The Enterprise of Tomorrow: The Trends That Matter for Service ProvidersEvan Kirchheimer

Research Director, Enterprise Services | Ovum

Michal Harris

Head of EMEA Marketing | Amdocs

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• https://youtu.be/lZuSmUwPUwI

Millennial video

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Millennials have their say: but what is the real impact for service providers?

1 2

3 4

Traditional apps don’t meet expectations

Connectivity is cumbersome, not mobile-first

Suffering from a lack of team collaboration platforms

Want flexibility in terms of workplace

34% of employers are not providing flexible workspaces

37% are weak on mobile-first comms; Many workers have better broadband

at home

66% would like to use more personal tech and apps for work

#1: Team collaboration tools are the most highly desired

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The Ovum Top 10: making work a thing we do, not a place we go

5G

</>

AI

Consumerization of IT

Virtual collaboration for virtual teams

Augmented/mixed reality Security and digital identity

Analytics

The Internet of Things

5G and programmable networks

Open APIs and programmable platformsSelf-service

Automation, machine learning and AI

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Monetization: service providers may benefit, but may also miss opportunities (again)

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Study demographics

North America

Asia Pacific

Europe

35 and

under

Advanced Markets

Smartphone

300 qualitative conversations with millennials

10 interviews with senior industry leaders

1,204workers

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Millennials’ Top 3: all map to service provider assets

Which of the following technologies are most likely to have a major impact on how you work? (1 least; 10 = most)

Can telcos make the shift?

1. Telco core: 5G/superfast BB and other superfast connectivity options promise to meet future demand.

2. Telco potential: IoT. There is an appreciation of its value but telcos are stuck at the connectivity layer.

3. Telco questionable: BI. Telcos have taken tentative steps.

6.9 Superfast mobile BB

6.5 The IoT

5.5 Big Data/Analytics

2.0 3D Printing

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2nd wave consumerization: Workers think apps, but telcos retain device-centric approach

Can telcos make the shift?

1. Visibility, not just control.

2. Risk management and assessment.

3. App-centricity

39%

24%

16%

21%IT is aware, but I can do what I want

I do what I want and IT doesn’t know

I can use them with approval from IT

I cannot use them and there is no approval process

Consumer apps: over 3 of 5 millennial employees use consumer apps at work without explicit IT approval

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Consumer apps: familiarity, ease, consistency

Can telcos make the shift?

1. The enterprise user as a consumer. Telcos must evolve segmentation.

2. Federation. Telcos are good at thinking beyond the firewall. Can they bestow credentials for stake-holders beyond the walls of one company?

“Technology [at my

company] is a nightmare. IT is run by people who don't understand needs

of employees - millennial

More familiar than

those provided by IT

Easier to use than

those provided by IT

Same app desired for personal and business use

Top reasons employees use consumer apps in the workplace

1

2

3

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Collaboration: “App beats Apple”

Can telcos make the shift?

1. Collaboration is not UC: Providers will need to move beyond thinking of UC as voice-based.

2. The office remains important: Mobility also occurs inthe office. Do telcos have the right ‘local’ network and applications skills?

22%

19%

19%

18%

9%

7%7%

Collaboration tops list of tools employees want most (topmost)

Team collaboration apps Apple products

Tablets Wearables

Virtual/augmented reality Video conferencing

App store

“Being in an office is great for meetings, teamwork, etc. But my most creative moments come when I'm at home or at a cafe” -

millennial

“

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Secur i ty : Mi l lennia ls understand i ts importance, but a lso f ind i t cumbersome

Almost ¾ believe security,

encryption and biometrics will have a major impact on work

72%

45%

But almost half said security is

so restrictive, it prevents them from getting the job done

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Security: But many know there’s a trade-off for access

2.84

2.68

2.93

2.87

3.09

2.75

1.00 1.50 2.00 2.50 3.00 3.50

Fingerprints

Retina prints

Voice prints

Physical location data

Application usage data

Social media data

Willingness to share data for better access

Can telcos make the shift?

1. Invisible, seamless: Telcos have an opportunity to secure data from DC, to network, to device, to identity.

2. Analytics: a crucial behind the scenes role.

““I'm willing to share. It has just become an

easier way to function.” - millennial

(1=never; 5=very willing)

““Security is essential, but we must avoid

encumbering users.” – enterprise leader

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Everyone as a coder?: adaptable, app -centric, distr ibuted IT

Don't know, 9%

No, 33%Yes,

57%

Would you be interested in learning to code, for example to customize

collaboration tools?

Can telcos make the shift?

1. Telco focus on stakeholders: market and sell as enabling IT to meet stakeholder needs.

2. Telco as enabler: secure access to development platforms.

“Millennials have a disproportionate interest in training and development than other groups.”

– Head of Talent

“

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Network strategy: An appl ication -aware, user -focused approach is a must

1. Improveapplication

performance

2. Improvenetworksecurity

3. Simplifynetworkstructure

5. Supportconsolidatedor virtualizeddatacenters

4. Run newapps on

the WAN

78% 77% 67% 64% 61%

Enterprises’ top 5 drivers for network investment

n=100 ICT decision makers in multinational corporations.

Source: Ovum SD-WAN survey, 2016

“The way we procure tech isn’t about what’s best for the company. It’s about being for the user, not about what the CTO is looking at in his tech stack

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What’s a telco to do? Many options, but some constants

Orchestration becomes critical to build ‘value in the network’. The SaaS model points a way forward.

Network – work-load-centric secure connectivity

Partnering for solutions – many telcos are bad at this

Skills – apps, PS, and solution sales skills are rare and costly

Choosing what else to do is a challenge. Even the biggest telcos can only differentiate in a handful of areas. Position and partner for others.

Not just about who you sell to.Digital transformation of the enterprise must be mirrored within the telco.