The slide set I presented at Telco Cloud Services Summit at London 2013.

1. 5 Reasons How Telco Cloud Will
FailAlper Celik
Group Product Manager
Tele2 Business
Ideas presented here are my own and nothing to do with my employer

2. Tele2 has 34 million customers in (11) 10 national markets
Market areas
Tele2 Nordic: Sweden and Norway
Tele2 Western Europe: Netherlands, Germany and Austria
Tele2 Russia: Russia
Tele2 Central Europe & Eurasia: Estonia, Latvia, Lithuania, Croatia,
Kazakhstan
Tele2 Group Financials - SEK
Sales 2012:
SEK 43.8 bn
EBITDA 2012:
SEK 10.9 bn
Sales 2011:
SEK 41.0 bn
EBITDA 2011:
SEK 11.2 bn
Number of customers: 34
million
2

3. Tele2 offers cutting edge products and services
Challenger telecom operator
offering mobile and fixed
telephony, broadband and
related services
Front row player within new
technology 4G
Broad range of products and
services to residential and
business customers
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4. www.celikalper.com
1- Do not partner, do it all by yourself
CSPs loosing control over the value chain. User and service experience are becoming fragmented. In the value chain,
network is becoming a conventional infrastructure thus decreasing its value
Services Connectivity Devices
From
Old
Game…
…To New
Game
Services Connectivity Devices
OSS / BSS
OTT Services
Telco Services
Telco Network
- Smartphones
- Tablets
- Laptops
- M2M
Controlled by telco
Device Management
OSS / BSS
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5. www.celikalper.com
Know where you are strong at and where to start the cloud
2- Do not involve the customer into product development
Traditional SME Office SME Office via Cloud
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6. www.celikalper.com
Work with smaller and agile companies. Do not create a “dumb-cloud” model by all re-selling the same product
Revenue &
Profit Potential
from the Partner
High
Low
Partner’s Potential to Help You
Develop Your Competencies
Low High
Earning
Partner
Limited
Partner
Strategic
Partner
Learning
Partner
Source: Kosnik and Montgomery (1994), “Managing Cross Cultural Alliances: Can Trust be Achieved in a Polygamous World?”
IaaS Partner/Vendor
SaaS Partner/Vendor
Cloud Enabler/Vendor
3- Work with wrong partners/vendors
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7. www.celikalper.com
The packaging of Cloud services should rely on some guiding principles which varies between the customer segments
1. Brand focus1. Brand focus Strong ISV brands Telco brand
2. Initial objective2. Initial objective Volume Profit
4. Application portfolio4. Application portfolio Small Large
5. Service packaging5. Service packaging Bundled
solutions
Separate services
6. Price model6. Price model Fixed prices Variable prices
3. Main services3. Main services Applications Infrastructure, Development
0-4 employees
5-19 employees
20-200 employees
4- Build one size fits all bundles
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8. Is your sales channel willing to and able to sell Cloud services?
Sizeofenterprise
MicroSmallMedium
Service Complexity
Least Complex Most Complex
Online
3rd-party
Store
Telco Store
Distributor
Telesales Agent
Face to Face via Sales Rep
Direct Indirect
1-4
5-19
20-200
5- Waste time with wrong sales channels
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9. www.celikalper.com
Concluding Remarks
- Shift from voice to data & app driven customer acqusition
- Cloud (SaaS) should be data driven: 4G is coming and we need to be able to
charge for it
- Develop product together with your sales teams by putting the customer in the core
- Smaller ISVs are much more dynamic and responsive. Give them a chance!
- Market data is always more appealing than product data!
- Dumb cloud is emerging just after “dumb pipe”
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10. www.celikalper.com
Thank You
Alper Celik
Group Product Manager
Tele2 Business