Should operators stay or go now?
Sync that actually works, and can work across the widest possible variety of handsets, could be the tool that unlocks the cloud services space for mobile operators, according to Hal Steger, vice president marketing, Funambol.
Steger said that one reason operators have had little success so far with cloud services is that “technical issues with sync have been huge. They’ve really been big.”
Steger highlighted Vodafone 360 as a cloud-based service that had not met expectations, partly because the full experience had been available on only two dedicated handsets, and partly because the technical issues of syncing content proved challenging.
Generally, providers of cloud services have found the sync element harder than they expected, he said. Even Apple took months to sort out its MobileMe service, and that was just targetting dedicated devices. When operators are faced with such a diversity of devices, all of which iterate content in different ways, then things get much more complex.
“Operators are at a fork in the road,” Steger said. “They have to decide if they are in or out [on cloud services]. If they are in, should they build it or buy it? If they are out then they risk handing over control of the customer to Google.”
“Google offers sync for free,” he said, which challenges operators to compete for control of customers, but also to find a business case upon which to do so. Steger believes that Freemium and ad-supported models could be the answer.
Another example would be to provide services that are only charged for when activated.
“An operator could provide a back-up service for free, but if a user then loses their phone, then they have to pay a charge to get that data back,” he said.
Steger said that there were operators moving ahead with the cloud services model. Funambol is working with a “Tier 1” operator in Asia which is targeting its 50 million subscribers, most of whom do not have smart phones, with a sync-ed content service.
Steger’s titbits, hints, tips, and bitches:
Tit:
One unnamed UK operator will shortly be launching a home internet device that uses Funambol’s technology to sync internet-based content onto the appliance, which will operate as a sort of central internet hub in the home.
Bit:
One French operator had managed to attract just 10,000 users to its IM service afte three years of marketing. When they moved to an ad-supported model it went through the roof. Mobile could services can be ad supported too.
Hint:
We’re about to be integrated in a whole load more device makers, following us being made the de facto sync solution for Qualcomm’s chips, such as Snapdragon.
Tip:
Alcatel-Lucent is getting good traction with its services business, hooking the largest US cable company, and looking good to get more business.
Bitch:
Operators hated RIM because it got very arrogant and made a lot of money, but on the other hand they cracked open the enterprise market. Now they’re in a similar quandary with the Cloud.