Segmenting Africa's Enterprise Opportunity
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Segmenting Africa's Enterprise Opportunity



New segmentation methods are needed for new ICT services. Smaller enterprises must be the priority. Empowered with cloud-based services, small enterprises can contribute more to African economic ...

New segmentation methods are needed for new ICT services. Smaller enterprises must be the priority. Empowered with cloud-based services, small enterprises can contribute more to African economic growth than large enterprises.



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Segmenting Africa's Enterprise Opportunity Segmenting Africa's Enterprise Opportunity Presentation Transcript

  • Segmenting Africa’s enterprise opportunityCamille Mendler AfricacomPrincipal Analyst Cape TownInforma Telecoms & Media November 13, 2012
  • Segmentation: It’s been a counting game EnterprisesLocations Turnover Industries Devices Employees Simplistic segmentation methods have suited telecom’s linear 2© Informa UK Limited 2012. All rights reserved
  • But there’s a bigger target to hit now Vertical biz apps Productivity General biz apps Storage / backup Security Unified communications Broadband Voice Connectivity Expanded ICT portfolios demand better segmentation 3© Informa UK Limited 2012. All rights reserved
  • ICT market players are legion and diverse Web Integrators Services from…Telcos ISPs Hardware Software Devices Colos / hosters Governments Cloud vending machine Enterprises *by business origin 4 © Informa UK Limited 2012. All rights reserved
  • Many new services are on offer Most important cloud services for Africa? Managed security 76% 68% African enterprises 53% Business 71% applications 74% 68% Data storage 71% African CSPs 68% 59% Unified 71% communications 62% 50% African ICT Mobile device 53% 49% suppliers management 53% 0% 20% 40% 60% 80% Source: Informa Africa Industry Outlook survey, Nov. 2012 Africa’s ICT stakeholders must be 5© Informa UK Limited 2012. All rights reserved
  • It’s time to value workforce context, not size Typical size Job & industry Business Workplace Legal groups processes formation Blue collar White collar Mobility Location Micro Artisan Accountant Transactional Single <10 Plumber Consultant Mobile / Electrician Doctor Registered nomadic Small Dentist (formal) Courier 10-49 Collaborative Multiple Bodyguard Realtor Medium Bus driver Lawyer 50-250 Restaurant Salesperson National Shop owner School Knowledge Office / Unregistered Large / centric fixed (informal) Builder administrator multinational Policeman CEO International Source: Informa Telecoms & MediaSize matters – but how and where employees work is increasingly relevant todetermine total addressable market for ICT 6© Informa UK Limited 2012. All rights reserved
  • Small is beautiful in Africa’s enterprise market Developed economy Emerging economyCompany size LARGE MEDIUM SMALL MICRO Employment population Employment population SMMEs must be the no. 1 priority. Empowered with ICT, SMMEs will contribute more to African economies than large, multinational enterprises. 7 © Informa UK Limited 2012. All rights reserved
  • SMMEs have diverse needs For most employees Horizontal • Document creation and management • Data storage and backup • Conferencing and collaboration • Security (PC and mobile devices) Departmental For specific functions • Tracking employee time and location • Logging sales leads and orders • Managing permanent and casual staff • Launching marketing campaigns Vertical For industry-specific needs • Mobile POS for Retailers • Time reporting for Lawyers • Appointment scheduling for Doctors • Fleet tracking for Logistics But don’t treat SMMEs as a single segment – identify the ‘mass’ 8© Informa UK Limited 2012. All rights reserved
  • A new ‘Big Mac Index’ for the Cloud Microsoft Office365 P1 plan* Beeline (Russia) $6.63 Vodafone (Turkey) Swisscom (Switzerland) $6.37 $7.16 PT (Portugal) Telstra (Australia) $6.08 $7.39Microsoft (direct) TDC (Denmark) $6.00 $8.27 Source: Informa Telecoms & Media, CSP@SaaS database *price per user per month, ex tax Beware: generic, commodity SaaS offers limited differentiation.16/10/12 9
  • Mass vertical example: Fleet managementfor Logistics firms Logistics among South Africa’s top 5 verticals MTN’s service targets SMMEs with fewer than 200 employees Benefits • Cost reduction: simplifies processes • Efficiency: process is easy to use • Tracking: check progress of goods via Web and mobile device • Technology: enables entire process to be done electronically – no need for paperwork • Increased productivity: real-time reporting of deliveries and transactionsSource: Informa Telecoms & Media Business process improvement rather than cost savings is the key value emphasized for Some targeting of mass verticals is appearing. moving to the cloud. 10 ©All rights reserved
  • Portfolios are still under construction CSPs: Business SaaS portfolios – What’s offered? 78% Productivity & collaboration 46% 67% Security & IT management 11% 54% Operations management 13% World 41% HR & employee management 18% Africa 37% Marketing 1% 37% Finance & accounting 8% 33% Customer management 3%Percentage of CSPs with one or more live SaaS offers in this category. Base: 51 CSPs, 1028 SaaS offers.Source: Informa Telecoms & Media, CSP@SaaS Pricing Benchmark. SMME SaaS portfolios are under development 11© Informa UK Limited 2012. All rights reserved
  • Deliver simplicity & value for money Public cloud services: Average effective cost per hour (US$) 0.2 0.18 0.173 0.160 0.164 0.16 0.136US cents per hour 0.14 0.123 0.12 0.111 0.1 0.090 0.08 0.06 0.04 0.02 0 Eastern North Western Latin America Middle East Africa Asia Pacific Europe & CIS America Europe *Public cloud services, pricing from CSPs and non-CSPs. Small instance configuration. Source: Informa Telecoms & Media, CSP@IaaS Pricing Benchmark. Interim results.African enterprises large and small need more competition to drive down 12© Informa UK Limited 2012. All rights reserved
  • For more information: Camille MendlerPrincipal Analyst, Informa Telecoms & Media +44 7766 13 15 28 Twitter | Slideshare | Blog 13