Mobile Cloud

Overview

- In-depth Analysis of Ecosystem
- Extensive Business Model Analysis
- Key Case Studies Examined

This unique report delivers an expert assessment of the fast-developing market for mobile cloud applications and services, in both the burgeoning enterprise sector and the nascent consumer space.  It explores core topics vital for players across the cloud tier structure who are seeking to capitalise on the potential offered by smart devices (smartphones, tablets), such as the need to demonstrate ROI from migration to the cloud.

A detailed forecast suite – covering the period through to 2016 and split by 8 key regions - includes revenues generated through cloud services in the enterprise mobile space (SaaS revenues), as well as cloud user data. This report also calculates consumer spend on cloud services on the mobile.

A number of double-sided revenue models are explored, highlighting both downstream and upstream opportunities for network operators and cloud security providers together with an analysis of the implications for secure access and secure storage. This is backed up by a series of in-depth case studies and interviews with leading players in the cloud computing space, providing further insight into the future direction of this sector.

Table of Contents

Executive Summary

The Case for Cloud Mobility

1.2 Cloud Computing – An Introduction    18
1.2.1 Defining Cloud Computing in the Enterprise Space    18
1.2.2 Defining Cloud Computing in the Consumer Space    19
Figure 1.1 Classifying Cloud-based Music Services    20
1.3 The Opportunity for Enterprise Cloud Computing    20
1.3.1 Less capex, More Flexibility: The Key Drivers of Enterprise Cloud Computing    21
1.4 The Opportunity for Consumer Cloud Computing    22
1.4.1 Driving Consumers to the Cloud – Facebook and Web 2.0    22
1.4.2 Beyond Web 2.0 – Music and Consumer Cloud Mobility    23
i. Case Study: Amazon Cloud Drive/Cloud Player    23
ii. Case Study: Google Music    24
iii. Case Study: Apple iCloud    24
Figure 1.2: Apple MobileMe    24
iv. Case Study: RealNetworks Unifi    25
Figure 1.3: Unifi Screenshot    26
1.5 Tiers of a Cloud    26
Figure 1.4: Schematic of Basic Cloud Computing Stack    26
1.5.1 Clients    27
i. Thin Clients    27
a. Case Study: Soonr    27
ii. Browser-based Applications    27
a. Case Study: Mozilla Firefox    28
iii. The Future: Browser or Thin Client?    28
1.5.2 Software as a Service (SaaS)    28
i. Case Study: Funambol    28
1.5.3 Platform as a Service (PaaS)    30
i. Case Study: salesforce.com & Force.com    30
1.5.4 Cloud Infrastructure – The Provision of Computing Resources    31
i. Case Studies: Amazon Web Services    31
Figure 1.5: Bandwidth Consumed by Amazon Web Services  Compared to Bandwidth Consumed by Amazon Global Websites    32
1.6 Drivers of Mobile Cloud Computing    32
1.6.1 Launch of HTML5    32
1.6.2 Traditional MNO Revenues are Plateauing and Costs Rising    33
Figure 1.6: The “Nightmare” Scenario:  Global MNO Service Revenues vs. Capex/Opex ($bn) 2010-2016    33
1.6.3 Storage Costs Are Falling    33
1.6.4 The Rising Adoption of Smartphones has increased the scale of data stored on the device…    34
1.6.5 …and the Theft of Smartphones is on the Increase    35
Table 1.1: Top 20 US Cities for Mobile Phone Loss/Theft    35
i. Case Study: The OMA and Smartcard Web Server    35
1.6.6 The Rise of the Tablet    36
1.6.7 The Rise of the Mobile Workforce    36
1.6.8 Cloud is Multiplatform    37
1.6.9 Growing Need for Interactive Solutions    37

A Cloud-Based Ecosystem?

