Monetization and Optimization Index

Most service providers lack detailed information on trends in new services, like the total potential market size for these services in their region, and the immediate and future impact of those services on their profitability.

Many service providers also lack details on how much they can save by adopting emerging technologies that allow them to delivery these new services most cost effectively.

Simply said, services providers want to know how to make more money and keep more of what they earn.

The Monetization and Optimization Index (MOI) is Cisco's effort to provide you with a gauge on how new emerging services delivery technologies help service providers and network operators generate incremental revenues from new services while driving down service delivery cost.

MOI looks to capture and forecast two key metrics that help you visualize how you can make more and keep more. These are called the Monetization Index and the Optimization Index.

These metrics have been applied to specific opportunities in video, mobile, and cloud service across six global regions - North America, Latin America, Western Europe, Middle East and Africa, Central and Eastern Europe and Asia Pacific.

MOI identifies new service opportunities, the total addressable market (TAM) size, and the expected average revenue per user (ARPU) for those services.

The TAM is represented in millions or billions of dollars and is the total opportunity for service providers.

The ARPU is represented in revenue per subscriber, represented in dollars per user - typically on a monthly basis.

The value chain, business model, and monthly revenue, as well as the take rate, come from analyst reports, customer discussions, and Cisco's own analysis.

For video, MOI looks at how service providers can generate revenue from business-to-consumer (B2C) multiscreen services, including subscription fees, ad revenues, and transactional revenues from services such as subscriber video on demand (sVoD), time-shifted TV (TSTV), and cloud DVR. MOI also looks at the business-to-business (B2B) opportunities to enable consumer services such as CDN, service-level agreements (SLAs), and analytics.

For mobile, MOI analyzes the various mobile value chains and highlights how much incremental revenue operators can earn from M2M, sponsored data, and targeted advertising.

For cloud, MOI looks at SaaS, PaaS, and IaaS, such as remote desktop, disaster recovery, and other enterprise applications.

TAM: For new services TAM, we partner with industry analysts. We also conduct our own primary research into new and emerging services in cloud, video, and mobility. TAM metrics are regionalized based on primary and secondary market research by Cisco.

ARPU uplift: For revenue uplift, we uses the internally built business and revenue models designed for customers as well as for internal stakeholders. These revenue models will take new services opportunities and show you how service providers can monetize them.

Traffic and Subscriber Trends: For traffic and subscriber trends, we use regional details from Cisco VNI, MobileVNI and Global Cloud Index traffic data and other regional variations to drive the models.

The Optimization Index shows how much you can save by deploying services using an optimized delivery architecture.

This metric highlights how new service delivery architectures can create business value through cost optimization.

The Optimization Index provides the business value of new technologies by comparing Cisco's implementation of the new technology architectures to existing architectures, or the present mode of operation (PMO). This business value is indicated in terms of potential cost reduction.

Costs and Optimization: For network cost and optimization metrics, Cisco uses network and architecture models built by our Business and Technology Architecture (BTA) team for internal and customer use.

Users and Market: Services, user profiles, and take rates come from third-party analyst reports, customer engagements, and primary research.

Traffic and Subscriber Trends: For traffic and subscriber trends, we use regional details from Cisco VNI, MobileVNI and Global Cloud Index traffic data and other regional variations to drive the models.

MOI has been designed to allow you to customize the models by by giving you the ability to change the key inputs to fine tune the results to match your opportunity.

The inputs are organized as Fast Track and Expert Track to match your needs and the nuances of your customers and network.

The customized results are easily downloadable so you can take MOI with you.