Thursday, June 12, 2014

Convergence a challenge for organisations

May 15, 2014

Peter Walsh, CommsCloud director
For mid-sized organisations without a large IT budget, convergence and the move to IP-telephony is posing a serious challenge. Disruptive technologies like cloud computing are here to stay. The ‘bring your own device’ trend has set in and more and more things (from fridges to phones) are being connected daily. According to Intel, the number of networked devices will be double the world’s population by 2015. For IT managers trying to cope with current needs, like managing the BYOD explosion, while planning for future network and bandwidth requirements, things are not going to get easier any time soon.
While IT managers (and CIOs) have traditionally faced the challenge of being in a continuous upgrade cycle, falling behind now could have disastrous consequences for organisations.
Managing telecommunications infrastructure is both complicated and technically difficult.
Upgrading and keeping pace with change is resource intensive, requires a strong understanding of costs and business needs, and is further complicated by the current legislative and regulatory environment.
Chasing price when managing telecommunications infrastructure is the wrong way to do it – as evinced by the cut-prices the corporate world has obtained from operators like MTN and Vodacom over the years without great service to show for it. IT managers need to understand their costs, and their business need better than their service providers do. They need to benchmark costs by product and solution (to measure and monitor progress); this will show where inefficiencies lie and where there is opportunity for improvement as well as what needs to be prioritised. IT managers should also document their business need so that they can clearly communicate this to the service providers they engage with.
Most businesses will not be able to conduct this process internally. Telecommunications expense management is a relatively new discipline in South Africa and not yet well understood or well used. Local TEM expertise does exist in specialist consultancies, however, and IT managers would be well-served to get one on board to conduct this assessment.
Once the assessment is complete, price your needs on the open market via an RFP/RFI or tender process. Bandwidth costs are coming down and if you’ve not renegotiated pricing in the last 24 months then chances are you are paying too much.
Use your documented business need along with clearly defined deliverables, and ensure responding service providers have all the information they need to propose a viable solution. Request an SLA and get a legal mind involved in the signing of commercial agreements.
If you have to change networks bear in mind that it is a challenging project that requires detailed planning, strong communications and change management skills, good project management and will involve some degree of disruption.
Get the process right and you can upgrade the network to one that is scalable, resilient and redundant while fulfilling the business’ strategic IT requirements and driving down costs. You will also be able to future proof your business and embrace an evolving IT landscape.

Sunday, April 6, 2014

Convergence is a must, not a nice-to-have

Local telecommunications consultancy CommsCloud says local companies stand to realise a lot more value from converging their voice and data networks into one, IP-enabled converged network than they actually realise.
Next generation converged networks are designed to manage diverse traffic, expedite and prioritise solutions and deliver value to the business, its customers and its stakeholders. IT is now a strong enabler in business and companies that do not leverage this opportunity will struggle to compete.
“If your employees are hamstrung by IT where your competition enables its employees, your business will have a distinct disadvantage in the marketplace, says CommsCloud director Peter Walsh.
Convergence will reduce total cost of ownership, enable a company to better manage network traffic, and keep employees actively involved in servicing the customer – no matter where they are.
Although many companies have migrated to IP-based solutions intended to effect cost savings for voice traffic, they still tend to maintain dual voice and data networks. Consequently, resultant savings from VoIP-enabled calls are often eroded by the costs of running two separate networks rather than a single converged network.
The sheer complexity of a convergence project often puts companies off before they’ve even started, and stories abound of companies that have tried and either failed or gone through huge pain doing so. For most organisations, and particularly the people making the telecommunications decisions, the number and variety of telecommunications options available is complex.
It’s difficult to determine which solution will meet the company’s requirements and support its business strategy, particularly where newer technology concepts like convergence are considered. Companies should also consider how motivated their incumbent service provider is to help them reduce their overall spend.
Says Walsh: “You cannot manage what you can’t measure. Doing a comprehensive audit and analysis of a company’s telecommunications fixed and variable costs (both voice and data) and establishing a TCO, is a must do starting point.
This analysis provides insights into how a company’s networks are used, what the actual costs are and how the network (and products/solutions running on the network(s)) can be optimised or improved to better meConvergence is a must, not a nice-to-haveet the company’s business need.
Based on the audit and business needs analysis, the business can approach the market in a formal manner and ensure that input on fulfilling a specific business need is requested from multiple service providers. In CommsCloud’s experience this is best achieved by way of a formal Request for Proposal (RFP), says Walsh.
Implementing a converged network is a massive undertaking, requires keen project and change management skills, requires strong commercial agreements with service providers and is definitely not for the faint-hearted, comments Walsh. That said, real value can be gained from getting rid of unused infrastructure and replacing it with a converged network solution, that enables the business, rather than inhibits it, he notes.
Moving to a converged network is not just about costs, says Walsh, but results in a substantially better end-user and customer experience. Requirements for bandwidth and access to the internet of all things are not going to decrease, they will only rise, IT heads need to plan and prepare their networks accordingly.

