Paul Vedam Paul Vedam President & CEO - TIERONE

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B2B telecom revenue will go down 50% - Are are ready for it?

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    Unbundling or retail purchasing of telecom services instead of corporate account buying for the business need will break the long-standing log jam in innovation.


    Still puzzled?


    Last month I suggested that technology both telecom and software is maturing to a point that will change the current dynamic with businesses and service providers.


    What is the current dynamic? Today, an enormous amount of effort is spent by the service provider to win a medium or large enterprise account. Then at best the enterprise gets the same old fixed service until the next contract period. The enterprise business has to date only this option of going to the market and through a bidding process and finding the “cheapest” solution to ALL their telecom needs.


    What if I said businesses will able to save more than 50% of their current costs by doing the opposite? Businesses by their very nature drive competition and costs down so this will happen sooner than later.


    This is already within the grasp of businesses to contemplate. Instead of a massive private network from one carrier to meet all of the needs of all of the offices, they can now find the cheapest access to Internet and create an overlay private network with intelligent secure access. This is possible today. It’s not even a question. But there still remains one more major hurdle.


    Today, to implement such an environment, they will need a commercial brokerage or ecosystem to bring it all together and provide management and oversight to ensure visibility, control and leverage.


    What if software can take that to the next level? Do all of the above but then automate the business intelligence to do what is required. All of this is now within the grasp of today’s technology.


    This will lead to a fully disaggregated approach to all of the business daily needs constantly evolving, taking advantage of a ever shrinking cost model and changing the level of service that service providers must provide to win the business not once but daily.


    Service providers have a real opportunity to make a difference as this evolves as they have the keys to most of this technology. But incumbent carriers will not want to expose their cash flow to such tidal changes.


    So new competitive service providers targeting businesses have a real opportunity to take this message to the market.


    So what is required?


    There is a real need to have a holistic customer centric ecosystem that understands all aspects of service fulfillment, assurance, contracts management, and customer service lifecycle management. CRMs as they stand today are already outdated.


    Accuracy of data, which is plagued by manual data entry issues, must be replaced automation and true integration to the network and what I call “wiki sense” driven accuracy to sources of truth by enabling everyone to correct data. Systems within service providers today cannot meet this critical need in a secure manner.


    Real time versus historical views of service availability and real time performance of services is mandatory to drive a BI engines that delivers results. The business customer has been demanding such access for years.


    Integration of Data Centre needs and Telecom needs must be unified. Real time change in service configuration though secure SDN and VM controllers will be mandatory. Services are no longer static.


    I used the word commercial ecosystem because the service provider and the business need to work and interact within the same environment. The traditional customer portal that provides a very slim set of functionality that is disconnected to service provider systems is not the answer.


    The service provider that provides this commercial ecosystem and moves to work within it with the customer will leave the other service providers behind. And lets not forget that enterprise services are typically much higher margin for CSP’s than consumers. Thus the impact on the bottom line of losing (or gaining) these customers is significantly more important than the equivalent revenue from consumer customers.

    Paul Vedam
    About Paul Vedam Paul Vedam works as President & CEO at TIERONE
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