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BT Business Creates IT Manager SME-Style

| October 6, 2006 | Business Telecom Services - Europe - UK/Ireland
| Competitive Intelligence Report | Client Access

Analyst: Sandra O'Boyle


Current Perspective:
Positive
Vendor Importance: High
Market Impact: High


Event Summary

On October 4th BT launched a BT Business IT Manager service for small and medium-sized enterprises (SMEs) with 10 to 99 employees. SMEs can pick and mix a range of options and service levels from advice over-the-phone, remotely running software and updates, to installing PCs or networks. SMEs can also choose a flexible financing option or an IT Site Manager option that includes on-site engineer visits.

Analytical Summary

• Current Perspective: Positive on the BT Business IT Manager because BT has delivered SMEs an attractive outsourcing service for their IT and communications support. BT has made the service flexible with options for on-site support, leased financing and named single points of contacts.

• Vendor Importance: High to BT because it sees a market opportunity with SMEs that feel out of depth with IT and are less equipped than large businesses to address the convergence of IT and communications.

• Market Impact: High on the UK telecom services market because BT is changing the rules of the game by providing an end-to-end managed service for SMEs across IT and communications.

Recommended Competitor Actions

• Competitors targeting SMEs in the UK have to decide if they are in the cut-throat business of providing lines, calls and broadband or are they ready to step up and be integrated communication providers to SMEs.

• Competitors that do not have BT’s in-house engineers to deliver IT support should team up with local dealers that can provide maintenance and ongoing support for IT.

• COLT has shown vision with its COLT Total bundled services for SMEs and needs to articulate that more clearly in the UK market.


Recommended Competitor Actions

• SMEs in the UK should consider BT Business IT Manager service, especially if they have no in-house IT manager and if ongoing IT problems are hurting the business. SMEs that are considering a technology refresh or a move to broadband should look at IT Manager and in particular BT’s leased financing options.

• Customers have to do their homework before signing up for BT’s IT Manager service and work out the financial details of paying fixed monthly costs per user for IT support, hardware and potentially for software as well. BT may also be prepared to offer a better deal if customers also take BT broadband and fixed and mobile calls packages.

 

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