CSPs put on their IoT Thinking Caps
Ideation is one of the biggest challenges for telcos wanting to get into IoT. We can help.
It is not news that traditional telecommunications business models have been disrupted by wireless technologies like narrowband IoT, LoRa, 4G and 5G.
Their revenues are no longer supported by simply offering telephone and Internet services; this is become a commodity market due to regulations and competition and there is little margin left. Telcos are therefore on a mission to transform themselves from product selling providers to services solutions providers.
Gartner said in 2018 that global growth perspective for traditional revenue streams (mobile phones and fixed lines) will only be 3% CAGR in the next three years. Comparatively, the expected growth in the IoT area of connecting sensors and assets is 25%. One-third of this telco new revenue growth will be accomplished with new digital services.
So, clearly, it is important for telcos to climb up the value chain. The next link in that chain is IoT services. In our 2019 predictions, we said that CSP’s will all soon provide IoT as a service (IoTaaS) platforms that can be tailored for specific customer segment or industry needs.
To do this, they need a reliable, quick-to-market, secure IoT platform. Such a platform makes it possible to – in just days – monitor and control thousands of devices remotely and without difficult installations.
But once they have this platform, there remains a big issue. Where do they start? In our conversations with customers, we see this ideation journey as their biggest challenge. They like the idea of offering end-to-end solutions to customers, but are unsure where and how to begin. Here is where we see the primary challenge for the CSP industry; they do not have full knowledge and in-house competencies to fulfill their ambitions in new IoT markets.
At Software AG, we have the knowledge AND the experience; our Cumulocity IoT platform is a real game-changer. We work with customers like Telstra and Deutsche Telecom to create end-to-end solutions in areas such as water management and smart buildings. Besides technology benefits there are also business value benefits to gain: By starting small in the IoT services development, the set-up time is fast and a return on investment is quickly realized. This is a very interesting starting point for IoT investments from a financial perspective.
The help you get started with your ideation, we would like to offer you our support. For CSPs using our Cumulocity IoT platform, we will be hosting Design Thinking workshops along with our champion industry leaders.
Put on your thinking caps. We can help.
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