In 2011, the amount of digital information produced should equal nearly 1,800 exabytes, or 10 times that amount produced in 2006. To put this estimate into perspective, an exabyte is a billion gigabytes, while a gigabyte is a billion bytes. Based on this projection, evolving your network and business models in line with end user demand for bandwidth, social functionality and trusted security are required to succeed.

 

For the businesses that deliver on the promise of the Web – primarily network providers and content and application providers – the resulting need for network investment has destabilized the business model.

 

According to Alcatel-Lucent (News - Alert) experts, network providers are not getting commensurate compensation for their assets and support; as such, they are reluctant to fund the network expansion required for today’s bandwidth-intensive applications.

 

Any such strategy must be centered on compelling business models that improve the end-user experience. Those ready to deliver the best combination of experience and value for the money will be the first to benefit from new business. This is where the Alcatel-Lucent strategic focus on application enablement fits into the picture. Company officials explain how to create a sustainable new environment that combines the “best capabilities” of the network and the Web world so all players can evolve to a more stable model that enables new revenue opportunities.

 

Application enablement will also create new value that end users, advertisers and sponsors are ultimately willing to pay for. The key to application enablement, Alcatel-Lucent officials explain, is that both network providers and content and application providers bring critical capabilities to the equation.

 

With the number of Web sites constantly increasing, open innovation and the power of hundreds of thousands of developers are needed to speed development of new end-user services and experiences. With application enablement, network providers immediately gain network providers can also strengthen their position in the value chain and increase their relevance with their customers. However, as Alcatel-Lucent officials explain, application enablement only makes sense if there are concrete opportunities to monetize the services it enables to generate revenue.

 

Alcatel-Lucent research shows end users are willing to pay for specific enhancements and service blends. For example, in 2008, study participants said they consider sharp video and instant access to content the two most important qualities of service enhancements for online video. And a significant percentage indicated they are willing to pay for instant access to content. They are also willing to pay for security, privacy, continuity of service across devices and personalized services across any screen.

 

To help network providers with the challenge of delivering high-bandwidth services while controlling costs, Alcatel-Lucent focuses on low-risk deployments and low-cost, eco-sustainable solutions.

 

Alcatel-Lucent Ventures is a new business innovation engine within Bell Labs (News - Alert), “incubating game changing ideas and rapidly bringing them to market is the charge of this high energy team.” Ventures extend two new sources of revenue to offset investment costs: Advertising and compensation for access to and use of their capabilities.

 

The ventures team takes a three-pronged approach to capturing value through venture investment:

 

·        Incubation of internal ventures

·        Investment in external ventures, and;

·        Execution of joint ventures.

 

By investing in a high-leverage network to evolve their business models in line with end-user expectations. and exposing key capabilities in a controlled way, network providers will be able

 

“We will remain committed to commercializing innovation through Alcatel-Lucent Bell Labs and to actively engaging developers and partners. In short, we will evolve with our customers, their resolute partner as they move to the stable and sustainable business models that will increase revenue and enable their long-term success,” says Alcatel-Lucent leadership.

 

For more, read Alcatel-Lucent’s white paper on its application enablement strategy.