Check out these Monetization and Optimization Index (MOI) infographics about cloud, mobility, and video economic value forecast for Asia Pacific, Middle East & Africa, North America, Latin America, Western Europe, Central and Eastern Europe, and overall global regions.
Learn more about the insights behind these statistics, including additional topic areas and region specific information here: http://www.cisco.com/c/dam/assets/sol/sp/moi/index.html?sid=000443169
Cisco Monetization and Optimization Index (MOI) - Service Provider Cloud, Mobility and Video Economic Value Forecast
1. MOI: Monetization &
Optimization Index
Contact: ps_bta@cisco.com
Service Provider Marketing, Business & Technology Architecture
May 16, 2014
Service Provider Cloud, Mobility and Video Economic Value Forecast
- We can shed light on the SP cost structure today based on their current architecture and traffic growth
- What the variance will be with variance technological enhancements – we can pick technologies to highlight and their impact on the SP cost structure ( cost/sub, cost/service….)
We can collaborate and add Telco 2.0 tranformation index in the mix if it is an operator that has been analyzed or use that as a benchmark to assess the SP
On the revenue side:
TAM for new services
What new services
Ecosystem value chain analysis
We can dig deeper in services that could be of interest to regional mobile operators. We have an update of some services catalog we are working on
- ARPU for specific SP/region
We can further customize the operational processes and cost challenges to provide a presscriptive transition map with detailed analysis of the business impact
Total 2018 Worldwide SP Multi-screen video revenue opportunity
Total 2018 worldwide SP Mobile opportunity in M2M, targeted ad and sponsored data
Total 2018 Worldwide Cloud PaaS, SaaS and IaaS opportunity
SP monthly revenues per subscriber enabled by Cloud DVR, TVE, TSTV, SVOD, Analytics, CDN, and SLA, NA ARPU uplift
SP monthly revenues per subscriber and per connection enabled by M2M, Targeted advertising and sponsored data
SP monthly revenues per enabled by IaaS and SaaS/PaaS services)( $7844/month per subscriber)
TCO Savings driven by moving video functions(CDN, CMS and ABR) to a virtualized cloud infrastructure and intelligent video gateway in the home compared to appliance based video solution
TCO savings enabled by using video optimization and unified mobile backhaul solution
TCO savings achieved by using virtualization, common policy and multi-service data center architecture
Here you can see the variation in the Cloud Monetization and Optimization Index across regions.
The average monthly revenue per enterprise is $7689 while the average cost per enterprise customer per month is $4169 with an operating margin of 59%
Service provider monthly revenue improves by 52% by running multi-service platform using VMDC Flexpod architecture instead of an IaaS ONLY based implementation
The cost includes facilities, power, capex and other operational expense
The optimization savings is achieved by implementing a multi-service data center with virtualization and common policy
For APJC, we customized it to reflect the average APJC enterprise customer for an SP
Average of 700 VMS in year 1 growing at 45%
20 VMs per IaaS tenant
60% take rate of SaaS by IaaS tenants
80% of IaaS customers are running small and medium VMs,
20% take rate in year 1 for SaaS growing at 10%,
$0.15/KWh, $300/square meter for facilities
The average monthly revenue per enterprise is $7689 while the average cost per enterprise customer per month is $4169 with an operating margin of 59%
Service provider monthly revenue improves by 52% by running multi-service platform using VMDC Flexpod architecture instead of an IaaS ONLY based implementation
The cost includes facilities, power, capex and other operational expense
The optimization savings is achieved by implementing a multi-service data center with virtualization and common policy
For APJC, we customized it to reflect the average APJC enterprise customer for an SP
Average of 700 VMS in year 1 growing at 45%
20 VMs per IaaS tenant
60% take rate of SaaS by IaaS tenants
80% of IaaS customers are running small and medium VMs,
20% take rate in year 1 for SaaS growing at 10%,
$0.15/KWh, $300/square meter for facilities
The average monthly revenue per enterprise is $7689 while the average cost per enterprise customer per month is $4169 with an operating margin of 59%
Service provider monthly revenue improves by 52% by running multi-service platform using VMDC Flexpod architecture instead of an IaaS ONLY based implementation
The cost includes facilities, power, capex and other operational expense
The optimization savings is achieved by implementing a multi-service data center with virtualization and common policy
For APJC, we customized it to reflect the average APJC enterprise customer for an SP
Average of 700 VMS in year 1 growing at 45%
20 VMs per IaaS tenant
60% take rate of SaaS by IaaS tenants
80% of IaaS customers are running small and medium VMs,
20% take rate in year 1 for SaaS growing at 10%,
$0.15/KWh, $300/square meter for facilities
The average revenue per subscriber from the 3 Mobile services is around $2.67 in APJC.
