whitepaper - a consumer cloud solution - white label or build

WHITEA CONSUMER CLOUD SOLUTION

LABELorBUILD?

The momentum continues to build in a technology-rich society where consumers are the drivers. Lifestyle standards are changing at an accelerating speed.

Global businesses need to keep up with the pace to remain players in their industry. The adoption of the cloud is no longer a choice but a means for survival.

INTRODUCTIONAs the industry demonstrates on a daily basis, technology is undergoing a major transformation. Over the past few years, technology has made unprecedented strides, forcing companies to reevaluate their business models and become open to new possibilities. Threats are coming, not from traditional competitors, but from new approaches utilizing this technology. The role and structure of IT is changing, the increased need for technology from consumers is exploding, product development cycles along with market response times are shorter and the cloud is no longer a nice idea but it is the super glue holding all of this activity together. The adoption of the cloud is a critical component in these ultra-disruptive times.

Global corporate leaders are faced with two key challenges: first, how to rapidly enter the cloud market to capitalize on a time sensitive opportunity. Second, how to minimize the costs and risks associated with building their core business while simultaneously expanding into an unknown market to meet consumer demands. Companies are pressured to look at quick solutions to leverage their business in order to increase the average revenue per user (ARPU), reduce costs and protect their brand.

The cloud has become the backbone of technology for both consumers and companies.

In today’s market, the ability to access data anytime, anywhere from any device is assumed. Cloud storage is now a commodity and the concepts of share, sync and collaborate are utilized by consumers worldwide. The functionality of the cloud is an integral part of a consumer’s everyday life.

Research firm Gartner is warning the industry: service providers slow to adapt to the cloud market are looking at tough times ahead. Only 7 percent of digital content was stored in the personal cloud in 2011 and expected to reach 36 percent as early as 2016. The personal cloud is predicted to replace PCs for the majority of consumer content storage needs. Gartner predicts the end user will spend $131 billion in 2013 on the public cloud and that number will rise to $180 billion in the next two years. If companies are not in a search mode for a cloud content management component that can be integrated into their business model, they have already fallen far behind. Now is the time for global companies to find the right consumer cloud solution. The crucial first step is making the decision to buy versus build.

Companies will need to approach the cloud market carefully if they choose to use a third party provider. Some cloud providers are throwing their products and services into the market in a “me too” fashion with hope of getting a foot in the industry door. It will be important for companies to conduct their due diligence to ensure they choose a cloud solution with a proven product that complements their brand, business standards and financial model.

If a company buys or builds, the fact remains that harnessing the cloud is a requirement in order to play in times ahead.

Only 7 percent of digital content was stored in the personal cloud in 2011 and expected to reach 36 percent as early as 2016.

01

01 MOBILE DEVICES//Transforming Mobile Industries

02 MOBILE DATA USAGE//An Explosion and Creating New Norms

03 THE CLOUD//No Longer a Business Choice

04 CONSUMERS//Global Trends and Growth

05 CONSUMER RETENTION//Increases “Stickiness”

06 WHITE LABEL CONSUMER CLOUD SERVICES//Why It Makes Business Sense

TABLE OF CONTENTS

MOBILE DEVICES//Transforming Global Industries

The infiltration of mobile devices into the modern

world has transformed global societies. The power

of mobility has caused the consumer to view

devices as essential daily items that contribute to

the quality of life. A household with multiple

devices is now commonplace and the owners

spread along the age spectrum. Connected

devices such as smartphones, tablets, game

consoles and streaming media set top boxes have

easily worked their way into the global household.

A large percentage of consumers are now at a

point where they will not hesitate to make a

purchase to get the latest and greatest gadget to

stay on top of the trends.

From January 2013 to April 2013 the average

number of devices per household in the United

States increased from 5.3 to 5.7.1 The size of the

household, lifestyle and income levels can raise

these averages well into the teens. Demographics

of the device-driven household also expanded

with lifestyle changes and advances in technology.

Young children and seniors are now appreciable

players in the technology consumer base, making

the mobile device market more widespread and

commoditized.

With commoditization comes a shift in the

industry, a change to consumer demands and

purchase patterns as well as cultural lifestyle

changes. Consumers have fully embraced a

technology-rich environment and have become

an important voice of new device developments.

Consumer demands point to sleeker, lighter and

more transportable device options. People want

to be connected all the time and with today’s

on-the-go lifestyle society is mobile in every

sense of the word.