Monday, February 11, 2013

Mega merger for Africa’s telecoms market


Published on 04 February 2013 

mergedtelcos
A mobile service provider similar to the UK’s Everything Everywhere (EE) could emerge in South Africa and Kenya’s telecoms markets in 2013.
This is according to predictions made by International Data Corporation (IDC) in its report, titled the ‘African Telecommunications Market Top 10 Predictions for 2013'.
The report says that Africa's first major consolidation transaction in the telecoms space could occur, similar in model to the UK’s EE.
EE is that country’s largest mobile operator, and was formed through the consolidation of Orange and T-Mobile businesses.
According to Spiwe Chireka, programme manager for telecommunications at the IDC Africa, a new service provider with the same model as EE could be on the horizon for markets such as South Africa or Kenya.
The Communications Commission of Kenya says that from October 2012 to January 2013, the number of mobile subscriptions grew over 2% from 29.7 million to 30.4 million. According to BuddeComm research, South Africa - which has a population of 50 million - has a mobile penetration rate of just over 100%..
The IDC says that companies in the right position to consolidate their operations could stand to gain more customers.
“In our predictions we were saying two large, independently competitive service providers would merge their services in 2013,” explained Chireka.
“The reason I am confident it would work is that in the UK, Orange was number one in the market and T-Mobile was number four, both are part of large global groups and no one thought it would happen. It would be like MTN merging with Telkom,” Chireka added.
Apart from consolidation driven mergers and acquisitions (M&A) activity, the IDC has highlighted nine other predictions for the African telecommunications market: all of which are listed below.
  1. “The year of the App and Smartphone” – According to the IDC increasing smartphone penetration in 2012 was one of the key drivers of mobile data uptake and usage. The IDC expects that this year smartphone penetration will overtake feature phones in Africa, which will be driven by the growth in mobile apps and content.
  2. “In 2013 Long Term Evolution (LTE) will gain momentum as a mainstream commercial offering”- The IDC’s initial predictions for mainstream LTE rollouts in Africa were 2014/2015, however telcos across the continent will defy expectations to bring the technology to the masses earlier than expected.
  3. “Satellite connectivity will remain a force to be reckoned with” – As data usage continues to grow in Africa, the IDC expects service providers would achieve bandwidth provision with an intensified and continued use of satellite technology.
  4. “Rural connectivity will become an emerging reality” - With the emergence of customised solutions for rural connectivity from the likes of Cisco and Connect Africa, rural communications could become an emerging reality in 2013.
  5. “WiFi will emerge as a viable complementary offering to 3G and LTE” – As a result of exponential demand for connectivity to 3G services and struggles by service providers to meet this demand, will result in services providers offloading most of their 3G subscribers onto WiFi networks.
  6. “The enterprise sector will become more delineated, with providers increasingly focused on the small and medium enterprise (SME) segment” - With the saturation of the consumer segment and a crowded services provider market for large enterprises, smart market segmentation and product targeting for the SME segment is expected.
  7. “Mobile Virtual Network Operator (MVNO) will emerge from the retail and finance verticals in South Africa” – In 2013 it’s expected that at least one mobile network operator in SA would approach non-telecommunications companies such as banks and retailers to establish an MVNO.
  8. “Enterprise mobility services providers' and vendors' solutions will improve in 2013” – The IDC expects intense activity in the drive for enterprise mobility in Africa in 2013.
  9. "Providers’ enterprise mobility solutions will improve, leading to increased uptake" - The IDC expects the proliferation of emerging market smart devices – as seen with mobile handsets – as part of the effort by organisations to penetrate the enterprise mobility market in the Africa network

Friday, September 28, 2012

BlackBerry 10 updates unveiled - www.gadget.co.za


27 Sep 2012 by Editor | Filed in Serious Software

Last night at the BlackBerry Jam Americas conference in San Jose, RIM CEO Thorsten Heins, revealed more of the core features of the forthcoming BlackBerry 10 operating system, including navigational "Flow" and inbox "Peek".

Last night at the BlackBerry Jam Americas conference in San Jose, RIM (Research In Motion) President and CEO Thorsten Heins announced a number of updates to the BlackBerry 10 developer platform and an updated Dev Alpha B testing device to meet demand from developers building apps for the platform. RIM also revealed an increase in itsuser base to approximately 80 million, a new milestone of 60 million BBM subscribers and 60 million users of the Facebook app for BlackBerry.

Thorsten Heins’ keynote can be watched here. 

Enhanced user experience
At the core of BlackBerry 10 is Flow, a new kind of mobile user experience that removes the ‘in and out’ experience of applications to enable the user to flow through applications. While the Peek feature means that a glimpse of the BlackBerry 10 unified inbox is only a swipe away without leaving an app. It’s a new approach designed to put the user in control and simplify busy lives not slow them down.


New BlackBerry App World
BlackBerry 10 will see an all-new BlackBerry App World storefront, providing  access to games, apps, music and videos, all using a single BlackBerry ID. BlackBerry has secured premium app and media partners including Facebook, Twitter, foursquare and Gameloft for BlackBerry 10.


