DTWS: Telcos need platform approach to pursue end-to-end IoT
Telcos are already moving beyond IoT connectivity to beef up their portfolios with end-to-end IoT solutions, which in turn is boosting their connectivity business. But an end-to-end play requires significant agility, a highly integrated platform-based ecosystem and a different operational mindset – and that’s where the key challenges still lie.
John C. Tanner30 Sep 2021
DTWS: Telcos need platform approach to pursue end-to-end IoT
Telcos are already moving beyond IoT connectivity to beef up their portfolios with end-to-end IoT solutions, which in turn is boosting their connectivity business. But an end-to-end play requires significant agility, a highly integrated platform-based ecosystem and a different operational mindset – and that’s where the key challenges still lie.
That’s according to an expert panel assembled at Digital Transformation World Series to discuss ways to drive IoT growth and evolve their services from connectivity to platforms, apps and services.
The good news for telcos is that there is growing demand for IoT connectivity services as IoT increasingly becomes an operational asset for enterprise customers, Better yet, that connectivity demand is proving to be a springboard for telcos to offer end-to-end solutions, be they plug-and-play solutions for SMEs or bespoke solutions for larger verticals with specific requirements.
The panel agreed that such solutions are expected to not only be growth engines in their own right, but also serve as growth engines for connectivity,
Brian Cappellani, Vice President, Technology Strategy, Hansen, observed that some telcos are moving towards a platform “marketplace” IoT model that brings connectivity, solutions and partners together to develop the necessary building blocks to let customers and partners build their own IoT solutions.
“That way, telcos can help seed that marketplace by giving these companies what they need, and being their key provider – not only of just the connectivity, but of all of the components.”
Fuencisla Merino, Assistant IoT Director, Ooredoo Qatar, added that the building-block approach has been crucial in enabling Ooredoo to customize IoT solutions for different verticals and markets in the vastly different markets in which it operates.
“For example, in Indonesia, fleet management solutions might be used to locate stolen motorcycles, while in Qatar it’s more for big heavy industries like construction or transportation,” she said. “So it’s the same core solution, but adapted to the local party.”
Mindset evolution required
While the IoT marketplace model can potentially enable telcos to expand their IoT offerings in a highly scalable fashion, the catch is that it’s not a model that comes naturally to telcos, said Cappellani of Hansen.
“When you're talking about new and rapidly changing solutions, the building blocks approach is essential to be able to operate in that manner – [it requires] design thinking, working agile, lots of iteration, and being able to bring an offer to market through all your channels and tweak it quickly if it’s not working,” he said. “Those are very different behaviors than what we see with a lot of standard CSP type products out there.”
The other challenge is that the IoT platform model is by nature a partnership model, which means telcos have to be good and trustworthy partners that can integrate everyone quickly and seamlessly into the ecosystem whilst maintaining the digital experience that everyone now expects, Cappellani added. “That's where we've seen operators have a lot of challenges, because it's a little different than how operators have operated in the past.”
Sudhir Sarangapany, Head of Digital Services, IoT Practice, Vodafone Business, agreed that telcos need to operate and think differently when it comes to pursuing end-to-end IoT solutions, although he added, “I see it more as an evolution around mindset and culture rather than a fundamental shift.”
M&A vs partnerships
Drilling down on end-to-end capabilities, a key question is whether to develop those capabilities via M&As or partnerships. Merino of Ooredoo Qatar said that while both are on the table as options, “one problem [with M&As] is telcos need a lot of time to integrate everything. By my experience, partnerships work extremely well these days, and there are many partnership models that can help you … especially when it comes to understanding the needs of local markets or specific verticals.”
Sarangapany of Vodafone was more optimistic about M&As (as Vodafone’s five Centres of Competence are the products of acquisitions), “but it's important to get them right so that both sides benefit from it. Partnerships, though, are equally if not even more important, especially with hyperscalers, systems integrators, smaller start-ups and so on.”
That’s according to an expert panel assembled at Digital Transformation World Series to discuss ways to drive IoT growth and evolve their services from connectivity to platforms, apps and services.
The good news for telcos is that there is growing demand for IoT connectivity services as IoT increasingly becomes an operational asset for enterprise customers, Better yet, that connectivity demand is proving to be a springboard for telcos to offer end-to-end solutions, be they plug-and-play solutions for SMEs or bespoke solutions for larger verticals with specific requirements.
The panel agreed that such solutions are expected to not only be growth engines in their own right, but also serve as growth engines for connectivity,
Brian Cappellani, Vice President, Technology Strategy, Hansen, observed that some telcos are moving towards a platform “marketplace” IoT model that brings connectivity, solutions and partners together to develop the necessary building blocks to let customers and partners build their own IoT solutions.
“That way, telcos can help seed that marketplace by giving these companies what they need, and being their key provider – not only of just the connectivity, but of all of the components.”
Fuencisla Merino, Assistant IoT Director, Ooredoo Qatar, added that the building-block approach has been crucial in enabling Ooredoo to customize IoT solutions for different verticals and markets in the vastly different markets in which it operates.
“For example, in Indonesia, fleet management solutions might be used to locate stolen motorcycles, while in Qatar it’s more for big heavy industries like construction or transportation,” she said. “So it’s the same core solution, but adapted to the local party.”
Mindset evolution required
While the IoT marketplace model can potentially enable telcos to expand their IoT offerings in a highly scalable fashion, the catch is that it’s not a model that comes naturally to telcos, said Cappellani of Hansen.
“When you're talking about new and rapidly changing solutions, the building blocks approach is essential to be able to operate in that manner – [it requires] design thinking, working agile, lots of iteration, and being able to bring an offer to market through all your channels and tweak it quickly if it’s not working,” he said. “Those are very different behaviors than what we see with a lot of standard CSP type products out there.”
The other challenge is that the IoT platform model is by nature a partnership model, which means telcos have to be good and trustworthy partners that can integrate everyone quickly and seamlessly into the ecosystem whilst maintaining the digital experience that everyone now expects, Cappellani added. “That's where we've seen operators have a lot of challenges, because it's a little different than how operators have operated in the past.”
Sudhir Sarangapany, Head of Digital Services, IoT Practice, Vodafone Business, agreed that telcos need to operate and think differently when it comes to pursuing end-to-end IoT solutions, although he added, “I see it more as an evolution around mindset and culture rather than a fundamental shift.”
M&A vs partnerships
Drilling down on end-to-end capabilities, a key question is whether to develop those capabilities via M&As or partnerships. Merino of Ooredoo Qatar said that while both are on the table as options, “one problem [with M&As] is telcos need a lot of time to integrate everything. By my experience, partnerships work extremely well these days, and there are many partnership models that can help you … especially when it comes to understanding the needs of local markets or specific verticals.”
Sarangapany of Vodafone was more optimistic about M&As (as Vodafone’s five Centres of Competence are the products of acquisitions), “but it's important to get them right so that both sides benefit from it. Partnerships, though, are equally if not even more important, especially with hyperscalers, systems integrators, smaller start-ups and so on.”