This conversion into a mobile lifestyle has had

great influence on consumer purchase behaviors

and continues to impact the stability of various

traditional markets. For example, in 2013, PC

shipments declined worldwide while tablet and

mobile phone device shipments are on the rise

and projected to grow.2

Tablet shipments are expected to surpass

desktop PCs and notebooks in a short time since

their introduction. Projections show the number

of tablet users will reach 905 million worldwide

by 2017, yielding a dramatic climb from only 15

million users in 2010.3 The once dominant PC

market will be faced with future challenges due

to the accelerated speed of consumer demand in

the tablet and smartphone market.

1 NPD Group, Mar 18, 2013 2 Gartner, Press Release Apr 4, 2013

3 IDC Press Release, Mar 26, 2013

Looking forward, predictions show the

worldwide smart connected device space will

continue to surge, with shipments surpassing 2.2

billion units and revenues reaching $814.3 billion

in 2017.4 With the saturation of mobility among

consumers, the most popular connected device

to access the internet is projected to change

from the PC to the tablet and mobile smart

phone.5 Globally, the projected number of

connected mobile devices as a whole will exceed

the number of humans on earth with more than

7 billion units in circulation toward the end of

2013.6 Lower prices on tablets and smartphones

have made buying mobile devices a more viable

option for many households, creating an

explosion in the use of connected devices

worldwide.

It is clear the technology revolution has created

a mobile revolution. The world has turned

mobile and agility is vital for organizations to

stay competitive.

From January 2013 to April 2013 the average number of household devices in the United States increased from 5.3 to 5.7.

03

The infiltration of mobile devices into the modern

world has transformed global societies. The power

of mobility has caused the consumer to view

devices as essential daily items that contribute to

the quality of life. A household with multiple

devices is now commonplace and the owners

spread along the age spectrum. Connected

devices such as smartphones, tablets, game

consoles and streaming media set top boxes have

easily worked their way into the global household.

A large percentage of consumers are now at a

point where they will not hesitate to make a

purchase to get the latest and greatest gadget to

stay on top of the trends.

From January 2013 to April 2013 the average

number of devices per household in the United

States increased from 5.3 to 5.7.1 The size of the

household, lifestyle and income levels can raise

these averages well into the teens. Demographics

of the device-driven household also expanded

with lifestyle changes and advances in technology.

Young children and seniors are now appreciable

players in the technology consumer base, making

the mobile device market more widespread and

commoditized.

With commoditization comes a shift in the

industry, a change to consumer demands and

purchase patterns as well as cultural lifestyle

changes. Consumers have fully embraced a

technology-rich environment and have become

an important voice of new device developments.

Consumer demands point to sleeker, lighter and

more transportable device options. People want

to be connected all the time and with today’s

on-the-go lifestyle society is mobile in every

sense of the word.

This conversion into a mobile lifestyle has had

great influence on consumer purchase behaviors

and continues to impact the stability of various

traditional markets. For example, in 2013, PC

shipments declined worldwide while tablet and

mobile phone device shipments are on the rise

and projected to grow.2

Tablet shipments are expected to surpass

desktop PCs and notebooks in a short time since

their introduction. Projections show the number

of tablet users will reach 905 million worldwide

by 2017, yielding a dramatic climb from only 15

million users in 2010.3 The once dominant PC

market will be faced with future challenges due

to the accelerated speed of consumer demand in

the tablet and smartphone market.

4 IDC, Mobile Channels, Apr 5, 2013

5 Gartner, Forbes, Oct. 23, 2012

6 Cisco: The Guardian, Feb 7, 2013

Looking forward, predictions show the

worldwide smart connected device space will

continue to surge, with shipments surpassing 2.2

billion units and revenues reaching $814.3 billion

in 2017.4 With the saturation of mobility among

consumers, the most popular connected device

to access the internet is projected to change

from the PC to the tablet and mobile smart

phone.5 Globally, the projected number of

connected mobile devices as a whole will exceed

the number of humans on earth with more than

7 billion units in circulation toward the end of

2013.6 Lower prices on tablets and smartphones

have made buying mobile devices a more viable

option for many households, creating an

explosion in the use of connected devices

worldwide.

It is clear the technology revolution has created

a mobile revolution. The world has turned

mobile and agility is vital for organizations to

stay competitive.

