SAMPLE PAGES Mobile Value-Added Services in Europe: Forces Driving and Inhibiting Enterprise MVAS for MNOs Neha Sinha Analyst Sunil Kumar Verma Senior Analyst Daniel Ramos Practice Leader Single-user price: US$ 1,195 This report is part of Pyramid Research s series of Europe Insider Reports August 2015 Edition 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs
Summary Mobile Value-Added Services in Europe: Forces Driving and Inhibiting Enterprise MVAS for MNOs, an Insider report by Pyramid Research, is an in-depth look at the changing landscape of mobile value-added services for enterprises in Europe, covering the topic from M2M and the Internet of Things to application marketplaces and security. The report analyzes the enterprise MVAS value chain and the role of MNOs in this expanding opportunity. It also examines the various services offered by mobile operators as a part of their enterprise MVAS portfolios. This Insider first presents a taxonomy of enterprise MVAS to provide a conceptual structure for the analysis, taking the perspective of mobile operators. We consider the four main categories in which mobile operators can participate: Internet of Things (IoT)/machine-to-machine (M2M) services, enterprise mobile applications, mobile professional services and mobile managed services. The Insider also explores the enterprise MVAS ecosystem and the central role than MNOs can play. This report examines enterprise MVAS adoption trends in the European region, analyzing the major forces driving and inhibiting the adoption of MVAS across enterprise segments in the region. Through detailed case studies of two MNOs, EE (UK) and Telefonica, it offers a wealth of examples. The Insider concludes with a number of key findings and a set of recommendations for MNOs and equipment vendors. Neha Sinha is an Analyst on the Pyramid Research team based in Hyderabad, India. She contributes to Pyramid s portfolio of quantitative Forecasts and has authored various reports focused on emerging telecom trends, operator strategies, mobile VAS, mobile content, cloud computing and IoT/M2M. Neha Sinha - Analyst 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 2
Key findings The European enterprise MVAS market is fairly evolved, combining technological innovation with demand forces that continue to facilitate the further expansion of services. The increasing penetration of LTE and smartphones, the adoption of MVAS platforms, IoT and connected devices and the emergence of FMC networks are the pivotal factors that will drive the growth of MVAS at enterprises over the coming years in Europe. Enterprises in the region are prioritizing MVAS in order to empower their mobile workforces with collaboration and productivity tools that are available anywhere anytime. In a survey conducted Pyramid Research s sister company Current Analysis, 69% of European enterprise respondents expect their MVAS spending to increase in the near future, creating new prospects for MNOs and technology vendors in the region. MNOs hold a strong position in the European MVAS market. The survey shows that enterprises in Europe often look to large network service providers such as Orange and BT to manage their MVAS. As a group, large ITSPs such as IBM and HP have the second largest share of the MVAS market, a share we expect to expand given IBM s partnership with Apple. Operators initially developed MVAS strategies focused on multinational corporations and other large enterprises, only later developing plans focused on the SMB segment. When it comes to winning MVAS deals with multinational corporations, local MNOs face strong competition from multinational operators such as EE, Telefónica (O2), Orange and Vodafone that position their business services arms as full ITSPs. 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 3
Reasons to buy This Insider report examines the enterprise MVAS portfolios being offered by MNOs and leading technology vendors in Europe. It also looks at MVAS adoption and the spending plans of MNOs in Europe, based on a global enterprise survey. The Insider includes case studies examining the enterprise MVAS portfolios of two leading MNOs in the region and the strategies they are pursuing to drive their MVAS business. This Telecom Insider helps executives build proactive, profitable growth strategies by offering comprehensive, relevant analysis of the European region s enterprise cloud services opportunity, competitive environment and best practices for telcos and equipment vendors. The report offers a wealth