2.1 An Ecosystem in Transition    39
2.1.1 Apps Stores have Eroded the Role of Operator as Gatekeeper    39
Figure 2.1: Traditional Value Chain of Mobile Content    40
Figure 2.2: Mobile Content Value Web    41
Figure 2.3: App Store Value Chain    41
2.1.2 Cloud Continues the Erosion    42
Figure 2.4: Cloud-Based App Delivery Model    42
2.2 Opportunities across a Cloud-Based Ecosystem    43
2.2.1 Opportunities for Operators    43
i. Operator as Cloud Provider: Infrastructure as a Service    44
ii. Operator as Cloud Provider: Platform as a Service    45
a. Consumer Case Study: Vodafone 360    46
Figure 2.5: Vodafone 360 H1 by Samsung    47
b. Consumer Case Study: Optus    47
c. Case Study: Cell C MyTools    48
d. Enterprise Case Study: Verizon Wireless/Sierra Wireless    48
Figure 2.6: Sierra Wireless AirVantage Solution    48
e. The Intercloud Opportunity    49
Figure 2.7: The Concept of the Intercloud    49
iii. Underlying Business Models    49
a. The Rise of the Double-sided Model    50
Figure 2.8: PaaS Double-Sided Business Model    51
2.2.2 Opportunities for OTT Players    52
i. Case Study: Best Buy    52
2.2.3 Opportunities for Developers    53
2.2.4 Opportunities for Security Providers    55
i. Case Study: McAfee    55
Figure 2.9: McAfee Cloud Security Platform    56
ii. Case Study: Clearswift    57

Cloudbursting? Threats to the Mobile Cloud

3.1Data Security    59
3.1.1 Secure Access    60
i. Security in the Cloud: The Enterprise Perspective    61
ii. Security in the Cloud: The Consumer Perspective    63
a. Secure Billing in the Consumer Space    63
iii. When the Consumer Device Meets the Enterprise    64
3.1.2 Secure Storage    64
iv. Where Is My Data?    65
v. Who Has Access To My Data?    65
3.2 Identifying the ROI    66
3.2.1 Do I Need Tablets?    66
3.3 Connectivity    68
Table 3.1: Selected US/UK Data Outages 2010-2011    68
3.4 Data Roaming Charges    69

Market Forecasts – Enterprise Applications

4.1 Introduction    71
4.2 Methodology    71
Figure 4.1: Forecast Methodology for Cloud-Based Enterprise Revenues    72
4.3 Mobile Cloud-Based Enterprise SaaS Devices    73
4.3.1 Enterprise Mobile Smart Device Base    73
Figure 4.2: Enterprise Mobile Smart Device Base (m)  Split by Smartphone and Tablet 2011-2016    73
Table 4.1: Enterprise Mobile Smart Device Base (m)  Split by Smartphone and Tablet 2011-2016    73
Figure 4.3: Enterprise Mobile Smart Device Base (m) Split by 8 Key Regions 2011-2016    74
Table 4.2: Enterprise Mobile Smart Device Base (m) Split by 8 Key Regions 2011-2016    74
Table 4.3: Percentage of Enterprise Mobile Smart Devices  Subscribed to Cloud-Based Enterprise Applications by 8 Key Regions 2011-2016    75
Figure 4.4: Total Number of Enterprise Mobile Smart Devices (m) Subscribed to Cloud-Based Enterprise Applications by 8 Key Regions 2011-2016    75
Table 4.4: Total Number of Enterprise Mobile Smart Devices (m) Subscribed to Cloud-Based Enterprise Applications by 8 Key Regions 2011-2016    76
Table 4.5: Uplift Factor to Account for Consumer-Purchased Devices  Subscribed to Cloud-based Enterprise Applications - Global 2011-2016    76
Figure 4.5: Total Number of Mobile Smart Devices (m) Subscribed to Cloud-based Enterprise Services by 8 Key Regions 2011-2016    77
Table 4.6: Total Number of Mobile Smart Devices (m) Subscribed to Cloud-based Enterprise Services by 8 Key Regions 2011-2016    77
4.4 Mobile Cloud - Enterprise Applications Revenues    78
4.4.1 Cost per Subscription    78
Table 4.7: Cloud-Based Enterprise Services - Cost Per Annual Subscription ($)  per Device Split by 8 Key Regions 2011-2016    79
4.4.2 Total Revenues    79
Figure 4.6: Revenues ($m) from Mobile Enterprise Cloud-Based Services  Split by 8 Key Regions 2011-2016    79
Table 4.8: Revenues ($m) from Mobile Enterprise Cloud-Based Services  Split by 8 Key Regions 2009-2014    80

