COVID-19 has impacted our lives in ways that were unimaginable when we optimistically welcomed January 2020. Little did we know that our day-to-day lives – how we work, play and interact with family, friends and colleagues – would likely change forever.
One upshot of the coronavirus is that we have been able to rely on mobile network operators to support our digital communications more than any time in the past. A CTIA report earlier this year attributed unprecedented surges in mobile voice and data traffic to the virus. A single week in mid-March that saw millions of U.S. subscribers shifting to virtual education, remote work and shelter-in-place restrictions had major U.S. wireless providers reporting mobile data traffic increases of nearly 20% and texting up almost 25%.
Why? In a “new world” characterized by a global pandemic and lockdowns, we crave contact with those we miss so much. Operators and the communication experiences they facilitate enable connections and ensure subscribers are able keep in touch despite physical separation.
Grabbing the Opportunity
The replacement of in-person activities with digital interactions powered by mobile networks has delivered opportunities for operators to further strengthen relationships with their customers via personal cloud services.
Prior to COVID-19, consumers already were using their mobile devices to generate, store and share all types of data, from photos and videos to documents, text messages and more. This trend has been intensified by the pandemic. With more time on our hands and the need to stay connected to the important people in our lives, we rely on our many connected devices more than ever. Teens make videos to share on social media. Parents send photos of family celebrations to grandparents. Group chats connect separated friends.
All this data heavy content needs a place where it can be safely stored, protected from loss and easily shared. The ideal place? An operator’s personal cloud able to be accessed from all of an individual’s connected devices, including mobile phones, tablets, desktop and laptop computers, and even smart TVs. It’s the integrated communications experience that is wanted and expected by consumers.
It’s not that there aren’t other options. Most digitally savvy consumers are accustomed to using cloud platforms such as Amazon Drive, Dropbox and others. At first glance, operators might think it’s too late to claim their share of the personal pie. They must not be fooled by this assumption, however.
We’ve already begun to see the demise of “free” cloud services. Google, for example, recently announced that it would soon kill unlimited free storage and put a cap on the number of free photos and documents that may be uploaded to its cloud service. This is clear evidence of the value consumers are placing on not only the protection of their content but the curation of engaging interactions. Personal cloud is no longer a basic commodity but a true value add service with the ability to create meaningful revenue for operators globally.
Moreover, even though operators today only own about 1% of the U.S. personal cloud user base, it’s a market that’s far from saturated. The truth is that it’s expected to reach $8.9 billion by 2025 in the U.S. with an anticipated CAGR of 12% from 2020 through 2025, according to a recent Arthur D. Little analysis. There’s plenty of pie – and potential revenue – for operators to claim.
Leveraging Trust, Family and Convenience
You might wonder why a personal cloud user on one of the aforementioned platforms would move to a premium operator provided personal cloud service. The reasons are fairly straightforward.
• Trust. Mobile subscribers have solid and long-term relationships with their network providers built on a foundation of trust. Operators have earned this trust via a proven ability to protect privacy and secure personal data. They simply have not come under fire as has happened with a number of other cloud providers whose track records and decision making have been marred by privacy and security scandals.
• Family Plans. Also known as multiline or shared mobile plans, these plans can be enhanced with shared cloud “vaults” where families upload content and access it as part of their bundle. The capacity to include other value-added experiences, such as the ability to collaborate in the cloud, use search and tag, and share flashbacks and instant slideshows, results in an engaging and often interactive digital user experience that takes place in a secure and private shared space.
• Convenience. Operator personal cloud offerings eliminate much of the user friction consumers often encounter with other cloud providers. Sharing of files and backup procedures, for example, can be complicated as navigating unwieldy apps. Operators already manage a subscriber’s mobile device and data plan, so rolling cloud into the arrangement delivers a simple, integrated personal experience that puts users of multiple services under a single umbrella and bill.
Planning for Tomorrow Today
Chances are that we’ll never to return to life as we knew it before COVID-19. Even when the pandemic fades into a distant (and bad) memory, subscriber relationships with their mobile network providers will remain deeply intertwined as people become accustomed to managing their digital lives and communicating with each other.
What this means today is that operators must not delay in their personal cloud efforts. Offering subscribers a stellar, convenient and fully integrated personal cloud experience that builds on existing trust will drive ongoing loyalty and revenue in the long run. It’s a win-win for everyone.
Learn more about how the Synchronoss Personal Cloud gives operators new revenue streams and creates new, value-added experience for their subscribers here.
