Dimension Data Reveals Top Five Telecom Spending Trends

NEW YORK, Oct. 10, 2013 /PRNewswire/ -- Dimension Data, the $5.8 billion global ICT solutions and services provider, today unveiled its top five trends for enterprise telecom spending, based on data gathered over three years from a base of its global clients. The company also launched its new Communication Lifecycle Management (CLM) service, which helps organizations manage the entire lifespan of both mobile and fixed communications services inside and outside the corporate firewall. The CLM service is available immediately in the U.S. and includes a self-service option via a secure web portal.

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Telecom spending is among the largest operating expenses for mid-sized and large organizations, Dimension Data research indicates. Businesses require constant, end-to-end visibility into employees' communications and collaboration usage to make informed technology investment decisions.

"Cost control and investment optimization are at the top of every boardroom agenda. Most traditional telecom expense management approaches provide limited visibility of assets and services that reside outside the edge of the enterprise network. However, as these top five telecom spending trends indicate, the vast majority of expenses are actually incurred inside the enterprise network," explains Grant Sainsbury, vice president of advanced solutions at Dimension Data. "Dimension Data's new single, integrated Communication Lifecycle Management service, which is managed through our proprietary cloud-based application called NexTEM, allows clients to have greater visibility into and control of all voice, data, fixed, mobile, local and global communications expenses–in any location across the globe."

Based on work with thousands of clients, Dimension Data has identified the following trends likely responsible for rising telecom costs:

1. Businesses burn dollars unnecessarily on variable costs.  Telecom expenses are on the rise.  Businesses are wasting money unnecessarily on variable costs such as under-utilized bandwidth and circuits, excessive roaming charges and non-optimized tariffing. Gaining better visibility of all expenses is the first step towards elimination of unnecessary spending.

2. Tablets are king. Tablets have seen a 75% uptake from 2010–2012, indicating a dramatic increase in the general popularity of these devices. Corporate purchasing of tablets has been much lower, registering at an average annual growth rate of 38%. Dimension Data believes individuals are taking advantage of corporate Bring Your Own Device (BYOD) policies. Enterprises need to prepare security and support strategies for these devices as they increasingly enter the workplace.   

3. Businesses love iPhones; consumers are more price-conscious. According to the data gathered by Dimension Data, Apple's iPhone remains the top choice for corporate buyers, whereas more reasonably priced smartphones remain the devices of choice for personal use. The appeal of the iPhone for businesses is that it's considered the most secure device available, but it also is perceived as best in its class. The operating system of the iPhone has one operating system, with varying versions; therefore companies value its platform stability. The increase of personal devices in the workplace places greater demands on corporate IT to provide wireless network access. Furthermore, security is often an even greater concern as it relates to managing network access and accessing corporate applications and client or business sensitive data.  These are areas in which organizations must invest, not only for liability protection, but to convert BYOD challenges into business opportunities that positively influence employee satisfaction and increase productivity.

4. Mobile users surf the web for business purposes, too. Across the corporate websites polled, the majority of visits were still from non-mobile devices. An average of at least 7% of visits to each site came from mobile users. The average duration of the visits – around two minutes – indicated that the visitors lingered, which means they were there for information-gathering or business purposes. Mobile optimization of corporate site assets must be a part of any long-term communications strategy for customers, partners and employees.   

5. Unlimited data plans continue to be popular. With the transition of mobility voice minutes into data, many have posed the question: are unlimited data plans disappearing? After polling a number of customer service divisions of well-known communications providers regarding the availability of their unlimited plans in the future, Dimension Data concluded that vendors are hesitant to discontinue these offerings for fear of losing customers. Enterprises tasked with making sourcing and carrier plan decisions should keep this in mind as they negotiate service contracts.

The CLM service was born out of Dimension Data's acquisition of Xigo in 2011, and built on Xigo's legacy and offerings. The new service combines a range of Dimension Data capabilities spanning the entire communication estate, both inside and outside the firewall. CLM brings visibility, order and control across all communication assets, anywhere in the world, to enable timely, evidence-based decisions about the entire communications network, not just bits and pieces of it.

The new CLM service:

• builds on the base of Dimension Data's core telecom expense management capability;
• includes extended services such as sourcing, inventory and order management, invoice management, cost allocation and payment processing; and
• adds related technology solutions and services focused on providing a more complete view of the entire communications network.

About Dimension Data
Founded in 1983, Dimension Data plc is an ICT services and solutions provider that uses its technology expertise, global service delivery capability, and entrepreneurial spirit to accelerate the business ambitions of its clients. Dimension Data is a member of the NTT Group. Visit us at www.dimensiondata.com/na and www.facebook.com/DimensionDataAmericas or follow us on Twitter: @DimensionDataAM.  

SOURCE Dimension Data

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