68%
The infrastructure investments, associated with a better socioeconomic profile, are expected to drive mobile penetration (M2M included) in Latin America from 91% in 2009 to more than 200% in 2020, and fixed broadband from 7% to 65%.
Broadband Penetration
Mobile Penetration
Broadband Penetration
Mobile Penetration
Broadband Penetration
Mobile Penetration
Broadband Penetration
Mobile Penetration
Broadband Penetration
Mobile Penetration
2010
2020
Broadband penetration will increase until 2020, generating a 7.1% GDP increase on Latin America.
9
The fixed and mobile broadband development will demand investments on infrastructure, both public and private, likely to integrate economies.
Submarine Cable Infrastructure (Latin America), 2011
Submarine Cable Infrastructure (Latin America), 2011
Source: Frost & Sullivan analysis
Smart devices penetrationSmart devices penetration
Multimedia content applications over IP Multimedia content applications over IP
Internet of everythingInternet of everything
• The proliferation of smart devices, multimedia content and more machines being connected will lead to a exponential increase in data traffic
• Current submarine cables, backbones and backhauls will need to increase capacity to deal with the increased data traffic, and new infrastructure will need to be built
• Governments will be concerned with the strategic relevance of this infrastructure to support their economies, and are likely to do investments and stimulate private investments.
• The proliferation of smart devices, multimedia content and more machines being connected will lead to a exponential increase in data traffic
• Current submarine cables, backbones and backhauls will need to increase capacity to deal with the increased data traffic, and new infrastructure will need to be built
• Governments will be concerned with the strategic relevance of this infrastructure to support their economies, and are likely to do investments and stimulate private investments.
Currently Latin America does not have robust links to Europe, Africa and among Latin America countries. And the capacity for U.S. Cables may not supply the demand until 2020.
Currently Latin America does not have robust links to Europe, Africa and among Latin America countries. And the capacity for U.S. Cables may not supply the demand until 2020.
Local Latin American governments will invest both direct and indirectly to expand and develop telecom infrastructure throughout the region, generating new business opportunities for ICT market participants.
10
With the increasing broadband penetration and the trend towards personalized video content, the Pay TV business models is challenged, and there will be change regarding consumer behavior and advertisement business models.
• The Pay TV providers business model is against interactivity and customization trends.• Although the linear channel lineup has been increasing, customers are likely to adopt
video streaming over the internet to watch: • what they prefer, • when they want, • with mobility• In multiple devices
• The Pay TV providers business model is against interactivity and customization trends.• Although the linear channel lineup has been increasing, customers are likely to adopt
video streaming over the internet to watch: • what they prefer, • when they want, • with mobility• In multiple devices
• Capitalize social media content, and integrate into Pay TV offering• Provide applications for each platform (TV everywhere concept)• Develop new billing strategies: Pay per transaction, pay per time, etc.• Introduce cloud services, substituting the set-top-box with DVR by a box that connects
to a server• Redefine strategy to the mass media, consider the increasing advertising expenditures
in alternative medias and though different devices,
• Capitalize social media content, and integrate into Pay TV offering• Provide applications for each platform (TV everywhere concept)• Develop new billing strategies: Pay per transaction, pay per time, etc.• Introduce cloud services, substituting the set-top-box with DVR by a box that connects
to a server• Redefine strategy to the mass media, consider the increasing advertising expenditures
in alternative medias and though different devices,
With the growth of high-speed broadband penetration and the changing consumer behavior, the conditions for new business models opportunities will flourish
Current business modelCurrent business model
Future business modelsFuture business models
Source: Frost & Sullivan
11
Another consequence of the video content and other streaming services growth is telecom operators rethinking their business models to guarantee ROI in the long term.
In the long term, attack strategies are dominant over defense strategies due to broadband services price erosion and difficulty in obtaining ROI.
Strategic OPTIONS
Not react, and benefit from the increasing demand for connectivity in the short term (dumb pipe).
Not react, and benefit from the increasing demand for connectivity in the short term (dumb pipe).
React and launch digital services to complement the connectivity offering (smart pipe)
React and launch digital services to complement the connectivity offering (smart pipe)
Fight against OTT providers, differentiating traffic SLAs, which could bring regulatory problems*.
Fight against OTT providers, differentiating traffic SLAs, which could bring regulatory problems*.
