White Label Program for Emerging Economies

Max Azarov

White Label Cloud 

Given our starting point, one of the inquiries we field every now and then is: ‘why did we opt to go SaaS?’ By not going the B2C route (like Dropbox and OneDrive), we laid out what we believe to be our roadmap to success. With an eye for emerging economies, I’ll take you through the process of why we chose the SaaS route.

What is White Label?

In the mobile carrier cloud space, one word you will hear tossed around quite a bit is ‘white label’. What white label means for us is that mobile carriers can choose to brand our cloud service as their own. The term has roots in the music industry (for those wondering), and basically it’s an umbrella term for products you can brand as your own.

For reference, here’s our cloud offered as Vestel’s Vestel Cloud. By design, you will not find one hint of Cloudike on the website because the cloud has been branded and marketed as if it were Vestel’s own.

When we thought about how we wanted to proceed, we saw telecoms as our best shot at building a sustainable business. For us, these were the points that helped us favour a B2B2C model rather a B2C:

  • For a B2C product in emerging markets, new market entry is a very difficult feat: Everything from local partners to marketing has to be done from the ground up – even finding someone on the ground to manage all these things is a hurdle.
  • Mobile carriers have an existing customer base: This means we can bypass any need to spend tremendous capital on marketing, ads, and other methods to acquire users.
  • ARPU in emerging markets is not particularly high: E-commerce still a relatively new concept for many in the emerging market and given lower incomes, consumers are not racing to spend money online. With mobile carriers however, spending on cloud services could instead be bundled with their mobile phone billing; a process most consumers are already familiar with.

Why the Emerging Market?

From a market standpoint, we found that mobile carriers in the US and Western Europe had adopted cloud services already and that companies were fighting tooth and nail for opportunities.

On the other hand, we examined emerging markets and saw the increasing rates of mobile and internet connectivity. Both of which were very promising.

If you take a look at this report by the Asia Cloud Computing Association in 2016, nearly every emerging economy has some variation of a Government assistance program that aims at increasing web infrastructure and connectivity. Given research that points towards connected users naturally inclining towards cloud services, we knew it was only a matter of time before these markets reach potential.

Take into consideration that one of the few entities in emerging markets that can afford data centres to install cloud are mobile carriers. If you can put two and two together, you can see our thought process three years ago.

Our Results

So when you factor in the new market entry requirements plus the infrastructure hurdle, the logical direction for us was a cloud platform for mobile carriers.

However, unlike B2C or even SMB B2B, signing a mobile carrier to a service is a far more difficult endeavour. As you can imagine, entities with 100,000+ customers are not going to be easy to sway.

business-ny

Even as we have refined our pitch to mobile carriers on how to best roll out our service, signing a client is still a ~8 month process. Even with references from other telecoms and major OEMs, there are still many hoops we have to jump through before we have everything ready to go for mobile carrier customers. This includes everything from software security tests, implementation timeline, and of course the contract negotiations themselves.

That said, we take the wait time as a cost of doing business. Given our product and where we like to operate, we have no doubt that our way is the most secure and success-bound path.

Status Now

I think if there’s one thing we’ve been sure of, it’s the fact that our built three years ago, was the right one. We’ve found the mobile carriers who’ve found a need for cloud in emerging markets and we’ve discovered that trends such as the adoption for cloud, has proven true as evident by our business pipeline.

While we still believe our product has many innovative upgrades to come, we feel that SaaS in emerging markets model thus far has been the right one.

By Max Azarov

Episode 3: The Bottomless Cloud – An Interview with David Friend of Wasabi

Why data is not “the new oil” and why “cloud” means more than we think ...

Episode 4: The Power of Regulatory Compliant Cloud: A European Case Study

An interview with Johan Christenson, CEO of CityNetwork With the world focusing on the big ...

Episode 6: Cloud Migration: Why It’s More Important Than Ever

The Importance of Cloud Migration Moving fully to the cloud is still a concern for ...
Or Lenchner

Seeing what consumers see: opening the internet with IPPN

Opening the internet with IPPN To remain competitive and profitable, all brands must be data-gatherers. This is part of any brand’s daily routine, but a ...
Mark Kirstein

2020 Market Predictions: Cloud-Services Growth Will Continue

2020 Tech Market Predictions The beginning of every new year is a healthy time for businesses to survey the cloud landscape, reflect on the market ...
Tunio Zafer

Questions To Ask Every Cloud Storage Provider

Cloud Storage Provider Questions As with many new technologies, attitudes toward cloud storage vary. Telephones were immobile; wearables perhaps unwarranted. And now, the global cloud ...
Mark Casey Apcela

Why CloudHubs are an Important Ingredient to Optimizing Performance of Cloud-based Applications

CloudHubs - Optimizing Application Performance It may seem hard to believe, but even in this day and age, there are still some enterprises that are ...
Steve Prentice

Episode 5: How the Pandemic is Changing Business and the Cloud

An Interview with Ed Dryer of Steadfast With the global pandemic wreaking havoc on business and society, everything is changing. Ed Dryer, Senior Technology Strategist ...
Bill Talbot

How IT Operations Can Survive and Thrive in a Multi-cloud World

IT Operations Can Thrive in a Multi-cloud World IT operations teams are contending with the reality that growing volumes of workloads are running across multiple ...
Data Issues DBMS

Advantages of Database Management Systems (DBMS)

What Is A Database Management System (DBMS)? (Updated: 04,22,2020) A Database Management System, or DBMS, allows its users to create, read, delete and update data within ...
Karen Gondoly

Lessons Learned When Moving to the Cloud

Moving to the Cloud Lessons At Leostream, we work with organizations around the globe that are moving workloads to the cloud. These organizations span a ...
David Gevorkian

How to Apply Website Accessibility in UX and How to Achieve Better User Experience

Design Tweaks: Apply Website Accessibility in UX In this current digital age, websites have become more complex because of the introduction of various aesthetic designs ...
Sam Samarasekera

Why AWS’s building block structure can benefit SMBs

AWS’s Structure Can Benefit SMBs With every year that passes, the popularity of cloud technology increases as more businesses choose to make the move. This ...