The world has turned mobile andagility is vital for corporations

to stay competitive.

WORLDWIDE DEVICE SHIPMENTS BY SEGMENTS (thousands of units)

Source: Gartner, June 2013

PC(Desk-Based & Notebook)

341,273 305,178 289,239

9,787 20,301 39,824

120,203 201,825 276,178

1,746,177

2012 2013 2014

1,821,193 1,901,188

Mobile Phone

Ultramobile

Tablet

04

penetration and data consumption levels up.9 As penetration levels rise, online access is considered to be a commodity-based service to a large portion of the population and that concept is spreading across most nations. The viral nature brought to the market by mobile and internet capabilities present an enticing opportunity. Many industries are looking to expand their scope of products and services to tap into the demand while it is still open to diverse possibilities.

As the rest of the world joins the mobility culture, the connected population is “on” all the time. Constant access to the internet has given consumers a reason to leave one device at one location, use another device from a di�erent location and pick up exactly where they left o�. Mobile and broadband markets have changed human lifestyle so quickly, anytime, anywhere with any device is the standard. As a result of this standard, a seamless experience with a single sign on has also become the new expectation. Consumers are weaving more and more mobile technology into most aspects of their personal, business and educational lives. Therefore, they are always in search of products and services that will help improve their mobile, online experience to make their lives better.

MOBILE DATA USAGE//An Explosion with New Norms

The popularity in mobile devices has created an explosion for the need of high speed data via online channels. Figures representing current internet usage appropriately puts global online activity levels into context:

In 2013, there are an estimated 2.7 billion internet users around the globe, with Europe taking the lead with the highest penetration rate followed by the Americas.7

With mobile tablets and smartphones predicted to replace PCs as the primary vehicle to access the internet, data usage, data consumption and penetration levels are projected to rise substantially more in the next few years than in previous years. Total figures will be impacted in the very near term, partly due to the massive growth in device usage that is anticipated in Asia, the Pacific and Africa.8 As the global economy improves, connected device purchases will become a viable financial option. In current times, the popularity of smartphones has boosted internet usage figures to double annually in developed markets.

With almost 40 percent of the world online and the progressive use of mobile devices, broadband prices have generally become more a�ordable to the user. Fixed broadband prices have drastically decreased by approximately 82 percent over the past 4 years, pushing internet

204 million Emails Sent

100 hours YouTube Videos1.3 million Video Views

2+ million Google Searches

6 million Facebook Views277K Profile Logins

20 million Photo Views3K Flickr Uploads

100+ New LinkedIn Accounts

100 K New Tweets320+ New Accounts

4,860 Comments

61,141 hours Music Played

47K Apps Downloaded

AN INTERNET MINUTE AND THE CLOUD

639,800 GBIP DATA TRANSFERREDWORLDWIDE

almost a quarter of all mobile data users are expected to use 2 gigabytes of data

per day. Two gigabytes is roughly equal to 10 hours of video, 15 hours of audio, 15 app

downloads or five video calls.

By 2017...

Various Sources Used: Intel,Twitter,Dazinfo,Cisco

05

penetration and data consumption levels up.9 As penetration levels rise, online access is considered to be a commodity-based service to a large portion of the population and that concept is spreading across most nations. The viral nature brought to the market by mobile and internet capabilities present an enticing opportunity. Many industries are looking to expand their scope of products and services to tap into the demand while it is still open to diverse possibilities.

As the rest of the world joins the mobility culture, the connected population is “on” all the time. Constant access to the internet has given consumers a reason to leave one device at one location, use another device from a di�erent location and pick up exactly where they left o�. Mobile and broadband markets have changed human lifestyle so quickly, anytime, anywhere with any device is the standard. As a result of this standard, a seamless experience with a single sign on has also become the new expectation. Consumers are weaving more and more mobile technology into most aspects of their personal, business and educational lives. Therefore, they are always in search of products and services that will help improve their mobile, online experience to make their lives better.

7 UN Millennium Development Goals Report 2013

8 Cisco, Visual Networking Index: Global Mobile Data Tra�c Forecast Update, 2012–2017, Feb 6, 2013

9 ICT Facts and Figures 2013

In 2013, there are an estimated 2.7 billion internet users around the globe, with Europe taking the lead with the highest penetration rate followed by the Americas.7

With mobile tablets and smartphones predicted to replace PCs as the primary vehicle to access the internet, data usage, data consumption and penetration levels are projected to rise substantially more in the next few years than in previous years. Total figures will be impacted in the very near term, partly due to the massive growth in device usage that is anticipated in Asia, the Pacific and Africa.8 As the global economy improves, connected device purchases will become a viable financial option. In current times, the popularity of smartphones has boosted internet usage figures to double annually in developed markets.

