Small- and Medium-sized Enterprise Services March 31, 2011 Issue Gary Barton Current Analysis Analyst, Business Network and IT Services Cloud services and UCC have dominated the small- and medium-sized enterprise (SME) services landscape over the last quarter with both Orange France and SFR launching modular managed Microsoft OCS with bundled, per user pricing structures. At the same time, Belgacom has expanded its partnership with VMware to utilise its VSphere and vcloud solutions as the basis for developing SME focused Iaas, Paas and SaaS solutions whilst Telecom Italia has launched Collabor@, a web-based collaboration service. Vodafone has expanded its UC and FMC portfolios across Europe, launching a hybrid PBX service in Germany and a standalone single number solution in the Netherlands, at the same time it has launched a Mobile Device Management service in Spain. FMC solutions have also diversified in Spain and France with Vodafone Spain and Telefonica Spain both launching dual number SIM services in March, and Orange has launched dual SIM tariffs targeted at tablets and smartphones. This report focuses on new and refreshed service launches over the last three months in the European SME) and small office/home office (SOHO) markets, with a particular focus on Germany, Spain, France, the Netherlands and Belgium. Due to the wide ranging geographic coverage of this report, it does not purport to be an exhaustive list of SME targeted initiatives in Western Europe, but an observation of trends and best practice services. The UK SME market is covered in detail in a separate quarterly UK Roundup. Current Perspective Competitor SME Activity Q1 2011 Belgacom Belgacom has announced a partnership with VMware to deliver cloud based services to SMEs based on VMware s vsphere and VCloud solutions. Threat Level: Moderate Belgacom already has an established partnership with VMware, and vcloud and vsphere will give Belgacom a strong cloud computing and virtualisation platform to launch a flexible range of cloud services. Belgacom is developing IaaS, PaaS and SaaS solutions for SMEs and its partnership with VMware will aid this process and give its solution a strong degree of credibility. Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 1
Summary of competitors market momentum based on their activity in the market including press releases, customer wins, and confirmed sources (Q1 2011) Gaining Holding Losing Portfolio Customer Support Sales and Marketing Innovation Overall Market Momentum Comments Belgacom Gaining Partnership with VMware for cloud computing and virtualisation. Colt Deutsche Telekom / T-Mobile KPN SFR Gaining Launch of Microsoft OCS services with Business Enterprise Packs. Swisscom Telecom Italia Gaining Launch of Collabor@ di Impresa Semplice, a WebEx based, SME focused online collaboration tool. Announcement of EUR 8.7 billion investment in Italy. Telefonica Deutschland Rebrand from Telefonica O2 Germany to Telefonica Germany. Telefonica Spain Gaining Launch of Segunda Linea a cost-free dual number SIM service. Telekom Austria Orange France Gaining Launch of OCS based SaaS UC and dual SIM tariffs. Vodafone Germany Gaining New Business PBX service. Vodafone Netherlands Gaining New single number dialling solution, expansion of its high street presence and the announcement of its 5 millionth customer in the Netherlands. Vodafone Spain Gaining Launch of Mobile Device Management service and Linea Libre dual number SIM service. Orange France Orange France has partnered with Microsoft to launch Microsoft Online Services Ready an all-in-one solution including telephony, Internet access and UCC services centred on OCS. The solution is a stripped down version of Orange Business Service s existing large enterprise focused Microsoft Online Services Premium. The service offers managed application hosting, security, maintenance and automatic updates of software with pricing on a monthly/per user basis. Applications available include Exchange Online, Office Communications Online, SharePoint Online and Office Live Meeting. The OCS element of the service costs from EUR 9.45 per user per month. Orange s all-in-one option includes business broadband, its Business Internet Voice, unlimited calls to landlines within France and OCS for EUR 186 per month for ten users. Orange France has launched its first dual sim card tariffs for tablets and for smartphones. Duo Pour Tablette Performance Pro Pour Tablette offer unlimited internet as well as unlimited calls to Orange fixed and mobile lines in France as well as preferential pricing for calls to non-special numbers in Europe, the US and Canada. The tariffs also include ten hours per month of free WiFi access to Orange s and its partners hot spots. The tariffs start from EUR 52/month for Duo Pour Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 2
