Jola Cloud Solutions' Blog

Mobile retailers Vodafone, O2, EE and Three are currently advertising unlimited voice and data packages for businesses on their websites.

Is the data truly unlimited?

The short answer is no. If you read the small print, the mobile networks have set data usage limits per month. Some limit the number of devices that can be tethered, others will limit the amount of bandwidth available, which slows downloads and restricts usage.

Are there any other catches?

Some of the retail mobile operators are offering 12 and 24 month plans with a discounted rate for the first 6 months.

Do I need unlimited data?

That’s the big question, and the answer in most cases is no. If you’re streaming multiple hours of video each day over mobile data, or using mobile data to download large files then you might, but for most users 20GB is fine. The danger of buying unlimited for some businesses is that they will simply pay too much.

What can the channel learn from this?

The channel should partner with a wholesale supplier that can provide a range of competitive voice and data SIMs, which allow them to compete with the single offerings from retail mobile operators. They need to add value by helping their customers choose the right package for their business, by understanding their usage and pitching solutions to meet their exact requirements.

IoT is not for me

We are told that there will be 28 billion devices in a market worth £5.6 trillion, however resellers are struggling to see where the opportunity is for them. Why is this?

It’s difficult to compete with the mobile operators in this market

The mobile data side of IoT is dominated by the Mobile Network Operators. As data usage is often fairly low, management of usage becomes less of a priority and therefore less of a benefit for the reseller to differentiate themselves. The key is to look for problems the customer has with the status quo and then find ways to solve them.

Key challenges

In mobile data for IoT there are two really big problems facing resellers and their end users.

It is costly for the end user to change to a better SIM deal

Even when users know they could be getting a better mobile data deal elsewhere, the thought of swapping SIMs in thousands of devices in hundreds of locations around the world is an operational nightmare, and extremely expensive. Irrespective of what they are paying for the SIMs, very often a technology refresh, such as upgrading 2G to 3G, also entails changing all the SIMs.

The retail mobile network operators know this

Because the retail mobile network operators know there is a high cost to switch suppliers, they can hold the end user to ransom over price. Either by increasing the price at the end of the initial term, or failing to keep up with price decreases in the marketplace.

Will this always be the case?

The issues above relate to SIMs that are locked to a particular MNO. They are physical SIMs that are associated with a network and a package. If SIMs were not tied to a network operator and package and didn’t need to be replaced, this would change things.

Demand for Machine to Machine (M2M) SIMs is growing. Channel partners are building a pipeline of big deals in key vertical markets, generating high-margin recurring revenue.

Transport

The driving experience is being revolutionised. Apps and services are giving drivers everything from in-vehicle Wi-Fi and incredible entertainment, all the way through to faster, more insightful diagnostics and maintenance.

Utilities

Businesses are managing their energy flows through smart energy grids and smart meters, allowing for more accurate bills. There is a focus on improving energy efficiency and resolving outages more effectively, with remote site monitoring.

Health

Smart devices offer important patient benefits, like connected ambulances. Ambulance crews have access to high-bandwidth internet capabilities, and tablets holding patient records. This means that information can be sent to hospitals in real-time.

Security

Commercial security is getting smarter. CCTV and alarms can be monitored securely and footage can be stored remotely.

Part of Office 365 and launched in 2018, Teams is Microsoft’s fastest selling product and recently overtook Slack as the #1 collaboration tool, according to recent research. By upgrading to MS Phone System, Office 365 users also get call management features.

If you need to make and receive calls outside of the Teams family, the Microsoft solution starts to look a little clunky and quite expensive. Out-of-bundle calls are paid for per minute by logging a company credit card on the system, and whilst some country rates are in line with the market, others are not.

Instead of using their Calling Plan, Microsoft will allow you to connect Teams to an alternative network provider using Direct Routing. However, setting this up is complicated and expensive and only a handful of companies in the UK offer Direct Routing as a service. There has not been a true, self-serve, white-label, channel programme for Direct Routing in the UK - until now.

