SAP confident with its telecoms portfolio

SAP’s nine announcements before and at MWC 2013 have ranged from optimizing inventory and service levels in the supply chain to money transfer solutions for mobile operators and cloud-based M2M solutions.

It is interesting that a non-telecoms company such as SAP has chosen to make so much noise at MWC. SAP, along with other independent software vendors (ISVs), sees the telecoms industry as another vertical to mine. The ISVs’ horizontal portfolios and business process management can provide the solutions that telcos need to become more agile. SAP is confident in its offer, and has already published a book – Beyond Connectivity: A Guidebook for Monetizing M2M in a Changing World – on monetizing M2M. Now, SAP has joined with Ericsson to provide a solution to help telcos execute that advice. Ericsson has been astute when joining with companies with software backgrounds to enhance its portfolio, and this combined software-as-a-service offering promises turnkey M2M solutions that telcos’ enterprise business units can then offer to their customers. The solution already has endorsements from Telenor and 3UK, so it is clearly fulfilling a market need.

We know that the telecoms industry still gets excited about new devices, the next super-fast infrastructure, and the money involved in spectrum auctions. However, we can’t stress enough that innovation happens in the telco’s software. The industry shouldn’t overlook the importance of announcements from ISVs as this is where sustainable value is being created and where the real changes are happening.