Huawei all smiles with $1.5bn developer plug amid the chaos

At its Connect Conference in Shanghai, Huawei executives attempted to put themselves on the front-foot with a $1.5 billion commitment to lure developers into its computing platforms.

This is one of the more notable challenges the business will face if it has to shift over to new operating systems. The technology might be fantastic, but if there isn’t the developer community and application ecosystem to back it up, there is little value. This is a massive consequence of Huawei’s entry onto the US Entity List, banning it from working with US suppliers, and should not be under-estimated.

The smartphone is the most obvious area to discuss, but there are others such as PCs and the developing IOT ecosystem. If Huawei is banned from using popular operating systems in these areas, its own version, Harmony OS, will have to suffice. If Harmony OS is to succeed, it needs developers to create products and applications which are compatible with it. With the additional funds, Huawei is aiming to increase the pool of developers it works with from 1.3 million to 5 million.

Looking at the rumours with the latest flagship smartphone, the Mate 30, it has been suggested the device will be delivered without any Google applications pre-loaded on the device. We’ll all find out in a matter of hours, though Huawei seems to be getting around the ban by including an open-source version of the Play Store on the device. This is not a long-term solution for Huawei, but it might suffice while it works on making the Harmony OS software and ecosystem battle-ready.

This is of course only one element of the Huawei business strategy moving forward. It is anticipating aggressive growth in the ‘Intelligence’ segment, and it does appear its enterprise business is going to get a supercharge moving forward.

This would appear to be a very sensible move for Huawei, as while it has dominated the network infrastructure market and made significant progress for consumer devices, it is little more than an ‘also-ran’ for enterprise. With numerous businesses becoming increasingly driven by digital models and technology, as well as the telcos aggressively promoting the promise of connectivity for future fortunes, there is a significant opportunity for growth.

“In terms of Huawei’s investment, they’re equally important,” Rotating Chairman Ken Hu said. “In the past, we mostly talked about connections. Today I’d like to focus on computing.”

If you are talking about autonomous driving, astronomy, and weather forecasting, the demand for compute power is only going to increase. Intelligence is going to be embedded on an increasingly large number of products moving forward, not simply limited to the cloud. And soon enough, the computing ecosystem is going to have to be a lot more collaborative.

All of these areas offer a lot of promise for those who can create solutions, cost effectively, to enable businesses to make money in the digitally-defined economy. For Huawei, this means new products in the semiconductor market, shifting to a more virtualised business model, opening up hardware products for customisable solutions and creating an opensource ecosystem to back-up the business.

Anyone reading these comments from Hu might think the business has just given up on telecoms infrastructure due to pressure from the US. This will never be the case, but often enough pressure forces innovative companies to find new ways to make money. We suspect this is the case at Huawei.

O2 starts making progress in the enterprise services world

O2 might be an ‘also ran’ in the enterprise services world to date, but in being named a supplier on the Crown Commercial Service’s (CCS) new Network Services 2 framework, it is taking a step in the right direction.

As the Government agency tasked with improving government commercial and procurement activity, gaining recognition from the CCS is a notable win for O2. The Network Services 2 framework is effectively the list of suppliers public sector bodies and organizations can work with for telco services such as networks, voice and data provision, internet access and wifi.

“We know that making services easy to procure is a major priority for our public sector customers – so the news that we have been named as a supplier on the new Network Services 2 framework is a huge milestone for all of us at O2,” said Matthew Spencer, Head of Public Sector Sales at O2. “It means we can offer our entire product range of ICT services to public sector and non-profit organisations.

“Today’s announcement opens the door to all sorts of new projects and better integration for customers. As technology evolves, there is enormous potential for improved connectivity, productivity and savings across the public sector – and O2 is here to work with organisations as a digital partner, helping them reach their connectivity goals, faster.”

Originally formed in 1991 under a different name, the CCS is part of the Cabinet Office and negotiates preferred supplier lists for Government departments, agencies and non-profits. It you aren’t on the list, you will find it almost impossible to do business in the public sector.

The ‘Frameworks’ are effectively pre-negotiated template contracts for public sector organizations to use when engaging with potential suppliers for a variety of different services. In this case its telecommunications, but it could be anything from office supplies to payroll management software.

