On July 29, Ericsson announced its planned acquisition of MetraTech, which makes a lot of sense as companies look to get a jump on the Internet of Billable Things. MetraTech’s flexible solution can adapt alongside still-developing business models and customer relationships and plays well with Ericsson’s fast growing OSS/BSS business.
At last, the Cloud is real, it’s working and everyone is clued in to what this revolution is all about. Well, perhaps not completely clued in since many of our customers, partners and industry pundits confess in private to being a little mystified by some of the terminology being used.
MetraTech, with support of IBM, published the first of a two-part series, to help clear the fog on the shifts in the world of Cloud computing, deployment models for Cloud services, and service models enabled by Cloud.
We continue our Defogging the Cloud white paper series with the second installment. Business decisions around a strategy for Cloud adoption are waiting to be made; however, like any new technology wave, there is often confusion and uncertainty for even the most capable decision-makers. To assist you with your Cloud strategy, Part 2 attempts to defog the likely Cloud future and resulting business models.
This focus of this report is on the impact of SDN-controlled networks with NFV on service provider business models, competitive positioning, new services rollout and requirements for monetization of new SDN and NFV services.
Cloud providers are seeking new opportunities for deriving value as simple IaaS services become increasingly commoditized. Cloud brokerage, the Internet of Things and machine-to-machine technologies are new growth areas; however, to meet this diversification cloud providers need a monetization vendor that quickly enables billing and partner reimbursement.
Cloud service providers can differentiate their commodity offerings through customer-focused pricing schemes and upselling value-added third party services. Doing so requires providers to bill in a differentiated fashion to meet specific customer needs and to easily manage relationships with partners that deliver the value-added services.
As monetization approaches have evolved over the past decade or so, an overreliance on subscriptions has limited some providers, even as it has enabled them to easily communicate their value proposition to potential buyers.
Stratecast | Frost & Sullivan recognizes that communications providers have evolved from offering network access to offering services from a complex ecosystem of content partners. This, along with an upswing in B2B services with unique contract-defined customer requirements,enabled MetraTech’s Agreements-Based Billing and Behavioral Billing™ approach to billing and settlement to stand out among peers and recognize MetraTech with the 2013 Stratecast Global Technology Innovation in Complex RelationshipBilling Award.
Driving cloud services to enterprises provides extensive opportunities for service providers. Delivering real-time insight on service consumption, spending and commitments to customers and partners eliminates B2B bill shock and increases customer satisfaction.
In the pursuit of offering customers a better experience and delivering unique differentiation, many industries are expanding and blending services beyond their core business to capture new revenue opportunities. In the communications sector, providers can learn from other verticals such as transportation and apply best practices to their own business. MetraNet’s Agreements-Based Billing and Settlement is business model and industry agnostic, providing service providers with the freedom to expand business to existing customers and into other verticals.
Agreements-Based Billing (ABB) is driving a new frontier of service innovation for communication service providers (CSPs) by supporting personalized relationships with customers and partners. CSPs must differentiate and support unique offerings through organic and partner-based service innovation at an unprecedented rate. This increases the need for sophisticated bundling and the ability to manage both the billed revenue stream to customers and settlement due to channels and partners.
Successful Cloud and SaaS business models will depend on the ability of a monetization solution to evolve to support rapidly changing business needs. Focusing on core business competencies that deliver customer value and outsourcing billing provides the opportunity to capture market share.
Service providers discuss key requirements for differentiating cloud services and the impact on business models. Results from service provider and enterprise customer surveys highlight the need for value-added cloud offerings and new monetization solutions.
The opportunity to transform today’s cloud offerings and deliver an enhanced cloud is desired by many service providers. The challenge remains how to capitalize on the opportunity quickly with offerings that are not solely based on price, but rather deliver a compelling offering to capture the attention of enterprises.
Services have evolved and agreements-based commerce is the result. In a rapidly evolving services world, proven enterprise-class architectures and experience will be the key to success.