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Transcript of Connex18 Review - frenus.com · Source: OPPORTUNITIES PRESENTED BY DIGITAL TRANSFORMATION The...
FRENUS - Market Intelligence & Consulting | Plieninger Straße 90 | 70567 Stuttgart | www.frenus.de
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Market Intelligence & Consulting
Alcatel-Lucent Enterprise Analyst Conference, 24-26 January 2018, Riga
Connex18 Review
21.02.2018 Stuttgart
Source:
ALE CONNEX18: BRIEF OVERVIEW
Connex18 focused on providing a summary of the company efforts to pursue a vertical-led, outcome-based
delivery model to address digital transformation - conference had 50 participants and was held in Riga
2FRENUS, ALE
Connex18 Quick Facts
Around
50participants
Around 20ALE executive
and expert
speakers
3 days conference held
in Riga
Participants (excerpt)
Alcatel-Lucent Enterprise
› CEO: Jack Chen
› Headquarters: Colombes (FR), Calabasas, CA (USA)
› Number of employees: around 2,200
› Presence: In 50+ countries
› Top industries: Hospitality, Healthcare, Transportation, Education and Government
“Where everything connects”
Connex18 Topics
Vertical Digital
Transformation
Hybrid Communication/ Mobility & IoT
Secured Networks
Cognitive
Communication
Networking and Communications
Breakout Sessions
Executive one-on-one
Meetings
“Building the
digital future
for everyone”
Source:
2017 SALES RESULTS
In 2017, ALE achieved an overall revenue growth of 5% with the transportation vertical reflecting a strong 3-
digit growth – EUNO and EUSO are strong markets for ALE’s networks and communication BUs respectively
3FRENUS, ALE
2017 Business Achievements and Sales Growth
Regional Results
Europe North (EUNO)
› Triple digit growth in transportation –
thanks to unique value proposition
› Regional growth fuelled by networking
division
› 10% growth in sales partners – betting on
Russia
North America (NAR)
› Transportation represents 60% of sales
› Slight decline in education
Europe South (EUSO)
› Largest share of communications business -
Brazil & Spain lead in cloud
› Strong public vertical
› Mexico switched to indirect channel partner-
led sales strategy
Asia-Pacific (APAC)
› Achieved two digit growth
› 70% of revenue driven by the five focus
verticals
› CPaaS wins large business
“Our growth is
fueled by verticals”(Matthieu Destot –
EVP Global Sales and Marketing)
Vertical Performance
3-digit growth
Transportation
1-digit growth
Education
Hospitality
2-digit growth
Healthcare
Government
Business Transformation KPIs for ‘17
Overall 5% revenue growth
More than 500 new customers
acquired
More than 235 thousand cloud
seats added
Increased the number of
partners by more than 15%
Double-digit growth in vertical
markets
Source:
TOP-LINE STRATEGY FOR 2018
ALE’s 2018 sales strategy is focused on execution of selling fully via channel partners, vertical
transformation, and sustainable growth in cloud delivery
4FRENUS, ALE
2018 Sales Strategy
Cloud Delivery GrowthChannel Sales Current Stage and Offering
Transportation EducationHospitalityHealthcare Government
EUSO
EUNO
APAC
EUNO
NAR
All
regions
EUSO
APAC
NAR
Regional focus per vertical* 2018
Sales funnel
focus
Acquisition
Activation
Retention
Revenue
Referral“We are doing a transformation to the
cloud (…) we are not a cloud-native
company. We are moving from on-premise
to cloud, from CAPEX to OPEX”(Matthieu Destot – EVP Global Sales and Marketing)
*Sales regions - EUNO: Europe North, EUSO: Europe South incl. South and Latin America, NAR: North America, APAC: Asia Pacific
**Communications Platform as a Service (CPaaS) helps integrate cloud-based
communication features like chat and voice/ video conferencing into business
applications by using custom developed Application Programing Interfaces (APIs)
Partner focus
› Recruiting vertically focused partners and cloud
service providers to further strengthen the
channel strategy
› Focusing on strong partners who are
committed and co-investing in initiatives
Focused vertical sales
› Vertical focus is differentiated per region,
according to the strong verticals (per region 2-3
focus verticals)
› Developing vertical sales teams who identify use
cases and customer pain points to drive growth
from bottom-up
› Account based marketing using social networks
Communications
› Aiming to capitalize on user acquisition and
activation phases of the sales funnel in 2018
› Attracting developers in Rainbow CPaaS** –
recent new deals in professional services
› Focus on user acquisition for Rainbow UCaaS***
Networks
› The new OmniVista Cirrus Network
Management Platform combines cloud and
networking, is a very important offering for the
business unit