Within each of the frameworks, there are designated ‘Lots’. O2 has been named as a supplier for Lots 1-4 and 6-8, allowing it to offer services such as data access; local connectivity, traditional telephony, inbound telephony, mobile voice and data, paging and alerting and video conferencing. The suppliers for Lots 5, 10 and 13 will be decided in the near future, though we were not able to figure out what these Lots cover.

The supplier lists for Lots 9, 11 and 12 have also been drawn up, though O2 does not feature on these. Services covered here are audio conferencing, radio and surveillance.

At O2, this is a big step forward. The CCS has effectively given the telco its seal of approval, allowing the team to expand in the enterprise services arena.

To date, the enterprise market has been largely dominated by Vodafone and EE. O2 has been operating in the private space for some time, though it has been regularly highlighted by the management team as a significant growth area moving forward. This ambition seems to have been compounded with the looming introduction of 5G.

5G offers the telcos new avenues to work with enterprise customers above and beyond the traditional means of connectivity. With digital transformation a buzzword of yesteryear, enterprise organizations and public sector agencies are increasingly looking to technology to enhance operations. There is an opportunity for the telcos to secure a more valued position in the digital ecosystem, as well as the increased profits, if the proposition is right.

Over the last 12-18 months, O2 has been working alongside a number of the FTSE100 firms to trial usecases ahead of the 5G boom. Although details of the activities are relatively thin, the management team has boasted of its success to date.

Entry onto the preferred suppliers list might seem like little more than a box ticking exercise for some, this is a very important step forward from O2. The inclusion in the framework adds validity and credibility to the O2 enterprise services case, offering a much greater opportunity for the team to carve out market share in a, potentially, very profitable segment of the telco industry.

Solid if unspectacular results for Three UK as it prepares for the 5G era

Three UK has unveiled its financial results for the first half of 2019, and while it is nothing to shout and scream about, the bigger prizes are coming into view on the horizon.

Revenue might have decreased by 2%, but that is nothing to worry about when you look at the bigger picture. Subscribers are increasing, net promoter score is on the up, margins are remaining consistent and the enterprise business unit is demonstrating steady growth. 5G is on the horizon and Three is in a healthy position to demonstrate growth.

“We’re pleased with the progress we’re making going towards 5G,” said CFO Darren Purkis. “Feel we’re setting up the business well for the launch in the second half of the year.”

This might have been a bit of a tricky period for the Three business to navigate, as while it has a reputation for disrupting the status quo and playing a different ball-game from its rivals, it has been relatively quiet over the last six months. There have been no antagonistic marketing campaigns and little wow factor to report. Three has its eyes set on the 5G era and all announcements have focused on the preparations.

Currently the UK is sitting in the calm before the storm. EE and Vodafone might have launched their 5G networks already, but the marketing A-Bomb has not been dropped yet. We suspect over the next couple of weeks there will be a marketing blitz as Three and O2 prep themselves to launch; you won’t be able to suck a polo without being bombarded with 5G messaging before too long.

Looking at the financial side of the results, Purkis highlighted there was no reason to be concerned about a slight revenue dip. More customers have been migrated to unlimited data tariffs, removing charges for exceeding data bundles, while international calling regulations have changed, and new accounting principles have been applied. Revenue might have dipped, but the margins have remained.

When talking to Three today and over the last couple of months, the tone has been much more reserved than in previous years. This is a company which is prepping for 5G and there will be much more excitable spokespeople and marketing campaigns when the network is up-and-running.

On the network side, the Nokia 5G core is running and the team are migrating customers onto the new network. IT transformation has continued, as CAPEX increased by 23% over the first six months, and the launch of 20 data centres around the country will shift the mobile experience closer to customers. Three has regularly been criticised for having a poor network in comparison to rivals, though few can say it is doing nothing about it.

This is one perception which will have to be addressed if Three is going to be a major force in the 5G world, though all the signs are looking positive.

“Three’s results held few surprises as it reported a solid if unspectacular performance during the first half of the year,” said Kester Mann of CCS Insight. “The number of active customers nudged up just 1%. This glacial growth illustrates a leading reason why Three sees 5G as a catalyst to reinvigorate its brand and achieve the scale it has long for craved.