With almost 40 percent of the world online and the progressive use of mobile devices, broadband prices have generally become more a�ordable to the user. Fixed broadband prices have drastically decreased by approximately 82 percent over the past 4 years, pushing internet

(per 100 inhabitants)

16%AFRICA

%32 %38

%52 %61 %75INTERNET PENETRATION BYREGION IN 2013

ASIA ARAB STATES

CIS AMERICAS EUROPE

Source: ITU World Telecommunication / ICT Indicator Database

Internet Penetration Levels Increase as Broadband Prices Decrease 164.6115.1

2053

2.5 2.0 1.7 1.7 1.7

610

27

59.7

41.8

28.5

21.5

85.1

59.4

40.330.1

2008 2009 2010 2011 2012

Developing CountriesWorldwideDeveloped Countries

KEYPenetration

Prices

06

10 Nasuni, The State of Cloud Storage in 2013

11 Gartner, IIFL, Jul 29, 2013

The vital link sustaining the global movement within

the technology and mobile revolution is the cloud.

Today, most consumers do not even realize they use

the cloud when accessing mainstream channels

such as email, YouTube, online banking or

Facebook. In years ahead, awareness of the cloud

and its value will be much more prominent. The

public cloud is the nucleus that supports

technology consumerization. Technology-driven

companies can no longer a�ord to develop

business models without a cloud component if they

intend to remain relevant in the market. Companies

without the cloud as a part of their overall

technology strategy are taking great risks.

Cloud computing in current times has become

equal to what software was in the 80s. Initially,

cloud computing was primarily designed and used

for programming needs and application

development. It quickly evolved into various

subsets and many more subspecialties such as: IaaS

(Infrastructure as a Service), PaaS (Platform as a

Service) and SaaS (Software as a Service) to

name the higher levels.

The cloud as it relates to the consumer is

traditionally used to access, store, stream and

share data. Present figures suggest there is an

estimated 1 exabyte, equal to an approximate

1 billion gigabyte, of stored data in the public

cloud as a whole; this number is expected to

climb exponentially in a very short timeframe.10

Corporate spending in the entire cloud market

has grown at an astonishing pace and is

forecasted to reach $131 billion worldwide in

2013. That number is projected to quickly climb

to $210 billion by 2016 with North America as the

primary growth region.11

The emergence of technology, the evolving

consumer culture and the adoption of the cloud

are playing big roles in predicting the future

health of global business environments. The

cloud is disrupting the market, just as the

THE CLOUD//No Longer a Business Choice

Technology-driven companies can no longer a�ord to develop

business models without a cloud component if they intend to

remain relevant in their market

Public Cloud Services Market and Annual Growth Rate, 2010-2016

77

$ in

Bill

ions

93110

131

155

181

210

Source: ITU World Telecommunication / ICT Indicator Database

2010 2011 2012 2013 2014 20162015

07

The vital link sustaining the global movement within

the technology and mobile revolution is the cloud.

Today, most consumers do not even realize they use

the cloud when accessing mainstream channels

such as email, YouTube, online banking or

Facebook. In years ahead, awareness of the cloud

and its value will be much more prominent. The

public cloud is the nucleus that supports

technology consumerization. Technology-driven

companies can no longer a�ord to develop

business models without a cloud component if they

intend to remain relevant in the market. Companies

without the cloud as a part of their overall

technology strategy are taking great risks.

Cloud computing in current times has become

equal to what software was in the 80s. Initially,

cloud computing was primarily designed and used

for programming needs and application

development. It quickly evolved into various

subsets and many more subspecialties such as: IaaS

(Infrastructure as a Service), PaaS (Platform as a

Service) and SaaS (Software as a Service) to

name the higher levels.

