Reasons of Low adoption of Enterprise Mobility in India

With the growing adoption of data capable mobility devices and networks, the buzz started around big opportunity with Enterprise mobility. Even after 5 years, the adoption of Enterprise mobility horizontal and vertical application and supporting management platform is low to negligible. The global and domestic enterprise mobility opportunity can be termed as dynamic vs. static. Many analyst firms came out with very aggressive projection on the market size but industry failed to achieve those numbers. The diverse market like India where 6 Million plus SME and SMB offer immense potential with little trade off’s, the Enterprise mobility platform providers are offering standard and certified mechanism to connect prosumer with the platform to access horizontal and vertical application. The application developers are also developing based on the standardization to tap broader geographical market.

In my point of view, the followings are the reasons for the slow adoption of Enterprise mobility in India:

Device Support and Management – In order to keep the cost at lower level, the potential customer looks for BYOD support and it brings major issues of supporting wide range of handset. Around 25% of available BYOD are makes of Chinese. The mid-range device range must be integrated with EMP (Enterprise mobility platform) in order to get higher adoption.

Security: The Enterprises are very reluctant to adopt due to lack of offered security across network, device, applications and user level. With the growing security threat across data path and lack of regulatory guideline keeps potential customer from adopting Enterprise Mobility

Portability: Most of the SMB/SME carry out internal IT department initiated development of few or multiple module of data management. The enterprise finds it extremely difficult to port data with EMP in order to access on handset.

Data Protection: Extremely hot talking point during EAP implementation. As EAP enable user to access Enterprise hosted data onto BYOD devices through wireless network. There is a probability of data loss or injection of unwarranted threat during the communication path; the Enterprises are very reluctant in adopting any applications or EAP services where MACD of server data is involved.

SLA: The service layer agreement w.r.t EAP is very tricky as sensitive information sharing, information protection and cascading impact is attached. EAP providers offer their liability of any business loss due to data corruption during the MACD process using device hosted applications. With each EAP applications, the users would be responsible to maintain certain guideline such as physical, access, management security mechanism in order to mitigate any threat. It is very difficult to define responsibility in case something goes wrong during communication path.

Regulatory: The EAP attract regulatory guidelines from NHM, DoT & DIT with strict guidelines on the user information sharing, platform management team, security. It prohibits many potential customer bases to adopt EAP as it attracts stringent regulatory compliance and potential penalty in case of failure in adherence.

Skilled Resources: The adoption of EAP attract additional resource requirement for the customer in order to manage the EAP platform and the implementation in close co-ordination with vendor. It increases the cost drastically when it comes to per user service cost.

Few of the above challenges highlight the ongoing concern of potential EAP customer base. EAP provider may think of Managed EAP portfolio in order to attract and gain confidence of potential customer base.

MVAS Regulatory– Technology and Business Impact on VAS companies

The government regulator initiative to govern VAS vendor and mobile service provider to protect end consumer needs further re-calibrations. Post consultation paper release in FY10-11 and subsequent responses from ecosystem stakeholders highlights showstopper as well as hidden opportunity around proposed MVAS. This article highlights Technological and Business continuity challenges posed towards VAS developer, Owner’s, and aggregators.

Before going into details of impact, MVAS regulation makes it mandatory for the VAS service provider’s to take authorization from end user to activate requested VAS service. Post authorization, Service Provider would be able to bill end user. The process must be repeated at the end of VAS service expiry.

The government regulatory wanted to address end user concerns of repeated billing or lengthy process of deactivating unwarranted VAS services but in-turn forced VAS ecosystem players to realign their VAS design, development and delivery mechanism

The technological and financial impact on the VAS providers would be the followings:

Technological Impact

1. All VAS provider would be enforced to change the service delivery mechanism both on the service and business logic level to support the regulation on Service Creation,Execution, Activation, QoS, Provisioning and Assurance
2. Enhanced two way Security, Business Intelligence, Reporting and Billing upgrades
3. All VAS provider would be enforced an automated customer care portal integrated with mobile operator website in order to seamless adhere regulation
4. VAS provider would be required to integrate minimum feature set of Service Delivery Platform and integrated CDN
5. All VAS provider must offer certified product or service w.r.t standardization for seamless integration with Mobile Operator Network
6. All VAS services or product must be certified across devices in order to get the security clearance from mobile operator
7. All VAS provider must have dynamic feature set with a capability of segregated and aggregated mechanism to enable and disable business and service logic based on the product offering

Financial Impact

1. Due to the high capex and opex cost by Mobile operator, there is a high probability that mobile operator would renegotiate the price point with VAS provider
2. High Capex in implementation required regulatory compliance feature set
3. High Capex in certification process
4. High Capex to upgrade VAS service or product attached  technological platform
5. Lower customer adoption and subsequent low VAS revenue due to stringent mechanism.
6. Low ARPU per customer across Apps, SMS, Data- music, video centric service
7. High Capex to offer committed QoS
8. Low RoI and High TC

In the midst of high competition, margin pressure and added hidden threats of MVAS regulation may take Indian Mobile Operator into VAS tariff war which till now was not affected with the same.

In conclusion, MVAS regulation might bring cheer for end user but High TCA, TCO, UAC and cumbersome processes would translate into Low - VAS Revenue, ARPU, Margin, RoI. It also possesses great opportunity for the innovative VAS companies to tap untapped VAS userbase.

Cloud Based Unified Service Delivery Platform – Low Cost and High Return

With the adoption of high speed data network supporting triple play services or products, the focus turned on increasing the adoption of data from voice centric service. Most of the mobile operator in India focussed on product positioning and experienced low adoption due to price vs. performance factor considered by potential user. Cloud based Unified Service Delivery Platform can be a game changer to enable mobile operator to tag innovative product provider with superior customer management. It would reduce User, Service, Partner acquisition, activation, upgrades, notification, billing, troubleshooting, RCA as well as management and operational cost. Reeling under decreasing EBITA, high TCA, high TCO and Low ROI, the potential proposition would enable mobile operator’s to achieve low risk and high reward through cutting edge Technology platform offered by leading and Innovative Technology companies. The same platform can then be reused to deliver Enterprise Horizontal and Vertical to tap the untapped business opportunity in India. In order to achieve the same, product manager should think ecosystem module of content, context, competition, commerce, connectivity closely tagged with Performance, Priority. In conclusion, shift towards User, Device, and Network agnostic environment to increase Product, Service, Customer, Revenue assurance.