- Telefónica delivers a strong commitment and makes its cybersecurity solutions and professional services capabilities available through partnerships to assist third-party service providers and capture new revenue streams.
- Telefónica’s differentiated value proposition includes empowering third-party service providers with limited security capabilities to deliver bespoke security solutions in less than 12 months.
The Challenged Enterprise in the New Norm
Telefónica (Telefónica Global Solutions), together with GlobalData, delivered a webinar in October 2021 highlighting the impact of cybersecurity attacks on both small and medium-sized enterprises (SMEs) and global corporates. To put this into context: in 2020, businesses made ransomware payments of more than $400 million in cryptocurrency, a 300% increase compared to 2019. However, the average cost to a business in terms of financial impact, downtime, and lost opportunity is far greater, with some enterprises in the private healthcare sector, for example, highlighting post-cyberattack revenue losses in the millions and damage to brand and shareholder value.
Additionally, the COVID-19 pandemic has had a huge impact globally on businesses of all sizes, including global multinationals. Almost all Fortune 100 and 500 companies have experienced major disruptions to their operations and markets. As businesses transition to full operations under the new post-lockdown norm, they still struggle with operational changes in employee working styles and supply chains across different sectors. GlobalData’s research in cybersecurity and discussions with the industry highlight some of the following drivers in the escalation of cybersecurity attacks globally:
- The dispersed legacy nature of IT in sectors like government, healthcare, and utilities has improved over time with upgrades, but still has vulnerabilities to cyberattacks.
- Despite the growing threat of ransomware cyberattacks, sectors such as utilities and energy remain behind the curve in creating robust security policies and resilient network fortification. The emergence of OT/IoT makes these verticals more vulnerable.
- Cybercriminals have realized the high impact cyberattacks can have on verticals like utilities, energy, and government and the opportunity this creates in increased ransom demands.
Partnerships Are Key in Security to Deliver Value to Enterprises
As enterprises contemplate longer-term hybrid work scenarios, changes to their IT infrastructure due to digitization, and operational challenges (i.e., supply chains and internal security team resourcing across IT), they seek external support closing the security gaps. In addressing this, Telefónica emphasizes its willingness and desire to support third-party service providers through partnerships delivering strong differentiated security solutions that meet the needs of modern digital enterprises challenged with security in the current climate.
As Telefónica put it: “Partnerships and alliances are critical in the rapidly evolving cybersecurity market. No single company can cope with the speed at which new technologies develop in cybersecurity. That is why at Telefónica we have agreements with top cybersecurity vendors and invest in cybersecurity startups. Building a wide ecosystem of partners is critical to deliver high-quality services to our customers and channel partners.”
Telefónica is very much of the mindset that the global fight against cybercrime, from a technology security service provider perspective, can only really be undertaken through the willingness and desire to share the comprehensive security technology expertise with partners to help them create strong propositions that they themselves can then sell and deliver to customers on a fast turnaround basis.
Strong Partner Support
Partnerships are nothing new. However, the differentiated value proposition Telefónica brings to this initiative is the commitment and desire to support third-party service provider partners selflessly. As Telefónica states: “For new entrants in the market, it is critical to partner with someone that already has all these assets in place.”
Telefónica highlighted some good customer examples in the webinar where they have supported partners in regions like the Middle East to deliver digital security services to their enterprise customers within a 12-month timeframe. In one example, with Telefónica’s support, the partner was able to implement a successful go-to-market strategy to launch innovative services leveraging white-label technology, execute multiple PoCs with high-profile customers, provide full training with the internal teams that supported the end-to-end delivery of security opportunities, and implement and operate managed security services (MSS) from its own SOC and multiple large MSS propositions that are currently in operation.
To conclude, from a GlobalData perspective, it was pleasing to hear Telefónica going that extra mile to support its partners in the delivery of bespoke tailored security solutions. Telefónica’s differentiated value proposition should enable third-party service providers to define and deliver services in cybersecurity and create additional revenue streams without significant risk and with reduced investment. Partner go-to-market acceleration could be further realized through Telefónica’s highly proactive integrated open partnership approach to promote co-creation in innovation.