Vodafone Demonstrates Its Determination To Boost Its Enterprise Activities At Its Global Analyst Event

With Henry Dewing, Henning Dransfeld, Katyayan Gupta, Brownlee Thomas, and Michele Pelino

Vodafone hosted its annual global analyst event in London recently, and it was a good event. Vodafone’s CEO Vittorio Colao kicked it off with a passionate endorsement of Vodafone’s enterprise ambitions. But will Vodafone’s market position as a leading mobile telco give it a tangible advantage in the broader enterprise global telecoms marketplace? We believe there is a good chance it will because:

  • Vodafone’s integrated pitch is credible. Vodafone comes up in nearly every conversation with Forrester enterprise clients that want to consolidate vendors for multicountry or “global” mobility services. Increasingly, our clients also are asking about Vodafone’s wired services. And those based in the UK and Germany are the most interested in learning about what’s available and what’s coming with respect to fixed-mobile bundling. Vodafone made a big play on fixed-mobile integration, most notably with the acquisitions of Cable & Wireless and Kabel Deutschland. Its network now covers 140 countries, 28 of which support MPLS networks for mobile backhaul. Vodafone also has big plans for refreshing and expanding its international IP backbone network to more than 60 countries.
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Telstra Analyst Event 2013: Report From The Customer Advocacy Journey Triathlon

With Dane Anderson, John Brand, Tim Sheedy, Clement Teo, and Bryan Wang

During his keynote at Telstra’s recent annual analyst event in Sydney, the CEO compared Telstra’s customer advocacy strategy to a triathlon that the firm has just begun. We believe this is a fitting analogy for progress communicated at the event. Our main observations are:

  • Telstra’s transformation remains a work in progress. Telstra is not unique from other incumbent telcos that transform away from traditional — and declining — sources of revenue. Its strong domestic position seems secure for now. But its prospects in new market categories, both inside and outside of Australia, are less certain. Telstra is not particularly innovative compared with telcos in the US or Europe. Yet Telstra benefits from a credible transformation strategy, which it is gradually implementing. For instance, Telstra has built a large IP-based digital media file exchange platform to serve global broadcasters and content providers.
  • Telstra ought to use its Net Promoter Score to drive cultural change. Its strategic goal to push for world-class customer advocacy is a key differentiator and convincing. However, we believe Telstra needs to use the NPS also as a driver of internal cultural change. For instance, Telstra should analyse transactional processes of device purchasing from branded retail stores. Moreover, Forrester research indicates that NPS has limits when it comes to explaining the “how” and “why” of customer experience.
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Ericsson is pulling away from its core competition — but this brings it closer to new competitors

Ericsson is well on its way to being a prime driver of transformation in the Networked Society, as Ericsson describes its vision. I do not question the leading position of Ericsson’s core network activities. But compared to last year’s EMEA Analyst Event, Ericsson has made noticeable progress in its ambition to become a network-focused provider of ICT services because it:

  • Has a clearer perspective of what it is trying to achieve for its enterprise customers. Ericsson is much more specific about which types of enterprise customers it is catering to with what types of services. It targets sectors that face a high degree of mobile disruption and that rely on secure networks for real-time information transmission. In addition to the public and media sectors, which Ericsson has been focusing on for some time, it serves utilities and transport and logistics companies. At the event, Ericsson showcased its strong capabilities and vertical expertise for the media sector in the form of media delivery networks and broadcasting services.
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AirWatch Connect 2013 Highlights The Emergence Of A Key Enterprise Mobility Provider

AirWatch held its EMEA AirWatch Connect customer event in London recently. The event underlined that AirWatch, at the tender age of 10, has become one of the leading global providers of enterprise mobility services. My key takeaways from the event are that:

  • Secure collaboration forms the center of the connected business. Business productivity and innovation benefit significantly from a workforce that is empowered by mobility. AirWatch has one of the most comprehensive enterprise mobility portfolios in the market to support this drive. AirWatch can play a central role for any organization that is transforming into a connected business.
  • An integrated platform approach to enterprise mobility has a clear advantage. AirWatch pursues a Lego-block approach, bringing together solutions for email, browser, containerization, content locker, and, of course, device and app management. By building its solution as one platform, customers gain the flexibility of a Lego-style deployment — they can pick only those blocks that they require while ensuring the integration and flexibility of the overall solution.
  • Building a business case for enterprise mobility must include soft factors. Managers who build ROIs for enterprise mobility solutions usually focus on hard KPIs that support existing ways of doing business. However, this “hard ROI” approach really only compares the present with the past. In reality, it is often the soft KPIs, like new ways of doing business, that matter more. Ultimately, mobility is crucial for greater operational flexibility and business transformation. Both are at the heart of long-term business success.
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Cyber Breach Crisis For Mobile Operator Vodafone Has Implications For The Broader Telco Industry

by Dan Bieler and Ed Ferrara

Mobile Operator Vodafone Is In The Midst Of A Security Breach Crisis

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Personal Communication Services and Social Collaboration Are Entering The Workplace

