Vanco Sold to Reliance as Indian Operators Make Play for the Enterprise

On May 26th Reliance Globalcom, a division of India’s Reliance Communications Group, acquired 100% equity in Vanco for $76.9 million (or approximately GBP 39 million) and free of debt. Reliance Communications has agreed to buy the entire business except Vanco Direct USA, which is being sold separately. The parent company, Vanco PLC, went into administration on May 26. Vanco has over 200 enterprise customers including British Airways, Siemens and Virgin Megastores.

Recommended Competitive Responses

► Competitors can emphasise that Vanco’s whole proposition as an independent VNO is null and void now that it is part of a large global carrier business. In addition, while Vanco is being integrated into the organization, customers may experience service problems and so forth; therefore, all enterprise carriers should make contact with Vanco customers to offer them alternative arrangements to consider.

► Competitors should position Vanco as an entrant that does not have its own network and is heavily reliant on third-party operators to deliver fast, reliable network performance to its customers. Vanco claims to have control over these third-party operators, but as with any provider, such control is inherently limited. Carriers must recognise, as Vanco has, that solid customer service must be an absolute priority, and that the only sustainable way to win is through consistently positive service and support experiences.

► Top-tier global carriers that have carefully architected their networks from scratch and built up enterprise business services through their own sales efforts can describe the new Reliance Globalcom as a collection of acquired networks and services that are not fully integrated nor rationalized. The established carriers can tout their stability and predictability and contrast Reliance Globalcom's integration and future plans as fraught with uncertainty.

► Telecom carriers from India and other Asian countries are seeing most of their new account success come from multinationals headquartered in the carriers' respective “home” countries. In this respect, home field competitor Tata Communications (formerly VSNL International) can highlight that it made large North American and international acquisitions in the form of the Tyco Global Network and Teleglobe International years before Reliance made its bid for Yipes and Vanco..

| Client Access - Full report in Business Telecom Services - Europe | More information

O2 UK Makes Another Move, This Time Offering New Managed Email Services for Larger SMEs

On May 21st O2 UK announced the launch of O2 Managed Services for Mobile Email – a solution for enterprises looking to take the pain away from the ongoing management of mobile email. The service is aimed at businesses with a large fleet (>100) of mobile data devices, allowing them to focus their resources on their core business. O2 Managed Services for Mobile Email builds on O2’s Professional Services program which was launched earlier this year. The solution is available to enterprise customers using a BlackBerry or Good Mobile Email services, and the service is priced on a per device per month basis.

Analytical Summary

► Current Perspective: Slightly positive on O2’s new managed email service because it somewhat improves O2’s chances to win more enterprise mobility customers in the UK. As this is strictly a UK initiative, it would be more interesting if this service was available outside the UK on a pan-European basis. However, O2 can probably gain an edge in offering new solutions to larger SME clients that increasingly look to service providers to manage their growing fleet (>100) of mobile data devices.

► Vendor Importance: High, because O2 UK needs to continue to offer new initiatives on top of its previous professional services announcement including consultancy, training and implementation services through application partnerships. Moreover it will enable O2 to address a growing market for managed mobile services for small and large enterprises that do not have the resources to manage a growing fleet of mobile devices.

► Market Impact: Moderate on the UK enterprise mobility market because O2 is a solid player and this new initiative increases pressure on rivals. However, O2 will face stiff competition against competitors such as Vodafone, BT and Orange Business Services because they are also increasing their managed email services portfolios targeting SMEs.

| Client access - Full report in Enterprise Mobility - Europe | More information

BT and Siemens Enterprise Communications to Deliver Global Managed Services

On May 6th BT and Siemens Enterprise Communications entered into a global sales agreement to offer a converged communications solution for large multinational enterprises. The solution formalizes an existing relationship to leverage BT’s MPLS network provide managed communications services based around Siemens Enterprise Communications’ OpenScape unified communications platform. Siemens Enterprise Communications will also provide supporting professional services for its technology services through its OpenScale services portfolio.

Recommended Competitive Responses

► Having a very strong MPLS network, large installed base for IP Telephony, and large scale global clients, Orange Business Services should consider developing a similar partnership with Siemens Enterprise Communications. The vendor could be instrumental in supporting some of the operator’s strategic accounts and filling a few holes it may encounter in remote locations well outside of Europe.

► Defensively, European operators should point out to their existing relationship in place with key equipment providers such as Avaya, Cisco, Alcatel-Lucent and Nortel. They would also be wise to opportunistically explore ways to sharpen their capabilities for supporting major outsourcing and transformation deals on a global basis. This will be important for gaining wallet share in many top accounts.

► Competitors could also point out that BT’s main contribution is its global MPLS VPN infrastructure. They could also call out the questionable viability of Siemens Enterprise Communications, noting that pending divestiture from Siemens AG could jeopardize the future of the company’s technology and, thus, the longevity of the partnership.

| Client access - Full report in Business Telecom Services - Europe | More information

Advisory Report Highlight
Selling Enterprise Mobility In a Crowded European Environment, Better Find Your Spot!

Rolf Schonhowd

By Rolf Schonhowd, Principal Analyst, Enterprise Mobility - Europe

The European market is getting more competitive as more players are entering the battlefield to offer enterprise mobility services to multinational companies (MNCs). In particular as new network technologies are being deployed, large European mobile and fixed operators are positioning themselves to capture a large market share of the ‘hot’ mobility services market. The reason for this is that a larger number of large companies are embracing mobility to increase employee productivity and improve customer responsiveness.

To win in this market the European mobility players need to position their value propositions in very clever way by differentiating their offerings based on their core strengths and market understanding to create their own ‘Blue Ocean Strategy’. Hence, this advisory report will primarily highlight who the main European enterprise mobility players that are battling for market share and taking leading positions to serve MNCs. It also addresses the overall market dynamics that are taking place to serve these enterprises with mobility solutions.

| Client access - Full report in Enterprise Mobility - Europe | More information