Vodafone – Riding its Competitive Advantage to Expand in Adjacent Markets

ITCB-HarishTaoriSummary Bullets:

  • In its annual global analyst event, Vodafone emphasized its evolution as a global “Total Communications” service provider.
  • Planned new investments, under Project Spring, to enhance the network (NFV, SDN) and solutions (M2M, Cloud connect, UCaaS) capabilities globally.

Vodafone hosted its annual global analyst event this year in London. This blog post summarizes some of the key takeaways from that event, and analyzes the implications on industry and enterprises.

  • The key theme was Vodafone’s strategy to become a global total communications service provider. Vodafone is making concerted efforts to enable this strategy by expanding global network (fixed and mobile) reach and related communication services (cloud, mobility unified collaboration, and M2M) portfolios.
  • Vodafone has deep network reach in 60 countries with 211 fixed PoPs in 161 cities. In AMEA, Vodafone has recently added new PoPs in Philippines, Taiwan and 22 African countries expanding its network presence in 14 Asia-Pacific, three Middle East and 24 African countries. Vodafone intends to expand its global coverage to 92 countries by end of 2016. Under Project Spring, Vodafone commits to invest GBP 500 million in five years to scale up its network and solution capabilities, people and offices across Asia and Africa
  • Vodafone has witnessed good momentum in its M2M portfolio, especially from automotive, consumer electronics and utilities verticals. The acquisition of Cobra consolidated Vodafone’s position in automotive, as Cobra’s clientele includes Porsche, Ferrari, Renault, and Toyota. Furthermore, Cobra enables Vodafone to provide solutions for embedded and aftermarket automotive opportunities in 41 markets as well as in fleet management for rental, leasing, and sharing of cars.
  • Vodafone reiterated its competitive advantage in mobile networks. Leveraging its core capabilities, Vodafone is offering comprehensive enterprise mobility solutions. Vodafone is further extending its service portfolio in adjacent businesses – cloud and hosting, unified communications and collaboration. Currently these services are available in US and Europe and expected to come in AMEA by next year.
  • Vodafone Global Enterprise (VGE) is targeting 1,700 global MNCs. Its key value proposition for these customers is a consistent global SLA across Vodafone and partner networks. ‘Mobile First’ people and process initiatives are key themes among VGE customers. Vodafone has also created a business unit to target SMEs. SME products and solutions are expected to roll out in AMEA by next year.

Implications on SP and enterprise ICT buyers:

  • Vodafone – Vodafone’s ICT solutions are primarily available in Europe. It needs to ramp up efforts to promote its ICT solution portfolio in APAC and MEA, to be seen as an end-to-end solution provider for global MNCs interested in expanding their operations in emerging markets. Furthermore, the company has to articulate its value proposition, specifically for verticals, to differentiate itself from its global and regional competition.
  • Enterprises – Asian automotive OEMs can evaluate Vodafone’s capabilities to provide M2M solutions for Infotainment, connected cars and insurance companies for usage based insurance (UBI) service. Global and regional MNCs expanding their business outside Asia can consider Vodafone’s network and ICT solution capabilities for cloud, M2M, and unified communications/collaboration against similar offerings from other global and regional service providers.

About Harish Taori
Harish the Asia Pacific Director for Research and Consulting in Current Analysis, based in Singapore. In this role, he leads the efforts to develop Current Analysis’ syndicated research coverage and consulting/ custom research capabilities in the region. His research expertise and focus is on areas such as Mobility, IT Services and Social Collaboration.

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