Home > Business Idea, Cloud Computing, Disrup. Technology, Innovation, Long-Tail, Open Market > The Long Tail Telco – An Alternative Cloud Strategy

The Long Tail Telco – An Alternative Cloud Strategy


Most operators have a mobile portal in which end-users can buy games, applications, ringtones, etc. Several operators have a legacy of server hosting, email hosting, and other business services.  Some operators have a marketplace where small medium enterprises can buy SaaS. Others are thinking or building a private cloud and want to become an infrastructure as a service provider. Often to avoid legacy hosting to disappear.

There can be reasons why a small, medium or large enterprise wants to use the infrastructure from an operator compared to a public cloud: SLAs, quality of network service, security, etc. Price is very likely not going to be one of them. Neither will be innovation or flexibility because here the likes of Amazon, Google and Microsoft are almost impossible to beat.

So why is it that operators think that IaaS is their preferred strategy to enter the cloud? I have no idea but my opinion is that it is easier to start with SaaS and work down to PaaS then to start at IaaS and work upwards. IaaS will have hyper-competition and very small margins as a consequence…

An alternative telco cloud strategy

Operators often have a direct sales channel towards medium-sized enterprises. By offering a SaaS marketplace they could extend the amount of services they are providing towards these medium enterprises. After reaching a tipping point, smaller enterprises will likely follow via direct web-based purchases. However reselling SaaS can never be a long-term strategy.

SaaS should be an initial start of a new customer relationship. Operators should focus on selling complete solutions focused on a specific industry or problem domain. Examples:

* Healthcare – web, mobile, tablet, TV and SMS patient reminder & reservation system, health-care call-center as a service, farmacy locator,web-based medicine reservation system, etc. 
* Restaurant – web, mobile, tablet, TV and SMS table reservation system, online menu web hosting, group-based or community food purchasing service, special deals á la groupon.com, etc.
* Car dealers – web, mobile, tablet, TV and SMS maintenance reminder & reservation system, parts-locator call-center as a service, etc.

The operator should not focus on inventing these services but instead on creating the tools, the eco-system and the community for smaller IT shops and other to come up with scalable niche services.

To fully utilize a SaaS an SME needs help: training, configuration, customization, integration, etc. For this you need a services marketpace closely linked to your SaaS marketplace. As well as a long tail support solution.

The Long Tail Telco PaaS

To be really able to offer long tail services, operators need to have a long tail Telco Paas. A Telco PaaS is like a Google App Engine, combined with Google App Marketplace, combined with Twilio/OpenVBX, combined with charging on your invoice, combined with open standards like OpenID, oAuth,SIP, etc.

Not clear??? A small company knows best what another small company need. However they do not have the infrastructure to reach and help thousands of other small companies in the world that have the same problem. This is where the operator should help both with global communication and IT solutions. A small company should not be focusing on installing a CRM, call center, ERP, etc. if they want to help others configuring and customizing a health care reminder service. They should have specialists in the health care reminder service and should be able to purchase the rest from the Long Tail Telco’s marketplace. They should also be able to auction a request for legal assistance, escrow-service, translation, etc., basically an all-in deal. The operator should focus on business communication in the broad sense, not the telephone service sense…

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  1. October 13, 2011 at 1:45 pm
  2. January 12, 2012 at 4:04 pm

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