“Given its strong position in 5G spectrum – a major advantage over rivals – Three was understandably keen to talk up its 5G credentials once again. When it launches later this month, expect it to focus on unlimited data, low prices and disruption in home broadband.”

Purkis highlighted consumer mobile will remain the core focus of the business moving forward, it is known as the brand for data-intensive users after all, though there are other opportunities to be aware of.

In the home, the 5G FWA offering presents a significant threat to the traditional broadband service providers, demonstrated by the 4G FWA offering which the company already offers. Three currently has 830,000 home broadband customers, a number which could very much increase as increased speeds are offered over the new airwaves.

This diversification to the core mobile business was brought about by the acquisition of UK Broadband in 2017, though it has also offering them a glimpse into the world of enterprise business services.

Enterprise business services represents a very small aspect of the overall Three business now, but this is a big opportunity for the team. With UK Broadband as part of the Three family, the team is learning the tricks of the trade, and in September, Mark Stanfield will join as MD for Enterprise Services adding to the momentum. Stanfield’s role will be to set-up a more complete enterprise business function, which will include more attention for the wholesale segment.

Once again, the consumer business will continue to be the core of Three’s activities, but there are opportunities to attract more revenue through enterprise services. Currently the team are focusing on Small Office and Home Office (SOHO) customers, businesses no-larger than nine people, though once a firm foundation has been created here the team will look to engage larger businesses.

Another opportunity which is being evaluated in the UK Broadband business unit is for private campus networks. UK Broadband MD Ros Singleton is leading the charge here, and while the team currently manages a number of different networks already, it is actively engaged in various tender processes to expand the footprint.

The financial results here are nothing to write home about, but this is a business which is in preparation mode for the 5G era. We suspect there will be bigger things to come here as Three has crafted a position and collected assets to mount a considered challenge to its three larger rivals.

Unlimited data is inevitable with 5G, but try telling operators that

We’re quickly moving into the 5G era and many assume the concept of unlimited data bundles will be commonplace, but how will the telcos fare in this new world?

As it stands, the telcos are under pressure. This is not to say they are not profitable, but many shareholders will question whether they are profitable enough. Tight margins and a squeeze on core revenue streams are common enough phrases when describing telco balance sheets, but this could get a lot worse when you factor in unlimited data packages.

As Paolo Pescatore of PP Foresight pointed out, when you offer unlimited data you are effectively killing off any prospect of revenue growth per subscriber in the future. In some markets, there are still fortunes to be made, but in some, such as the UK where 4G subscription penetration is north of 100%, where are you going to make the growth revenues from when consumers are demanding more for less?

More consumers are seeking unlimited or higher data allocations but are not willing to pay for the experience. Some MNOs might be able to resist, but the more rivals who offer such tariffs the more the rest will be forced into line. It’s the race to the bottom which is profitable in the short-term, but growth will end quickly. The price per GB is only heading one direction and unlimited data allocations will end the prospect of upgrading customers.

O2 fighting for air

This is the conundrum which the telcos are facing in the UK right now. All four have announced their 5G intentions and all four are promising big gains when it comes to the next era of connectivity.

Starting with O2, the only one of the four MNOs not to have released 5G pricing to date, this is a telco which looks to be in the most uncomfortable position. Over the last few quarters, the management team has boasted of increased subscriber numbers, but this can only go on for so long in the consumer world. Soon enough, a glass ceiling will be met and then the team will have to search for new revenues elsewhere.

This is of course assuming it plans to go down the route of unlimited data, it might want to stick with the status quo. That said, if everyone else does, it will not be able to fight against the tide for fear of entering the realm of irrelevance.

The issue here is one of differentiation. The idea of attracting new customers by offering ‘bigger, meaner, faster’ data packages will soon end and telcos will have to talk about something else. O2 does have its Priority loyalty programme, but with rivals launching their own version this USP will fade into the noise.

Differentiation and convergence are two words which have been thrown around a lot over the last few years, though O2 has thus far resisted. Last year, CEO Mark Evans suggested he was not bought into the convergence trend and would continue as a mobile-only telco, though this opinion does seem to be softening.