of data on enterprise cloud services within the SaaS, IaaS and CaaS categories across the region as a whole as well as within specific markets studied for the report. The competitive landscape and the most successful strategies are given extra attention, enabling local players and prospective market entrants to gain the insight they need. The broad but detailed perspective will help telcos, equipment and software vendors as well as other telecom industry players to succeed in the challenging enterprise cloud services sector across Europe. The report is designed for an executive-level audience, boasting presentation quality that allows it to be turned into presentable material immediately. 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 4
Enterprise MVAS offerings in Europe MNOs in Europe are playing an active role in the value chain, thereby expanding their MVAS capabilities through partnerships with technology vendors and local system integrators. Most MVAS offerings in Europe consist of stand-alone services, and MNOs rely mainly on MVAS technology providers, local VARs and system integrators for MVAS planning, design and delivery. Some leading network providers such as EE, Swisscom, O2 and Telenor have developed integrated connectivity, IoT/M2M applications and VAS EXHIBIT 13: MVAS PORTFOLIOS OF SELECTED EUROPEAN MNOs products for the enterprise market. EE and Swisscom have the most comprehensive MVAS portfolios in the region. Swisscom has developed its IoT/M2M, mobile applications and managed mobile services, accomplishing consistency across its footprint with global support and strategic partnerships. VOICE SERVICES INTERNET SERVICES DATA NETWORK SERVICES IOT/M2M MOBILE APPLICATIONS PROFESSIONAL SERVICES MANAGED SERVICES EE offers a portfolio of IoT/M2M, mobile applications, professional services and managed services for the large enterprise and SMB segments. The operator is investing significantly in its B2B channel by expanding its retail presence, with 50 new locations. Swisscom offers a portfolio of IoT/M2M, mobile applications, cloud solutions, professional services and managed services for the large enterprise and corporate segments, and M2M for startups, SMBs and large enterprises. The operator uses technology and services from MobileIron, BlackBerry, SAP, HP, Actility and others. O2 Germany offers a portfolio of IoT/M2M, mobile applications, professional services and managed services, which includes MDM, MCM, MEM and managed security solutions. The operator relies heavily on its MVAS technology partners and VARs for MVAS planning, design and delivery. Telenor Norway offers a portfolio of M2M, managed services and professional services for the SMB and large enterprise segments. It uses technology and services from Microsoft, Amtel, Splunk and others. Telenor markets and distributes mobile applications using Avaya s DevConnect marketplace. Source: Pyramid Research 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 5
Case study: To focus on new business avenues for M2M, EE pursues strategic alliances with M2M technology vendors EXHIBIT 24: EE UK MVAS MILESTONES AND PERFORMANCE 2012 2013 2014 2015 EE launched the UK s first 4G service in October 2012, offering data speeds of 8 12Mbps. The speed allows businesses to access highbandwidth applications on the go. EE teamed up with Location Based Technologies (LBT) in November 2012, to sell LBT s PocketFinder GPS products in the UK. EE collaborated with BlackBerry in April 2013, to offer BlackBerry Enterprise Service 10, a EMM platform, in the UK. EE partnered with KORE Telematics, an IoT/M2M technology vendor, to market M2M telematics services with high-speed connectivity using its 4G network. EE collaborated with MobileIron in May 2014 to sell the EMM platform MobileIron Cloud in the UK, targeting mainly SMBs. In September 2014, EE expanded its cloud, security, voice, videoconferencing and APM portfolios with offerings from Easynet. For June 30, 2015, EE reported 7% year-on-year growth in its corporate 4G base, adding 600 corporate customers in the first half of the year. In all, it recorded 8,300 corporate accounts with 4G subscriptions. In Q2, EE added 82,000 M2M accounts, the most in five quarters. EE partnered with Mubaloo to provide a customized mobile app development platform for enterprises. In April 2015, EE launched Wi-Fi calling to help its business customers use Wi-Fi and 4G networks, with uniform connectivity. Source: Pyramid Research, EE UK, technology vendors 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 6
