Cloud Services in Emerging Markets – An Opportunity for Telcos to Drive Growth

In a recent webinar, leading analyst Camille Mendler from Informa, drew attention to the leading role telcos are playing in cloud service delivery in emerging markets. A number of key advantages held by telcos were identified to support this argument:

  •  Ownership of the wide area network
  • Distribution channels
  • Billing relationships
  • Security control
  • Datacentres
  • Brand recognition
  • Personal connectivity

One of the greatest opportunities for uptake of cloud services is to be found in the enterprise, particularly among SME customers. As with most countries, the vast majority of private companies come from the SME segment, but “micro enterprises” – those companies with fewer than 10 employees – are particularly strongly represented in emerging economies.

Cloud services provide a considerable advantage to such companies, as they enable them to leverage productivity and efficiency gains with zero capital investment and, instead, predictable, monthly costs.

Telcos in emerging markets need to develop a clear cloud strategy to capitalise on this market opportunity. By offering cloud-based communications solutions (e.g. Mobile Centrex or PBX), telcos can tap into the micro enterprise market and deliver solutions that offer significant value, helping stimulate market growth.

Differentiation can be achieved by adding new features and capabilities, as well as complementary services to build a complete cloud service portfolio.

The message is clear. Telcos are strongly positioned to deliver a range of cloud services to a clearly defined audience with an appetite for advanced services. By making communications the pillar of the cloud strategy and adding further capabilities and services to enhance the offer, telcos will develop sticky customer relationships and build profitable cloud businesses. The risk is in doing nothing – if they hesitate, other players will enter the market and erode the advantage that telcos have today.





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