Partner with OTT providers, trying to negotiate a complimentay offering or even revenue sharing
Partner with OTT providers, trying to negotiate a complimentay offering or even revenue sharing
*Regulators in Brazil and Chile, for example, have positioned in favor of net neutrality. Source: Frost & Sullivan
Offensive StrategyOffensive Strategy
Defensive StrategyDefensive Strategy Offensive StrategyOffensive Strategy
Defensive StrategyDefensive Strategy
12
The Rise of Mobile Applications
13
In developing countries each 10% increase in broadband connections results in 1,38% additional GDP per capita growth
Smart devices will play a more complex role in the market switching from simple communication tool to an important service provider, changing the interactions among other value chains
Smartphone Shipment - 2010 Smartphone Shipment - 2020
2010 – 5,6 Million2020 – 46,6 Million2010 – 5,6 Million2020 – 46,6 Million
2010 – 7,2 Million2020 – 35,9 Million2010 – 7,2 Million2020 – 35,9 Million
2010 – 21, 0002020 – 14,6 Million 2010 – 21, 0002020 – 14,6 Million
Source: Frost & Sullivan, Brazilian Communication Ministry, World Bank, IPEA, Sousa, Oliveira, Kubota e Almeida
• 10% of lines in service are 3G
• High prices for data services
• Large amount of prepaid mobile users requires different strategies
• 24/7 connection: 3G dominance and expressive presence of 4G with LTE supremacy, enabling new applications for mobile devices
• Cloud intelligence will allow completely customized and predictive services
• Trade off between the speed of fixed internet and the extend of its use
• 24/7 connection: 3G dominance and expressive presence of 4G with LTE supremacy, enabling new applications for mobile devices
• Cloud intelligence will allow completely customized and predictive services
• Trade off between the speed of fixed internet and the extend of its use
In 2010, 444 cities were served with the PNBL, in 2014 it will be 4,278 cities
The number of Brazilian houses with broadband connections would grow from 15% to 61%, if the broadband cost reduces to R$ 35,00
5,6 Million 46,6 Million
14
Mobile devices will induce to new services that are expected to change the way companies build their relationship with the customers.
Smart Health
Smart Marketing
• Companies are striving internally to tap m-health opportunities, however offers are mostly in initial stages
• Drivers: • Increase in life expectancy and chronic diseases• Unattended demand• Limited access to healthcare services
• Companies are striving internally to tap m-health opportunities, however offers are mostly in initial stages
• Drivers: • Increase in life expectancy and chronic diseases• Unattended demand• Limited access to healthcare services
20102010
• Services for major part of the population
• Focus on preventive treatments
• Effectiveness and cost reduction due to compliance and larger available data base
• Telemetry, virtual surgeries, large usage of monitoring technologies
• Services for major part of the population
• Focus on preventive treatments
• Effectiveness and cost reduction due to compliance and larger available data base
• Telemetry, virtual surgeries, large usage of monitoring technologies
20202020
• Standardized campaigns
• SMS, Bluetooth messages, mobile sites, apps, games and barcode
• Standardized campaigns
• SMS, Bluetooth messages, mobile sites, apps, games and barcode
20102010
• Highly personalized
• Location Based Services (LBS) allied to Augmented Reality (AG) will take m-Marketing to a new standard
• Interactivity and new experiences with the clients
• Highly personalized
• Location Based Services (LBS) allied to Augmented Reality (AG) will take m-Marketing to a new standard
• Interactivity and new experiences with the clients
20202020
Source: Frost & Sullivan
15
Smart Money
Smart Government
Source: Frost & Sullivan; United Nations
The emergence of new ways to spend money and the higher interface with government will empower customers.
