A new way of thinking

Karl Whiteloc/Stratecast
27 Nov 2012

CSPs supply a number of functions that many enterprises only dream about such as: highly available multi-technology networks; agreements with other network operators for near ubiquitous worldwide connectivity; relationships with suppliers of critical IT technology; and individual knowledge of the billing and customer support relationships with millions of customers.

Most deliver or are planning to deliver non-traditional network-based services to larger enterprise and smaller business customers. These service packages can include web hosting, off-site storage, VPN, and/or a number of SaaS-based applications bundled with on-demand infrastructure services. But there is so much more they can provide for multiple industries that will significantly increase revenue for the global CSP community.

The cross-industry 2.0 business model allows a CSP to enhance the goods and services produced from many organizations, in multiple verticals, with those of the communications marketplace, to create new or improved service offers. This model embodies an ecosystem of partner-suppliers, the CSP and end-user customers. Yet, to take advantage of the opportunities that are now available, a CSP must fundamentally change its business model from a provider of technology-based services -- voice, data, and bandwidth access -- to a horizontally-focused federator of services developed and enabled by companies across multiple industries.

How it works

The cross-industry 2.0 business model consists of multiple working layers driven by both supplier relationships and strategic partnerships. Central to this concept is a concept-to-cash monetization and management platform focused on the enablement of partner capabilities and not the internal broadband connectivity business and operations processes of the network provider. Each layer of this model is fueled by an always-on and always-available broadband connection.

The supplier layer is at the base of the model. Here suppliers come together to create new "service packages" involving industry-specific or cross-industry content. For example, suppliers can be application developers, retailers, data storage providers, content owners, solution aggregators and logistics suppliers. To turn a service package idea into reality, suppliers work with the CSP and its business technology partners to describe how such services need to work, and to define functional dependencies. These relationships can cost-effectively create products that virtually use the capabilities of multiple suppliers to collaboratively satisfy a business challenge.

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