BT Acquires Counterpane

On October 25th BT announced that it would acquire Counterpane, adding the managed security services firm to its stable of global professional capabilities. The acquisition will allow BT to benefit from Counterpane’s security management technologies and let it deliver a proactive managed security service with auditing and reporting capabilities to its global customers.

Recommended Competitor Actions

► European competitors should consider similar acquisitions of MSSPs, or at least re-examine their existing partnerships and identify ways to make a more cohesive offering. This will be important for addressing legitimate customer concerns, whilst competing and successfully winning more security business.

► T-Systems should continue to take the high road in this debate and stress that it is the only European carrier that also has a vibrant IT and security business.

► Orange Business Services should continue to promote itself as a market leader within the managed security space drawing on the resources of 200+ security experts and 900+ customers.

► To counter the BT acquisition, AT&T should continue to promote its ‘Internet Protect’ platform, which handles all security alerts and offers proactive warnings and incident reporting.

► IBM needs to tout its acquisition of ISS assets, which included ISS’ global footprint and presence as well as its multinational clients.

Recommended End User / Customer Actions

► Enterprise customers should consider BT’s new security competence with the Counterpane acquisition. The company offers strong competencies in the area of security monitoring (e.g., intrusion prevention, detection and response). It also focuses on both internal and external aspects of security to provide a well-rounded approach.

► Potential customers should inquire about the timetable regarding migration and integration for this merger. While BT has integration experience with past mergers and plans to operate BT Counterpane as a subsidiary in the short term, there are the risks of disruptions that these changes can evoke.

► Customers should be pleased with the greater access to resources, channels and client contacts, especially the opportunity on a global basis and in the United States for these services and its other professional services, such as IP VPN.

► Potential customers need to perform due diligence and compare pricing and services from global providers such as IBM/ISS, Cybertrust, AT&T, Verizon Business and Symantec, which also command considerable respect for managed security services.

O-Day in Spain: The Orange Brand Usurps Equant, Uni2, Wanadoo and Amena

On October 2nd France Telecom rebranded its Spanish subsidiaries with the Orange name. A number of future product initiatives are promised, such as ‘Unique’ (UMA), a WAP portal, and HDTV.

Recommended Competitor Actions

► Telefonica and Telefonica Moviles need to prepare a response to greater pressure from Orange Business Services in converged and integrated services.

► BT and COLT in Spain need to judge the direction that the market is going closely by speaking with clients to decide whether or not managed integrated fixed-mobile services are essential to prevent competing on a weaker footing.

► Telefonica must continue to pursue IMS and make the most of a domestic IMS-ready architecture supporting consumer VoIP to give the impression that it will be ready to offer true FMC well ahead of any of its rivals.

► Jazztel and ONO need to strengthen their FMC and enterprise mobility strategies and messages, or face competing on a weaker footing against Orange Business Services and other competitors that are active in these areas.

VSNL International Boosts IP Network to 10 Gbps in Parts of Europe, the US and Canada

On October 18th VSNL International announced that it had completed upgrades to 21 locations on its IP network in the US, Europe and Canada, to support up to 10 Gbps data rates. The carrier’s Europe-US network has also received an upgrade to support 50% more traffic volume over this strategic route. The upgrade project took three months to complete and is based on Cisco’s IP NGN concept, including the deployment of 12000 and 7600 Series routers.

Recommended Competitor Actions

► Rivals should point out that 10 Gbps data transfer rates on global IP routes are widely available from several carriers (BT Global Services, Level 3, TI Sparkle, to name but a few) and that shopping around for the most attractive overall package is highly recommended.

► Competitors that are actively targeting higher value corporate data services to MNCs should be aware of VSNL International’s growing ambitions and momentum in this area.

► Belgacom should highlight 40 Gbps capacities on certain routes, and France Telecom should draw attention to capabilities up to 55 Gbps in a few selected routes.

► Global carriers with strong Europe-to-Asia connectivity should see VSNL International as both a competitor and a partner in cases where accesses into India are required.

► BT Global Services should emphasise its presence and traditional ties with India for companies looking for competitive services into and out of this location.

Recommended End User / Customer Actions

► Customers should evaluate VSNL International’s global IP portfolio, because the carrier is clearly investing in a modern IP NGN architecture, which bodes well for effective and innovative services, and because the carrier may provide advantages on specific geographical routes.

► Prospects can consider VSNL International for services in the Western European region, however many competitors to the company will be able to offer in-country advantages, especially incumbents, in terms of network density, support capabilities, and longer proven histories. VSNL International is trying to crack into European accounts, but has some way to go before reaching a highly credible reputation to match the reputations of for example TI Sparkle, BT Global Services, Belgacom, Deutsche Telekom and France Telecom.

BT Business Creates IT Manager SME-Style

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.

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 End User / Customer 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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