• The available solutions are in test or initial stage
• Mobile phones and financial transactions walk side by side
• Risks regarding terrorism, false identity and the credit system
• The available solutions are in test or initial stage
• Mobile phones and financial transactions walk side by side
• Risks regarding terrorism, false identity and the credit system
20102010
• Convergence of financial services with mobile phones
• Virtual and physical shopping, transport payments, complex banking transactions
• Internet market leaders might emerge as strong actors
• Convergence of financial services with mobile phones
• Virtual and physical shopping, transport payments, complex banking transactions
• Internet market leaders might emerge as strong actors
20202020
• Insufficient G2C services
• Electronic passport, pioneer public transport projects, accident report, tax return and others
• Colombia, first e-government in the region on 2010
• Insufficient G2C services
• Electronic passport, pioneer public transport projects, accident report, tax return and others
• Colombia, first e-government in the region on 2010
20102010
• From e-government to Smart Government
• Real time pooling and voting, highly customized services and disseminated usage of national security services
• From e-government to Smart Government
• Real time pooling and voting, highly customized services and disseminated usage of national security services
20202020
16
Banks will extend the reach of financial services with special incentives for m-Payment adoption by unbanked population
The prepaid system will be the most important enabler of m-Payment penetration. This system will be responsible for unbanked population inclusion.
Mobile payment will emerge as a solution to serve the 49% of unbanked population in Brazil, boosting customer convenience and fostering transactions security.
Mobile Payment Transactions - 2010
3,9 Million
• Initiatives in test or early stage
• SMS in most part and recent offers of m-Wallet services
• Small number of POS accept m-Payment transactions
• Develop infrastructure
• Ensure convenience
• Different initiatives without interoperability
• Initiatives in test or early stage
• SMS in most part and recent offers of m-Wallet services
• Small number of POS accept m-Payment transactions
• Develop infrastructure
• Ensure convenience
• Different initiatives without interoperability
• Mature and diversified offers allied to an increase of market players and partnerships among them
• Mobile billing and dominance of Near Field Communication (NFC), will contribute to m-money improvement and consolidation
• Consumer determines the payment method
• Mature and diversified offers allied to an increase of market players and partnerships among them
• Mobile billing and dominance of Near Field Communication (NFC), will contribute to m-money improvement and consolidation
• Consumer determines the payment method
Mobile Payment Transactions - 2020
49,8 Million
Source: Frost & Sullivan
17
Recently Latin American countries have passed through important improvements in e-government projects, however there are still great opportunities for innovations and investments to better serve the population.
• Digital identities
• Early e-Government initiatives• Collaboration between different
arms of government
Information served over the internet
Basic communication and productivity suites
e-Government becomes pervasive
• Disintermediation of government services
• Some citizens interact online with the government
e-Government may not always be motivated by democratic ideals but strengthened democratic institutions may emerge as a benefic consequence
• e-Government
Source: Frost & Sullivan; United Nations
Country Position
Colombia 31
Chile 34
Uruguai 36
Argentina 48
Brazil 61
18
Contact Center and Business Process Outsourcing
19
EnablersEnablers
EnvironmentEnvironment
InfrastructureInfrastructure
Labor PoolLabor Pool
BPO industries have transformed many outsourcing destinations and have served as drivers for growth. In Latin America, it will play a major role in fueling future economic development.
BPO is a human intensive industry that requires a large number of individuals to be present in a location, and many more to support and sustain these resources.
Stable political, economic and institutional conditions remain vital. Local and Regional governments must established secure and business-trusted environments to impel investments from abroad.
The CC-BPO industry relies on effective communication and interaction tools. Further, the growth of these hubs will demand the development of infrastructure in and around the sites to facilitate collaboration.
Outsourced jobs generally requires specialized skills and job profiles. Specific training and education programs around technical matters and foreign language will allow further grow in Latin America.
Factors influencing Nearshore & Offshore investments decisionsFactors influencing Nearshore & Offshore investments decisions
Source: Frost & Sullivan
20
Growing outsourcing destinations such as Colombia, Peru and Nicaragua, along with other established markets such as Brazil and Mexico will drive Latin America to leapfrog by 2020 to US$ 18.5 billion.
2011 2020
Colombia’s vision in 2015: employ 88,200
workers, turning revenues of over
US$ 1 billion
Peru’s vision by 2017: employ 64,150
workers, turning revenues of US$ 554
million
Central America & Caribbean
countries are expected to have close to 152, 700 workers employed within existing and new cc cities and
hubs , contributing with US$ 2.1 billion
2015
2017
2020
Increased uptake by Governmentt, Retail, Banking
and larger Enterprises on Outsource non-core business
driving BPO / CC
2012
Brazil is expected to see new mega contact center hubs around and outside Sao Paulo, and expects revenues of US$10.3 billion, employing over 756,500 workers
Mexico’s vision by 2020: employ 172,000 workers
and turning revenues of US$
2.5 billion
Source: Frost & Sullivan
21
Latin America’s Contact Center / BPO industry is expected to employ close to 1.3 million people in 2020, consolidating its position as the main offshore option to India.
