BT Opens Global IP Exchange In Singapore For Fixed And Mobile Operators

For hosted voice service providers and mobile network and fixed-line operators, BT’s launch of a major global IP exchange (GIPX) hub in Singapore could be good news. Set up to meet the demand for growing traffic over its IP Exchange platform, this is the third announcement I’ve seen from telcos in this region in the space of two months — the others being Telstra Global Services and Tata Communications.

BT’s wholesale service enables communications providers to connect VoIP to VoIP and VoIP to traditional voice calls, and runs over its MPLS network — i.e., a private IP network.

I spoke with Beatriz Butsana-Sita, managing director of BT Global Services and Global Telecom Markets, who explained that delivering the GIPX service closer to BT’s wholesale customers in this region serves to minimize their cost to interconnect to BT’s clearinghouse. “GIPX also provides an opening into BT’s platform for advanced IP services that we continue to invest in,” she said.

The telco is also working on a number of developments to further expand the service, such as the ability to support mobile 4G and provide video interoperability between different devices and networks.

The BT GIPX Singapore hub:

  • Provides a local switch function in the Asia Pacific region. This brings BT’s GIPX service closer to customers’ networks.
  • Acts as a multiservice GIPX point of presence (PoP). This helps address the growing demand for interconnect services in the region. The services that benefit from and are supported by GIPX include fixed and mobile voice (at a range of qualities, e.g., high-definition voice); fixed, mobile, and wireless data; roaming services; and videoconferencing.
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Microsoft’s Tablet And Smartphone Licensing: Still Counting Devices When The World Only Wants To Count Users

Over the last few years, there have been fantastic advances in technology that have brought us almost a billion smartphones and tablets. These handy mobile computers give us access to our Microsoft Windows and Office products anytime and from anywhere. No longer are we tied to the old clunky desktop device in the office. This is good stuff: It lifts the age-old location-dependent restrictions that meant nothing got done unless you were physically in the office.

There’s only one hitch: Microsoft continues to apply licensing models that count physical devices. Device counting is fine if I have multiple access devices each with their own Windows and Office software versions installed. But when I only have one version of Windows and Office but wish to access that version remotely or virtually via multiple access devices, why should I have to pay more for the privilege? In today’s increasingly cloud-delivered software world that simply counts users not devices, that’s the question more and more people are asking.

Some details: With Windows 8, users that have a "primary device" licensed under a volume agreement with Software Assurance (SA) for Windows can access Windows on- or off-premise on up to 4 devices by buying the new Companion Subscription License (CSL). Prior to the advent of the CSL, each extra device required a Virtual Desktop Access (VDA) subscription in order to provide virtual access to their Windows desktop.

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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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Profit Warning! A Software Asset Sprawl Will Weaken IT Service Providers' Financials

I recently reviewed a portfolio of about 600 software artifacts from 16 large IT service providers. This daunting exercise complements a research stream I have been working on since the beginning of the year on the future of the IT services industry. While I believe the move to software asset (SA)-based IT services will drive maturation of the services industry and help IT service providers remain relevant to their clients, the analysis of this SA inventory raises a few significant challenges:

  • Most software assets face scalability issues. Traditional sales and marketing organizations within IT service providers fail to sufficiently scale up the number of clients for their SA-based offerings. Case in point: 68% of the software assets analyzed in this inventory have fewer than five clients. This low number raises concerns on the financial viability of these offerings for service providers.
  • Service providers will face a SA sprawl over the next couple of years. On average, service providers currently have about 20 SAs in their SA portfolio. The analysis shows that this number is growing exponentially (see below). The number of SAs created has increased by an average of 26% each year since 2009 and is accelerating. More assets were created in the first six months of 2012 than in any previous entire year; SA-related investments are following a similar trajectory.
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4G Data Exchange: Another Option Arises For Mobile Operators

At a briefing last week, I spoke with Tejaswini Tilak, global head of carrier services at Telstra, who updated me on its newly launched mobile operator IPX (IP Exchange) platform. Marketed as the Telstra Global IPX Service, this service aims to enhance international roaming and next-generation mobility services for operators seeking to exchange long-term evolution (LTE) data traffic. The service promises:

  • An optimized network. Using a single channel, the Telstra Global IPX Service allows mobile operators to optimize their networks to accommodate growing mobile data consumption while providing end users with a consistent customer experience.
  • Greater efficiency. This is possible as it runs over a private network — Telstra Global’s own managed IP MPLS core network — which can maximize traffic on both legacy and new mobile platforms. 
  • Diameter signaling support. Telstra provides support for diameter signaling, a relatively new protocol that works with core IMS on IP data traffic. Tilak claims that Telstra will be able to set up multiple roaming agreements by acting as a diameter signaling hub and providing interoperability and mediation between different diameter deployments among mobile operators.
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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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