The cloud as it relates to the consumer is

traditionally used to access, store, stream and

share data. Present figures suggest there is an

estimated 1 exabyte, equal to an approximate

1 billion gigabyte, of stored data in the public

cloud as a whole; this number is expected to

climb exponentially in a very short timeframe.10

Corporate spending in the entire cloud market

has grown at an astonishing pace and is

forecasted to reach $131 billion worldwide in

2013. That number is projected to quickly climb

to $210 billion by 2016 with North America as the

primary growth region.11

The emergence of technology, the evolving

consumer culture and the adoption of the cloud

are playing big roles in predicting the future

health of global business environments. The

cloud is disrupting the market, just as the

internet rocked “brick and mortar” businesses in

the last decade. The cloud is transforming

consumer buying habits and stealing competitor’s

business. If companies do not respond by including

cloud-based services into their product portfolio, it

may result in a drastic market share upset.

Although market share shift within an industry is

common, the di�erence with today’s technology

and the cloud industry is the speed with which it is

happening. This is clearly seen with tablet and

mobile phone shipments versus PC shipments this

year. Companies may want to act quickly to ensure

they stay ahead of growing cloud trends. Some

elbow room is necessary to give companies time

to build a defensive barrier around their customers

by providing services that are hard to replicate.

Head-to-Head Competition withCorporations, Acquisitions & Mergers:Emerging Markets are Dominating

Although market share shift within an industry is common,

the di�erence with today's technology and the cloud industry is the speed with

which it is happening.

CONSUMERDEMAND

FLEXIBILITY

EMERGING TRADITIONAL>

EMERGING MARKETS

INTEGRATION OFTECHNOLOGY

ADVANCES

TRADITIONAL

08

12 Intel, SC & Tech Mar 20, 2013

13 Cisco, Broadband DSL Feb 6, 2013

14 Cisco. Visual Networking Index: Global Mobile Data Tra�c Forecast Update, 2012–2017

15 Gartner, Forecast, Consumer Digital Storage Needs, Mar 16, 2012

Source: Gartner, 2013

The foundational element to support upcoming

mobile growth is the cloud. The number of cloud

subscriptions will climb quickly with a projected

1.3 billion subscribers by 2017.16 To store, share,

sync, stream and collaborate will be a common

routine for most global populations. Consumers

will look to the personal cloud as a means to bring

the latest technology advancements to their lives.

The rate of change in the next few years is expected

to be equal to what our society has seen in the last

decade of technology developments. The increase

of mobile and cloud usage, spread of broadband

coverage and advanced technology will create

unprecedented benchmarks. Although current

statistics of global technology may sound

impressive, it is no match for what lies ahead.

The number of global networked devices is

expected to double from more than 7 billion in 2013

to 14 billion by 2015.12 Data tra�c is projected to

increase from 1.6 exabytes per month in 2013 to 11.2

exabytes per month by 2017.13

Video will claim its position as the high growth

market leader in times ahead. In 2013, video usage

produced approximately 0.7 exabytes per month.

An astronomical increase is expected in the video

market in just a few years. Video usage projections

climb to 7.4 exabytes per month in 2016 and will

account for 66 percent of all global tra�c.14 Despite

economic challenges, emerging nations will deliver

a strong contribution to growth while developed

nations continue to further penetrate into the

booming market.

As the population transitions to a post PC-era,

consumers will become more reliant on multiple

connected devices equipped with cameras to fulfill

the majority of their needs. Technology

advancements of the future such as improved video

capabilities and 3D camera images will increase file

sizes leading to a greater need for storage. The

speed of technology advancements in photo

and video will outpace compression technology,

impacting storage requirements as well.

Worldwide consumer storage needs will rise to

an expected total of 4.1 zettabytes by 2016.15

CONSUMERS//Global Trends and Growth

Source: Cisco Global Cloud Index

The Explosion of Global Digital Content CreationStorage Needs Will Increase

20110

5

10

15

20

25

30

Exa

byte

s

2012 2013 2014 2015 2016

AN AVERAGE HOUSEHOLD IN 2016:Digital Storage Needs By Content

MOVIES & VIDEOS51%

PHOTOS35%

APPS11%

DOCS2%

MUSIC1%

09

16 IDC, Copperegg Sept 11, 2012

The foundational element to support upcoming

mobile growth is the cloud. The number of cloud

subscriptions will climb quickly with a projected

1.3 billion subscribers by 2017.16 To store, share,

sync, stream and collaborate will be a common

routine for most global populations. Consumers

will look to the personal cloud as a means to bring

the latest technology advancements to their lives.