• CC/BPO 2010 $ 8.4 Billion
• CC/BPO 2020 $ 18.5 Billion
• CC/BPO 2010 $ 8.4 Billion
• CC/BPO 2020 $ 18.5 Billion
Vendor Consolidation: Clients will focus on managing fewer provider relationships.Vendor Consolidation: Clients will focus on managing fewer provider relationships.
Quality: Companies will continue to demand higher quality interactions and added value. Quality: Companies will continue to demand higher quality interactions and added value.
Hosted Solutions in the cloud: Virtualization technology will further penetrate the marketplace.
Hosted Solutions in the cloud: Virtualization technology will further penetrate the marketplace.
Increased Use of Analytics & Performance tools: Augmented level of company and agent productivity will be key.
Increased Use of Analytics & Performance tools: Augmented level of company and agent productivity will be key.
Vertical Expertise & Balanced Portfolio: Companies will be offering specialized solutions but still try to maintain a balanced portfolio.
Vertical Expertise & Balanced Portfolio: Companies will be offering specialized solutions but still try to maintain a balanced portfolio.
CALA consolidation as the main Nearshore option: Latin America will further penetrate U.S. Market gaining share over APAC locations.
CALA consolidation as the main Nearshore option: Latin America will further penetrate U.S. Market gaining share over APAC locations.
Contact Center / BPO Key Trends 2020
•CC/BPO 2010 seats 421,000
• CC/BPO 2020 seats 859,929
•CC/BPO 2010 seats 421,000
• CC/BPO 2020 seats 859,929
Source: Frost & Sullivan
22
The Latin American Cloud
23
The reality of SMBs must change quickly. They have to become more professional in terms of structure and management.
Today, with the global economy and the Internet, either you are constantly updated or you die in the market.
Small Business - Bahia
SMBs do not perceive access to credit as a way to expand or grow in capacity. It is more related to an organize cash flow.
Small Business - São Paulo
Today there is an enormous lack of affordable management software.
Small Business - São Paulo
Source: Frost & Sullivan
24
With Cloud Computing, SMBs can afford applications that enable structured and planned growth. An unthinkable scenario a few years ago, where companies had to buy expensive software licences.
Access to a whole new world of Applications and Capabilities
$6 per user per month: 25Gb Email, shared contacts and agenda, instant communication and virtual meetings.
$6 per user per month: 25Gb Email, shared contacts and agenda, instant communication and virtual meetings.
Free for 5GB of storage; $15 per user per month from 3 to 500 users: Online workspace service for file sharing and collaboration.
Free for 5GB of storage; $15 per user per month from 3 to 500 users: Online workspace service for file sharing and collaboration.
$13 to $63 per month: Accounting software creates invoices, pays bills, tracks expenses. Manage your business accounting online.
$13 to $63 per month: Accounting software creates invoices, pays bills, tracks expenses. Manage your business accounting online.
Popular for its free video chats as well as for the low-cost calls to landline and cell phones.
Popular for its free video chats as well as for the low-cost calls to landline and cell phones.
$25 to $100 per month each. IT is a CRM to help managing contacts, schedule follow-ups, set reminders, and convert leads into done deals.
$25 to $100 per month each. IT is a CRM to help managing contacts, schedule follow-ups, set reminders, and convert leads into done deals.
$49 to $149 per month each. It is a web-based project management and collaboration tool.
$49 to $149 per month each. It is a web-based project management and collaboration tool.
Cloud Computing is a strategic tool that enables SMBs to become more professional and have a better and well structured management of the entire operation.
Source: Frost & Sullivan
25
Despite all the benefits experienced with cloud base solutions, there are still great issues to discuss. From security to legal aspects, the market has a lot of questions to answer.
Regulations
Governance
Applications
Lack of Control
ConsumerizationConsumerization SecuritySecurity AvailabilityAvailability Data LossData Loss
Privacy
MobilityMobility
ArchitectureArchitecture
BillingBilling
SLAsSLAs
LegalLegal
Cloud Ownership. Who owns the Cloud?
