Telcos SaaS offerings will meet SMEs' desire for one stop ICT shop

Stuart Corner
Monday, 03 August 2009 05:14

Business IT - Technology

iTWire speculated last week that Optus could get into the business of offering applications to business customers under a SaaS model, and now Ovum has flagged this as growth market for telcos, saying that having a single ICT provider is on the majority of SMEs' wish-lists.

According to Ovum analyst, Claudio Castelli "Ovum research shows that 65 percent of SMEs globally prefer to purchase all their fixed and mobile services from a single provider. Telcos are listening to their demands."

Castelli adds: "National and regional telcos are increasingly picking applications with localised content to cement existing relationships with SMEs and differentiate from the global software-as-a-service (SaaS) providers. The goal is to be the preferred 'one-stop shop' for ICT services for SMEs, combining applications and services from local developers and global providers."

Castelli however flags the possibility of the software vendors competing with the telcos that are offering their applications under a SaaS model, saying: "Some of these partners might eventually become competitors. Telstra will also offer Microsoft Online Services through its SaaS platform T-Suite. Although not broadly promoted, Microsoft also offers applications online directly to customers. We think there is potential conflict in the future."

Telstra however has a strategic relationship with Microsoft that might prevent this since it claims its agreement with Microsoft gives it exclusivity in Australia. However it is unclear whether this will prevent competition from global players offering the same Microsoft applications under a SaaS model.

In March, Vodafone announced the formation of a global partnership with Microsoft to offer businesses a single communications and collaboration solution composed of fixed and mobile voice and data, customer equipment and handsets, and Microsoft Online Services. Vodafone talked about offering the service in every country where it operates but was ambivalent about the potential for Australia. Greg Spear, head of corporate communications for Vodafone Australia, told iTWire: "Vodafone has engaged in a local dialogue with Microsoft Australia on the extent of this deal and opportunities for us to work closely to provide these sorts of services to Australian small businesses."

The head of Telstra Business, Deena Shiff how said that Telstra had an exclusive deal with Microsoft for Australia and therefore, she said, Australia must have been 'carved out' of the global Vodafone- Microsoft agreement. Then in July BT announced a similar global agreement with Microsoft. Telstra's supposed exclusivity notwithstanding, iTWire has been told by a BT spokeswoman: "BT can offer this in Australia as part of its global capability."

As iTWire reported last week, Optus' parent SingTel has just launched an SME SaaS offering. Of this Castelli says: "SingTel...is working hard to build an end-to-end ICT proposition for SMEs in Singapore. The operator released a range of ICT packages for SMEs, and recently launched an Innovation Exchange programme to bring application developers into the service provider's SaaS offerings. The aim is to combine solutions from global players such as Microsoft, Google and Salesforce.com with local ISVs. Like Telstra, SingTel included HR applications in these initial offerings."