The Role of Mobile Operators Explained

Transcription

1 A Datamonitor report The Role of Mobile Operators Explained Time to Face up to Reality Published: Dec-04 Product Code: Providing you with: Use this report to... Find out how Orange, O2, T-Mobile and Vodafone are attempting to differentiate themselves in the corporate data solutions market Data on Europe covering Benelux, France, Germany, Italy, Spain, Scandinavia and the UK Analysis of mobile operators corporate data solutions

2 The Role of Mobile Operators Explained: Time to Face up to Reality Introduction The main problem for mobile operators addressing the enterprise data solutions market is that they remain unable to differentiate, and without dramatic action or innovation, Datamonitor sees only a fight for high volume, low value business. This is precisely what operators want to avoid, but they have little else to offer. This report provides an overview of a selection of the leading European mobile operators. It examines their current enterprise data solution offerings and assesses them according to a number of key success factors. Furthermore, it details Datamonitor's opinion on the role that operators have to play in the enterprise mobile data solutions market over the next three years. Key findings and highlights Within the SoHo market, Datamonitor believes that there is little revenue opportunity for mobile operators. Although companies of this size will not want to invest in infrastructure, and hence are a good target for hosted solutions, the actual desire/need for mobile solutions of any sort is likely to be limited in the short term. It is in the SMB sector that mobile operators have a substantial role to play. As well as having the ability to offer service-based value-add, operators will be able to offer network-based value-add. In most cases, this will be bundled into solution offerings. Security, though, is one area where there is an opportunity for operators to upsell. Reasons to buy Find out how Orange, O2, T-Mobile and Vodafone are attempting to differentiate themselves in the corporate data solutions market Discover Datamonitor's independent view on mobile operators' strategies for addressing the corporate data market and benchmark each against its peers Learn how Datamonitor sees this market developing in the future and discover the role that operators will play Contact us... From Europe: tel: fax: tcmarketing@datamonitor.com From Germany: tel: fax: deinfo@datamonitor.com From the US: tel: fax: ustcmarketing@datamonitor.com From Asia Pacific: tel: fax: apinfo@datamonitor.com

3 Sample pages from the report The Future Decoded VAR and as a result it is too costly for mobile operators to actively target this segment of the market. Opportunity zone 4 Within the large enterprise segment, Datamonitor sees limited opportunity for mobile operators. The Future Decoded The most simple way for operators to address this sizeband is with their datacard products through indirect channels (including enterprise IT resellers, VARs, SIs and possibly in partnership with laptop manufacturers themselves). With all operators offering dashboard products, looking to manage network handover (where appropriate) and integrating security, differentiation The opportunity is only possible map on for price. mobile operators Beyond this product, Datamonitor does not believe that mobile operators have a substantial role to play in this market segment. Point solutions may present an opportunity, but this is unlikely to be the Figure case. Large 5: enterprises Market opportunity are tending segmentation currently by company size only to invest in solutions that have the ability to extend functionality at a future point (i.e. companies are taking a strategic approach to tactical spending). This is not Opportunity zone 1 Opportunity zone 3 typically the case with most mobile solutions on the market. The Future Decoded Level of opportunity Beyond productized mobile offerings, where solutions require more complex High SOHO SMB SME1 SME2 ENT integration and installation, customer ownership will be retained by large SI partners As such, the role of the mobile operator is limited Low to becoming a preferred SI and partner, back-up 250 / restore 500 functions However, 5000security needs to be embedded for uptake and thus a minor partner within an SI-led ecosystem. It is the SI that therefore to occur as SoHos have little interest in implementing additionally costed security Opportunity zone 2 Opportunity zone 4 # employees becomes the operator s customer. In order to secure valuable SI partnerships, where mobile it can be avoided. In order to prevent erosion of an already strained margin, NO NO operators must convince them that network-based value-add can bring about operators service need to control service and support costs. By heavily limiting choice and Source: Enterprise Mobility SPP revenues not in terms of driving service revenues but more acting as a tick-box instead onoffering only two mobile D A T A M O options N I T O R to this sizeband, one network-based service delivery. This will not be a differentiator for mobile operators, though, (hosted) with the and one box-based (on-site), operators can attempt to drive scale of result that offering volume discount on access over any medium (e.g. GPRS, economy 3G, in phone-support. Furthermore, offerings should be geared to leverage the WLAN, etc.) is the only way to secure integrator partnerships. Although existing avoidingsupport capabilities / call-centre for consumer data applications. Opportunity zone 1 price-based competition is clearly the goal of mobile operators, they are not able to bring anything else to the table with regards In the to large mobile enterprise data solutions customers. market, Opportunity Datamonitor zone believes 2 that SoHos (1-9 employees) will present little revenue opportunity for mobile operators in the short What of the future? term. Although companies of this size It typically is in the do SMB not sector want to that invest Datamonitor in infrastructure, believes mobile operators have a substantial and hence might be a good target for role hosted to play. solutions, For them actual to be desire able to / need operate for effectively in this space, however, Should mobile and wireless network technology mobile solutions continue of any to develop sort will and remain improve solutions limited as for must the consist next of packaged months. (though possibly customizable) applications. rapidly as it has done over the last 5 years, there will be several opportunities for Over time, as mobile technology continues to mature, the sizeband will increasingly mobile operators to address: Figure 6: Mobile application segmentation take up mobile solutions. A large proportion of those will do so as individual prosumers, however, rather than as an organization and given the reduced ability to target such individuals with collective services, this will only reduce the operator s The role of mobile operators explained: Time to face up to reality addressable market. Furthermore, the price sensitivity of SoHos ENTERPRISE combines with APPLICATIONS their Datamonitor (Published 12/2004) Page 45 desire for clear cost visibility to mean that operators will have to adopt a flat-rate This report is a licensed product and is not to be photocopied pricing model, but not a typical one. Traditionally, SoHos have been General reluctant to adopt / messaging flat-rate models due to a belief that they are being charged for business peripherals that they PIM apps could do without or do not sufficiently use. As absolute price of mobile services falls, this becomes less of an issue, but operators would do well to radically Field service deemphasize the additional cost of service being levied, in order Front to render upsell Field sales opportunities painless. Margin is however the key issue, particularly office as the service Customer care (CRM) opportunity is small. The main additional service options are around security, re-set Back ERP The role of mobile operators explained: Time to face up to reality office SCM Datamonitor (Published 12/2004) Page 35 This report is a licensed product and is not to be photocopied Warehousing ISV / Manufacturing packaged Retail & POS Vertical Transportation apps OR & logistics Construction In-house Public service Source: Enterprise Mobility SPP D A T A M O N I T O R The role of mobile operators explained: Time to face up to reality Datamonitor (Published 12/2004) Page 36 This report is a licensed product and is not to be photocopied Request more sample pages...for FREE! From Europe: tel: fax: tcmarketing@datamonitor.com From Germany: tel: fax: deinfo@datamonitor.com From the US: tel: fax: ustcmarketing@datamonitor.com From Asia Pacific: tel: fax: apinfo@datamonitor.com

