When it comes to digital transformation, telecom is catching up with other industry sectors. But telecom companies could tap into partner ecosystems to reverse that trend, according to new research findings.
Only 22% of telecom companies have successfully undertaken a digital transformation initiative, Boston Consulting Group (BCG) reported. That slice lags cross-industry averaging 35%, according to a management consultancy analysis of 860 companies in a number of vertical markets. The low success rate “reflects the real risks of declining revenue growth and disruption of digital players,” BCG said.
Telecom companies are faced with increasing costs, regulatory obligations and challenges in the path of delivery of emerging technologies such as 5G. Inflationary pressure surfaced last week: Verizon and T-Mobile sparred over pricing, with the latter company declaring it would keep its wireless plan prices while others raise rates.
Partners, however, can play a role in igniting change in telecom firms and strengthening their market position. Telecom respondents rated the digital ecosystem and partnership area as their fourth highest innovation priority, according to BCG research. Sixty-six percent of the companies polled mentioned the digital ecosystem, slightly higher than the cross-industry average.
Patrick Forth
“It’s very difficult to innovate today, without being effective in that ecosystem,” said Patrick Forth, managing director and senior partner for Sydney at BCG.
A partner ecosystem strategy that features co-innovation helps organizations overcome in-house skill gaps and accelerate time-to-market.
Causes of delay
Forth said telecom firms often struggle with key success factors of digital transformation. Those include an integrated approach, commitment to leadership, access to high-quality talent, an agile management mindset, clear metrics and a modern technology architecture, according to the consultancy.
Achieving change depends on how well an industry sector uses those factors, says Forth, who co-authored the BCG study. “Telcos, on average, are worse at applying success factors than, for example, an IT service company,” Forth said.
It is very difficult to innovate today, without being effective in that ecosystem.
Patrick ForthManaging director and senior partner for Sydney, BCG
The deep legacy business models of telecom companies present an obstacle. Telecom giants have invested heavily in networks, creating fixed-line products for which they often expect 70% market share, Forth said. “That strengthens you with a mass and inflexible business model,” he said. “And the whole point of digital is to be customizable and flexible. So, their starting point is more difficult.”
In addition, the complexity of fixed and mobile networking domains makes digital use difficult, Forth added. Network engineers tend to be risk averse, with network outage being their biggest concern. “That’s quite understandable, but it doesn’t help in terms of achieving digital transformation,” he said.
But while some telecom companies are struggling to change, others are starting to break away from the group. Forth said that perhaps 20% of companies are developing digital capabilities, achieving revenue growth and improving the customer experience.
Change through the ecosystem
In addition, those digital leaders are rotating toward innovation, whether at the core of the network, around 5G services or at specific customer segments such as healthcare and energy, Forth says. Such companies will increasingly open up their APIs and work within a partner ecosystem, he added.
For telecom firms, potential ecosystem partners include cloud platform providers, device manufacturers in fields such as IoT and augmented reality, and application providers in smart manufacturing and smart agriculture among others. other places, he said.
Channel partners also have a role. Earlier this year, Thidera, a partner with ServiceNow, launched a service and order management offering based on the ServiceNow platform and intended for telecom customers.
Launch and update the channel partner program
Torq, a code -free security automation company in Portland, Ore., Has launched a partner program for VARs, distributors, system integrators, managed security service providers and managed detection and response providers. The Torq Automation Alliance includes training for partner sales and sales engineering teams, marketing campaign kits and preview access to Torq platform releases.
Matillion, a cloud data integration platform provider, has updated its partner program with benefits including partner portal, partner account manager to assist with go-to-market plans, technical training and free certifications . The tiered structure of the program determines the specific benefits a partner receives. Matillion, with offices in Denver and Manchester, England, has expanded its program to include systems integrators, consultants and technology partners.
Aryaka, a managed SD-WAN and SASE solutions provider, has launched a revised online training and certification program for sales agents, VARs and MSPs in its Accelerate Channel Partner Program. Certification courses include Aryaka Certified Partner, Aryaka Budget Planner Tool and How to work with Aryaka.
Merger and acquisition updates
NTT Data, a digital business and IT services company based in Plano, Texas, has agreed to acquire New York digital strategy firm Postlight. The deal follows NTT Data’s purchase of Nexient and Vectorform in the digital application development and modernization markets. Postlight offers design and engineering services in addition to strategy. NTT Data expects the transaction to close by the end of June.
Zayo Group Holdings, a communications infrastructure platform company in Boulder, Colo., Has acquired Education Networks of America (ENA), which provides managed network connectivity, communications and cybersecurity services to the education sector. ENA, based in Nashville, provides services to K-12 school districts participating in the E-Rate program, which aims to reduce telecom costs for schools and libraries. Channel partners have found opportunities in designing hybrid learning systems in the education technology market.
Other news
Technology and service providers looking to develop program channels often struggle with determining the right number of partners and establishing selection criteria. That’s an important takeaway from Gartner research released last week. The market research firm recommends checking first whether a channel program makes sense, considering the reasons for launching such a program and understanding the way a customer wants to buy. Other steps include calculating the number of partners needed, building a profile for the ideal partner and offering a “compelling proposal to attract partners,” according to Gartner.
Syntax, a Montreal-based managed cloud provider, has launched a program that allows employees to work overseas, choose in-office, remote or hybrid work, and set their own hours of working. The company’s Global Flex Program offers the Global Tourist option where employees can work remotely from anywhere in the world for up to 30 or 60 days. Alternatively, employees can work for up to four months in areas where the company has a physical presence. The Flex Workplace program, along with its remote and hybrid options, applies to employees whose job does not require them to work in a designated Syntax office. And the Flex Schedule allows employees to avoid punching the clock, provided they are accessible when needed, available for customers, attend meetings and complete their work, the company says.
Apiiro, a cloud-native application security company, has released a partner program for technology, consulting and reseller partners. The program includes training materials, sales resources, access to technical analysis demos and documentation for go-to-market opportunities and joint promotions. Partners include Alacrinet, Defy Security, Google Cloud, HashiCorp, NetSPI, NXGN, Parabellyx and Trace3. Apiiro has offices in Tel Aviv and New York.
MSPs who use Augmentt’s SaaS security products will receive a discount on SeedPod Cyber’s cybersecurity insurance- and so will their customers. The MSP discount will vary depending on size, number of customers and other factors, according to a spokesperson for Ottawa-based Augmentt. MSP customers will receive a discount of up to 40%. MSPs that use Augmentt Discover and Augmentt Secure are jointly eligible for the SeedPod Cyber Insurance Program. The program offers cyber insurance that covers data breaches, ransomware attacks, cyberthreats and loss of revenue associated with cyber-related incidents.
Upstack, a web platform that sells cloud services through technology consultants, has signed a strategic partnership with Lumen Technologies, which provides managed network and IT services. Upstack advisors will sell Lumen offers to their enterprise, midmarket and SMB customers. Upstack, based in New York, continues to grow through acquisitions, most recently buying Universal Telecommunications Inc., a telecom agency, and its MSP affiliate, Universal Solutions Providers.
Executive appointments
Sumo Logic, a SaaS analytics platform vendor based in Redwood City, Calif., Has appointed Timm Hoyt as senior vice president of global channels and alliances. Hoyt previously worked at PagerDuty, Druva, Atlantis Computing, Skyera and Brocade.
Tollring, a business analytics company in Uxbridge, United Kingdom, has appointed Craig Hoile as head of channel sales. Hoile has previously worked with partners at Virgin Media 02, Microsoft and Vodafone.
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Patrick Forth