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BETTER M2M SERVICES

Maturing M2M market encourages service providers to improve customer experience There’s some evidence that the machine-tomachine communications (M2M) market is now maturing after years of under-performing against expectations. But, from an end user’s perspective, services can still seem fragmented. So, M2M Now editor, Jeremy Cowan met Kfir Dan-Ari of Amdocs in London to ask how services can be improved. Kfir Dan-Ari: M2M is a very fragmented business, it is still very vertical. Even the most experienced CSPs worldwide still tell us how, for each significant opportunity, they look for the different components of the solution and see how they can do it. Now it’s changing; more and more of our customers are talking about the need to consolidate, look for commonalities, create more efficient processes. Kfir Dan-Ari is director, Product Marketing at Amdocs

It’s a good time to look at customer experience, because the discussion was – and in a way, still is – focused on technology, gadgets and cool applications. But as the market matures, there is room now to talk about what the customers buy, and what the customers are getting. M2M Now: Do you think it’s significant that the M2M market may at last be maturing, judging by the recent spate of mergers and acquisitions? Companies are being bought for their skills and customer bases, and to bring in-house what used to be outsourced in the partner ecosystem. KD-A: Yes, definitely. One of our key customers in the UK is now looking at bringing more business from MVNOs and getting them back in-house, meaning leaving the low ARPU*, high volume M2M line of business handled by MVNOs, but keeping the high ARPU, high end services provided directly by them. There is another significant indicator. More and more service providers are saying, ‘I want fewer and more reliable partners.’ That means fewer risky, niche

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M2M Now July 2013

solutions where they don’t know what will happen with them. They would like better control, better visibility of the solutions they use. They want to own the customers; clear-cut with no-one in the middle. There are many verticals out there; they cannot chase each one of them and provide end-to-end (services), so what else can they do? For example, Orange have been talking about providing customers with big data analytics capabilities, for example developing applications in healthcare. So, it’s really interesting that they say the portion of revenue they make on healthcare connectivity is 20%. I think it’s amazing; we often hear the CSPs’ complaints, that they only know how to sell connectivity. But then we see more examples of how they do more. M2M Now: What else are you seeing CSPs doing beyond connectivity? KD-A: Project management, hosting, data storage and analytics. They do application development for doctors to browse information gathered from patients. M2M Now: It’s not usual is it for CSPs to make as much as 80% out of services other than connectivity? KD-A: No, it’s still mostly connectivity. Still, it’s a question: what are the main barriers? I think most of them are related to business – how to sell; how to sell to hospitals, how to sell healthcare, how to engage In Association with Amdocs

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M2M Now Magazine July 2013 Edition  

The latest product, people & market news from the Machine to Machine sector. Includes expert industry opinions and interviews.

M2M Now Magazine July 2013 Edition  

The latest product, people & market news from the Machine to Machine sector. Includes expert industry opinions and interviews.

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