› Focus on acquisition and activation phases
Readiness
› Both business units (communication and
networks) work together to align regional teams
and transform business to the cloud
› Automation of processes by end-to-end
integration offered for partners in order to
leverage the ALE Cloud
Growth Hacking
› Dedicated cloud sales team to make sure users
remain active
› Measure include social media monitoring and
metrics, analytical approach and R&D
***Unified Communications as a Service (UCaaS) is the delivery of different enterprise
collaboration and communication features like instant messaging, telephony, voice and
video calls via the cloud
Source:
OPPORTUNITIES PRESENTED BY DIGITAL TRANSFORMATION
The company plans to capitalize on the opportunities offered by digital transformation by pivoting its
traditional strengths in networks and communication to serve the five specific verticals
5FRENUS, ALE
Key Challenges:
Impact of digitized patient
files
ALE Value Proposition:
› App. Partner
Ecosystem
› Engagement services
(OpenTouch Evolution,
LBS Services)
› Mobility (Rainbow
WebRTC Gateway)
Healthcare
Key Challenges:
Secure premises , impact
of classroom digitalization
ALE Value Proposition:
› Learning Management
System integration
› Rainbow UCaaS,
Greetings IVR
(Engagement services)
› Multicast for
broadband services
Key Challenges:
Increase capacity, safety,
comfort and reduce risks
and costs
ALE Value Proposition:
› Monetization model
for APIs
› Local storage
› Extended geographical
coverage
› Multicast CCTV/TETRA
integration
Key Challenges:
Facilitate citizen
engagement
ALE Value Proposition:
› Local storage
› App. Partner
Ecosystem
› Rainbow UCaaS
› Software based
encryption
› Multicast for CCTV
Key Challenges:
Increase revenue/available
room & differentiate from
disruptive competitors
ALE Value Proposition:
› Outcome-based
models
› Rainbow-based
Guest Services & Bots
› Room Automation and
IoT services
› Rainbow UCaaS
Education Transportation Hospitality Government
Added Value Leveraging Digital Transformation
Around USD 1.77 tn
spent on global digital
transformation by 2019
1.77 tn40%
40% of initiatives
supported by AI by 2019
10%
10% of all transactions
will be affected by
bots
› 70% of projects by 2020 will not be corporate
telephony related (core business)
› Growth hacking teams with cloud-first approach
› Recruitment of vertical-specific partners
› Accelerating digital transformation within,
started 3 years ago
› Transition into an OPEX delivery model
We will take
minimal risk
It’s not going to
happen to us
We have enough
time
CCTV: Closed-circuit television, TETRA: Terrestrial Trunked Radio, LBS: Location Based Services, WebRTC: Web Real-Time Communication, IVR: Interactive Voice Response
Digital Transformation Industry Market DXI Misconceptions - Transformation Drivers for ALE
Source:
ALE AND IBM PARTNERSHIP
ALE announced a partnership with IBM during the event, that aims to incorporate cognitive communication
capabilities in Rainbow – IBM Cloud will be additionally leveraged
6FRENUS, ALE, IBM
Integration of ALE Rainbow with IBM Cloud and Watson
Partnership Details
› Alcatel-Lucent Enterprise partnered with IBM to add cognitive technology to its
Rainbow product
› Rainbow will be upgraded with natural language processing and machine learning
capabilities
› IBM Cloud will be used to host Rainbow and developers who use IBM Cloud API’s can
access Rainbow
› Rainbow will also include a location based services add on
› The partners have planned a joint market approach focusing on healthcare,
education and government sectors
› This move hopes to disrupt the market with the introduction of the first communication
tool enabled with cognitive technologies
› Rainbow is a product of ALE’s
communications business unit
› Alcatel-Lucent Rainbow is a cloud-
based, enterprise-grade, Unified
Communication as a Service (UCaaS)
and Communication Platform as a
Service (CPaaS) that connects people
and systems
› Rainbow offers a Hybrid Cloud
solution for business collaboration
and unified communications
› IBM Cloud is a suite of cloud
computing services offered both as
an IaaS and PaaS
› Partners and customers can use the
integration of IBM Cloud with
Watson, IBM‘s AI platform for
enterprises
› IBM offers a broad range of Watson
and machine learning APIs to help
developers build own applications
Benefits for Rainbow
IBM Cloud Infrastructure
Location based services
Cognitive Communication
and Machine Learning
Access to Developer
Community
Joint Market Approach
PaaS: Platform as a Service, IaaS: Infrastructure as a Service
Announced during the event
Source:
BUSINESS DIVISION NETWORKS
ALE plans to make networks smarter via software and cloud infusion to enable products like network on