Market Forecasts: Consumer Cloud-Based Mobile Services

5.1 Introduction    81
5.1.1 Categories of Consumer Cloud Application    81
5.2 Mobile Cloud Music & Video    82
Figure 5.1: Global Broadband Households (m) Split by 8 Key Regions 2011-2016    82
Table 5.1: Global Broadband Households (m) Split by 8 Key Regions 2011-2016    83
Table 5.2: Percentage of Broadband Households  Paying for Cloud-Based Music/Video Services    83
Figure 5.2: Broadband Households (m) Paying for Cloud-based Music/Video Content  Split by 8 Key Regions 2011-2016    84
Table 5.3: Broadband Households (m) Paying for Cloud-based Music/Video Content  Split by 8 Key Regions 2011-2016    84
Table 5.4: Percentage of Paid Cloud Music/Video Users Who Access Content  Via Smart Devices By 8 Key Regions 2011-2016    85
Figure 5.3: Paid Cloud Music/Video Mobility Users (m) Split By 8 Key Regions 2011-2016    85
Table 5.5: Paid Cloud Music/Video Mobility Users (m) Split By 8 Key Regions 2011-2016    86
Figure 5.4: Average Monthly Spend Per User ($) on Cloud Music/Video Services  Split by 8 Key Regions 2011-2016    86
Table 5.6: Average Monthly Spend Per User ($) on Cloud Music/Video Services  Split by 8 Key Regions 2011-2016    87
Figure 5.5: Total Annual Spend ($m) by Mobile Users of Cloud Music/Video Services  Split by 8 Key Regions 2011-2016    87
Table 5.7: Total Annual Spend ($m) by Mobile Users of Cloud Music/Video Services  Split by 8 Key Regions 2011-2016    88
5.3 Mobile Cloud Games    88
Figure 5.6: Number of Consumer Smart Device Owners (m) 2011-2016    89
Table 5.8: Number of Consumer Smart Device Owners (m) 2011-2016    89
Table 5.9: Percentage of Connected Smart Device Owners  Who Subscribe to Cloud-based Games    90
Figure 5.7: Number of Connected Smart Device Owners (m)  who Subscribe to Cloud-based Games Split by 8 Key Regions 2011-2016    90
Table 5.10: Number of Connected Smart Device Owners (m)  who Subscribe to Cloud-based Games Split by 8 Key Regions 2011-2016    91
Figure 5.8: Average Monthly Spend ($) Per Cloud Mobile Games User  Split by 8 Key Regions 2011-2016    91
Table 5.11: Average Monthly Spend ($) Per Cloud Mobile Games User  Split by 8 Key Regions 2011-2016    92
Figure 5.9: Total Spend ($m) on Cloud-based Mobile Games  Split by 8 Key Regions 2011-2016    92
Table 5.12: Total Spend ($m) on Cloud-based Mobile Games  Split by 8 Key Regions 2011-2016    93
5.4 Mobile Cloud Social Media    93
Figure 5.10: Number of Consumers (m) Capable of Accessing the Internet  via Mobile Devices Split by 8 Key Regions 2011-2016    94
Table 5.13: Number of Consumers (m) Capable of Accessing the Internet  via Mobile Devices Split by 8 Key Regions 2011-2016    94
Table 5.14: Percentage of Consumers That Access Cloud-Based Social Media via Mobile  Split by 8 Key Regions 2011-2016    95
Figure 5.11: Number of Consumers (m) that Access Cloud-based Social Media via Mobile  Split by 8 Key Regions 2011-2016    95
Table 5.15: Number of Consumers (m) that Access Cloud-based Social Media via Mobile  Split by 8 Key Regions 2011-2016    96
Table 5.16: Percentage of Cloud-based Mobile Social Media Users  Who Purchase Virtual Goods/Premium Content Split by 8 Key Regions 2011-2016    96
Figure 5.12: Number of Cloud-based Mobile Social Media Users (m) who Purchase Virtual Goods/Premium Content Split by 8 Key Regions 2011-2016    97
Table 5.17: Number of Cloud-based Mobile Social Media Users (m)  who Purchase Virtual Goods/Premium Content Split by 8 Key Regions 2011-2016    97
Figure 5.13: Average Annual Consumer Spend ($) on Cloud-based Social Media  Virtual Goods/Premium Content Split by 8 Key Regions 2011-2016    98
Table 5.18: Average Annual Consumer Spend ($) on Cloud-based Social Media  Virtual Goods/Premium Content Split by 8 Key Regions 2011-2016    98
Figure 5.14: Total Consumer Spend ($m) on Mobile Cloud-based Social Media  Virtual Goods/Premium Items Split by 8 Key Regions 2011-2016    99
Table 5.19: Total Consumer Spend ($m) on Mobile Cloud-based Social Media  Virtual Goods/Premium Items Split by 8 Key Regions 2011-2016    99
5.5 Mobile Cloud Storage and Security    100
Figure 5.15: Consumer Spend ($m) on Mobile Cloud Security & Storage Solutions  Split by 8 Key Regions 2011-2016    100
Table 5.20: Consumer Spend ($m) on Mobile Cloud Security & Storage Solutions  Split by 8 Key Regions 2011-2016    100
5.6 The Global Market for Consumer Cloud-based Mobile Services    101
Figure 5.16: Global Spend ($m) on Consumer Cloud-based Mobile Services  Split by 4 Categories 2011-2016    101
Table 5.21: Global Spend ($m) on Consumer Cloud-based Mobile Services  Split by 4 Categories 2011-2016    101
Figure 5.17: Global Spend ($m) on Consumer Cloud-based Mobile Services  Split by 8 Key Regions 2011-2016    102
Table 5.22: Global Spend ($m) on Consumer Cloud-based Mobile Services  Split by 8 Key Regions 2011-2016    102