If O2 is going to be competitive in the almost inevitable era of unlimited data, it will have to source growth revenues from somewhere. It is making a push into the enterprise connectivity world, which will bring new profits to the spreadsheets, though does it want its consumer mobile business to stand still?

Bundles of fun

This is where the other telcos in the UK have perhaps got more of a running start in the 5G era. EE has its connectivity assets in broadband and wifi to add value, as well as a content business of some description. Three is already known as the data-intensive brand, while its FWA push will take it into some interesting connectivity bundling options. Vodafone also has FWA, a fibre partnership with CityFibre and is arguably the leader in the enterprise connectivity market. The rivals are offering more than mobile connectivity as a stand-alone product.

Looking at Vodafone to begin with, the recent announcement is certainly an interesting one. The innovative approach to pricing, tiering tariffs on speeds not data allocation, will attract some headlines, while it is also super-charging its own loyalty programme, VeryMe. It has secured content partnerships with the likes of Sky, Amazon, Spotify and gaming company Hatch, while its FWA offering also includes a free Amazon Alexa for those who sign-up early enough.

Combining the FWA product or its fibre broadband service, courtesy of CityFibre, also gives them the ‘connectivity everywhere’ tag, a strength of BTs in recent years, to allow them to communicate and sell to customers in a different way. Perhaps it is missing a content play to complete the convergence bundle, but it is in a strong position to tackle the 5G world and seek additional revenues should the unlimited craze catch.

The same story could be said of Three. With the acquisition of UK Broadband, it has forced itself into the convergence game and kicked off the ‘race to the bottom’ with an unlimited 5G data offer. As long as you have a Three 4G contract, you can get 5G for no additional cost, assuming you have a 5G compatible phone of course.

Three’s strength and weakness lies in its reputation. It is known for being the best telco if you have an insatiable data appetite, this works very well for the 5G era, though it is also known for having a poor network. Three regularly features at the bottom of the network performance rankings, especially outside of the big cities where it has not done nearly enough to satisfy demands.

This will of course change over the next couple of months. Three is working to improve its network with additional sites and a new Nokia 5G core, however it will have to do a lot to shake off the reputation is has acquired over the last few years.

EE is perhaps the most interesting of the four. It has lost its position as the market share leader when it comes to 4G subscriptions, but it does have the reputation for being the best in terms of performance throughout the country. It is regularly the fastest for download speeds, but its 5G pricing is by far the most expensive to be released so far.

That said, with the BT assets it has for wifi and broadband, as well as the content options, there is plenty for the consumer to be interested in. Should BT be forced to readdress the pricing conundrum, it might not have the fear regarding a glass ceiling on revenues as there are plenty of other products to engage the consumer. It will be able to find additional revenues elsewhere.

MVNO no you didn’t

Outside of the MNOs, you might also start to see some competition. MVNOs are nothing more than ‘also rans’ today, but Sky has officially entered the 5G race. This is an interesting competitor, one who could cause chaos to the status quo.

Firstly, understand mobile is not the primary business for Sky. This is an add-on, where it is seeking to drive additional revenues and attract more customers through bundled services. It is the leader in the UK when it comes to premium content and has a thriving broadband unit also. Sky can add services on top of connectivity to make itself seem more attractive than the traditional mobile service providers.

Then again, there are only a couple of MVNOs who can pose this challenge. Sky is one, while there are persistent rumours Amazon wants to get involved with the connectivity game and Google has its own Fi service. These are also companies who are at the mercy of the MNOs in terms of the commercial agreement with the MVNOs, so damage is likely to be limited unless one network owner decides to go down the wholesale infrastructure route.

But you cannot ignore these companies. They are cash-rich, constantly searching for new ways to make money and have incredible relationships with the consumer. They are also the owners of platforms and/or services which are very attractive to the mass market; bundling could be taken into a new context with these firms.

Diversity is our strength

This is of course only looking at the services which are common throughout telco diversification plans today, there are other options. Orange has launched a bank, has experimented in energy services and is making a move towards the smart home in partnership with Deutsche Telekom. Over in Asia, gaming is an important element of many telcos relationships with consumers and this trend is becoming much more prominent in the European markets also.

