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Summary

Omdia’s post-COVID-19 business priorities survey found that 39% of Indian media enterprises plan to accelerate their digital transformation journeys with budget increases of more than 6% by 2022. The survey further highlighted that by leveraging unified cloud, artificial intelligence (AI), and secured data management functionalities, 44% of these enterprises plan to launch newer digital services, strengthen multidimensional decentralized workgroup collaboration, reduce time to market, and accelerate multifaceted real-time reach across diverse geographies. Although Tier 1 media enterprises have been early movers in embarking on the “digital-first” growth strategy, Tier 2 and Tier 3 businesses will be the fastest emerging in adoption in the next 18–24 months. The leading issues for more than two-thirds (67%) of Tier 2 and Tier 3 media enterprises in India are reducing transformation-based inefficiencies, lead time, and failure rates that lead to long-tail objectives not being met. In August 2020, Amazon Web Services (AWS), and Bharti Airtel entered into a strategic alliance to expedite enterprisewide digital transformation roadmaps (including in the media and entertainment segment) aimed at creating “future-ready digital-native” companies to meet the continuously changing internal and external complexities of the business environment.

Omdia believes that this win-win cooperative value proposition, offering one-stop reengineering services across both the horizontal (cloud, security, network, internal shared, AI) and vertical (from media acquisition to engagement workflows) media supply chain will be the core differentiator in delivering a higher ROI on enterprises’ transformation budgets in the post COVID-19 world.

Deployment teams’ lack of industry knowledge, fragmented migration, and costly change management are key issues

Omdia’s Media Transformation ICT Services Forecast: 2019–24 estimates that total market spend in the global media transformation services segment will reach $21.1 billion in 2020. This is forecast to reach $27.4 billion by 2024, a CAGR of 1.8%. Furthermore, because digital transformation projects are highly capital intensive, media enterprises are focusing on reducing inefficiencies and failure probabilities across the framework. However, around 50% of media transformation projects fail to achieve their stated objectives. This failure is mainly attributed to

  • Insufficient industry knowledge in vendors’ deployment teams

  • Highly fragmented migration roadmaps with a lack of upfront commitments (tangible and intangible)

  • A lack of capability to migrate horizontal and vertical media value chains to agile workflows

  • A lack of internal competencies to complete the transformation roadmap

  • Negligible continuous enrichment of the change management program

As margins come under pressure for most media enterprises, and investment in the transformation roadmap required to build tomorrow’s connected digital-native enterprise becomes more important, leveraging a single converged transformation ecosystem such as an Airtel Cloud with AWS as the backbone is essential. It offers

  • Niche industry-specific competencies with cloud migration and assessment capabilities across diverse media and entertainment segments

  • Low-latency-based internal and external workgroup collaboration, allowing for end-to-end frontend and backend application modernization and supporting remote and decentralized enterprisewide exchanges of data, file, and media assets

  • Building newer resilient digital real-time engagement touch points through unified data management and AI-embedded predictive analytics capabilities at the edge

  • A scalable connected media portfolio at lower total cost of ownership with a horizontally diversified, secured, open source content supply chain to support onboarding of newer digital services without offsetting profitability and business agility

The current strategic tie-up between AWS and Airtel Public Cloud will facilitate improvements in the completion of digital transformation roadmaps (reducing fragmented investment that results in transition frameworks remaining incomplete and expensive) and will support enterprises’ migration to a cloud-native infrastructure, architecture, and workloads as well as a premium internal and external delivery experience (co-location data centers, advanced network security, etc.). Finally, as media enterprises in India are pushed toward creating a highly secured media value chain, consolidating multiformat data in a single repository to improve audience engagement, enhancing operational productivity, and expanding reach in the next 12–18 months, the AWS-Airtel alliance is well positioned to address their changing business requirements in the long term.

Appendix

Further reading

Media Transformation ICT Services Forecast: 2019–24, SPT004-000066 (April 2020)

Enterprise Case Study: Delivering Scalable Rich Interactive Fan Engagement at Lower Cost, SPT004-000021 (September 2018)

Transforming the Broadcast TV and Video Distribution Landscape, SPT004-000055 (January 2020)

“AWS’s roadmap for Indian M&E prioritizes analytics, cloud economics, digital, and localization,” IT0006-000312 (May 2017)

“AWS Summit Mumbai: Orchestrating partner technology is essential in the media transformation era,” SPT004-000042 (June 2019)

Author

Kedar Mohite, Principal Consultant, Media & Broadcast Technology

[email protected]

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