Table of contents SECTION PAGE Introduction: MVAS taxonomy and service offering 4 Mobile value-added services definitions and service providers Enterprise MVAS value chain and the role of MNOs Market context: Enterprise MVAS adoption trends in Europe 10 Enterprises MVAS adoption trends in Europe Market drivers and inhibitors 17 Technology drivers Service delivery inhibitors Market detail: Case studies 25 Case No.1: EE in the UK Case No.2: Telefónica Key findings and recommendations 32 Appendix: Acronyms and definitions 35 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 7
Table of exhibits Exhibit 1: Leading enterprise MVAS technology vendors and ITSPs 5 Exhibit 2: Enterprise mobile services value chain and the role of the mobile operator 6 Exhibit 3: Enterprise IoT/M2M application categories 7 Exhibit 4: Mobile application service categories 8 Exhibit 5: Mobile professional services and managed service categories 9 Exhibit 6: Breakdown of survey respondents by region 11 Exhibit 7: Current and planned use of MVAS among European enterprises 12 Exhibit 8: Expected change in MVAS spending over the next 12 months, Europe 13 Exhibit 9: MVAS management strategies among enterprises, Europe 14 Exhibit 10: External partners for enterprise MVAS management, by type, Europe 14 Exhibit 11: Departments involved in the decision-making process for MVAS, Europe 15 Exhibit 12: Security requirements enterprises place on employee-owned devices, Europe 15 Exhibit 13: MVAS portfolios of selected European MNOs 16 Exhibit 14: Factors affecting the development of enterprise MVAS, Europe 18 Exhibit 15: LTE as a percentage of total mobile subscriptions, Western Europe, 2014-2020 19 Exhibit 16: Smartphones as a percentage of total handset sell-through, Western Europe, 2014-2020 19 Exhibit 17: MVAS offerings of selected European MNOs, 2015 20 Exhibit 18: MVAS platforms and vendors 21 Exhibit 19: IBM s differentiated marketing approach for CIOs, IT managers and developers 22 Exhibit 20: Vodafone global M2M partner program 23 Exhibit 21: Security threats to enterprise mobile applications 24 Exhibit 22: EE UK MVAS profile 26 Exhibit 23: EE UK MVAS approach 27 Exhibit 24: EE UK MVAS milestones and performance 28 Exhibit 25: Telefónica MVAS profile 29 Exhibit 26: Telefónica MVAS approach 30 Exhibit 27: Telefónica MVAS milestones and performance 31 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 8
Companies mentioned in the report Accenture Actility AirWatch Apple Avaya BlackBerry BT Capgemini Dell Deutsche Telekom Easynet EE FeedHenry FireEye Geotab HP IBM Jasper KORE Telematics Location Based Technologies (LBT) Mainline Communications Microsoft MobileIron Moonfruit Mozy Mubaloo NFON O2 Ogangi Orange RAC Receipt Bank Red Hat Redtail Telematics Sage Samsung SAP Swisscom Telefónica Telenor Telenor Norway Telit Wireless Solutions Transatel VMware Vodafone 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 9
Snapshot of our methodology Pyramid Research s methodology is built on primary research interviews with various stakeholders in the communications services value chain, including end-users, operators, equipment and device manufacturers, systems integrators, regulators, OTTs, content providers and third-party associations. BACKGROUND PRIMARY RESEARCH FRAMEWORK RESULTS BENCHMARKING MACRO ANALYSIS SERVICE PROVIDERS CONTENT PROVIDERS & OTTS SECONDARY RESEARCH END-USERS REGULATORS & INDUSTRY ASSOCIATION VENDORS, DEVICE MAKERS, SYSTEMS INTEGRATORS Pyramid Analysis Source: Pyramid Research 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 10
Snapshot of our methodology This research is then run through Pyramid s proprietary methodological framework, which looks at the impact of four key drivers on market demand. LTE spectrum availability Copyright laws/protections Business demographics GDP growth and GDP/capita levels Inflation and exchange rate fluctuations Availability of high speed broadband networks Emergence of disruptive (OTT) technologies Evolution of technology costs Maturity of IoT business environment Political, Economic, Regulatory Drivers Technology Drivers Number of competitors and market share of top players Financial health of players Partnerships Competitive Drivers End-user Purchasing Criteria Distribution of companies by size/vertical Desire of MNCs to match service portfolio in footprint markets Concerns over security Source: Pyramid Research 2015 Pyramid Research Mobile Value-Added Services in Asia-Pacific: Forces Driving and Inhibiting Enterprise MVAS for MNOs 11