Source: Frost & Sullivan
26
End-User empowerment: with all the possibilites regarding internet, connectivity and cloud computing, consumers can impact directly on brand credibility and rapidly influence multiple users.
Microblogging
Photo Sharing
Media Sharing
Aggregators
Vídeo SharingSocial Relationship
Local SC PlatformsMusic Sharing
Arab Spring
Brazil against
corruption
Social Movements
Political Movements
...and there is more...
Imagine what can happen to your company, your strategic plans, file, data and brand image.
Source: Frost & Sullivan
27
With all of the changes in the market, we are facing a new world with increasingly complex business challenges. How to be prepared in order to take advantage of rising opportuinities?
Mobility is rapidly increasing together with the amount of data generated by corporations, end-users and M2M. The challenge is how to control and monitor all this data to guarantee its security and its use as strategic information. A bigger and more complex world of Analytics is ahead.
Mobility is rapidly increasing together with the amount of data generated by corporations, end-users and M2M. The challenge is how to control and monitor all this data to guarantee its security and its use as strategic information. A bigger and more complex world of Analytics is ahead.
Data Explosion driving new Business Analytics MarketData Explosion driving new Business Analytics Market
The ROI expected by the end-user is changing to a more complex demand. Executives who buy technologies require a more detailed analysis focused on business benefits including not only cost reduction, but also processing optimization, revenues, scalability, time to market and so on.
The ROI expected by the end-user is changing to a more complex demand. Executives who buy technologies require a more detailed analysis focused on business benefits including not only cost reduction, but also processing optimization, revenues, scalability, time to market and so on.
ROI – Consultive ApproachROI – Consultive Approach
The new CIO works closely with the CFO, COO and CEO developing products, processes, sales operation and operational areas. His role has become more important, because he understands corporate technology, and is able to see how to improve business areas.
The new CIO works closely with the CFO, COO and CEO developing products, processes, sales operation and operational areas. His role has become more important, because he understands corporate technology, and is able to see how to improve business areas.
CIO becoming a growth enablerCIO becoming a growth enabler
Source: Frost & Sullivan
28
Security is one of the main concerns in the market and needs to be closely discussed. How to control and garantee security with mobility and data explosion?
Infrastructure SecutiryInfrastructure Secutiry
The reality and priorities regarding security are changing among companies in all verticals in the market due to new business models and trends, like cloud computing and mobility. We are moving from a pure infrastruture security model to a more complex scenario regarding information security.
The reality and priorities regarding security are changing among companies in all verticals in the market due to new business models and trends, like cloud computing and mobility. We are moving from a pure infrastruture security model to a more complex scenario regarding information security.
Information SecutiryInformation Secutiry
Firewall
VPN
Gateway
Data Loss
Correlate Event
Biometrics
Mobile Shipments (Brazil)Mobile Shipments (Brazil)
20102010 12.8 Mi Mobile Devices12.8 Mi Mobile Devices
20202020 97.1 Mi Mobile Devices97.1 Mi Mobile Devices
How to maximize devices security?
How to offer Cloud based Apps to be accessed from any device anywhere?
Can I outsource managed security from these devices? Which Apps can be hosted in the Cloud?
Source: Frost & Sullivan
29
SMART Clouds in 2020: FLEXIBLE and CUSTOMIZED Clouds Created By Consolidation Of Different Off-premise HYBRID Cloud Services
SMART Clouds address a particular business (or personal) need for a specific period of time and can be integrated with existing on-premise IT infrastructure base - seamlessly and
securely.
SMART Clouds address a particular business (or personal) need for a specific period of time and can be integrated with existing on-premise IT infrastructure base - seamlessly and
securely.
One – Stop Shop Enterprise End-To-End Solutions for a Specific Period of Time
Easy Set-Up of Home Based Offices
Standardized Application Programming Interface (API) allowing for faster time to market of new services, utilizing smart network asset
Saves Downtime of Searching for Specific Business Solutions
SELF SERVICE IT - Selective Choice of Information (Eg. Retail Clouds)
GREEN IT: Energy and Cost Saving Benefits as Capacity of Cloud can be Customized to the Size of Workload
Availability of Free Large Virtual Infrastructure for Storage and Networking
Easy Integration of On-Premise IT infrastructure with SMART Clouds
Integration of Several Hybrid Clouds Enables Seamless Real-Time Switching from Public to Private Clouds driving the Need For High Security Levels
Benefits of flexibility, technology advances and cost savings would help reduce operational expenditure
Everything-as-a-ServiceSource: Frost & Sullivan
30
Social Networks
31
19951985 2005
Roadmap: from mere communication platforms, SNs are bound to become a virtual environment with multiple uses, from collaborative working platforms to a giant database of customer’s information.