demand and smart provisioning
7FRENUS, ALE
› OmniVista Cirrus
› Network on Demand
› Location-based
Services
Management
ServicesWLAN LAN WAN
› OmniAccess Stellar
with express &
enterprise modes
› 802.11ac and Wave 2
Access Points
› Core: OmniSwitch
9900 and 6900
› Access: OmniSwitch
6560 and 6860
› IP/MLPS: 7750 SR,
7705 SAR
› ESR: 5725R, hardened
products for auto-
motive and railKey P
rod
ucts
Su
b-d
ivis
ion
s
Strategy
› Focus on mobility & IoT secured networks. Enable companies to build IoT device and traffic
policies using Automated IoT networks and IoT containment features
› Offering networking as a business service according to the specific verticals and the development
of customized APs per vertical
› Develop location-based services to facilitate asset and people tracking
› Deliver all networking solutions through the cloud with embedded analytics
Vertical Solutions
Differentiation Factors
Healthcare
Mobility
Government
Hospitality
Education
Offer Focus
› Location services & embedded
analytics
› Healthcare network blueprint
› Purpose built IoT L2 switches
› Long term maintenance & end of life
+5 years support
› JITC, CC, FIPS-140 and TAA
certifications
› Shortest Path Bridging containment
› Stellar APs with OmniVista Cirrus
network management solution
› APs purpose built for industry
› 100 Gig capacity in the core with
multi-gig access, OmniVista Cirrus,
Network on Demand, Stellar WLAN
› Help clients build
healthcare-defined
networks
› Match customer
deployment cycles
› Address stringent
security needs with
compliant operations
› Realization of ‚digital
rooms‘
› Deliver large
bandwidth for digital
content
Simplified network deployment
and management
Network on Demand portfolio
Intelligent fabric with IoT containment
Location-based services and analytics
› Around 40 partners for Network on Demand signed in 2017
› Network management services covers 15% of the network business
› Government, education, and transportation are the top 3 revenue
generating verticals with a combined revenue share of 57%
› ALE‘s Aruba OEM partnership has been complemented by its new Stellar
WLAN portfolio
› OmniAccess Stellar WLAN with WiFi Express (upto 64 APs) & WiFi
Enterprise (upto 4000 APs) focused on SMEs and enterprises resp.
› Mesh WLAN capabilities to reach remote areas without cabling
AP: Access Point, , ESR: Enterprise Service Router, MPLS: Multiprotocol Label Switching
Key Highlights Product Portfolio
Source:
BUSINESS DIVISION COMMUNICATIONS
The key objective of the communications division is to deliver solutions which are cloud-based, highly
scalable, and open for third party integrations via an ‘everything-as-a-service’ model
8FRENUS, ALE
Strategy
› Rainbow Hub delivered as a CPaaS to help companies integrate real-time communications
with business applications
› Provide hybrid communications while driving digital transformation in specific verticals
› Delivery as ‚Everything as a Service‘ business model and add AI capabilities
› Capitalize on the data collected through mass user acquisition and activation
› Recruitment of vertical partners and be a leader in the vertical CPaaS market
Vertical Solutions
Differentiation Factors
Healthcare
Mobility
Government
Hospitality
Education
Offer Focus
› Location services, OpenTouch
evolution, Rainbow WebRTC
Gateway, IP/XBS DECT dual mode
› Rainbow UCaaS, Rainbow WebRTC
Gateway, Multicasting, interactive
voice response (IVR) services
› Rainbow UCaaS (chat, VoIP),
Multicasting, natural language
processing bot
› Rainbow-based services and bots,
location based services, Rainbow
UCaaS, IP/XBS DECT dual mode
› Rainbow integration to learning
management system, IP/XBS DECT
dual mode VoIP, Multicasting
› Optimize hospital
consolidation and
care delvery
› Deploy and maintain
real-time services for
passengers
› Citizen engagement
› E-Government and
safety alerts
› Extended experience
from booking till
after check-out
› Connected know-
ledge experience for
students
Solutions for customer & citizen
engagement
Rainbow delivery as UCaaS and CPaaS
Ability to connect platforms, people,
processes, and objects
Flexible billing models i.e. Capex, Opex,
Subscription-based, Traffic-based
› Rainbow
› Rainbow API Hub
Public Cloud Hybrid CloudPrivate Cloud/
On-premHardware
› Rainbow
› Rainbow API Hub
› OXO Connect
› OpenTouch
› OpenTouch Enterprise
Cloud
› Handsets for Unified
Communications
› Partnership with IBM to use the IBM Watson analytics engine to help
enable cognitive communications
› Majority of the communications portfolio sold via channel partners
› Rainbow: 1000+ partners onboarded, 1.000+ customers, 235k cloud seats
