It's been a while since a new acronym was added to the comms lexicon, so it's high time we put that right: Introducing ‘MCS'... Mobile-Centric Solutions - and mobile distributors have not been slow to recognise the MCS opportunity.
A move in the mobile market towards business applications has prompted ‘traditional' mobile distributors to enter the comms dealer zone, and they are aiming to help resellers break into the mobile arena quickly. Andrew Boden, Managing Director of mobile distributor Mainline Digital Communications, highlighted that mobile distributors have recognised an ‘inexorable move' within their industry towards convergence, substantiated by the launch of a growing number of mobile devices featuring an increasing number of data-base driven applications. And perhaps most significantly, the mobile device is moving towards the centre of the overall solution, a migration that is neatly packaged in a new acronym - MCS.
He said: "A prime example is the BlackBerry range of handsets, augmented by BES, BIS, Professional Software, Mobile Data System and a myriad of third party applications catering for every kind of business requirement, from the one man band to the global enterprise. Now, the more traditional handset manufacturers are also launching products to grab a share of this market.
"At the same time, the availability of these mobile hardware/software solutions that can integrate with business systems is making them increasingly attractive to IT departments under pressure to accommodate operations that are moving quickly, and that want to take advantage of the new technologies to create or maintain an operational/competitive edge, albeit cost-effectively."
Mobile products are moving closer to the central operation of a business, and therefore becoming the current sellers of the technology. Boden stated: "Comms dealers have three reasons for embracing the mobile business: To satisfy the growing requirements of their IT customers; to take advantage of the revenue streams created by mobile technology; and to defend their own sales territory against newcomers who are completely at home with all things mobile. Comms dealers already have the contacts and the IT expertise, but don't have the network relationships, the stock availability, the commercial support and training required to be successful over a long period of time."
These support services are provided by distributors such as Mainline Digital Communications and Data Select. According to Jason Kemp, Head of Marketing at Data Select, convergence has been driven by the development of the mobile phone. He said: "In a little over 20 years, the mobile has developed into a portable office capable of delivering voice over network, VoIP, email, Internet, bespoke business software, camera, music player, GPS etc. We increasingly refer to the mobile phone as a ‘device', a testament to convergence. It is a tool capable of many tasks, the phone being just one."
Kemp highlighted that the development of the mobile business model historically encouraged ‘specialist dealers'. As a result, mobile and comms dealers grew apart before recently moving closer together. "Our customer base is indicative of the converged market, with a mixture of comms dealers who have moved into mobile and vice versa," commented Kemp. "Likewise, our product portfolio has diversified into mobile broadband, machine-to-machine SIM services, and mobile/fixed line comms solutions. The ultimate question is whether convergence will lead to one type of comms dealer, or will specialists still have a place?"
Marios Ktisti, Commercial Product Manager at Brightpoint GB, says that convergence for the modern forward thinking reseller and value centric distributor involves the integration of the latest FMC technologies, with the ultimate aim of simplifying the customer's business processes.
Ktisti said: "Smartphones or mobile devices not only provide basic voice communication, they also personal satellite navigation, push email, Internet access and become part of an IP phone system. This is true FMC. The key for a convergent distributor is to not only have the ability to provide the relevant offering, but to work with the reseller to enhance or compliment their existing skill sets. The key for the reseller is to embrace this offering or enhance their own skill sets."
Matthew Gimlette, Commercial Director, Timico, affirms that there are compelling reasons why mobile distributors are waking up to the opportunities that surround convergence. "Voice tariffs have fallen by 40 per cent. Lower tariffs mean that there is less in the pot to provide subsidies and upgrade bonuses so margins are being squeezed and the channel needs to look to other products and services for new opportunities," he said.
"It is the mobile networks that are driving convergence. With voice tariffs falling and customer contracts simply churning from supplier to supplier, there are compelling incentives to replace lost voice revenue with that from growing data sales. Increasing sales of BlackBerry and push email services mean that IT integration skills are essential and must be a part of the mobile distributors' skill set. The mobile distributor that puts its head in the sand and ignores convergence will get left behind," said Gimlette.