BlackBerry 10 in enterprise
BlackBerry 10 will maintain BlackBerry’s heritage in enterprise at both the user and enterprise level. The unified inbox (email and social), plus integration between a users contacts and calendar and their social networks is intended to meet the needs of the most prolific business communicators. While the integration of BlackBerry Balance technology will keep personal and corporate apps and data separate (and secure) but enable users to transition seamlessly between personal and work activity. RIM also confirmed BlackBerry Enterprise Service 10, which will let businesses manage BlackBerry, iOS and Android devices from a single console.


Opening doors for developers
RIM continues to drive developer engagement with BlackBerry 10, releasing a series of updates to developer tools and a new Dev Alpha B testing device. This includes Beta 3 of the BlackBerry 10 Native SDK and a new BlackBerry 10 WebWorks SDK release. With increased developer and user engagement, BlackBerry App World continues to go from strength to strength with more than one billion app downloads in the last five months driving revenue for developers. According to Vision Mobile, BlackBerry developers generate, on average, 4% more revenue per app/per month than iOS developers, and about 40% more revenue than Android developers. BlackBerry App World has more paid downloads per month than the Android market. (Yankee Research Group).

Wednesday, September 26, 2012

Mobile data deals compared


Vodacom recently unveiled their best ever data deals. This is how it stacks up against MTN, Cell C and 8ta’s data promotions.

Vodacom has recently launched three new data deals – 1GB for R89, 2GB for R139 and 3GB for R189. These data bundles exclude a modem.

The new data deals are available on a 24-month contract, and includes ‘Night Owl’ data which gives another 1GB, 2GB or 3GB of data (depending on the package), to use between midnight and 5 am.

These new data bundles complement the company’s modem inclusive data packages at R99 for 1GB, R149 for 2GB and R199 for 3GB.

This raises the question of how Vodacom’s new modem-less data packages compare with similar contract promotions from 8ta, Cell C and MTN.

The following table provides an overview of some of the prominent data promotions from the four mobile operators.

Data deals under R100
ProviderBonusDataMonthly cost
Cell C–500MBR45
MTNIncludes modem500MBR69
Vodacom1GB night owl data1GBR89
Cell C–2GBR99
MTNIncludes modem1GBR99
R100 to R149
Vodacom2GB night owl data2GBR139
MTNIncludes modem2GBR149
8ta (prepaid)1GB night surfer data2GBR149
R150 to R199
Vodacom3GB night owl data3GBR189
8ta–10GBR199

Friday, August 24, 2012

Mobile price war not ending soon


By Gareth Vorster | 23 August 2012 


The price war between South Africa’s mobile operators is set to continue thanks to the headroom in the local market for further price cuts, according to an analyst.

Despite numerous aggressively-priced voice and mobile data products launched by Cell C recently, the company’s CEO, Alan Knott-Craig, told MyBroadband there is a lot more to come from the company.

An analyst at financial services company, PSG Konsult, told BusinessTech that Cell C’s marketing campaigns have highlighted aggressive moves from the operator in the mobile space.

“It will be interesting to see how this pricing war plays out – particularly between Cell C, MTN, and Vodacom – as South Africa still has some of the most expensive pricing in the world. There is still plenty of room to bring these prices down further, cutting margins,” the analyst said.

Interestingly the analyst omitted 8ta, Telkom’s mobile arm.

By close of play on the JSE on Thursday (23 August), shares in Telkom breached R20 (R20.10) for the first time in several months, advancing 81 cents, or 34.20%, in intraday trade, taking its market cap beyond R10 billion (R10.46 billion).

The PSGK analyst said it was difficult to provide a range for the group, as investors await further clarity on an advised strategy from the Department of Communications.

At the start of June, Cabinet asked the minister of the  DoC, Dina Pule, to report back to it about all the options that are available for Telkom in three months’ time (August), after government blocked the SA operator’s deal with KT Corp.

“Investors are waiting to see if the company will continue as a private entity or whether government will take control,” the analyst said.

He noted the rising share price for Vodacom was most likely as a result of Vodacom’s continued strategy to “pay a nice dividend” along with its attractive yield. “Investors are chasing yields at the moment.”

In the year to date period, shares in Vodacom have moved from R89.11, to R103.42 by close on Thursday – an intraday rise of 1.68% , setting the telco at a market cap of R153.88 billion. It reached a year-to-date best of R110.89 in April.

For MTN, the analyst pointed to some profit taking, following a good run in recent sessions.

“I still think MTN can reach its top estimates (R160) and even move beyond that. We back MTN due to its geographic diversity in Africa and the Middle East. With MTN in so many markets, it is less constrained to one country, which means that it wont feel the effects of a price war to the same extent as, say, Vodacom.”

In the year-to-date period, shares in MTN have moved from R144.50 to a closing price of R156.94 on Thursday, giving the group a market cap of  R295.83 billion.