The rate of change in the next few years is expected

to be equal to what our society has seen in the last

decade of technology developments. The increase

of mobile and cloud usage, spread of broadband

coverage and advanced technology will create

unprecedented benchmarks. Although current

statistics of global technology may sound

impressive, it is no match for what lies ahead.

The number of global networked devices is

expected to double from more than 7 billion in 2013

to 14 billion by 2015.12 Data tra�c is projected to

increase from 1.6 exabytes per month in 2013 to 11.2

exabytes per month by 2017.13

Video will claim its position as the high growth

market leader in times ahead. In 2013, video usage

produced approximately 0.7 exabytes per month.

An astronomical increase is expected in the video

market in just a few years. Video usage projections

climb to 7.4 exabytes per month in 2016 and will

account for 66 percent of all global tra�c.14 Despite

economic challenges, emerging nations will deliver

a strong contribution to growth while developed

nations continue to further penetrate into the

booming market.

As the population transitions to a post PC-era,

consumers will become more reliant on multiple

connected devices equipped with cameras to fulfill

the majority of their needs. Technology

advancements of the future such as improved video

capabilities and 3D camera images will increase file

sizes leading to a greater need for storage. The

speed of technology advancements in photo

and video will outpace compression technology,

impacting storage requirements as well.

Worldwide consumer storage needs will rise to

an expected total of 4.1 zettabytes by 2016.15

The rise of consumer usage and dependency of mobile

devices will produce a large spike in data creation and

consumption pushing storage needs to new norms.

Source: HIS iSuppli Research, October 2012

World Forecaster Personal Cloud Subscriptions(in millions)

20120

200

400

600

800

1000

1200

1400

Sub

scrip

tions

2013 2014 2015 2016 2017

10

“STICKINESS” POSSIBLEINCREMENTAL REVENUE

(per household)$80 3 months $240x =

(per household)$80 6 months $480x =

(per household)$80

$960

12 months

1000 consumers

$960x

x

=

$960,000=

PERSONALEDUCATION BUSINESS

Smartphone Video Chat

SmartTVs

Video Streaming3D Photos & Videos

Wearables

Mobile Video

Consumer Needs Grow with UpcomingTechnology Advancements

With storage subscriptions on the rise and the personal cloud viewed as a commodity service in the market, providers are coming up with new strategies to increase paid and unpaid subscriptions to capture a piece of that market. Cloud storage wars routinely take place between competitors in an e�ort to attract new customers. Many hardware device companies also want to take part in the storage game by o�ering free cloud storage as a bundled promotion with the purchase of a new device.

A cloud storage o�ering serves as a solid base to keep consumers satisfied, with the added value of retention. Although a free cloud storage delivers indirect revenue, the strategy behind the o�er is to increase the “stickiness” factor to generate direct revenue. Savvy companies have come to realize that once a consumer uploads a large portion of their photos, videos and files into the personal cloud it can strengthen consumer loyalty and lead to a paid conversion path.

A cloud o�ering is an opportunity for companies to retain revenue for core services that might be lost if a customer chooses to move to another provider for cloud services. The exact scale of retained revenue would depend on corporate-specific information such as business model objectives and the type of service the company chooses to o�er.

CONSUMER RETENTION//Increases “Stickiness”

A cloud o�ering is a great opportunity for companies

to maintain revenue for core services as it also serves as a means to introduce

new products.

11

build a quality cloud service o�ering to satisfy the needs of their consumers, while simultaneously maintaining and building other parts of their core business. Conversely, organizations that want to enter the consumer cloud market may invest too much upfront time, over-allocate valuable resources and overspend in building an infrastructure that may outweigh the benefits of the product. In a constantly evolving market, a cloud o�ering which is not implemented strategically can produce more negative than positive financial outcomes.

Start-UpA white label cloud o�ering shifts the weight of expensive start-up costs from the company to the third party provider. Foundational elements such as infrastructure, software and consumer interface are pre-developed, tested, refined and already in use. This immediately gives companies the upper hand by transitioning what would be a variable cost for start-up into a fixed cost, allowing for a simplified financial structure that can be easily integrated into their business model.

Product Development and LaunchAn experienced white label provider should be able to give a company invaluable insight of the cloud consumer, based on their direct experience in the market. Companies can easily customize a cloud service o�ering that fits into their own marketing plan and business model by using the research and input from a credible source specializing in the cloud business. This can greatly reduce the trial and error factor that comes with development of a new product and aid in generating a successful launch. An e�ective white label provider will act as a

partner with a company to ensure business goals are met and consistently achieved.