Elsewhere, the smart home could certainly offer more opportunities for telcos to add-value to an emerging ecosystem, while the autonomous vehicles offers another opportunity and so does IOT. The issue which many of these telcos are facing is competition from the OTTs. Arguably, the battle for control of the smart home might already have been won by the OTTs, though the same could be said for autonomous vehicles and IOT.

In many of the emerging segments, telcos will remain a connectivity partner though they certainly need more than that. This will remain a consistent stream of revenue, though it will also sleepwalk telcos to utilitisation. In IOT, as an example, the major cloud players are crafting business units to engage enterprise businesses for edge and IOT services; this is a market which the telcos would love to capitalise on for both enterprise and consumer services.

Security is another which is increasingly becoming a possibility. The concept of cybersecurity is generating more headlines and consumers are becoming more aware to the dangers of the digital world. Arguably, the telcos are in the strongest position to generate revenue from this segment; there is trust in the brand and they have largely avoided all the scandals which are driving the introduction of new regulation.

Unlimited data is certainly not commonplace today, but with the services of tomorrow promising to gobble up data at an unfathomable pace, it would surprise few to see more people migrating to these tariffs. The question is how you make money once you have migrated everyone.

Diversification and the acquisition of new products is not a simple task, but then again, it is becoming increasingly difficult to imagine how single revenue stream telcos will be able to survive in the world of tomorrow.

 

Do you have some clear ideas about how the edge computing sector is developing? Then please complete the short survey being run by our colleagues at the Edge Computing Congress and Telecoms.com Intelligence. Click here to see the questions.

China responsible for one in seven attacks on UK business – report

Cybersecurity attacks directed towards businesses in the UK are on the up and it appears the source of these nefarious activities can be quite often traced back to China.

After years of being ignored or swept aside for another day, security professionals are finally being taken seriously in the world of IT. It might be considerably overdue, but it is at a very apt time; according to research from enterprise ISP Beaming, the number of cybersecurity attacks directed towards UK businesses increased by 179% year-on-year for the second quarter of 2019.

“The rate at which UK businesses are attacked online has soared over the last year and companies large and small are under sustained attack from hackers around the world,” said Sonia Blizzard, MD of Beaming.

“The majority of cyber-attacks on businesses are indiscriminate, malicious code that trawls the web seeking to exploit any weak point in cyber security systems. A single breach can be catastrophic to those involved.”

Unfortunately for those who would like international tensions to simmer-down, Beaming is also pointing the finger towards China as the source of many threats. China is seemingly the source of one in seven of these attacks, though Taiwan, Brazil, Egypt and the US are some of most persistent offenders.

Amazingly, on average UK businesses are under-threat from a cyber-criminal every 50 seconds, totalling 146,491 over the period in question. It might sound ridiculous, but it demonstrates the simplistic nature of some of these attacks. For the most part, large businesses will be able to avoid any serious damage by simply investing in basic security principles and systems, though you have to wonder how many SMEs are underprepared to resist the suspect fingers of the dark web.

According to Beaming, 63% of small businesses suffered a cyber-attack last year, with the average cost to the business being £63,000. The total cost of cybercrime for small businesses was £13.6 billion. The under-preparedness of SMEs is perhaps best indicated by its proportion of the total; £13.6 billion of the £17 billion total.

Although there is likely to be a fair bit of fear-mongering from Beaming here, security is considered to be one of the selling points of the business, the threat of cybercrime should not be undervalued.

One trend which presents as much of a threat as it does opportunity is IOT. This is a technology which has the potential to revolutionise business models but also give rise to new services and products. However, the threat is just as prominent. The more a company relies of IOT, the bigger the perimeter of its network and the more points of exposure. The number of gateways increases, increasing complexity of cybersecurity.

For those companies which are struggling to cope in the embryonic version of digital which we live in today, tomorrow could be a disaster.

The research has been released at a very intelligent time when you consider the number of GDPR fines which are potentially on the horizon. Earlier today, July 8, the Information Commissioner’s Office (ICO) announced its intention to fine British Airways £184 million for a data breach which occurred in September 2018.

This is the biggest fine handed out by the ICO, but it is worth remembering this is only one of the first examples of the watchdog swinging the GDPR stick. The number of ‘contacts’ the ICO has had with businesses, organizations and individuals has increased 66% since GDPR was introduced in May 2018. In terms of workforce, 200 additional employees have been drafted in since GDPR with plans to hire another 100 to take the total north of 800.

