Cross Network OTT Carrier Messaging Provision Scorecard: Movius Connect. Introduction 1
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1 Connected Home, CH 2-5 Cross Network OTT Carrier Messaging Provision Scorecard: Movius Connect Introduction 1 Among the latest challenge for network operators is the delivery of over-the-top (OTT) services by third parties over the operator s broadband networks. This competitive threat, with the deployment of IP-capable LTE networks, extends even into the operator s wireless networks. OTT services, by their very nature threaten the operator on a number of fronts. Obviously, this includes service revenue, where OTT service providers can capture premium service revenue that would normally go to the operator. However, the threat is even more acute, when one considers that OTT services are much quicker to develop and deploy; enabling an OTT vendor to identify a niche market and move to address it before an operator can even begin to reconfigure its network to provide the service conventionally. According to Mike Jude, Frost & Sullivan Program Manager for Connected Home, Movius CONNECT provides an important capability to network operators seeking to enter the OTT service provision space; one that enables OTT communication service delivery across any network or device. Now, however, technology vendors are moving to provide operators the means to deliver their own OTT services. Movius, which has been in the business of building communication solutions since the 1990s, has introduced its Communications Applications Framework Engine (CAFÉ) platform that enables the delivery of OTT services over any broadband connection, including wireless. In particular, its CONNECT Advanced application, which runs on the CAFÉ platform, provides a wide variety of voice, video and data communication features that can serve as a focus point for social networking and collaboration over any connected device, including cell phones, smartphones, conventional telephones, personal computers, set top boxes and tablets, though a simple and intuitive user interface. The important distinction, though, is that the CONNECT service offerings are completely virtual; enabling the delivery of communications within the home network as well as across the Internet. And this capability, integrated into the existing services of network operators, enables them to compete in the OTT space at more than parity with existing OTT service providers, while leveraging and adding value to their existing network investment. Unlike the closed OTT communities of some operators, where communication is limited to the people who have the service, CONNECT Advanced is based on the premise that operators should embrace other OTT networks and leverage their deployments and communities; thereby creating not only an internal community but allowing community members to interact from the same application with members of other OTT communities, as well as allow group communication across them. 1 Please note that the insights and opinions expressed in this assessment are those of Stratecast and have been developed through the Stratecast research and analysis process. These expressed insights and opinions do not necessarily reflect the views of the company executives interviewed. August 2012 Stratecast Frost & Sullivan, 2012 Page 1
2 Ranking the Offering In the context of tracking the connected home market, Stratecast conducts annual consumer preference surveys. These surveys allow us to construct a matrix for consumer value assessment that we can use to evaluate new products and services offered to the connected home market. The outcomes of these evaluations are used to generate a scorecard that represents our estimation of the degree of resonance with the connected home market consumer. We applied the scorecard to the Movius CONNECT offering using the primary value factors of: appeal, price, support for home networking, content delivery and management, resonance with communication services, and support for telemetric services. Each factor is evaluated on a ten point scale; and the following summarizes our findings. Appeal Appeal relates to the degree to which a new offering integrates with other popular consumer communications services, as well as how easy it is to adopt, including the quality of customer support and how easy it is to use once it is implemented. Movius CONNECT, by virtualizing the communication environment, enables services such as voice telephony, video telepresence and any other communication capability to follow the user, regardless of the device the user is utilizing or network the user is connected to. As a result, CONNECT rated a 6.4 in this area. Price Price relates to the price that a consumer would find acceptable for a new connected home service. It is determined by comparing the new offering s price to early adopters willingness to pay for similar services. The consumer cost to adopt this technology is effectively zero, while its monthly cost can be priced substantially lower than conventional services; consequently the rating in this area is 10. Home Network Home Networking is a primary value determinant in the connected home space, and refers to the degree to which a new offering enhances the utility of the home network. Movius CONNECT is not a home networking technology and, consequently, would not receive a rating in this area. Nevertheless, it is notable that by providing a capability to manage the access to various forms of content and communications between multiple networked devices, it rates higher than a zero in this area. By enhancing the home networking space, it receives a 4. Content Content refers to the degree to which a new offering enhances or enables content delivery and management in a networked environment. Movius CONNECT, while not a traditional content management system, nevertheless allows the consumer to manage a variety of personal content arising from communications: voic , IMs, media attachments, etc. As a result, this content management capability garners CONNECT a score of 4. Communication Services Communication Services refers to the degree to which a new offering operates with each of the traditional quad play features (voice, video, Internet and wireless) and how well it integrates across August 2012 Stratecast Frost & Sullivan, 2012 Page 2
3 all of the service modalities. Movius CONNECT enables communication services across wireless and broadband connections as well as conventional TDM connections. It also can serve as a communications hub that unifies calling and data access features across multiple platforms, providing a unified calling experience for all consumers. It therefore enables voice communications, video communications such as telepresence, and wireless communications, all with a high degree of integration. As a result, it rates an 8 in this area. Telemetry Telemetry refers to the degree to which a new offering is telemetric; that is, provides information on the condition of the physical space in the connected home. Movius CONNECT is not a telemetric service, so it is not evaluated in this area. The Scorecard When the results of the ranking are applied to the scorecard, the following table is generated. As shown in the diagram, Movius CONNECT exceeds consumer expectations in four out of six of the variables. It meets expectations in one of the areas and it is not rated in one of the areas. This gives it a composite score of 161% and indicates that it would likely rise significantly above the background noise in the connected home market. Movius CONNECT Connected Home Score Telemetry Appeal Price Consumer Expectations Product or Service Score Content Home Network Communication Services Movius CONNECT Score = 161% Source: Stratecast August 2012 Stratecast Frost & Sullivan, 2012 Page 3
4 Stratecast The Last Word Movius CONNECT enables two important capabilities for the network operator. It allows the operator to engage in OTT service delivery, providing an important competitive response to the emerging OTT vendor community. It also virtualizes important components of the consumer service quad play, making them portable and enabling a tighter integration with other connected home services and technology. Stratecast believes that Movius CONNECT, if marketed appropriately, will find a significant number of interested consumers. Mike Jude, Ph.D. Program Manager Connected Home Stratecast Frost & Sullivan mjude@stratecast.com August 2012 Stratecast Frost & Sullivan, 2012 Page 4
5 About Stratecast Stratecast collaborates with our clients to reach smart business decisions in the rapidly evolving and hypercompetitive Information and Communications Technology markets. Leveraging a mix of action-oriented subscription research and customized consulting engagements, Stratecast delivers knowledge and perspective that is only attainable through years of real-world experience in an industry where customers are collaborators; today s partners are tomorrow s competitors; and agility and innovation are essential elements for success. Contact your Stratecast Account Executive to engage our experience to assist you in attaining your growth objectives. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting, and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 40 offices on six continents. For more information about Frost & Sullivan s Growth Partnership Services, visit August 2012 CONTACT Stratecast Frost & US Sullivan, 2012 Page 5 For more information, visit dial , or inquiries@stratecast.com.
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