The latest report from Transforma Insights, a leading IoT industry analyst, emphasizes that communication service providers need to seriously address IoT issues before they can transform into hyperscale IoT connectivity providers. Vodafone is the world’s top IoT CSP.
Transforma Insights today announced its “2021 Communication Service Provider IoT Peer-to-Peer Benchmark Report‘It analyzed the relative advantages of 12 leading global IoT connectivity providers in the areas of networks, platforms, vertical solutions, and business strategies.
The cellular IoT connection market has recently become more complex and competitive. In these cases, Communication Service Provider (CSP) Must carefully examine their market strategies and methods. There are actually two options: find additional sources of income or establish systems and processes to cope with pressure.
Become a hyperscale IoT connection provider
This report focuses on the core role of CSP, which is to provide connectivity. To succeed in this endeavor, CSP needs to evolve to become a “Hyperscale IoT connection provider.’
The assessment focuses on whether the CSP has been deployed (or is being deployed) to provide the necessary functions for scalable connectivity to support at least ten times the number of devices at low cost points. The report ranks seven key areas (in descending order of importance) based on each CSP’s ability as a hyperscale IoT connection provider, as shown in the figure below.
Based on the evaluation of these seven criteria, Vodafone scored the highest in terms of having the capabilities required to become a hyperscale IoT connection provider, followed by Deutsche Telekom, Telefónica, Telenor, KORE and Telia.
Related opportunities Internet of Things for CSP Not limited to providing connections. Many people distinguish in other important ways. Providing vertical solutions is an option. Many CSPs have very powerful solutions, and in some cases are market-leading solutions, especially in vertical markets. However, for most vertical markets, barriers to entry are high, and simply adopting the “me too” approach to launch vertical solutions in each attractive market segment is doomed to fail. Similarly, Vodafone scored the highest in the strength of its vertical solution portfolio, followed by Verizon, Telefónica and Orange.
The Internet of Things also has more opportunities related to horizontal consulting, consulting, and system integration services. The challenge in this part of the market is that it is difficult to expand. Nevertheless, it is still an important part of the market. CSPs with strong consulting and system integration capabilities include Deutsche Telekom and Orange.
The figure below summarizes the Transforma Insights ranking. The vertical axis is the ultra-large-scale IoT connectivity capabilities. The horizontal axis provides total scores for customer-specific solutions across vertical solutions and horizontal consulting/consulting/system integration.
It should be pointed out that even the highest-scoring CSP still has a way to go to meet the requirements that we consider to be the best hyperscale IoT connection provider, as the author Matt Hatton emphasized:
“CSPs must continue to develop toward their goal of becoming a hyperscale IoT connectivity provider, supporting the necessary scalable technology and feature suite to profitably address the growing cellular IoT market opportunity.”