2010 2015 2020
Single online profile, social data
intelligence, highly personalized environments
Online BBS Communities,
closed groups for communication
Media sharing now available, relative
popularization
Massive adoption, real time highly
interactive environment , online
profiles
Mobile applications, increase in the corporate usage (advertisement, recruitment, customer relationship), location-
based services.
Geosocial features, increased
collaborative functions, augmented reality, higher content
personalization
90,6 mi
293,7 mi
437,2 mi
Facebook userbase growth forecast (Latin America)
Source: Frost & Sullivan
32
SNs are expected to permeate user’s life on many aspects. Augmented reality, geosocial features and data mining software will bring users to a greater level of immersion, and allow companies to develop personalized strategies to reach customers
Geographic services and capabilities will enable additional social dynamics to SNs, such as augmented reality features.
Geographic services and capabilities will enable additional social dynamics to SNs, such as augmented reality features.
Geosocial NetworkingGeosocial Networking
Virtualized and highly collaborative environments will be default, workers will participate on projects that fit best to their expertise.
Virtualized and highly collaborative environments will be default, workers will participate on projects that fit best to their expertise.
Virtual Work EnvironmentVirtual Work Environment
The population will be more politically engaged and politics will rely on the use of SNs to nurture a closer relationship with the public.
The population will be more politically engaged and politics will rely on the use of SNs to nurture a closer relationship with the public.
Political EngagementPolitical Engagement
Higher integration of SNs. Profiles will be open to various channels, allowing users to generate one single profile and export its data to multiple environments.
Higher integration of SNs. Profiles will be open to various channels, allowing users to generate one single profile and export its data to multiple environments.
Multiple Interconnected SNsMultiple Interconnected SNs
Products, services and media content will be offered and tailored according to individuals tastes and preferences based on online profiles.
Products, services and media content will be offered and tailored according to individuals tastes and preferences based on online profiles.
Content PersonalizationContent Personalization
Data mining and semantic comprehension software will extract knowledge from SNs databases, to be used as strategic guidelines by companies.
Data mining and semantic comprehension software will extract knowledge from SNs databases, to be used as strategic guidelines by companies.
SN Data IntelligenceSN Data Intelligence
The purchase process will be heavily influenced by recommendations and interests directly related to the user’s personal profile and its social circles.
The purchase process will be heavily influenced by recommendations and interests directly related to the user’s personal profile and its social circles.
Smart CommerceSmart Commerce
Source: Frost & Sullivan
33
Smart Devices
34
Consumer Electronics In 2020: Faster, smaller, cheaper and customized with shorter development life-cycles, these devices will be connected to the users online profile and offer a seamless personalized experience.
Smart Interconnected DevicesSmart Interconnected Devices Holographic ProjectionHolographic Projection Mobile Phones: Projection, Visual Search and MorphingMobile Phones: Projection,
Visual Search and Morphing
Consumer devices will be interconnected to the user’s profile, guaranteeing a personalized experience based on preferences.
Touchscreen Window With Built-in Camera, Scanner, Wi-fi, Google Maps Intuitive Search Tools.
Mobile Projection Technology
Morphing– Allowing Users to Transform Mobiles Into Different Shapes
E-MediaE-Media
Digital Paper E-Media Displays
Products will communicate to enhance usage, ranging from intelligent cars with cloud based anti-collision systems, to smart houses that optimize energy expenditure.
Through the use of motion detection sensors, it can be applied to remote collaborative functions, prototype designing and improved communication systems.
Source: Frost & Sullivan
35P5DB-MT
Fixed and mobile broadband access are likely to grow at double-digit CAGR in the next decade, pushed by connected devices.
