The evolution of IT means that SMEs no longer need to be responsible for IT in the traditional sense. In fact, they have surpassed their larger counterparts as early adopters of cloud-based services, writes BRIAN TIMPERLEY, MD of Turrito Networks
The SME’s requirements are clear: compute, connect, communicate, and backup their data. The hosted environment provides the perfect way to do just that. It offers scalability, redundancy, and security; all with enormous convenience and highly cost effective.
But, the one critical enabler for all of this, of course, is internet connectivity.
After all, cloud-enabled businesses rely on uninterrupted connectivity, in some ways even more than they rely on electricity.
South African businesses have adapted well to having standby batteries, solar backups and generators at the ready for when Eskom decides to fail us. But in the same way, businesses need to have backups for when their Internet provision fails. Fortunately, because there is competition in the connectivity market between access mediums, as well as between providers, second- and third-tier failover options are available.
SMEs are developing much closer and more demanding relationships with their connectivity and ICT providers. They need partners who can help them make strategic decisions about which services and infrastructure to invest in, and how to get the best available service within their budget. Now more than ever, customer service is a critical differentiator.
As a result of the commoditization of technology, service and solution providers need to find ways to differentiate themselves beyond their products. The current situation is that very few people trust the intentions of ISPs, and to some extent, this is warranted as the interest of the customer is often secondary to the bottom line of the business.
For example, if you are a network provider, it is in your interest to sell your network solutions irrespective of whether there is a perfect customer fit or not.
The service and solutions providers best suited to a changing ICT environment will be the ones who have zero interest in specific vendor solutions – the aggregators, who consider the best interests of the customer. The companies able to excel are those that can provide multiple tailored models as opposed to one specific solution – it is a case of providing customers with service levels that show they are not small fish in a big pond. Businesses that rely on a single network provider for their connectivity are putting themselves at risk.
Businesses, irrespective of size, should be able to move if one network is no longer serving their needs – or even a combination of networks – without changing your service provider. This, we believe, is the link that’s been missing in the industry.
The ideal solution is to become aligned with a service provider who offers the business service layer that links multiple networks to multiple clients.
And this is exactly what SMEs are starting to do.
Technology is a means to an end – not a business feature that takes hold of them and prevents them from going about their day-to-day operations. For those SMEs willing to embrace this new order, the inevitable next step is to leave their more traditional competitors in their wake.
Second-hand smartphone market booms
The worldwide market for used smartphones is forecast to grow to 332.9 million units, with a market value of $67 billion, in 2023, according to IDC
International Data Corporation (IDC) expects worldwide shipments of used smartphones, inclusive of both officially refurbished and used smartphones, to reach a total of 206.7 million units in 2019. This represents an increase of 17.6% over the 175.8 million units shipped in 2018. A new IDC forecast projects used smartphone shipments will reach 332.9 million units in 2023 with a compound annual growth rate (CAGR) of 13.6% from 2018 to 2023.
This growth can be attributed to an uptick in demand for used smartphones that offer considerable savings compared with new models. Moreover, OEMs have struggled to produce new models that strike a balance between desirable new features and a price that is seen as reasonable. Looking ahead, IDC expects the deployment of 5G networks and smartphones to impact the used market as smartphone owners begin to trade in their 4G smartphones for the promise of high-performing 5G devices.
Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker, says: “In contrast to the recent declines in the new smartphone market, as well as the forecast for minimal growth in new shipments over the next few years, the used market for smartphones shows no signs of slowing down across all parts of the globe. Refurbished and used devices continue to provide cost-effective alternatives to both consumers and businesses that are looking to save money when purchasing a smartphone. Moreover, the ability for vendors to push more affordable refurbished devices in markets in which they normally would not have a presence is helping these players grow their brand as well as their ecosystem of apps, services, and accessories.”
Worldwide Used Smartphone Shipments (shipments in millions of units)
|Rest of World||136.8||77.8%||245.7||73.8%||12.4%|
Source: IDC, Worldwide Used Smartphone Forecast, 2019–2023, Dec 2019.
Table Notes: Data is subject to change.
* Forecast projections.
Says Will Stofega, program director, Mobile Phones: “Although drivers such as regulatory compliance and environmental initiatives are still positively impacting the growth in the used market, the importance of cost-saving for new devices will continue to drive growth. Overall, we feel that the ability to use a previously owned device to fund the purchase of either a new or used device will play the most crucial role in the growth of the refurbished phone market. Trade-in combined with the increase in financing plans (EIP) will ultimately be the two main drivers of the refurbished phone market moving forward.”
According to IDC’s taxonomy, a refurbished smartphone is a device that has been used and disposed of at a collection point by its owner. Once the device has been examined and classified as suitable for refurbishment, it is sent off to a facility for reconditioning and is eventually sold via a secondary market channel. A refurbished smartphone is not a “hand me down” or gained as the result of a person-to-person sale or trade.
The IDC report, Worldwide Used Smartphone Forecast, 2019–2023 (Doc #US45726219), provides an overview and five-year forecast of the worldwide refurbished phone market and its expansion and growth by 2023. This study also provides a look at key players and the impact they will have on vendors, carriers, and consumers.
Customers and ‘super apps’ will shape travel in 2020s
Customers will take far more control of their travel experience in the 2020s, according to a 2020 Trends report released this week by Travelport, a leading technology company serving the global travel industry.
Through independent research with thousands of global travellers – including 500 in South Africa – hundreds of travel professionals and interviews with leaders of some of the world’s biggest travel brands, Travelport uncovered the major forces that will become the technology enablers of travel over the next decade. These include:
Customers in control
Several trends highlight the finding that customers are moving towards self-service options, with 61% of the travellers surveyed in South Africa preferring to hear about travel disruption via digital communications, such as push notifications on an app, mobile chatbots, or instant messaging apps, rather than speaking with a person on the phone. This is especially important when it comes to young travellers under 25, seen as the future business traveler, and managing their high expectations through technology.
With the threat of super app domination, online travel agencies must disrupt or risk being disrupted. Contextual messaging across the journey will help. Super app tech giants like WeChat give their users a one-stop shop to communicate, shop online, book travel, bank, find a date, get food delivery, and pay for anything within a single, unified smartphone app. Travel brands that want to deliver holistic mobile customer experiences need to think about how they engage travellers within these super apps as well as in their own mobile channels.
In the next year, research shows, we will see an accelerated rate of change in the way travel is retailed and purchased online. This includes wider and more complex multi-content reach, more enriched and comparable offerings, more focus on relevance than magnitude, and an increase in automation that enables customer self-service.
“How customers engage with their travel experience – for instance by interacting with digital ‘bots’ and expecting offers better personalised to their needs – is changing rapidly,” says Adrian Roodt, country manager for Southern Africa at Travelport. “We in the travel industry need to understand and keep pace with these forces to make sure we’re continuing to make the experience of buying and managing travel continually better, for everyone.”
Read the full 2020 Trends report here: 2020 Trends hub.