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Mobile Cloud Storage Services Drive Loyalty and Traffic, Not Revenues
Mobile Cloud Storage Bundles Gain Traction, but Revenues to Reach Just US$ 1 Billion by 2020
Boston, MA - March 23, 2015 –Strategy Analytics’ unique combination of Supply Side, Demand Side, and Telemetry research methodologies shed unparalleled insights on industry trends, consumer attitudes and behaviors, and Telemetry insights powered by Big Data Analytics.
Strategy Analytics’ research findings encompassing insights from three distinct, yet complementary research methodologies indicate that mobile cloud storage services are an effective tool for operators and device OEMs to manage churn and improve loyalty.
Storage services from major providers, including Box, Dropbox, Google Drive, Microsoft’s OneDrive and Apple iCloud, as well as Operator oriented services, are increasingly pushed as part of a device out-of-the-box experience. From an industry supply-side perspective, these services have largely turned out to be a me-too value proposition with every major operator and ecosystem player jumping into the premium mobile cloud storage fray with limited differentiation.
Nitesh Patel, Director, Wireless Media Strategies Service, said “For Operators, the focus with cloud storage service should be on indirect monetization – this means rather than relying on cloud as a premium service, they should manage it effectively for reducing customer churn.”
From a demand side perspective, this echoes with the findings from Strategy Analytics’ User Experience Research team. An evaluation of 15 product attributes show that “free storage” as the top most prioirty for consumers.
Christopher Dodge, Associate Director, Wireless Media Labs, commented: “Our research suggests that consumers are agnostic to who the service provider is, but at the same time they place significant emphasis on the trustworthiness of the service, which in turn creates an opportunity for device OEMs and Operators in becoming the trusted provider of the service, through pre-installing the application on the device with free storage.”
Finally, in the third leg of the research, Strategy Analytics’ AppOptix Telemetry research platform measured the impact of cloud storage applications when the service is pre-installed on the device. The study suggests that devices with pre-installed cloud services (with bonus storage) drive higher traffic/engagement among their user base.
Bonny Joy, Chief, Consumer Telemetry Platforms added: “ OEM partnerships with cloud storage providers are being received favorably by the end users. The AppOptix based on over one million application sessions in the US found that Dropbox on Samsung devices realize a traffc of 12.8 MB per day, the highest among major OEM brands.”
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