Monetizing the Services Ecosystem
The economics and dynamics of the Communications Industry are undergoing rapid and fundamental changes that will have far-reaching consequences. The traditional value chain is disintegrating: Communications Service Providers (CSPs) can no longer control service delivery from the core network to the end user. In the new value chain that is emerging, content providers, content aggregators, and content distributors are creating a unique and powerful Services Ecosystem that allows users to share information and entertainment in creative new ways — ways that threaten to marginalize CSPs as dumb pipes.
To avoid being marginalized in this way, CSPs need to participate actively in the Services Ecosystem. They need to discover ways of creating the business, process, and technology framework that will enable them to benefit from the Services Ecosystem and, ultimately, elevate their position in the value chain.
Embracing the Services Ecosystem requires that CSPs change their mind set and redesign their operational processes fundamentally. A more difficult challenge is the need to give outsiders access to functionality that has always been protected inside the CSP. Monetizing the Services Ecosystem™ requires CSPs to:
- Abstract service elements from the network
- Build atomic service elements and a service assembly infrastructure
- Expose APIs and make Software Development Kits (SDKs) available to third parties
Ecosystem partners can then create new, personalized services by accessing — and paying for — CSP functionality and applications.
CSPs who implement these three requirements will build the integrated business and technical foundation that will enable them to participate in the new ecosystem and monetize their investment.
CSPs who embrace the Services Ecosystem will reap the benefits of:
- Monetization
- Faster time to market
- Cost savings
- Flexible new business models
- Enhanced value
