27 Jan 2021

New IDC Report Explains Ways to Scale Beyond the Connectivity Conundrum for CSPs in IoT Value Delivery

SINGAPORE, January 28th, 2020 – IDC’s recent report Scaling Beyond Connectivity Essential for the Communications Service Provider Role in Internet of Things Value Delivery explains the importance of scaling IoT projects for Asia/Pacific communication service providers (CSPs) to move up the value chain. This is even more important as the ongoing pandemic has put a focus on IT spending where it matters more — cost containment, customer experience, and new avenues for revenue generation. With this, ongoing IoT projects (or already deployed ones) pose a significant opportunity for CSPs to re-engage and reposition their 'connectivity-plus' offerings.

“Moving beyond the connectivity-only offerings in the IoT space requires a mapping of assets, their associated outcomes, and customer touchpoints. The connectivity-plus offerings also need close collaboration amongst platform providers, related business goals, and CSP solutions,” says Yash Jethani, Research Manager, Telecom & IoT at IDC Asia/Pacific.

With different application enablement platforms and connectivity management platforms, customers in Asia/Pacific* look for solutions which are stitched from end-to-end and enables easier management with lesser customer touchpoints. The public cloud providers only add fuel to the competition with their edge-based solutions combining AI/ML, therefore operators need to prove:

  • ROI for efficiency, productivity, and customer experience that intrinsically link to costs of IoT deployment.
  • Value of underutilized data processing capacity from the quick increase and decrease in customer usage.
  • The importance of data privacy and built-in security with open APIs.

Based on IDC's Worldwide IoT Spending Guide, 2020, connectivity related spending remains 11% of the total IoT spending in Asia/Pacific*, while hardware and services spend represent 73% of the spend. Most of the connectivity related spend is catered by CSPs via LPWAN, cellular, or other connectivity technologies. This clearly depicts opportunities for CSPs in leveraging IoT for freight monitoring, manufacturing operations, remote health, and smart grid – the top use cases in Asia/Pacific* – and permeate the related hardware and services growth.

Other highlights from the report include addressing several key questions for CSPs:

  • What are some case examples in the collaboration space where operators leverage system integrators to scale beyond the connectivity conundrum?
  • How do system integrators such as L&T technology Services, Tech Mahindra, and IBM help operators in the IoT deployment value creation?
  • What frameworks can operators rely on to target IoT deployments?
  • As operators plan their data-driven transformation, what are some of the add-on capabilities they can look at?

“It is not just about the operational KPIs addressing the 'what' in the transformation phase, but also about 'where' in the value chain an operator intends to play and how in the overall value chain and operator intends to grow beyond connectivity-only offerings,” Jethani ends.

IDC has been tracking the development of leading regional and global telecommunications service providers in the market through its core research on 5G, CAPEX market forecasts, IoT Access and Traffic, IoT Spending, Managed SD-WAN, Telecom Services, as well as business sentiment surveys around carrier transformation, next-generation software-defined networks and collaboration.

IDC's Asia/Pacific Communications Service Provider Technology Strategies program offers insights into the technology strategies of telecom, TV, ISP, and OTT providers in the region. This service looks specifically at the innovative ways communications SPs are leveraging the 3rd Platform to create next-generation network products and services. Regardless of the segment, communications SPs are evaluating and adopting new technologies to help them push past their traditional markets and tap into new opportunities. To learn more, contact Hugh Ujhazy at hujhazy@idc.com or click HERE.

Scaling Beyond Connectivity Essential for the Communications Service Provider Role in Internet of Things Value Delivery is one of the reports under IDC Asia Pacific’s IoT continuous information services report series which is complemented by other reports as follows: IDC FutureScape: Worldwide Internet of Things 2021 Predictions — APEJ Implications, Worldwide Internet of Things Forecast, 2020–2024, Asia/Pacific (Excluding Japan) Internet of Things Spending 2H19 Forecast Update, 2020-2024, Asia/Pacific (Excluding Japan) Internet of Things Connectivity Forecast and Analysis, 2020-2024, IDC Market Glance: Telecommunications in India, 4Q20, and Telco Edge Business Model and Strategies.

For more information on this report, please contact Yash Jethani at yjethani@idc.com or Hugh Ujhazy at hujhazy@idc.com. For media queries, please contact Tessa Rago at trago@idc.com or Alvin Afuang at aafuang@idc.com.

-Ends-

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IDC Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the technology, telecoms, and related areas. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.

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