In 2020, management consultancy Arthur D. Little estimated that the addressable personal cloud market in the United States, which currently stands at $3 billion, will rise to $8.9 billion in 2025. Globally, the personal cloud market is estimated to be worth between $15 billion and $25 billion in less than five years’ time. For telecom providers, who have only captured about 1% of the U.S. personal cloud user base thus far, the opportunity to capitalize in a rapidly expanding market is full of potential – if they act soon.
In a recent Pipeline article, I examined the opportunity personal cloud holds for operators who are looking to cement their role as an essential services provider and establish new lines of revenue. Here are a few highlights from the article:
Today the cloud marketplace is dominated by over-the-top (OTT) providers such as iCloud, Amazon Drive, DropBox, Google Drive and Microsoft OneDrive. However, as the amount of digital content uploaded increases exponentially, these players are reaching a breaking point. Free cloud storage is on borrowed time, especially with Google announcing new restrictions for its free storage beginning in June. It’s likely that other OTTs will follow this roadmap. I expect many consumers to reconsider who they use as their cloud provider, providing operators an opening that cannot be ignored.
Operators are well positioned to provide a flawless, multipoint service able to attract and retain premium cloud users who will help significantly grow operator revenue. To accomplish this, they must:
Launch an operator-branded personal cloud that accommodates all data classes (e.g., contacts, photos, etc.).
Ensure a high quality and seamless personal cloud experience.
Represent themselves as a partner committed to providing a deeper means for its subscribers to interact with their most important content.
Operators already have one key tool in their arsenal when it comes to leveraging this personal cloud opportunity: Trust. Operators are highly regarded by subscribers for their ability to protect personal data. Because consumers want to be confident their precious memories and personal information are safe and that their data is securely and continuously backed up, many are willing to pay a premium for this peace of mind – especially when news headlines routinely expose data breaches and the way some OTTs take advantage of consumer personal data for their own gain.
The personal cloud opportunity is there for the taking. Operators who are willing to step up to the plate and offer a feature-rich personal cloud solution have the opportunity to create new services, provide more value for subscribers, build brand loyalty and strengthen their bottom line.
To read the full article, visit Pipeline online. For more information about how the Synchronoss’ Personal Cloud gives operators new revenue streams and creates new, value-added experience for their subscribers, visit https://synchronoss.com/products/cloud/personal-cloud-solution.
