skip to main content
Close Icon

In order to deliver a personalized, responsive service and to improve the site, we remember and store information about how you use it. This is done using simple text files called cookies which sit on your computer. By continuing to use this site and access its features, you are consenting to our use of cookies. To find out more about the way Informa uses cookies please go to our Cookie Policy page.

Global Search Configuration

Ovum view

Summary

The personal cloud market is expected to grow rapidly, despite already being crowded. Large Internet and consumer electronics companies such as Microsoft, Google, Amazon, and Apple are all vying for market share, as are specialists such as Dropbox and Box. In addition to being highly competitive, personal cloud is a tough business from which to generate direct revenues. The combination of intense competition and low direct revenue opportunities will prompt many telcos to ask themselves why they should bother to invest.

Telcos cannot afford to leave personal cloud to OTT players

As the central depository for an increasing proportion of our personal data, media, and content, the personal cloud will become an essential element of the digital consumer lifestyle. As high-speed broadband access becomes more widespread, everything will move to the cloud. Personal data, content, media, information, and communications will all be stored, accessed, shared and manipulated in the cloud. They will be accessed by a range of applications and available to users whenever and wherever they wish. The supplier of the personal cloud will therefore play a central role in our digital lives; by not investing in this space, telcos risk leaving OTT players free to dominate it.

Nonetheless, the competition from the big OTT players means that investing in personal cloud can be a daunting prospect for telcos, especially tier-2 players. One option is white-label solutions that allow them to quickly and cost-effectively develop and launch personal cloud solutions; these are already on the market and are trusted by a number of telcos.

Partnering with OTT players is also a route already taken by some. Although this option dilutes the telco’s own brand to some extent, a number of advantages make such alliances worth considering. In addition, telcos have a number of key attributes, such as 24/7 customer service, consumer trust, existing billing relationships, and a wide portfolio of access, communication, and media services that they can leverage to differentiate their services.

With so many free options readily available, it is clear that it will always be difficult to make money from independent cloud storage solutions. However, telcos can tie their offerings into wider bundles of value-added services that, if positioned correctly, will both drive revenues and reduce churn.

The key to success, however, is customer engagement. Consumers may adopt services because they are free or come as part of a bundle, but if they do not regularly use them then they will not be engaged with the service and will fail to see the true value. To increase engagement, telcos must make personal cloud about more than storing the odd photo or document. They must open their cloud solutions, ensuring that they work with a greater number of their own services and applications as well as those of third-party companies.

For further insight into the personal cloud market and Ovum’s recommendations for telcos, please see the report Personal Cloud: Telco Strategies.

Appendix

Further reading

Personal Cloud: Telco Strategies, TE0003-000842 (March 2015)

Author

Michael Philpott, Practice Leader, Consumer Services

michael.philpott@ovum.com

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

+44 (0) 207 551 9047 - Operational from 09.00 - 17.00 UK time

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 7770704398 or email us at pr@ovum.com

Contact marketing - marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now