These numbers suggest the ICO is getting more serious about investigation and enforcement, though another consideration for the importance of security is the buying preferences of UK consumers.

If the number of complaints about personal data breaches are increasing, up to 14,000 for the 12 months to May 1 from 3,300 in the prior year period, consumers are clearly more aware about security and data protection. With more products incorporating connectivity, and consumers becoming more away of the dangers of the internet, the security credentials of an organization will become a factor in the purchasing decision-making process.

If start-ups are going to challenge the status quo in the digital world, they will need to sort out security systems and processes. It might surprise some that SMEs account for such a large proportion of the cost of cybersecurity to UK businesses, but such statistics will start to become more prominent as digital increasingly becomes the norm.

Theoretically, the digital world levels the playing field, affording the opportunity for start-ups to challenge the status quo, but if they aren’t up-to-speed when it comes to security, it might well turn out to be a non-starter.

NTT invests in the UK by combining several companies into NTT Ltd

Japanese telecoms and IT giant apparently didn’t get the memo that the UK isn’t worth investing in anymore because it’s basing an $11 billion business here.

NTT Ltd has been formed by combining networking and data centre company NTT Communications, South African IT services firm Dimension Data and the self-explanatory NTT Security into one great big IT firm. It actually brings together 28 different sub-brands in an act of consolidation that was clearly overdue and will employ 40,000 people in 70 countries.

The choice of London as the location of NTT Ltd’s headquarters is a timely endorsement of the continuing economic vibrancy of the UK. For the last few years UK politics has been dominated by Brexit and the insistence by those who want to remain part of the European Union that the UK is useless without it. This development will presumably be lamented, or at the very least ignored, by them.

“Going forward, we will accelerate our execution as one NTT in order to contribute to a smarter and better world through digital transformation,” said Jun Sawada CEO of NTT Corporation. “We are also excited to confirm that our global headquarters for NTT Ltd will be in London and that our commitment to the UK remains extremely strong.

“We considered several locations as the headquarters for NTT Ltd and made a deliberate decision to choose London. It has many benefits, including a stable economy, wealth of skills and talent, diversity in population and thinking, strong infrastructure, schools and housing for global talent moving to the city. In short, it’s a great city to live and work in, and we’re excited that we are making it the home for our new business.”

The broader significance of such a strong endorsement of the UK economy was not lost on the government. “Britain has a long standing and proud reputation as a global tech leader and it’s fantastic that NTT Ltd. has chosen London for its global headquarters,” said Prime Minister Theresa May. “A key part of our modern Industrial Strategy is to put the UK at the forefront of the tech and data revolution, and they will join many other world-leading companies who call Britain home.”

This move first been announced last year, with NTT Ltd to be run by the former CEO of Dimension Data Jason Goodall, perhaps indicating a particular focus on Africa. The broader narrative, however, is the tried and tested ‘end-to-end solution provider’ one, emphasising the increased blurring of the line between telecoms and IT. Here’s a vid to show how serious they are about it.

 

AT&T + HPE = edgy TLC

AT&T has announced a new partnership with HPE to drive the benefits of edge computing in enterprise services.

The duo has agreed a go-to-market strategy to accelerate business adoption of edge connections and edge computing, seen by some as one of the most interesting areas of the up-coming 5G economy.

“AT&T’s software-defined network, including our 5G network, combined with HPE’s intelligent edge infrastructure can give businesses a flexible tool to better analyze data and process low-latency, high-bandwidth applications,” said Mo Katibeh, CMO of AT&T Business. “Bringing compute power closer to our network helps businesses push the boundaries of what is possible and create innovative new solutions.”

“HPE believes that the enterprise of the future will need to be edge-centric, cloud-enabled and data-driven to turn all of its data into action and value,” said Jim Jackson, CMO of HPE. “Our go-to-market alliance with AT&T, using HPE Edgeline Converged Edge Systems, will help deliver AT&T MEC services at scale to help our customers more quickly convert data into actionable intelligence, enabling unique digital experiences and smarter operations.”