By Dan Bieler and Enza Iannopollo

Personal communications services, which we define as communication and collaboration services that merge private, social and business communication in one personal view, are becoming part of the work environment. Services like Skype or Google Apps allow users to speak and send messages across multiple communications services to communicate and collaborate just as they would as consumers within a corporate context. Empowered employees expect to use these collaboration channels not just for personal use but also for work.

Although Skype has been around for more than decade, the market for personal communications services in a business context is still very much evolving. The personal communication experience is complex and challenging, as individuals wrestle with multiple communications services to manage an increasingly diverse set of communication and collaboration technologies.

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Deutsche Telekom ought to play a more central role as energy sector ecosystems manager

By Dan Bieler and Holger Kisker

At its annual Energy Analyst And Sourcing Advisor Event in Berlin, Deutsche Telekom/T-Systems re-emphasized its commitment to service the energy sector with a dedicated offering. Over the last three years, Deutsche Telekom has spent significant resources in building up expertise to become a platform and service provider for the utility sector. Our main observations during the event were that Deutsche Telekom:

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Nokia Solutions and Services after Nokia

As many market observers had expected for sometime, Nokia closed the chapter on what can only be described as a dramatic climb-down for what once was the world’s leading mobile player. Nokia agreed to sell its Devices & Services business to Microsoft for 5.4 billion euros. What does this mean for Nokia Solutions and Services (NSN), formerly Nokia Siemens Networks? I have several observations:

  • I expect that more change for both Nokia and NSN lies ahead. Nobody can accuse Nokia of shying away from fundamental transformations: from pulp producer, to electronic component supplier, to mobile phone company, to now what resembles a holding company looking after a network infrastructure business (NSN), a cloud-based mapping service (HERE), and a patents and a licensing operation (Advanced Technologies). I see no synergies between these operations. Hence, a breakup of Nokia followed by an initial public offering of NSN could be one possibility. At the Mobile World Congress 2013, NSN presented itself in a manner what - to me - looked like dressing up for an IPO: a lean and mean provider of mobile broadband network solutions.
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It's Harvest Time For Vodafone In The US

Alas: It has finally happened. Vodafone has sold its 45% stake in Verizon Wireless to Verizon for $130 billion in a part cash ($58.9 billion) and part equity deal. The deal values the 45% stake at 9.4 times EBITDA. Markets had been speculating about this deal for years, so why has it taken place now? Arguably, the decision was made easier by Verizon’s share price, which is at a decade high, as well the the potential for rising interest rates. From Vodafone’s perspective, our main observations are that:

  • The deal is strategic for Vodafone and financial for Verizon. While the deal is a strategic transaction for Vodafone – it has decided to exit the US market – it is a financial transaction for Verizon: It already controlled Verizon Wireless through its 55% stake in the business. But after Vodafone’s exit, Verizon can keep the cash and no longer needs to pay out a dividend to Vodafone. It can instead use this retained dividend cash flow for capital expenditures and other investments to help boost its position in an increasingly competitive US wireless market (e.g., Softbank + Sprint; T-Mobile + MetroPCS).
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The Expectation Gap Increases Between Business And IT Leaders

Business Technology (BT) is a means to an end. BT is there to support the business objectives. Similarly, the task of IT leaders is to provide the most appropriate technological infrastructure to all employees so that they can pursue the business objectives most effectively. In other words: IT and business leaders should have the same perspective.

Yet, new Forrester survey data indicates several gaps in opinion about network infrastructure aspects between business and IT leaders. We see a risk that IT will purchase network and collaboration assets that do not address the demand by business lines. Similarly, there is a risk that business lines remain unaware of network and collaboration assets that IT has put in place. Under both scenarios, businesses waste valuable resources and end up with an inefficient network and collaboration infrastructure.

Our new report The Expectation Gap Increases Between Business And IT Leaders helps sourcing vendor management professional define an IT and networking strategy that supports overall business goals. This report is a follow-up of our 2012 report, Prepare For The Connected Enterprise Now. Our main messages to business based on the survey results are to:

  • Drive communication infrastructure projects in collaboration with business and IT. Eight out of 10 IT and business leaders consider network and telecom technologies critical to driving staff productivity. Sourcing professionals should focus activities on driving the road map and jointly develop business cases.
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