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The ROI of MSM: Enhancing the Consumer Experience and Mobile Revenues

By Guy Agin
Director of Strategy and Business Development,
Red Bend Software

The mobile industry is increasingly recognizing Mobile Software Management (MSM) as vital for enabling the next generation of mobile services. One reason is because the business case is so compelling.

MSM encompasses a set of technologies, standards and business processes which enable service providers to perform management actions on the software assets of mobile devices. By enabling the software on a broad range of devices to be dynamically manipulated over the air, MSM equips service providers with the ability to launch new services independently of device release schedules and replacement cycles.

The ability to instantly push a new service to the installed base increases the ROI significantly and achieves a critical mass of penetration more rapidly. In our latest white paper, we calculated the ROI a service provider could expect with MSM, assuming a subscriber base of 20 million and planning to launch a service that would add $2 per month for users of the new service. It is assumed that without MSM capability, the installed base for the new service grows from 1 percent to 15 percent over 3 years, while having an MSM solution in place means the installed base starts at 10 percent and grows to 30 percent. This difference alone increases the incremental revenue from the service by 180 percent over three years.

Mobile Software Management doesn’t just have the potential to increase revenues for the service provider though – imagine what it can do for the consumer!

Over-the-air software updates give consumers a continuous stream of new features and performance improvements. This is especially important as phones get smarter and more complex. Mobile phones now have cameras, Wi-Fi, video, TV and music, and consumers are accustomed to getting these services on-demand. This updating enhances the value of the phone throughout the phone’s lifetime, and delivers a more compelling user experience that keeps consumers satisfied and builds brand loyalty.

The white paper presents different revenue and business models that enable the mobile value chain to monetize MSM.

To learn more, download the White Paper>>

posted by Red Bend @ Sunday, February 7, 2010 - 10:08 PM

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