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Trends in enterprise ICT

UBS Telecoms Enterprise Day 2014

28 March 2014 • Robert Schumann


About Analysys Mason

Sizing African SME ICT markets

Case studies from Developed Markets

Challenges and opportunities for providers

Contents

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Knowing what’s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to

understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions,

based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two

channels: consulting and research.

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Consulting

Our focus is exclusively on TMT.

We support multi-billion dollar investments, advise clients on

regulatory matters, provide spectrum valuation and auction support,

and advise on operational performance, business planning and strategy.

We have developed rigorous methodologies that deliver tangible

results for clients around the world.

For more information, please visit www.analysysmason.com/consulting.

Research

We analyse, track and forecast the different services accessed by

consumers and enterprises, as well as the software, infrastructure

and technology delivering those services.

Research clients benefit from regular and timely intelligence in

addition to direct access to our team of expert analysts.

Our dedicated Custom Research team undertakes specialised and

bespoke projects for clients.

For more information, please visit www.analysysmason.com/research.



Analysys Mason is part of Datatec, a global ICT solutions and services group

4 About Analysys Mason

Value added distributor of

category-leading unified

communications, network

infrastructure, data center

and security solutions with

a global network of

specialty resellers

International IT solutions

and managed services

provider with a breadth of

knowledge and expertise

in communications and

collaboration; data centre

and cloud services; and

managed services

Networking services and

support consultancy

business focused on three

core business pillars;

creation of new revenue

streams, delivery of

projects associated with

those revenue streams

and support of these

projects once delivered.

Via‘s services bridge the

gap between telephony

and computing to deliver

best-in-class, multivendor,

integrated unified

communications solutions.


Research from Analysys Mason

We provide dedicated coverage of developments in the telecoms, media and technology (TMT) sectors, through a

range of research programmes that focus on different services and regions of the world.

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Alongside our standardised suite of research programmes, our Custom Research team undertakes specialised, bespoke

research projects for clients. The dedicated team offers tailored investigations and answers complex questions on markets,

competitors and services with customised industry intelligence and insights.

To find out more, please visit www.analysysmason.com/research.



Consulting from Analysys Mason

For more than 25 years, our consultants have been

bringing the benefits of applied intelligence to

enable clients around the world to make the most of

their opportunities.

6

Our clients in the telecoms, media and technology

(TMT) sectors operate in dynamic markets where

change is constant. We help shape their

understanding of the future so they can thrive in these

demanding conditions. To do that, we have developed

rigorous methodologies that deliver real results for

clients around the world.

Our focus is exclusively on TMT. We advise clients on

regulatory matters, help shape spectrum policy and

develop spectrum strategy, support multi-billion dollar

investments, advise on operational performance and

develop new business strategies. Such projects result

in a depth of knowledge and a range of expertise that

sets us apart.

We help clients solve their most pressing problems,

enabling them to go farther, faster and achieve their

commercial objectives.

To find out more, please visit

www.analysysmason.com/consulting.



Micro and small enterprises buy far less ICT in Africa than they do globally

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Global SME revenue Sub-Saharan Africa SME revenue

Source: Analysys Mason, “ICT services for SMEs worldwide:

forecasts and analysis 2013–2018”



Compared with global counterparts, mobile operators control far more of SME spend

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Source: Analysys Mason, “ICT services for SMEs

worldwide: forecasts and analysis 2013–2018”

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Fixed broadband Video services Fixed voice Mobile voice and data Cloud services

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Global SME revenue



Case study Telefónica Azul

An OTT voice, messaging and

teleconferencing tool, targeted

towards large enterprises.

Responding to the threat of OTT

and BYOD* to enterprise revenue

in developed markets.

Entry level UC application

conferencing, collaboration,

document sharing and unified

messaging.

We expect BYOD to be an

important trend in enterprises in

Southern Africa, mainly due to

mobile operators aiming to increase

spend from corporates

9 Case studies from Developed Markets

Features

VoIP calls

Interoperability with Lync

Integrate contacts and presence

Document sharing

Call management features

Call recording

* BYOD = Bring Your Own Device


Case study Telefónica Azul

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Telefónica Azul screenshot



Case study Unify Project Ansible

Project Ansible is a unified communications (UC) service that aims to

deliver on the promise of UC that has so far not been realised.

Adoption of UC services is increasing in developed regions, as virtual

teams and multiple devices become a reality, and pressure is on IT

departments to deliver more value for less budget.

Ansible employs WebRTC for a browser based interface, which makes it

a potentially viable service for deployment into enterprises in emerging

markets that may have lower IT budgets.

Enterprise customers in Southern Africa will see improvements in

connectivity, and become more data reliant over time, as the economy

moves towards being more service orientated. Services such as Ansible

be rapidly adopted once this is the case.



Case study Unify Project Ansible

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Project Ansible



Cloud-based Mobile Device Management

Cloud-based MDM is a small

market in terms of revenue in

SSA, but it will be one that

increases rapidly.

Large enterprises will be the

early adopters of these services.

SMEs will follow as the value

becomes clear, and they become

more data sensitive.

Adoption is increasing rapidly in

Latin America and emerging Asia

Pacific.

Mobile operators are a key

channel to market for MDM

vendors.

