T-Systems Needs To Be More Disruptive To Tackle Growth Opportunities

 

Dan Bieler, Brownlee Thomas, Frederic Giron, Stefan Ried, Chris Mines, Pascal Matzke, Jennifer Belissent

T-Systems hosted its 2012 analyst & sourcing advisor event recently. To be sure, T-Systems remains one of the most advanced true ICT providers in the European market. But T-Systems ought to demonstrate more clearly how it can support and enhance business process for its customers and improve the customer experience for its customers’ customers. Of course T-Systems is not alone. The ICT industry needs to emphasize proven capabilities in delivering enterprise-grade ICT solutions ranging from co-management of infrastructure resources to full outsourcing.

T-Systems, like many of its competitors, is busy making sure that it doesn't bleed too much in what T-Systems calls the red ocean, i.e.: the highly competitive market segment of legacy services. That's a good start. At the event, T-Systems very clearly communicated the progress at its internal production factory. This aspect is critical for streamlining and standardizing the portfolio, boosting margins, and developing products and services that the revamped sales team then can actually sell. One tangible outcome of this effort shows through in the high customer-satisfaction level and deal wins like BAT, OMG, and Georg Fischer. Importantly, T-Systems also has put in place a rigorous certification framework for ensuring quality of service with suppliers.

However, T-Systems still needs to convince in areas of the blue ocean, i.e.: the emerging innovative market segment. Like many of its competitors, T-Systems is not finding this easy. Why? Because T-Systems continues to prop up its legacy business: selling technology solutions.

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SoftBank’s Sprint Rescue – What It Means For Sprint Enterprise Customers

SoftBank plans to inject $20 billion ($12 billion cash and $8 billion of new capital) to acquire 70% of Sprint Nextel. The deal will give Sprint about $8 billion in new capital, which will be used to complete its Network Vision network modernization strategy that will be completed in 2013. The deal gives SoftBank direct access to the much larger US wireless market and also boosts its 2.5/2.6 GHz TD-LTE 4G carrier ecosystem (the 2.5/2.6 GHz spectrum band also is licensed by Clearwire in the US, and Clearwire is 45% owned by Sprint). In addition, Sprint said previously that the devices running on its own FDD-LTE 4G network also run on TD-LTE, allowing it to offload customer traffic onto Clearwire’s network as needed. SoftBank claims that the deal, for which no regulatory or shareholder obstacles are expected, will close by mid-2013 and will make it the No. 3 mobile operator in the world, with $32 billion in revenues after Verizon with $37 billion and China Mobile with $43 billion, and just ahead of AT&T, also with about $32 billion, and Vodafone with about $31 billion. It also will have 96 million subscribers in the US and Japan.

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