4 The Role of Mobile Operators Explained: Time to Face up to Reality Table of contents EXECUTIVE SUMMARY INTRODUCTION COMPETITIVE DYNAMICS Introduction Current solution offerings - Orange - - Sales and services automation - Telemetry and tracking - O2 - T-Mobile - Datacards - Devices - Vodafone - Mobile Connect - Hand-held business devices - Other solutions Qualitative analysis - Geographical coverage - Product offerings - Channel strategy - Vertical strategy - Vision - Agility - Brand trust - Partnering strategy Conclusions - Opportunity zone 3 - General business applications - Front-office applications - Back-office applications - Bespoke vertical applications - Opportunity zone 4 What of the future? Conclusions APPENDIX FIGURES Figure 1: Strategic evaluation of selected European mobile operators Figure 2: Market opportunity segmentation by company size Figure 3: Datamonitor's market expertise and research and analysis methodology Figure 4: Strategic evaluation of selected European mobile operators Figure 5: Market opportunity segmentation by company size Figure 6: Mobile application segmentation Figure 7: Security represents a substantial opportunity for operators THE FUTURE DECODED Introduction The opportunity map for mobile operators - Opportunity zone 1 - Opportunity zone 2...With little ability to differentiate, it is volume, not value that operators will need to rely on. To gain volume, data pricing needs to reduce and operators need to develop and expand their mobile offerings to account for a larger variety of users... Richard Clifford, Datamonitor Technology analyst

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6 The Role of Mobile Operators Explained: Time to Face up to Reality Datamonitor's Technology Strategic Planning Programs (SPP) are tailored, continuous advisory services combining a number of information sources. Interested in this topic? The Enterprise Mobility Strategic Planning Program focuses on mobile networks and mobile services (consumer and business). It does this through its five knowledge silos: Mobile devices and embedded operating systems Technologies and standards Infrastructure mservices Content, software and security The service tracks network service roll-out and infrastructure markets, consumer-centric applications, services and content as well as mobile enterprise Other reports available in this series Mobile Solution Management: Managing the Unmanageable? Examines the emerging trends and issues around mobile solution management; including technological developments, end-user perception and the competitive dynamics at work in the sector Published: Aug-04 Product code: DMTC0996 Orange Investing in Confusion? Outlines how data offerings for enterprises could still do with a tune-up, as choice does not necessarily translate into success Published: Aug-04 Product code: BFTC1060 European Enterprise Mobility and Security: Outlook and IT Investment Insight Examines what organizations intend to offer their employees in terms of mobile business applications and services, how they intend to address the resulting security concerns and how mobile security fits into an organization's overall security strategy Published: Oct-04 Product code: DMTC1049 For more information on reports and briefs go to: Subscribe to Monitor A monthly update of Datamonitor's new products, delivered to you by . monitor@datamonitor.com

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