The overall TAM is $141.5 Billion mainly driven by M2M services
The cost savings benefits (about 31%) come from the ability to roll out services using NFV which has a major impact on OPEX. In addition the ability to uniquely optimize high bandwidth content like mobile video etc creates additional savings as well
Monthly ARPU Uplift breakdown
M2M ARPU uplift - $7.03
Sponsored Data ARPU uplift - $0.67
Targeted Advertising ARPU uplift - $0.30
Sponsored Data & Targeted Ads - Monthly ARPU shown in the MOI is based on the entire Mobile subscriber base for APJC which includes Smartphones, Tablets and Feature phones even though the service is only targeted at Smartphones and Mobile connected Tablets.
M2M – we used a metric called Average Revenue per Connection(ARPC) which is blended into the overall ARPU numbers. Our ARPC is for revenue generating mobile connected M2M devices.
SP TAM
SPONSORED DATA SP TAM – this is based on projected revenues generated by SPs in the following ways
An advertiser or content owner pays a price per GB consumed (based on standard EBITDA margins added on top of cost per GB for HSPA & LTE networks) to the SP
The SP charges an SLA fee per GB to enhance the QoS of data used or streamed in the case of video content
The SP also takes a share of CPM paid by the advertiser based on the assumption that the SP will provide enhanced subscriber profile data to the Advertising Network that the SP partners with, to support a highly targeted Ad
TARGETED ADS SP TAM - uses a bottom up approach by analyzing the following advertising formats;
Video Ads
Performance Search Ads
Display Ads
Messaging Ads
M2M SP TAM - this is based on projected revenues generated by SPs if they play in the following value chain roles
Connectivity Provider - Device to Network Connectivity
M2M Enablement Platform Provider
M2M Application Development platform provider
M2M Value Added Services (VAS) & Managed Services
The average revenue per subscriber from the 3 Mobile services is around $2.67 in APJC.
The overall TAM is $141.5 Billion mainly driven by M2M services
The cost savings benefits (about 31%) come from the ability to roll out services using NFV which has a major impact on OPEX. In addition the ability to uniquely optimize high bandwidth content like mobile video etc creates additional savings as well
Monthly ARPU Uplift breakdown
M2M ARPU uplift - $7.03
Sponsored Data ARPU uplift - $0.67
Targeted Advertising ARPU uplift - $0.30
Sponsored Data & Targeted Ads - Monthly ARPU shown in the MOI is based on the entire Mobile subscriber base for APJC which includes Smartphones, Tablets and Feature phones even though the service is only targeted at Smartphones and Mobile connected Tablets.
M2M – we used a metric called Average Revenue per Connection(ARPC) which is blended into the overall ARPU numbers. Our ARPC is for revenue generating mobile connected M2M devices.
SP TAM
SPONSORED DATA SP TAM – this is based on projected revenues generated by SPs in the following ways
An advertiser or content owner pays a price per GB consumed (based on standard EBITDA margins added on top of cost per GB for HSPA & LTE networks) to the SP
The SP charges an SLA fee per GB to enhance the QoS of data used or streamed in the case of video content
The SP also takes a share of CPM paid by the advertiser based on the assumption that the SP will provide enhanced subscriber profile data to the Advertising Network that the SP partners with, to support a highly targeted Ad
TARGETED ADS SP TAM - uses a bottom up approach by analyzing the following advertising formats;
Video Ads
Performance Search Ads
Display Ads
Messaging Ads
M2M SP TAM - this is based on projected revenues generated by SPs if they play in the following value chain roles
Connectivity Provider - Device to Network Connectivity
M2M Enablement Platform Provider
M2M Application Development platform provider
M2M Value Added Services (VAS) & Managed Services
The average revenue per subscriber from the 3 Mobile services is around $2.67 in APJC.
