Washington’s Cloud Attempts Reveal Lessons for All of Us – First Up, People

Washington’s Cloud Attempts Reveal Lessons for All of Us – First Up, People

Sure the Federal Government has some pretty unique aspects when it comes to adopting the cloud. Don’t let those obscure the key lessons that apply to all of us. Let’s first focus on people. Anybody remember Vivek Kundra? Back in 2009/2010, as the first CIO
How to Improve the Backup Success Rate of Data Centers?

How to Improve the Backup Success Rate of Data Centers?

Improve Backup Success Rate According to industry analysts, a significant number of backup jobs (from 5 to 25%) are failing across various tiers of data centers. This impacts datacenters heavily on revenue loss, SLA-based penalties, and customer experience. Furthermore, loss of important data alienates customers

CONTRIBUTORS

Cloud’s Mighty Role - Why Custom Development is the Next Big Thing (Again)

Cloud’s Mighty Role – Why Custom Development is the Next Big Thing (Again)

Custom Development is the Next Big Thing Today, software is playing a very important role in performing basic business processes ...
Cloud Services Providers - Learning To Keep The Lights On

Cloud Services Providers – Learning To Keep The Lights On

The True Meaning of Availability What is real availability? In our line of work, cloud service providers approach availability from ...
The Digital Economy: Embracing The Latest Technological Advancements

The Digital Economy: Embracing The Latest Technological Advancements

The Digital Economy As you would expect, for any business to achieve successful growth and meet its objectives, it must ...

RECENT NEWS

Capgemini in Gartner Magic Quadrant

Capgemini in Gartner Magic Quadrant

Paris, November 9, 2018 – Capgemini, today announced that Capgemini (Prosodie) has been positioned as a Leader by Gartner in its ...
Batteryless smart devices closer to reality

Batteryless smart devices closer to reality

Researchers at the University of Waterloo have taken a huge step towards making smart devices that do not use batteries ...
The New Industrial Revolution – According to the WSJ

The New Industrial Revolution – According to the WSJ

The insert in today’s US print edition of the Wall Street Journal is called The New Industrial Revolution. The paper updates ...
Pressure grows on Zuckerberg to attend Facebook committee hearing

Pressure grows on Zuckerberg to attend Facebook committee hearing

Australia, Argentina and Ireland join UK and Canada in urging Facebook CEO to give evidence to parliaments Parliamentary committees from ...
Amazon picks New York City, Virginia for $5 billion new headquarters

Amazon picks New York City, Virginia for $5 billion new headquarters

SAN FRANCISCO (Reuters) - Amazon.com Inc (AMZN.O) said on Tuesday it will build offices for up to 25,000 people in ...
Max Contributor

Why a White Label Cloud for Emerging Economies

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

Max Azarov

Max is the President at Cloudike, a white label cloud solution for MSPs and OEMs. With a strong background in software and previous stops at LG and Google, Max envisions cloud as the next big feature for MSPs to offer subscribers.

View Website

Cloud Community Supporters

(ISC)²
Cisco
SAP
CA Technologies
Dropbox

Cloud community support comes from (paid) sponsorship or (no cost) collaborative network partnership initiatives.