The Cloud Imperative for Telcos

Threats to the Traditional Telco Model

Telecommunication Service Providers are experiencing a marked decrease in revenue and margins as their core portfolio becomes increasingly commoditised. Mobile subscription penetration continues to rise substantially, even in the most emerging markets, with many customers using multiple devices to fulfill their communication needs. Competition and churn are constantly increasing among telcos as broadband access becomes ubiquitous across markets and product differentiation becomes increasingly difficult to deliver. Most telcos realise they must change traditional business models and are placing increasing importance on value added services portfolios such as cloud services as a means of driving customer loyalty and to mitigate revenue declines. Whereas many telcos have a clear strategy, few have been successful in deploying their cloud service portfolios to market in a meaningful and monetised way.

Dont get left behind!

Cloud brokerage offers telcos the opportunity to address specific market segments with cloud services which are relevant, timely and cost-effective. By integrating cloud services portfolios into the telcos core business and delivering comprehensive yet simple services bundles to market, the telco can:

Enhance the services footprint to customers Monetise CAPEX already invested in the network Tap into IT budgets and new sources of revenue Improve customer loyalty

Success from the Cloud

Deploying a cloud services portfolio as an integrated business solution is not a simple task. In order to effectively drive sales and services take-up, the telco must consider the following:

Deploying a multi-vendor range of cloud services which are bundled into the core services Delivering services under a single brand Rapid deployment giving a time-to-market which outflanks their competition Delivering global services with local flavour Enabling marketing and sales channels to effectively position and monetise services

Neostratus Solution
Cloud brokerage to offer vendor flexibility for different segments The Cloud Services ManagerTM - Cloud services bundled with core and time-to-market issue solved Commercial model - nominal CAPEX and investment requirement, pay-as-you-grow model Neostratus go to market advisory to help position and sell services

Neostratus Business Model

Neostratus | www.neostratus.com

Cloud Brokerage
The single biggest revenue opportunity for Cloud Service Providers is as a Cloud Service Brokerage 1 Neostratus is dedicated to helping partners become successful cloud service providers by acting as a trusted cloud services broker. The company assists telcos, systems integrators, and data centres in implementing their cloud strategies quickly with proven results. Neostratus Cloud Brokerage solutions offer partners the ability to build ecosystems which connect their customers to a wide variety of solutions, capitalising on the business and financial benefits of the cloud.

Neostratus is an expert in unified communications and collaboration, ranked as the number one cloud focus area for telecom operators across the world, according to Informa service benchmarking- Camille Mendler, Informa Telecom Cloud Monitor, 2012

About Neostratus
Neostratus, formerly CE On-Demand, creates cloud providers. The company creates cloud providers by offering tailor-made and localised cloud services, fully integrated with partners OSS/BSS systems and customized according to telcos special needs and branding. Neostratus is proud to be listed among the seven key cloud enablers for telecom operators worldwide.2 Based on a three-pillar operating model, Neostratus offers cloud products, cloud services and advisory streams which deliver bespoke, flexible and scalable cloud strategies for partners. Neostratus services currently satisfy 25+ partners across 15+ countries, covering an addressable market of over 70 million people, including consumers, SOHOs, SMEs and large enterprises with a variety of IT needs.

We see a global trend towards cloud services due to increasingly powerful possibilities for data access. A1 is introducing Neostratus innovative and highly efficient technology to the Austrian market, adapting it to its special needs with a widespread local presence - Alexander Sperl, Chief Commercial Officer of A1.

The cloud computing trend is one of the important elements of the new Netias strategy. In cooperation with Neostratus, Netia will prepare a solution that integrates two currently separate worlds: broadband internet and telephony desktop applications - Miroslaw Godlewski, CEO of Netia.

The implementation of such services in-house is expensive and up to now only large companies, with thousands of employees and huge IT budgets, could afford it. Romtelecom and Neostratus have now opened the possibility of having enterprisegrade services at affordable prices for SMEs - George Makowski, Chief Commercial Officer, Business Segment, Romtelecom.

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Daryl Plummer, Managing VP of Gartner, Chief of Research for Cloud Computing, 2011 Navigating the Telecom Cloud: Growth Perspectives by Informa Telecoms & Media, May 2012.

Neostratus | www.neostratus.com