Tablet and EUR 74.61/month for Performance Pro Pour Tablette. The service is initially only available in France, but is expected to be rolled out to all of Orange s markets. Microsoft Online Services Ready is a well presented and well priced bundled offering that offers a well rounded and accessible UCC solution for SMEs. It also offers strong support and training services. However, unlike SFR s Business Enterprise Packs it does not include mobility services with the bundle and it does not include single number dialling. Dual SIM contracts are unusual from major operators, although availability is increasing. They offer a valuable tool for SME customers as they allow devices to host separate numbers for home and for business use. They also allow for split services e.g., separate SIMs for at home and when roaming. The limited number of devices that support dual SIM capabilities makes this a niche service at the moment. However, it is a service that is likely to see increased demands as tablets become an increasing presence in the business market and as customers begin to want more from their smartphones and it is a smart move for Orange to be an early mover in this market. SFR SFR has launched Business Enterprise Packs ( Pack Business Enterprises ) a range of bundled services including fixed and mobile voice and hosted unified communications solutions based on Microsoft OCS. As well as IP voice, customers can chose services including email, IM, presence and single number dialling as well as click to call features on the desktop interface. All messages and voice mail can be delivered to both fixed and mobile devices. The service is fully managed including installation and support. OCS-based UC solutions for SMEs are not a new innovation, however SFR s pic n mix, per-user approach bundled approach provides a very attractive package. The fully bundled solution also offers customers useful savings with a subscription for fixed and mobile voice and OCS costing EUR 89.72 per user, per month a discount of 15% per month (EUR 18.26) compared to the equivalent packages being taken separately. Single, predictable billing will appeal to SMEs. This is also important for SFR to respond to Orange s own push towards delivering cloud services, including OCS, for SMEs. However, the 36 month minimum subscription may deter SME customers concerned about such a long term spending commitment. Telefonica Spain Telefonica Spain has introduced Segunda Linea ( Second Line ), which allows two mobile numbers to be associated with the same SIM. The service is available free of charge. Users can identify calls incoming from their second number as the prefix 22 will be added to the incoming number. Similarly, adding the prefix 22 will use the second number for outgoing calls and SMSs. This is a highly useful value added service that will allow SMEs to either have two business numbers linked to the same phone or to separate work and domestic calls on the same handset. Making the service free gives the Spanish incumbent a slight marketing edge over Vodafone which has a (minimal) charge for its equivalent service. Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 3
Telecom Italia Telecom Italia has launched Collabor@ di Impresa Semplice (Collaboration for Enterprises Simply), a WebEx-based online collaboration tool. The service allows customers to arrange meetings and share documents on line from desktops and smartphones using Telecom Italia s hosted Collabor@ software. Meetings and shared documents can support up to 25 people and can be arranged either online or from an application downloadable to the customer s email service. The service costs EUR 40 per month. Telecom Italia has stated that it will invest EUR 8.7 billion in Italy over the next three years, although clear details have not yet been released of exactly what the company will do with the money. Threat Level: Moderate Collabor@ di Impresa Semplice is a useful collaboration tool and its availability as an SaaS product will make it appealing to SMEs looking to avoid capital expenditure. The service is also available with a four-month free trial, which gives potential customers a long time to become comfortable and potentially reliant on the service. The specific nature of Telecom Italia s planned investment has not been detailed, but it is clear that the operator will continue to invest in its fixed and mobile network such as its ongoing rollout of 100 Mbps services. Such investment will be a marketing tool for the incumbent and is also necessary in the face of stiff competition from competitors such as Vodafone, which already supports faster mobile broadband speeds. Vodafone Germany Vodafone Germany has launched Business PBX, an extension to its PBX portfolio targeted at SMEs. This launch sits alongside the operator s existing OfficeNet/OfficeNet Mobil and OfficeNet Enterprise PBX services, but Business PBX offers