Virtual / Vertical Service Provider ( VSP )

SAMENA - Dubai
April , 2008

Tarek Jundi
Regional Manager UAE

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Agenda

ICT for Economic & Social Development

Why VSP?
VSP Definition & Business Model
Q&A
Detailed Go To Market Slides

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

ICT for Economic & Social

Development

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

Economic & Social Development

Wealth Generation

Appropriate Government & TRA initiatives

are the most determining success factor.
Wealth
Sustainability

ICT

Revenue
Generation
Media

N
NG P
S

Advanced
Logistics

Tourism

Equity & Quality

Initiative
Public
Education
Public
Safety

One Gov
Shared
Services

Presentation_ID

Innovation
Centers

SME

Private
Health &
Education

n
SP latio
Public
u
eg
r
Health
De

Sea Port,
Airport &
Transport

2006 Cisco Systems, Inc. All rights reserved.

P els
xS odFinancial
M
Services
w
e
N

Enhance
Government
E Services

Cisco Confidential

R&D

Create Globally
Competitive
Sectors

Engage
Private Sector
Public Private People Partnership

Time to fruition
Prepared by IBSG Emerging Markets

Why VSP?

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

Market Opportunity
From and End User service perspective
SP

VSP
ex.: Video Surveillance
Access Control

ex.: voice

Introduction/growth

Maturity

ex.: FAX

decline

Product life cycle

(high volume low touch)

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

VSP - Virtual / Vertical Service Provider

Innovative business partnership model
Shifts the selling philosophy from selling bandwidth to selling seats

What a VSP is:

Virtual Network-less SP
Value selling proposition, focusing on
innovation, Quality of service and Superior
Customer Experience
What VSP is NOT:
Traditional Virtual Network Operator (VNO) that compete with SPs purely on price.
Over The Top SP (OTT), that may have similar architecture as VSP, but that focus
its business model on Ad revenues rather than value.

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

Market Opportunity
WHO
Service Providers, System integrators
Other entities (e.g. Real Estate Companies) traditionally not providing
telecommunication services

WHAT (market needs)

SPs need new business models to offset the profitability decline especially from
traditional voices services. SPs need also more revenues to accelerate their move to
next generation networks.
SPs, especially challengers, are looking to gain market share
New market opportunities in ICT services arena to move beyond just
communications. (e.g. e-government programs and real estate services)
Opportunity to add value to service offerings thru specific tailoring to the needs of
vertical Markets (move up value-chain). One stop shop proposition

HOW
VSP as the business model to capture the new market opportunities in a timely
and sustainable manner

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

VSP Definition &

Business Model

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

VSP Definition
VSP

Focus on Application and Services not Networks.

A VSP may not own any Network infrastructure, but
relies on co-operative IP-based Networks to deliver
its services (it is not Google)

Verticals

Core competencies

Applications

Brand/Marketing,
Customer Service (end to end service management),

Services

knowledge of/Access to Vertical markets.

Non traditional Go To Market approach

Control

Innovative Business Models

Eco-system of Partnerships to create and deliver

services
Outsourcing and out-tasking key to capture market
opportunities

Network
Transport
SP

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

10

VSP Product Proposition

Menu a la Carte
BUSINESS OPTIONS

FINANCIAL OPTIONS

OUTTASKING OPTIONS

Case Study

CISCO Capital

Sales and Marketing

CISCO Partner

TECHNOLOGY OPTIONS

Service development and

launch

Business Plan

CRM

Value Proposition

Customer provisioning and

CPE installation

OSS/BSS

Delivery Model
Service Reference Arch

Billing & Collection

DEPLOYMENT OPTIONS
Infrastructure Implementation

Envision/Design
Phase

Customer service and

technical support
NOC/SOC/VOC

Implementation
Phase

Operative
Phase

time
Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

11

Real Estate Market Opportunity

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Finance

Telecom Network

Manufacturing

Voice (Telephony)
Data (Internet Access)
Video (IPTV)

Oil & Gas

Sports & Ent.

Advanced Services
On-Demand Services
Personalized Services
Next Generation VVD Services
Managed ITC services
Data Center Services
Basic Regulated Services

Government

SP Service Delivery Platform

Retail

Hospitality

Healthcare

Education

Commercial

Residential

One Offer

One Offer
RE Developer Service Delivery Platform
Non-Regulated Real Estate Specific Services
that can be offered by property owners
Real Estate Services
Security & Access Control Services
Facility Management Services
Property Management Services
Concierge Services
Asset Tracking and Location Based Services

Developer Network
Prepared by IBSG Emerging Markets

12

VSP Services Platform Vision

Finance

Manufacturin
g

Oil & Gas

Sports & Ent.

Government

Retail

Hospitality

Healthcare

Education

Commercial

Residential

Shared, Public and Community Services

One Offer

VSP Service Delivery Platform

Advanced Services
On-Demand Services
Personalized Services
Next Generation VVD Services
Managed ITC services
Data Center Services
Basic Regulated Services

Voice (Telephony)
Data (Internet Access)
Video (IPTV)

Non-Regulated Real Estate Specific Services

that can be offered by property owners
Common Real Estate Services
Security & Access Control Services
Facility Management Services
Property Management Services
Concierge Services
Asset Tracking and Location Based Services

Telecom Utility Network

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

13

VSP Value Creation

Property Manager
Manager
Property
OPEX reduction
reduction
OPEX
End User
User Experience
Experience
End
Additional revenues
revenues
Additional

Developer
Developer
Building Lifecycle
Lifecycle
Building
$ Value
Value per
per Sq
Sq Ft
Ft
$
Reduce CAPEX
CAPEX
Reduce
New
revenues
New revenues

Service Provider
Provider
Service
Increased ARPU
ARPU
Increased
Unique positioning
positioning
Unique
Increased Market
Market
Increased
Penetration
Penetration

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Tenant
Tenant
Human Experience
Experience
Human
Simple Interaction
Interaction
Simple
Single supplier
supplier
Single
Reduced
costs
Reduced costs

Prepared by IBSG Emerging Markets

14

A potential model for SPs to capture the market transition

Service
Revenue
Network
Intelligence
Digital
Inclusion
VSP

SMB
(webex)
VSP

Public
Safety
VSP

Health /
Education
VSP

Wealthy
Hoholds
VSP

TREC
VSP

Network Intelligence & Access

(from mobile to wimax to ettx) tied to VSP
Service Delivery Platform (OSS / BSS)
Cost Efficient Core Platform (e.g. IPoDWDM)
Economic Development
Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

15

Presentation_ID

2006 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

Prepared by IBSG Emerging Markets

16