› EUSO and APAC regions performed well in 2017
› Hybrid-cloud to deliver UCaaS in resell and referral modes for partners
› Delivery of private branch exchange (PBX) and unified communications
on public and private networks
Key P
rod
ucts
Su
b-d
ivis
ion
s
VoIP: Voice over Internet Protocol,
Key Highlights Product Portfolio
Source:
CUSTOMER STORY: RAWABI SMART CITY
ALE played a key role in the development of the first planned smart city in the state of Palestine through its
Rainbow CPaaS and UCaaS solutions, and high bandwidth-capable networking products
9FRENUS, ALE, Rawabi.ps
ALE’s involvement to help make Rawabi ‘smart’
Rawabi is Palestine’s first planned city and largest private sector undertaking. The project began in
2014 and aims to contribute to permanent new job generation and sustainable long term growth for the
Palestinian economy, supported by smart technologies and a high-speed fiber-optic network
Solution
› ALE provides the expandable network with 80Gbps
backbone core switches in the datacentre
› Secure WiFi for staff and public city-wide Wifi
› Rainbow CPaaS for smart city communication, UCaaS for
developing mobile apps
› Single network management point
› IP infrastructure to cope with big data traffic from smart
city installations – open API for integration
› Single solution connecting, reading and analysing data –
able to handle expected data in the future
› Communication for residents and collaboration for
businesses
› Business intelligence reports
Needs and Challenges
› The city has smart meters, CO2 sensors, traffic monitoring
and security sensors
› Data is collected within one platform in real-time
› Problems are predicted
› Jobs were created
› High appeal for start-ups to develop further smart city
solutions
ALE Value-add
› Technology matched and exceeded the requirements
› Provided network hardware, UCaaS and CPaaS with
Rainbow as well
› ALE took worked closely with the local team – two VPs
visited in person
› Process didn’t felt like normal procurement but as a
relationship
Outcome
Work
Grow
Live
Source:
FRENUS TAKEAWAYS
ALE’s efforts to completely change its sales strategy along with vertical focus and transition to OPEX is
starting to pay off, as evidenced by its healthy annual growth in the past year
10FRENUS, ALE
› As ALE is now predominantly selling through channel partners, the company needs
to strictly audit and ensure that the partners are completely committed to
ALE’s vision and strategy
› Grouping of similar markets across continents together for example, South American
countries with Southern Europe, will benefit customer facing teams to translate
past learnings
Revamped Sales Strategy
› Recruitment of vertical-focused partners will benefit ALE to develop and offer
domain expertise as a significant value add to prospective customers
› ALE can combine its present expertise and solutions in its focus verticals to come
up with a new smart city portfolio which has massive future potential
› Possible threat could be incentivizing change amongst current important
partners who are not totally vertical-focused
Vertical Focus
› Addition of a cognitive quotient to Rainbow via this partnership is an effective
step to help ALE move ahead of competition in terms of innovation
› Integrating IBM Watson with the Rainbow API Hub will help popularize the open
platform and incentivize developers to come up with innovative vertical-
specific APIs
› AI & machine learning abilities can help ALE offer end user derive more value
from normal conversations and rival competitors’ capabilities
Partnership with IBM
Frenus review of key highlights
› Current focus is on mass user acquisition and activation via ALE Rainbow which
can be viewed as an effort to use analytics to help monetize the underlying
data; representing a potential revenue channel
› Long term user retention will be a key success factor for their communication
solutions
› Using IBM Cloud to host Rainbow will further enable ALE to scale globally while
providing advanced analytics capabilities
Communications Business
› Cirrus cloud-based network management for unified access complements ALE’s
existing business services portfolio and is in line with the company’s OPEX vision
› ALE has concentrated on making its Stellar AP WLAN portfolio to be easily
deployed, managed, and scaled which act as significant USPs when combined
with the price and delivery model
Networking Business
Frenus GmbH
Plieninger Str. 90
70567 Stuttgart
Sriram GiridharMarket Advisor
+49 172 683 7766
www.frenus.de
Frenus GmbH
Plieninger Str. 90
70567 Stuttgart
Adam KenyeresSenior Market Advisor
+49 173 473 7744
www.frenus.de
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