a dedicated PBX rather that a virtual PBX. Business PBX is a hybrid PBX designed to implement IP-T as well as supporting analogue and DECT fixed phones. This launch further emphasises Vodafone s reputation as a provider of advanced UC solutions. Vodafone s OfficeNet/One Net range of solutions already offer UC features such as single number dialling and IM, and Business PBX now allows provides an on-premises host PBX IP-T solution that can also support legacy fixed terminals. Vodafone is planning to roll out similar services across its European footprint, which will increase its ability to support SEs with international presence. This launch also further strengthens Vodafone s position as a one-stop-shop for German SMEs. Vodafone Netherlands Vodafone Netherlands has launched VastOpMobiel, a single number dialling solution that allows a mobile phone to be linked with up to four landline numbers. Customers may port existing landline numbers to Vodafone and the service also supports call transfer. The service costs EUR 12 per month (including the mobile number and one landline number) and an additional EUR 5 per month for each additional landline - up to four in total. Vodafone Netherlands has announced its intention to acquire BelCompany BV, the Netherlands largest telecoms retailer, for EUR 120 million. The deal will bring Vodafone NL an extra 210 retail stores in addition to the 86 it already owns. Vodafone Netherlands now has more than 5 million customers. Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 4
Vodafone can already support more advanced virtual PBX services, however this solution offers a simple and affordable single number solution that will appeal particularly to small SMEs and SO- HOs. The service is well priced and will drive more traffic towards mobile voice. Vodafone s acquisition of BelCompany is primarily targeted at supporting its consumer business. However, such increased high street presence will be a marketing boost for its SME activities and it also increases the company s customer support network. Vodafone NL s 5 million customers include consumer as well as business, but it is an indication of the operator s momentum in the Netherlands and it provides a useful marketing point. Also, it is worth noting that a strong consumer presence usually enhances a customer s SME profile. Vodafone Spain Vodafone Spain has launched its Mobile Device Management service for business customers in Spain. The service allows companies to administer and protect their mobile fleet from a centralised location. The service is based on Sybase s (a SAP company) Afaria mobile device management and security platform. Mobile device management allows customers to do tasks such as inventory, definition of corporate policies, configuration, application deployment, email management, cost management, and end-user experience monitoring on their corporate mobile devices. The service will cost EUR 3.50/month per device for the basic service; EUR 5.00/month for the advanced service; and EUR 10/month for the plus service. Vodafone Spain has introduced Linea Libre ( Free Line ), a service that supports two numbers on the same SIM card. The service is available to prepay and postpaid customers and costs EUR 0.50 per week. Mobile Device Management provides a powerful mobile fleet management tool with an affordable, incremental, per seat pricing model. The service also has proven successful in Vodafone s other national markets, e.g., the UK. Security and cost management are key concerns for enterprises when dealing with their mobile fleets. Vodafone was right to respond to Telefonica s launch of Segunda Linea (see above) and has done so admirably quickly. However, Vodafone Spain has a marketing disadvantage by charging for the service. Recommended Actions Recommended Vendor Actions Dual number and dual SIM solutions offer differing ways for mobile operators to deliver extra value to the rapidly growing smartphone and tablet market. Dual-number SIMs allow customers to retain a single device but to split numbers between work and home which may allow for better cost control. It also allows small businesses in particular to give out two separate numbers without the expensive of paying for two devices. Mobile devices that support dual SIMs are rare but they are increasing in popularity. The advantage of separate SIMs for domestic and roaming use, for example, gives customers a greater degree of flexibility. All operators should be looking to develop their portfolios of cloud services for SMEs. Operators Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 5
such as Orange France in particular provides a strong example of partnering with SIs and hardware vendors such as Avaya as well as Microsoft to develop a catalogue of off-the-shelf hosted applications and services for SMEs. Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 6