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Investing for Transformation in 2013

Vendor Newsletters | October 2012

T Talks October archive version TelePacific Talks | October 2012
 
October 2012

Retailer Nets $90K for Leasing Equipment
Through TLP

Since announcing the expansion of our TelePacific Leasing Program (TLP) a few months ago, we have had a spike in customer requests for more information about leasing IP PBXs, routers and other equipment, and subsequently arranged a number of lease agreements that are saving customers thousands of dollars.

There are many phone system vendors that can arrange financing for new equipment and sometimes at zero percent interest. However, we are able to align equipment purchases with our customers' monthly phone and network services to achieve economies that allow us to discount 50 percent off of the first three months of network service charges when customers lease equipment over five years, which is the most common length of term. Read more

Business VoIP and FTTx: Two of the Three
Fastest Growing Telecom Products

Business VoIP and FTTx (any broadband network architecture using optical fiber for last-mile access) are projected to be two of the three fastest-growing telecom solutions by compound annual growth rate (CAGR) through 2017, according to a new study by research firm Atlantic-ACM.

Data-Driven Developments: U.S. Telecom Wired and Wireless Sizing and Share 2012-2017 projects FTTx to grow at a rate of 23.6 percent almost exclusively from small business customers as they look for even higher-speed connectivity. Business VoIP is expected to grow at a rate of 17.7 percent CAGR as a result of continued migration from circuit-switched technology to IP-enabled business solutions, including hosted services and SIP Trunking.

We think the 17 percent CAGR figure for business VoIP might be understated primarily due to the rising popularity of SIP Trunks and network services. Quite simply, SIP solutions are becoming increasingly popular among business customers of all sizes because they offer a number of attractive features and benefits while eradicating the need to purchase T1 cards and infrastructure equipment such as terminating gateways and channel banks.

Investing for Transformation in 2013

Being budget season, now is the time for annual strategic planning and for pinpointing where to invest in IT initiatives in 2013. One of the key challenges faced annually is deciding on the most attractive investment choices and on the percentage of investment that should go toward core, adjacent and transformational projects, according to a recent story by Nicholas Evans, who leads the Strategic Innovation Program for Unisys and was one of Computerworld's Premier IT Leaders in 2009.


Evans cites a recent Harvard Business Review article that claims the typical allocation is about 70/20/10, with 70 percent invested into the core business, 20 percent into adjacencies and 10 percent into transformational initiatives designed to create new offers, if not whole new businesses, to serve current customers and/or new markets. The HBR article notes that the financial returns are typically the inverse of the spend allocations. In other words, about 70 percent of the returns come from transformation initiatives and just 10 percent from core projects. Read more

 
 
 

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