4G rollout will start by 2012, to reach 29 million
lines by 2016
CAGR: 163.4%
4G rollout will start by 2012, to reach 29 million
lines by 2016
CAGR: 163.4%
Total pay-TV subscribers expected to reach 61
million by 2015
CAGR: 13.0%
Total pay-TV subscribers expected to reach 61
million by 2015
CAGR: 13.0%
416 million 3G lines by 2016
CAGR: 48.0%
416 million 3G lines by 2016
CAGR: 48.0%
An impressive increase in broadband subscribers
77 million (2015)
CAGR: 17.1%
An impressive increase in broadband subscribers
77 million (2015)
CAGR: 17.1%
Internet users
216 million (2010)
Growth will be boosted by mobile device
penetration
Internet users
216 million (2010)
Growth will be boosted by mobile device
penetration
The mobile subscriber base
705 million (2016)
CAGR: 8.0%
The mobile subscriber base
705 million (2016)
CAGR: 8.0%
Video games and over-the-top to grow
penetration with the local presence of Microsoft, Sony, Apple and other
manufacturers
Video games and over-the-top to grow
penetration with the local presence of Microsoft, Sony, Apple and other
manufacturers
Machine-to-Machine (M2M)
The most recent development in the industry, with high
expectations
Machine-to-Machine (M2M)
The most recent development in the industry, with high
expectationsSource: Frost & Sullivan, ITU
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Latin America will switch-off analogue television by 2022; over 572 Million people should have access to DTT transmission, and most of them to interactive services.
2010:•45% of the Brazilians with Digital TV coverage•DTT in some mobile devices (handsets, GPS, pen drive)•TV sets and set-top-boxes with interactivity middeware Ginga: 0%
2020:•99% of the Brazilians with Digital TV coverage•DTT in all devices with screens (Tablets, buit-in cars, etc.) •TV sets and set-top-boxes with interactivity middleware Ginga: 100% of the shipments from 2013, gradually substituting all devices
Digitalization and interactivity is likely to create business opportunities in the media and communication industry on the continent
Country Switch-off
Argentina 2019
Brazil 2016
Chile 2016
Colombia 2019
Mexico 2015
Venezuela 2015
• T-Commerce• T-Learning• T-Gov• T-Banking
• User participation• Content search• Others
Business opportunities
Note: Honduras and Paraguay are the last to switch-off analogue TV, in 2022Source: Regulators and Brazilian Ministry of Communications, Frost & Sullivan analysis.
The analogue TV switch-off, in the six major Latin American
economies, is planned to happen until 2019
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The increased digitalization of content, associated with smart device penetration and internet access will pressure business models of content producers and distributors.
• Personalized television (multiple channels, over-the-top and VoD)
• Digital magazines and newspapers
• Digital radio, with text and audio information
• Personalized television (multiple channels, over-the-top and VoD)
• Digital magazines and newspapers
• Digital radio, with text and audio information
• Linear television (few free channels and limited line up in Pay TV service)
• Paper magazines and newspapers
• Analogue radio, with audio information
• Linear television (few free channels and limited line up in Pay TV service)
• Paper magazines and newspapers
• Analogue radio, with audio information
Advertising expedintures (illustrative)
Cheaper ElectronicsCheaper Electronics
Fixed and mobile broadband penetration
Fixed and mobile broadband penetration
Change in consumer behaviorChange in consumer behavior
Source: Frost & Sullivan
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Conclusions
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How will the government address regulation issues with new technologies in a transparent and effective way? How will it be able to foment the national industry?
How will the government address regulation issues with new technologies in a transparent and effective way? How will it be able to foment the national industry?
How will companies maintain their core business whilst expanding, exploring and adapting to new realities and markets?
How will companies maintain their core business whilst expanding, exploring and adapting to new realities and markets?
Technologies hereby presented will require important investments, how will companies guarantee an interesting ROI to maintain profitable?
Technologies hereby presented will require important investments, how will companies guarantee an interesting ROI to maintain profitable?
Will the consumer’s learning curve keep up to the speed of adoption of new technologies? How to educate users in that matter?
Will the consumer’s learning curve keep up to the speed of adoption of new technologies? How to educate users in that matter?
7
Fonte: Frost & Sullivan
A continent burgeoning with opportunity in “enabling” connectivity. However, there are still many challenges to be addressed.
Social Media has changed from a communication platform to an strategic subject for both corporations and consumers, how will companies make the best use of it?
Social Media has changed from a communication platform to an strategic subject for both corporations and consumers, how will companies make the best use of it?