Companies Referenced

Aepona, Amazon.com, AOL, Apple, AT&T, Bath Centers, BBC, Best Buy, Carling, Castile Ventures, Cell C, China Mobile, Cisco, Clearswift, Clearwire, Colt, Cortexica, Danger, Deutsche Telekom, Dropbox, Easynet Global Security, EMI Group, Ericsson, Escape Media Group, Facebook, fonYou, Foursquare, F-Secure, Funambol, Geek Squad, Google, Heroku, HIG Ventures, Hootsuite, Host Analytics, HP, HTC, Intel, Juniper Networks, KKBOX, KnowledgeTree, LG, LoudCloud, Magnolia Hi-Fi, McAfee, Microsoft, mixi, Mozilla, MTS, MySpace, Napster, NetSuite, Nexit Ventures, Nokia, Norton, NTT DoCoMo, Ocado, OnLive, Optus, Orange, Pacific Sales Kitchen, Palm, Pandora Media, Quora, RealNetworks, Reddit, RIM, Safenet, Salesforce, Samsung, Savvis, Sierra Wireless, SingTel, Slacker, Smart, Sony, Soonr, Sound of Music, Speakeasy, Sponge, Spotify, Sprint, Symbian, TechTarget, Telecom, Telefonica, Telefonica O2, Telenor, The Carphone Warehouse, The Golden Mouse, T-Mobile, Trend Micro, T-Systems, Twitter, Universal, Verizon Business, VMware, Vodafone Australia, Vodafone Germany, Vodafone Global, Vodafone Spain, Walden International, Walmart, Warner, WiMAX, Yahoo!, YouTube, Zapatec, Zynga

Extra Info

‡ 8 key regions includes:

North America, Latin America, Western Europe, Central & Eastern Europe, Far East & China, Indian Subcontinent, Rest of Asia Pacific and Africa & Middle East.