JAMES PARTON, DIRECTOR OF TWILIO EUROPE
THE EFFECT OF SOFTWARE PEOPLE ON TELCO
A LITTLE ABOUT ME
SO WHAT’S THE PROBLEM?
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SOFTWARE IS EATING THE WORLD (AND TELCO SERVICES)
• Marc Andreessen was right about software eating the world, especially when it comes to Telecommunications...
- The product innovation void is being filled by software people, not Telco’s
- Software people think web first. This style of thinking is inherently open
- Software people think collaboratively - APIs, collaborative working, open source
- Software people think about building communities & ecosystems
Why software is eating the world: http://parton.ly/17u5g5z Andreessen photo: http://www.flickr.com/photos/36521958135@N01/2443764501
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HORIZONTAL VS. VERTICAL
Source: http://bloggeek.me/telcos-compete-ott/
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THE MOBILE CARRIER MODEL WAS DESIGNED IN 80’S
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THE TELCO BURDEN
License & Spectrum
Billions
Network
Billions
OSS & BSS
Billions
Marketing & Sales
Billions
Customer Care
Billions
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THE TELCO BURDEN
License & Spectrum
Billions
Network
Billions
OSS & BSS
Billions
Marketing & Sales
Billions
Customer Care
Billionsx4
DNAIT’S BRUTAL!
CONTROL = #FAIL
"For a very long time we’ve been building platforms to help other people be successful. That’s what our core competency is… we open our warehouse for
other people to use… we open our infrastructure for other people to use.” Werner Vogels, Amazon CTO, SXSW 2014
Innovation
INTERNET
Copper
Switching
WWW
TELECOM
Copper
Switching
NEW KIDS ON THE BLOCK
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WHAT IS A SOFTWARE PERSON?
• You don’t have to write code to be a software person
• Anyone that sees the world through the lens of software
• Anyone that asks “How can this problem be solved by software?”
• Anyone that believes any problem can be solved by software
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Not Software People Software People
WHAT IS A SOFTWARE PERSON?
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WHAT IS A SOFTWARE PERSON?
Not Software People Software People
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WHAT IS A SOFTWARE PERSON?
Not Software People Software People
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NEW PRODUCT BUSINESS MODEL
Consumer Retail Store Producer
Packaged Goods!
Internet Services!
Consumer Developer Provider App
Source: http://www.slideshare.net/samramji/darwins-finches-20th-century-business-and-apis
APIs
Direct
Indirect
“In 1995 we were asking, "Do we need a website?", and by 2000 website was becoming the default. Fast
forward to 2010, and we were asking, "Do we need an API?", and I believe by 2015 APIs will be default for
companies, just like websites in 2000”!
John Musser, Founder Programmable Web
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MODERN BUSINESSES ARE DRIVEN BY APIS
Source: http://www.programmableweb.com/apis/directory/1?sort=mashups
Why did we tell the CFO this would pay back
in 12 months?
20.5 million developers globally by 2015 Growing at 6% annually
Source: Evans Data Corp
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IS THIS REALLY THE STATE OF INNOVATION?
£5m!!
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SOME CLOSING THOUGHTS
If you have enough R&D budget to hire 20 million developers then you are probably ok.
If you don’t, why are you still building product? It’s not 2003 anymore.
How are you going to embrace the innovators who are creating the services your customers love, because they are doing it without you today?
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CHANGING USER BEHAVIOUR
Source: Ofcom
!Weekly mobile activity by 12-15s in UK with a smartphone, 2013!
Per Week
0
100
200
300
400
Phone Calls SMS App Messages
192
311
27
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FURTHER READING
Alan Quayle!http://www.alanquayle.com/blog !Tomi Ahonen!http://communities-dominate.blogs.com/brands/ !Disruptive Wireless!http://disruptivewireless.blogspot.co.uk/ !Martin Geddes!http://www.martingeddes.com/ !Benedict Evans!http://ben-evans.com !Telco 2.0!http://www.telco2.net/blog/
THANK YOU. @JAMESPARTON
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