Jola’s Direct Routing for Teams is built on a Microsoft approved platform and offers numbers in 167 countries as well as every area code in the UK. Jola’s unlimited wholesale UK call package costs less than half that of MS Calling Plan with very competitive out-of-bundle rates – billed monthly in arears. 

For the first time suppliers of Office 365 will be able to offer a viable alternative to traditional, or hosted telephony, at a compelling price to their customers, whilst making a good recurring margin on call bundles and out-of-bundle call charges.

I was on a beach and a guy tried to sell me some local precious stones. Very quickly we went from $100 to $10 and when I tested the ‘stones’ they were actually lumps of plastic. He shrugged and moved on to the next tourist – no hard feelings on either side. His negotiation approach is more zero-sum than win-win but has this damaged his business? – probably not.

Handle negotiations with a one-off sale badly in B2B and you may harm your reputation or your bottom line, but usually only on that one deal. However, getting it wrong with an ongoing relationship can be disastrous, especially in the channel. Where a company is re-selling your product, you have to know exactly where you fit in the value chain. What is the Standard for your product? What will your partner need to sell at, to win against the competition? - and still make enough margin to excite them, and their salespeople. What is unique about your offering and how does that translate into benefits for your partner and their customers?

I see basic negotiation mistakes all the time in my industry and usually due to lack of research and preparation. Suppliers trying to sell products to resellers without considering what they will sell it for, or assuming that their ‘unique’ features are benefits, without having properly tested the proposition. On the other side, resellers come back with random requests for discounts and get offended when you ask why. Alternatively, they invent prices they have received from other suppliers in an attempt to improve their own margin.

Going into a negotiation, there is an assumption that you will come to an agreement. If you are unable to agree terms this is often viewed as a failure but whether or not it is depends on how well you have prepared.

Before you start a negotiation it is important to think through potential outcomes. Which party has most to lose if you cannot agree? If you have done your homework on Standards you will know the range of acceptable outcomes. If you cannot get to a deal in this range, which side is most adversely impacted?

You should be able to answer this question for both sides and for individuals on both sides. e.g. perversely a product manager incentivised on average margin may be more inclined to lose a large customer than give them a significant price cut to stay. However there is a cost to switching suppliers as well as acquiring and on-boarding customers, and moving away may be the wrong decision for both organisations. One option is to adjourn the conversation with the product line and find someone with a more holistic view. Even then they may overestimate the value of inertia, so you have to make them believe there is a real possibility of losing your business. Properly research the alternatives and be prepared to walk away from a deal if your minimum requirements cannot be met.

There are plenty of doom-mongers around Microsoft’s recent incursion into the cloud PBX market but little practical advice. If you find yourself competing with Teams Phone System, here are three things to consider;

1.   Be prepared. Microsoft list only 22 inclusive features of Phone System on their web site and they don’t appear to offer optional extras. If you currently charge for some of their standard features, you may initially feel a little disheartened. However, many features you offer, and your customers need, may not be there. Put together a competitive matrix for your salespeople and their customers. Include the range of devices you offer vs Microsoft approved devices. Make sure your salespeople understand Office 365 pricing. Phone System is available with only the more expensive licenses and at time of writing is not an upgrade on Microsoft’s most popular 365 licence, Business Premium. Build a price comparison table into your Features Matrix. As Microsoft expand their features update your sales team.

2.   Focus on SMEs. Due to the level of licence and technical skill required to configure Teams Phone System, it feels as if it would appeal more to bigger companies. It has always been hard to sell a hosted cloud product to really large organisations. Yes, they benefit from not having to have a PBX in every office, but at a certain size it’s often cheaper for them to buy their own cloud platform. Because it is an upgrade to expensive Office 365 licences, Teams Phone System may be less attractive in the SME market, which is the sweet spot for most hosted providers and where the average sale is still only seven seats.