ICT Telecoms and Software Expert Advice

Advising on the commercial impact of technology and
market changes in telecoms, software and IT services

Home > Media > Telecoms and Software News

TELECOMS AND SOFTWARE NEWS

Telstra takes the SaaS approach to address SMEs' needs

Claudio Castelli

Telstra takes the SaaS approach to address SMEs' needs

Telstra has launched its software-as-as-service (SaaS) platform, promising to address the growing needs of SMEs during the current economic climate. We think this is well timed and telcos have some value to add. However, providing IT services and entering into the software business is a challenging game for telcos.

SMEs in Australia prefer to buy all their services from a single provider

Small to medium-sized enterprises (SMEs) like simplicity when dealing with suppliers. In our recent survey we found that 83% of the SMEs we interviewed in Australia prefer to purchase all their fixed and mobile telecommunications services from a single provider. We believe they will welcome software applications from the same source.

Based on the Jamcracker solution, T-Suite will offer a single point of contact for software applications. Initial applications will include email and collaboration, security and data backup, business process and CRM. Furthermore, Telstra is building an ISV community where it plans to expand offerings to address core SME business needs.

These applications map well onto the solutions that Australian SMEs have asked for in our survey. We found high interest in services such as managed security and specialist business software applications such as CRM. Furthermore, we think these SaaS offerings should be integrated or bundled with Telstra's hosted voice services. Audio and conferencing, and IP telephony are the most considered solutions by SMEs to buy as a managed service in the future.

Nevertheless, Telstra will face challenges ahead. SMEs in Australia still don't recognise telecoms providers as suppliers of IT services and solutions, and Telstra will need to work hard to increase customer awareness. Amongst the SMEs we surveyed, only 9% are considering buying PC software applications from their main telecoms provider in the future.

Right market timing

With recession stalking most markets, many SMEs are facing a slowdown in sales and tighter cash flows, putting pressure on capex. In Australia we found 79% of SMEs prefer to have a predictable monthly recurring charge per user for telecoms equipment and services, as opposed to up-front investment.

The SaaS approach allows SMEs to move to an opex model for ICT services and concentrate on their core business activities; they don't want the worries of managing security and upgrading applications, for example. Its subscription-based pricing model gives SMEs flexibility to respond to market pressures, paying as they grow or reducing their expenditure as business gets tougher.

Existing relationship and mobility are advantages for telcos

Not surprisingly, Telstra has a strong focus on the SME market. It has a good relationship with the majority of small businesses in Australia, and because of this reach and understanding of SME pain points Telstra believes it is able to attract the right ISV partners and build consistent offerings.

In addition, SMEs in Australia continue to embrace mobility. The number of mobile workers has increased from an average of 34% in the previous year to 38% in our last survey. Telstra's nationwide Next G HSPA network is at the core of its enterprise mobility strategy and is a key source of competitive advantage against IT providers. Telstra is well placed to integrate applications in the network. T-Suite's phased approach will include mobility applications and, in our view, should focus on the benefits of applications that are better deployed when integrated in the network.

About:

This article is an extract taken from Ovum's Straight Talk service. This daily email bulletin provides our expert's views and opinions on important news and events in global IT and telecoms. If you have a comment or question regarding this article then please submit your details here:

Email address:

Suggestion:

If you would like to find out more about Straight Talk please contact StraightTalk@ovum.com

If you would like to find out more about Ovum services then please click here for details

Search

Contact Us

Expertise

© Datamonitor - Ovum is a Datamonitor company