Multi-Billion Dollar Operator Personal Cloud Opportunity Revealed by Synchronoss with Arthur D. Little
October 20 2020 - 8:00AM
Synchronoss Technologies (NASDAQ: SNCR) and Arthur D. Little reveal
new analysis detailing that the total addressable market for
personal cloud services will reach $8.9 billion by 2025 in the
United States alone. The three key drivers of this trend are growth
in mobile data generation and storage requirements, flat growth in
free offerings by current market players, and continued evolution
in personal cloud solution capabilities. The analysis shows that if
the right strategy is adopted, the global personal cloud
opportunity available to operators is valued between $15-$25
billion.
Personal cloud services provide for the storage of
consumer data – photos, videos, documents and more – that can be
accessed from any device. Telecoms operators today own only 1% of
the U.S. personal cloud user base, giving them a tremendous growth
opportunity. With smartphones as the primary place that people
generate and store personal content, operators are in the driver’s
seat as this market evolves and expands.
“In just the United States, the total addressable
market for personal cloud services will reach $8.9 billion by 2025.
Given that consumers already value and trust operators with their
personal data, increasing ownership of the personal cloud user base
is the greatest incremental revenue opportunity available to
operators today,” said Jeff Miller, Interim President and CEO of
Synchronoss Technologies. “Subscribers with operator-provided cloud
services are four times more likely to use paid plans than
subscribers with platform-provided clouds. Clearly, the market
dynamics actively favor operators who capitalize on this growth
potential. I believe operators can and will wrestle this
opportunity to the ground.”
The $15-$25 billion global personal cloud
opportunity available to operators is being driven by three main
factors:
- Data generation: More and more consumer data
is being generated by and stored on smartphones. Global data
traffic generated through smartphones is poised to grow at a CAGR
of 31% through 2025.
- Cloud adoption to cloud monetization: Personal
cloud is now widely adopted, driven largely by ecosystem choices
(the use of iOS, G-Suite, etc.) as opposed to active choices.
Consumers value price, storage levels and interoperability.
Security, privacy and data ownership are key significant trends as
consumers look to primary central storage hubs which operators are
primed to provide. Not only do operators have the opportunity to
support the hardware, they can now become a one-stop-shop for all
device and content data needs.
- Storage needs: As consumers exceed free
personal cloud storage allowances, they will have to move to a paid
personal cloud model. Operators are well-positioned to move
subscribers to paid cloud plans, but they must meet expectations
for a new and enhanced customer experience.
Sean McDevitt, Partner, Arthur D. Little, added
that personal cloud represents a significant revenue opportunity
for telecoms operators over the next five years. “The way we
communicate, live, entertain, learn, stay healthy and work are
changing and reinforcing this opportunity. Data generation
continues to skyrocket, ‘free’ cloud storage offerings are full or
nearly full, and consumers are having to make decisions about who
they trust to safeguard their personal data and assets. With the
right strategy, telecoms operators can make a strong play for the
personal cloud market.”
Miller concludes: “Telecoms operators should
implement short- and long-term strategies to conquer the personal
cloud market. In the short term, this means increasing personal
cloud app visibility and interoperability, and positioning cloud as
a ‘hub app’ to increase trial and subscription rates. Longer term,
a cloud-first philosophy that drives consumers to use
operator-provided personal cloud for various applications is
critical. Taking photos through the app, playing games through the
app, and other similar activities will drive high app usage and
provide consumers with something more valuable than just storage.
Recently, we’ve heard a lot of talk about ownership of the consumer
and how operators are losing control. The right cloud strategy will
allow operators to seize a sizable piece of the personal cloud
market once and for all, and create billions of dollars in
revenue.”
About Synchronoss Technologies,
Inc.Synchronoss (NASDAQ: SNCR) transforms the way
companies create new revenue, reduce costs and delight their
subscribers with cloud, messaging, digital and IoT products and
platforms supporting hundreds of millions of subscribers across the
globe. Synchronoss’ secure, scalable and groundbreaking new
technologies, trusted partnerships and talented people change the
way TMT customers grow their businesses. For more information,
visit us at www.synchronoss.com.
Contacts
MediaAnais MerlinCCgroup
(International)T: +44 20 3824 9219
E: synchronoss@ccgrouppr.com
Diane RoseCCgroup (North America)T: +1
727.238.7567E: diane@ccgrouppr.com
InvestorsTodd Kehrli/Joo-Hun
KimMKR Investor Relations, Inc.investor@synchronoss.com
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