There are of course many benefits to edge computing, though one of the areas AT&T will be hoping to address through this tie-up will be the security concerns which will emerge. This looks like it could be one of the key marketing plugs of the AT&T proposition, as its Multi-access Edge Compute (MEC) Services will hope to drive the benefits of mobility to enterprise customers.

From HPE’s perspective, the team will be contributing on the low-latency side of the 5G euphoria. HPE suggests its Edgeline Converged Edge Systems could help create use cases where applications can reside on premises for lower latency processing.

It might not be as ‘sexy’ as plugging ridiculous download speeds, but the greatest benefits of 5G to the telcos would appear to be diversification as opposed to increased squeeze on the wallets of consumers. With more data being created each day, the edge will become increasingly important to activate products, services and business models in a faster and more operationally efficient manner. Enterprise organizations will largely be unaware of how to reap the greatest benefits, a pleasant niche the telcos could certainly profit from.

Enterprise market will depend on communications skills – 5G World

The soft skills are often over looked, especially in an industry which is so dominated by engineering smarts, but the success of enterprise 5G could be as simple as talking the right language.

“If we carry on talking about remote surgery 5G is going to fail,” said Gilad Garon, CEO of software vendor ASOCS. “Need to start talking to people in a language which they understand.”

Remote surgery certainly has taken a bit of a bashing at the show this week, though Garon is just using it as a bit of an example. Not only are we talking about usecases which seem ridiculous to most, we’re not talking in a language potential customers will understand.

“If you are going to be successful in enterprise, you have to think about DevOps, IT and simplistic language,” said Garon. “Enterprise don’t understand what a slice is, but they know about value.”

This has been one of the more obvious themes of the conference, but it does seem to be a message which is finally hitting home with the telcos. Enhanced mobile broadband is what 5G delivers now, but this will not deliver the financial promise many are expecting.

“As an industry, it is a new field to build mobile solutions for industry,” said Antje Williams, SVP of 5G Campus Networks at Deutsche Telekom. “What have we done so far, we have put up infrastructure, we have sold SIM cards to the employees of the companies we are working with, but this [5G] is much more.

“There was a notion about 5G was going to be for the verticals for years, but we have no idea what we were talking about.”

Unfortunately, Williams is pointing to a wide-spread problem in the industry but there is no easy solution. Over the last five years, few telcos have been spending time with the potential enterprise customers to understand the nuances of the specific verticals. There are efforts to correct this now, but these initiatives should have been started years ago.

Because the telcos have not been spending enough time with vertical customers or partnering with organizations which can help them create new products, they are largely shooting in the dark. They don’t know the demands of the customers or the nuanced differences in delivering connectivity solutions between the different verticals.

The solution is to talk to potential customers and develop the specific solutions, but this will be a slow and painstaking task. Work is being done, but the timetables will frustrate the bean-counters. If 5G is to be a commercial success for the telcos, enterprise customers are critical; eMBB will not deliver on the potential.

Google cloud dives deeper into the data dreamland

Google’s cloud business unit has announced the acquisition of data analytics firm Looker for $2.6 billion, further expanding products available in the ever-growing world of cloud.

While another acquisition at Google is nothing out of the ordinary, this happens to be the first under the tenure of Thomas Kurian, the newest CEO of the cloud business. Kurian took the reigns from Diane Greene at the beginning of this year, after Greene failed to deliver on the hype which surrounded her appointment.

“A fundamental requirement for organizations wanting to transform themselves digitally is the need to store, manage, and analyse large quantities of data from a variety of sources,” said Kurian in a blog announcement. “Google Cloud offers customers a broad and integrated suite of cloud services to ingest data in real time, cleanse it, process it, aggregate it in a highly scalable data warehouse and analyse it.

“Looker extends our business analytics offering with two important capabilities—first, the ability to define business metrics once in a consistent way across data sources. This makes it easy for anyone to query data while maintaining consistent definitions in their calculations, ensuring teams get accurate results.

“Second, Looker also provides users with a powerful analytics platform that delivers applications for business intelligence and use-case specific solutions such as Sales Analytics, as well as a flexible, embedded analytics product to collaborate on business decisions.”

