Why Telecoms and Insurers Need To Launch Personal Cloud Solution?

In a time when the digital content stored on mobile devices is often considered more important than the devices themselves, an alliance between mobile network providers and insurers to launch a co-branded personal cloud solution makes more sense than ever, explains Chris Hill, chief commercial officer, Synchronoss Technologies.

At first glance, a collaboration between mobile network providers and insurance providers may not seem like an obvious match. 

Think about this, though: Our expensive mobile electronic devices,  phones, tablets and laptop computers and the networks that power them are essential to our day-to-day lives. Losing or damaging one of these devices results in a scramble to replace or repair it and quickly reconnect to the network. 

Now consider that consumers are creating and saving more content than ever personal photos, videos, music, contact details, documents on those devices. The loss of a mobile phone or laptop can also mean the loss of precious and often irreplaceable content and data. 

In other words, the connection between telecoms and insurers is not as improbable as you might have thought. The partnering of telecoms and insurers to launch a personal cloud solution that safeguards digital content from catastrophic loss is quite simply a logical evolution for both. 

A Market Ripe for Investment

Some might think that over-the-top (OTT) cloud offerings such as iCloud, Amazon Drive, Google Drive and Microsoft OneDrive have the personal cloud market locked down. Nothing could be further from the truth. According to one report, the personal cloud storage market’s compound annual growth rate market size is growing by an impressive 35% through 2027.

Growing subscriber concernsOpens a new window about the ability of OTT cloud platforms to protect personal data also bode well for alternative personal cloud providers as well. Many subscribers are more than willing to pay a premium for peace of mind in a time when news headlines routinely expose OTT data breaches, as well as the myriad of ways some of these organizations take advantage of consumer personal data for their own gain. 

The high marks that telecoms have earned on consumer trust surveys and the way insurance providers have established themselves as dependable guardians of physical possessions means the two sectors already have a solid foundation upon which to launch a secure personal cloud offering. Customers will turn to those organizations in which they have the most trust to help keep their most precious digital data from being lost forever.

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Differentiated Value Proposition

In an increasingly complex digital ecosystem where individuals and families often manage multiple mobile devices with different operating systems and various online cloud accounts, the allure of accessing a single one-stop, OS-agnostic personal cloud platform accessible from all a subscriber’s mobile devices as well as home computers is strong. 

Also, keep in mind that once a personal cloud offering might have been a marketplace differentiator for a telecoms provider, it is quickly becoming an expectation. Smaller telecom organizations unable to independently put in place a personal cloud solution because they don’t have the same deep pockets of larger providers will likely find themselves at a competitive disadvantage.  

Of course, insurance companies benefit from having a cloud offering, too. Closing the protection gap by insuring all hardware as well as safeguarding the digital content on those devices is a mighty appealing combination. Moreover, partnering with a telecom provider delivers a new channel to engage with customers more frequently throughout the entire service lifecycle. The use of targeted communications, for example, can promote additional revenue-generating insurance services and maximize insurance adoption. 

Equally important is that both cloud partners gain an opportunity to grow their bottom lines. This can occur from a variety of streams, including revenue-share agreements and cross-promotional campaigns. Additionally, telecom providers have an opportunity to create premium bundles that go beyond basic backup and restore capabilities. Storage upgrades; advanced features such as screencasting, photo printing and editing and memory flashbacks; and the inclusion of home computers in cloud plans are all possibilities. Meanwhile, insurers that are subject to state pricing regulations may be able to leverage a new personal cloud service offering as a means to bump premium rates. 

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Everyone’s a Winner

In a world where consumers report being more worried about losing the data on their devices than losing what’s in their wallets, access to a trusted, easy-to-manage personal cloud able to safeguard digital data is no longer a “nice to have” but a “must have.” For this reason, a formal partnership between insurers and telecom providers to launch a co-branded personal cloud solution makes a lot of sense despite their disparate sectors. 

Why?

Telecom providers win when they break into a space dominated by OTTs and beat back disintermediation efforts. Insurers win by setting themselves up as providers of all-in-one insurance plans that protect customers’ homes, autos and electronics as well as irreplaceable digital content. And as is the case for both organizations, customers who use a company’s personal cloud solution are far less likely to change providers. Giving customers a secure space to safeguard their most cherished and critical digital data as well as protection for their actual devices can lead to a better chance for long-term marketplace relevance.

Equally important is that consumers win as well. Knowing their digital content is safe, accessible and easy to restore should the unthinkable happen to their electronic devices is one of the easiest ways to ease the concerns of telecom and insurance subscribers. The simple fact is that ignoring the opportunity to give these customers much-wanted peace of mind risks the chances of building longer-term relationships.

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