The overall TAM is $141.5 Billion mainly driven by M2M services
The cost savings benefits (about 31%) come from the ability to roll out services using NFV which has a major impact on OPEX. In addition the ability to uniquely optimize high bandwidth content like mobile video etc creates additional savings as well
Monthly ARPU Uplift breakdown
M2M ARPU uplift - $7.03
Sponsored Data ARPU uplift - $0.67
Targeted Advertising ARPU uplift - $0.30
Sponsored Data & Targeted Ads - Monthly ARPU shown in the MOI is based on the entire Mobile subscriber base for APJC which includes Smartphones, Tablets and Feature phones even though the service is only targeted at Smartphones and Mobile connected Tablets.
M2M – we used a metric called Average Revenue per Connection(ARPC) which is blended into the overall ARPU numbers. Our ARPC is for revenue generating mobile connected M2M devices.
SP TAM
SPONSORED DATA SP TAM – this is based on projected revenues generated by SPs in the following ways
An advertiser or content owner pays a price per GB consumed (based on standard EBITDA margins added on top of cost per GB for HSPA & LTE networks) to the SP
The SP charges an SLA fee per GB to enhance the QoS of data used or streamed in the case of video content
The SP also takes a share of CPM paid by the advertiser based on the assumption that the SP will provide enhanced subscriber profile data to the Advertising Network that the SP partners with, to support a highly targeted Ad
TARGETED ADS SP TAM - uses a bottom up approach by analyzing the following advertising formats;
Video Ads
Performance Search Ads
Display Ads
Messaging Ads
M2M SP TAM - this is based on projected revenues generated by SPs if they play in the following value chain roles
Connectivity Provider - Device to Network Connectivity
M2M Enablement Platform Provider
M2M Application Development platform provider
M2M Value Added Services (VAS) & Managed Services
Monthly ARPU uplift
The average revenue uplift per subscriber from the new cloud based video services is around $5.48 in APJC.
ARPU uplift is mainly from Cloud DVR and Churn reduction
The overall TAM is $44.5 Billion mainly driven by CDN services. APJC will have the highest amount of online and multi-screen video traffic by 2018. Rental and EST( Content purchase) will provide the largest opportunity with rental growing at a CAGR of 21%
Optimization savings achieved by video technologies such as NFV and media gateways in the home is around 17% when compared to appliance based solution without a media gateway
Savings from virtualizing the CDN, CMS and transcoding amount to 39%
- The cost per GB to deliver multi-screen services is around $1.18 per GB which can easily go up to $2-$3 depending on the amount of content that needs to be managed, the traffic per subscriber per month and the concurrency in multi-screen service usage.
Monthly ARPU uplift
The average revenue uplift per subscriber from the new cloud based video services is around $5.48 in APJC.
ARPU uplift is mainly from Cloud DVR and Churn reduction
The overall TAM is $44.5 Billion mainly driven by CDN services. APJC will have the highest amount of online and multi-screen video traffic by 2018. Rental and EST( Content purchase) will provide the largest opportunity with rental growing at a CAGR of 21%
Optimization savings achieved by video technologies such as NFV and media gateways in the home is around 17% when compared to appliance based solution without a media gateway
Savings from virtualizing the CDN, CMS and transcoding amount to 39%
- The cost per GB to deliver multi-screen services is around $1.18 per GB which can easily go up to $2-$3 depending on the amount of content that needs to be managed, the traffic per subscriber per month and the concurrency in multi-screen service usage.
Monthly ARPU uplift
The average revenue uplift per subscriber from the new cloud based video services is around $5.48 in APJC.
ARPU uplift is mainly from Cloud DVR and Churn reduction
The overall TAM is $44.5 Billion mainly driven by CDN services. APJC will have the highest amount of online and multi-screen video traffic by 2018. Rental and EST( Content purchase) will provide the largest opportunity with rental growing at a CAGR of 21%
Optimization savings achieved by video technologies such as NFV and media gateways in the home is around 17% when compared to appliance based solution without a media gateway
Savings from virtualizing the CDN, CMS and transcoding amount to 39%
- The cost per GB to deliver multi-screen services is around $1.18 per GB which can easily go up to $2-$3 depending on the amount of content that needs to be managed, the traffic per subscriber per month and the concurrency in multi-screen service usage.