Maintaining and ScalingThe fast-paced environment in technology and the cloud industry requires full time, dedicated resources to ensure the latest trends are incorporated into the product to keep the service competitive and valuable. The white label provider assumes the role of the product development specialist, taking the burden of research and planning away from the company. It allows companies to be proactive and also react quickly to consumer demands.

Companies interested in entering the cloud business have a very short window of opportunity to become players in the industry as well as remain relevant in the eyes of their consumers. The continuous speed of consumer demand heightens the attractiveness of a white label due to its short turnaround times for implementation, decreased financial risk and prompt execution attributes. Selecting a third party provider with experience in the consumer cloud sector can be the solution for global companies to stay on top.

Further penetrating a brand in a competitive cloud

marketplace can convert into increased consumer

retention and an additional revenue source.

A white label in general terms is a product or service where a company purchases a fully supported product from another source, then applies its own brand and identity to it. The company, in turn, sells the product as its own to give the purchaser the impression the product was created by their brand.

A reputable white label cloud provider can o�er companies a near turn-key solution to quickly respond to consumer needs and gain a competitive advantage in this fast-paced industry. It delivers the benefit of retaining control over the appearance, policies and support of their product line while gaining access to a market-proven software and infrastructure.

A white label cloud o�ering allows companies to:

• Rapidly increase products offered to their customers• Reduce churn and increase the “stickiness” factor• Increase Average Revenue Per User (ARPU)• Decrease research and development spending• Accelerate deployment and reduce costs to train, test and release a new product o�ering• Add a new revenue source and extend market share into a growing global market• Minimize risk in an ever-changing industry

Consumer and Brand BenefitsA company’s brand can be its greatest asset and holds significant value. Further penetrating a brand in a competitive cloud marketplace can convert into increased consumer retention and an additional revenue source. With the trends of advanced technology increasing in our everyday

lives and cloud usage on the rise, a brand presence in the industry is essential. Companies need to maintain a connection with their customer base in order to strengthen loyalty, gain trust, protect and ultimately grow market share.

In today’s connected environment, brands have a greater opportunity to form direct relationships with consumers with the use of smartphones and tablets. This increases the need for companies to keep their brand in the forefront of their consumer base by o�ering a wide array of products and services. By doing this, companies can reap the benefits of increasing the “stickiness” factor and strengthen consumer loyalty. A new product o�ering in a booming cloud market can solidify a company’s commitment to customer satisfaction by responding to a service that is in high demand.

A Turnkey Cloud Solution A primary challenge for many companies can be keeping up with quickly emerging consumer technology advancements and staying on top of the trends. Many companies may find they do not have enough time or resources to e�ectively

WHITELABEL CONSUMER CLOUD SERVICES//Why It Makes Good Business Sense

12







In a constantly evolving market, a cloud o�ering which is not

implemented strategically can produce more negative than positive financial outcomes.









13







Selecting a third-party provider with experience in the consumer cloud sector can be the solution for global companies to stay on top.









Reduces Resource Requirements

Immediate Access to Consumer Cloud Market

No Product Development(start-up or maintenance)

OVERALL VALUE

Portfolio of Products Customer Satisfaction “Stickiness”

Revenue Potential Market Share

TURNKEY WHITE LABEL VALUE

White LabelProvider

CorporationsPARTNERSHIP

CONSUMER

CORPORATION

Quick Implementation

Reduced Financial Risk

14

CX, Inc. is a white label consumer cloud partner focused on empowering companies to stay competitive. The CX mission is to consistently improve its white label product in order to help partners gain market share and strengthen the relationship they have with their member base.

The CX business model is unique in the cloud consumer industry. Its focus is to stay innovative and on top of global technology trends in order to develop cutting-edge cloud product enhancements that will be well received by consumers. A key component of the model is the way with which CX uses its established base of global users as a “test market” to evaluate products and services before they are passed on to white label partners.

The CX consumer cloud white label o�ering is designed to allow companies the ability to quickly launch and market a competitive cloud product. Infrastructure, software applications and customer service fundamentals are consistently tested, enhanced and refined. Core elements include hosting, storage, website, mobile device software, desktop sync applications, technical operations, support and software maintenance.

ABOUT CX//

Visit www.cx.com for more information.

15