With Looker being integrated into the Google proposition, the cloud team will have something more interesting to talk about. Kurian has discussed a more complete analytics solution, including visualisation of results and integration into daily workflows, as well as the ability to make more customisable solutions for the verticals.

Another interesting benefit of this acquisition is building Google’s ability to work in a multi-cloud landscape. Although any cloud company will want to pigeon hole enterprises into their own products, bleeding customers is of course more profitable, it is not realistic in today’s world. If you do not have a proposition which is interoperable with other cloud providers, you are not going to be attractive to customers.

There are numerous examples of this being an important factor of the cloud world of tomorrow. The Data Transfer Project is an initiative to build a common framework with open-source code that can connect any two online service providers, while Vodafone Business and IBM came together to create a joint-venture aiming to solve the problem presented by multi-cloud interoperability.

As part this acquisition, Google is also inheriting the ability to play in this world, bumping its ability to bring together data from SaaS applications like Salesforce, Marketo, and Zendesk, as well as traditional data sources.

Google Cloud has seemingly been losing out to the likes of Microsoft Azure and AWS in recent years, a factor which reportedly contributed to Greene’s downfall. This is not to say the cloud business is not successful, but it is not tearing up trees at the same rate as the two market leaders.

Perhaps this is only one of the first announcements we should expect from Kurian over the next couple of months. This is a man who needs to make his mark on the business, but also close the gap Microsoft and Amazon have created at the top of the cloud rankings.

HTC debuts eye-tracking with enterprise VR launch

HTC has announced it is bringing its enterprise VR product to North America, after teasing executives at CES in January.

The product itself, Vive Pro Eye, is not cheap, $1,599, but features the latest in eye tracking technology with HTC claiming it is ‘setting a new standard’ for VR in the enterprise market. While the consumer VR segment has been relatively sluggish, despite the incredible promises made by technologists, though there does seem to be a bigger focus on enterprise in recent months.

The Vive Pro Eye follows up HTC’s Vive Pro which is already in the hands of various different enterprise customers throughout the world, introducing new features such as precision eye tracking software, deeper data analysis, new training environments and more intuitive user experiences.

And while some of the features might be considered excessive at the moment, there is always the potential to influence mainstream adoption.

“We’ve invested in VR technology to connect our fans to our game and deliver a new level of engagement through VR game competitions and in-ballpark attractions,” said Jamie Leece, SVP of Games and VR for Major League Baseball.

“By integrating eye tracking technology into Home Run Derby VR, we are able to transport this immersive baseball experience to any location without additional controllers needed. Our fans can simply operate menus by using their eyes.”

This is perhaps where the VR industry has fallen short of expectations over the first few years; cash conscious consumers do not have the funds to fulfil the promise. These are after all individuals who have been stung by various difference financial potholes over the last decade and might be hesitant to invest so handsomely in such an unproven technology.

The focus on enterprise is a much more sensible bet for many of the VR enthusiasts to follow. Firstly, in working with organizations like Major League Baseball, new applications can be created, and experiential experiences can be offered to consumers at the games. This might have a normalising impact for the technology on the mass market.

Secondly, there is a lot more money in the enterprise world than in the individual’s wallet, with decision makers much more enthusiastic about investments when it isn’t linked directly to their bank accounts.

Finally, there are more usecases in the enterprise world. Some of them might be boring, but they are realistic and important for the companies involved. Training exercises are an excellent example.

What this product also bringing into the equation is eye-tracking software, offering an entirely new element for developers to consider.

“Our virtual venues come to life as individual audience members can react with various animations when a user makes direct eye contact with them,” said Jeff Marshall, CEO of Ovation, a company which uses VR to help media train customers in public speaking environments.

“As a developer, there’s just no going back once you’ve seen all that eye tracking makes possible.”

From an experience perspective, the eye-tracking software can also add to the gaming world. Foveated rendering is a graphics-rendering technique which uses an eye tracker integrated which helps reduce rendering workload by reducing the image quality in the peripheral vision. By focusing processing power where it is needed most, the strain placed on the device and experience is lessened.

Many have suggested this technology could be at the forefront of the next generation of VR devices, both in the consumer and enterprise world. Whether this is enough to force the potential of VR from promise to reality remains to be seen, but something needs to be done.