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Cloud-based MDM revenue,

worldwide 2013-2018


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Micro Small Medium


Case study AirWatch

Airwatch is an MDM vendor,

offering both cloud based and on-

premises deployments.

For SMEs Airwatch Professional

is an entry level service that can

be deployed for USD1 per user

per month, providing basic MDM

functionality.

It can define and update

company-wide settings and

access, remotely wipe devices

and view all active devices across

the network.


Stakeholder Feature

Employees • Use personal

devices at work

(BYOD)

Employers • Quick to implement

• Low cost

• Upgradable

IT

administrators

• Secure mobility

• Easy to install

• Monitor devices

• 24/7 support

Airwatch Professional features by

stakeholder


Other interesting BYOD/MDM applications

Dual persona

AT&T Toggle (Voice and Data)

Split billing

Swisscom Duo Bill

Virtual SIM

Movirtu, Movius

OTT

Telefónica Azul, Comcast VoiceEdge



Trends suggest more collaborative services through lower cost / more convenient channels

Our research in developed markets suggests the following trends:

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Source: Analysys Mason, “Top technology trends for SMEs

in developed markets in 2014”


Trend Drivers

Enhancement of

operators’ online

channels

• Improved SME customer experience with cloud

• Lower cost of sales compared to other channels

• Simple way to educate a mass market on technology

• Flexible procurement and management of cloud

services for the customer

Video-based

communications

• Cross-office collaboration with reduced travel

• Can be integrated into wider UC packages

• Used for sales, customer service, and support

• Increasing use in healthcare, government, education

and manufacturing

BYOD solutions • Operator pressure to monetise BYOD

• SME conflicting requirements for mobility and security


Connectivity providers must update their operations to support SMEs effectively SMEs are complex customers, requiring good technical support and high reliability

Connectivity providers (CPs) must fine-tune their operations to provide these things and to attract and

support SMEs for both traditional, ICT, and other emerging digital economy services

CPs must offer SME customers simple, automated self-service. They cannot afford to offer

customised services for every SME, while SMEs always prefer a quick sign-on process with little

outside help.

CPs should build partnerships with vendors and resellers that have a good understanding of the

SME market. They cannot reach out to SMEs individually, given the huge and fragmented market.

CPs should ensure data consistency across systems. A typical CSP will have systems from

several different vendors, some of which may not be compatible with each other – a common

information model must be used.

CPs should implement robust security protocols and should offer high-quality services, backed

by SLAs for service uptimes. Data security and service reliability are key issues for attracting SMEs.

CPs should offer different billing and bundling options for their services. Adoption of a one-size-

fits-all approach risks alienating some customers, and lack of differentiation will prevent upselling of

quality services.

CPs should offer out-of-the-box solutions for digital economy services such as web and server

hosting, retail product catalogue and department-level billing on a zero capex, pay-as-you-go SaaS

model in order to reduce the upfront costs to customers and ongoing operational costs to the CSP.

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Source: Analysys Mason, “Digital economy software strategies: CPs

require advanced operations to provide SMEs with ICT services”



African enterprises can increase productivity, but price and lack of choice are inhibitors

Market drivers

Need to increase productivity by:

connecting company locations and partners (that may

host software)

supporting better customer service via contact

centres

increasing automation of basic business processes.

Desire to support real-time applications such as

teleconferencing when travel budgets are under

pressure.

Need to reduce costs leads to more outsourcing,

including IaaS and SaaS.

Need to improve reliability because more mission-critical

applications are being run over the network.

Demand for services that are consistent around the

world.

Replacing PSTN with VoIP as a way of reducing costs.

Growth in the population of servers and storage devices

leading to increased outsourcing.

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Market inhibitors

Price is the most significant barrier to greater bandwidth

usage.

Lack of choice of suppliers (also keeps prices high).

Users do not want to be dependent on a single supplier.

If only satellite (which has high latency) is available,

enterprises cannot use real-time applications.

Lack of network coverage.

Operators’ inability to support higher network speeds

may limit what applications can be run (for example,

cloud).

Poor quality of the local loop and/or the access network.

Restrictions on VoIP (because of regulations regarding

what can be carried over data links).

Lack of awareness. Companies not yet convinced of the

benefits or practicalities of services such as cloud, or

how these services can improve productivity.


Source: Analysys Mason, “Enterprise connectivity demand

in Africa: trends and forecasts 2012–2017”


‘Time to deploy’ is the most frequently cited reason for selecting a supplier in Africa Time to deploy. Our discussions with enterprise IT managers in Africa

revealed that the ability to get services up and running with minimal lead times is

extremely important.

Reliability and SLAs. IT managers want to be assured not only of the quality

of the services, but also that the supplier can provide the necessary security and

maintenance of the hardware.

Choice of good-quality partners. Users need to know that operators have

a good relationship with their suppliers, and that the equipment and systems

suppliers are reliable and credible.

Ability to cater for the African terrain. Users may consider remote region

coverage and may consider route diversity to ensure service reliability, damage

to the fibre is common.

Past experiences and brand reputation. IT managers prefer to work with

suppliers with whom they have had a good experience in the past or about

whom they have heard good reports from peers.

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Source: Analysys Mason, “Enterprise connectivity demand

in Africa: trends and forecasts 2012–2017”



Contact details

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Robert Schumann

Principal

[email protected]

Johannesburg

mailto:[email protected]

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