Do operator bundles of core products + cloud services work?
Are there examples of operators that have successfully improved stickiness/reduced churn or significantly increased uptake of cloud services using these bundles?
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Are there examples of operators that have successfully improved stickiness/reduced churn or significantly increased uptake of cloud services using these bundles?
Yes surround services such as security, authentication and enhanced reporting all increase stickiness
Yes, actually this is one of the basics to decrease the overall churn and ensure highest income and services ARPU. It is quite easy for a consumer or an enterprise customer to move another operator for the core services. But if you attach / bundle a VAS proposition or Cloud Based Service (IoT), the customers loyalty will be more; since it is really hard to move for a customer if you have a specialized services. Even, if you bundle all propositions in the contract as well; customer will be with you for a very long time
Not sure the top driver for bundling core products with cloud services is to tackle churn. Customers want the best quality of service at the most affordable prices, operators that mostly offer both are less likely to experience churn, irrespective of bundling strategy. I believe bundling core products with cloud services driven by two reasons
Firstly, is to position as a trusted end to end ICT player with large enterprises; that they already have extended connectivity contracts with. This enables showcasing competitiveness beyond being a traditional telco to positioning also as an IT service provider. And, of course, the incentive of a single bill for all services
Secondly, I believe it is to drive cloud adoption among SMEs especially in sub-Saharan Africa. As most markets mature, voice and data connectivity will be commoditized, so these services on their own lose value unless other services ride on them. So, for businesses, cloud service is an excellent proposition to ride on data. With the expected increase in penetration of fixed LTE, the capability to offer basic cloud solutions e.g productivity and accounting tools, backup etc will be a key differentiator as operations strive for increased market share and revenue
Therefore, several factors like quality of service on connectivity, the business model of the operator, level of market competition, level of IT services maturity, level of demand-side maturity, etc will determine if bundling of core products with cloud service will be successful
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