As part of Amalgam Insights’ coverage of the Technology Expense Management market, we provide the following guidance to sourcing, procurement, and operations professionals seeking to better understand how to manage technology expenses. In immature or monopoly markets where one dominant vendor provides technology services, vendor management challenges are limited. Although buyers can potentially purchase services…
A new report from industry analysts Amalgam Insights warns that this year will represent what it calls a “change for companies that have managed digital transformation & technology investment in bull markets” of the previous several years. But it says several sectors within the technology expense management (TEM) environment remain posted for significant growth, with the telecommunications industry leading the way, with a projected 15-20 percent spending increase.
Amalgam Insights chief analyst Hyoun Park authored the new report, saying the enterprise mobile sector spend will be a key driver. He says spending in this area should increase by as much as 15 percent in 2019, driven by what he calls “the incessant demand for mobile data from apps, video, music, and other persistent and constantly updating workloads.”
He also predicts that Amazon Web Services, Microsoft and Google Cloud Platform will continue to rake in more revenue, with an estimated run rate of $30 billion this year; he projects that amount could easily hit $50 billion in 2020.
Other predictions from the new Amalgam Insights report:
- Software as a Service (SaaS) will be a $75 billion market by next year;
- The Internet of Things (IoT) market will continue to be in flux, due to its complexity, with companies challenged to monetize the two billion non-cellular Internet of Things devices to be created for industrial, commercial, and enterprise; and
- Most importantly, the technology expense market will double to more than two billion dollars over the coming year.
“Over half of enterprises do not have basic technology spend practices in place,” Park says. “The most frequent mistake these companies make is assuming that they’ve assigned a person to processing telecom invoices, so those people know how to manage and optimize telecom bills and contracts, which is usually not true.”
The full Amalgam Insights report is available for download at: https://amalgaminsights.com/product/analyst-insight-7-key-technology-expense-management-predictions-for-2019
On October 18th, I presented a webinar at Calero World Online on the future of IT cost and subscription management. In this presentation, I challenge existing telecom and IT expense management managers to accept their destiny as pilots and architects of enterprise digital subscriptions.
Telecom expense has traditionally been the most challenging of IT costs to manage. With the emergence of software-as-a-service, cloud computing, the Internet of Things, and software-defined networks, the rest of the IT world is quickly catching up.
In this webinar, you will learn:
- How the latest trends and technology are driving change to enterprise management strategies
- How the challenges of traditional TEM and cloud expense management are similar in nature (and why TEM is a good place to start)
- How organizations are benefiting from ITEM best practices using sample use cases
To learn more about the upcoming challenges of IT expense management, aligning technology supply to digital demand, and being the shepherd for your organization’s technology sourcing, utilization, and optimization, click here to watch this webinar on-demand.
Key Stakeholders: CIO, CFO, Controllers, Comptrollers, Accounting Directors and Managers, IT Finance Directors and Managers, IT Expense Management Directors and Managers, Telecom Expense Management Directors and Managers, Enterprise Mobility Management Directors and Managers, Digital Transformation Managers, Internet of Things Directors and Managers On May 21st and 22nd, Amalgam Insights attended and presented at Tangoe LIVE…
Note: This blog contains excerpts from Amalgam’s Market Milestone document. For the full story, including additional context and recommendations for Global 2000 organizations, purchase the full report.
Key Stakeholders: CIO, CFO, IT Finance, Telecom Managers, Network Managers, Mobility Managers, Software Asset Managers.
On January 17th, Sakon, formerly known as GSG, announced the launch of the Sakon platform, a Software as a Service suite of six applications to support the following areas: Mobility and Internet of Things Service Management, Network Services, Cloud Applications Management, Expense Management, Sourcing & Transformation Management, and Insights and Intelligence. This platform will be available as an annual subscription to support telecom, network, IoT, and SaaS management needs for enterprise IT organizations.
On December 29th, 2017, Calero Software acquired Comview, an experienced telecom expense management and call accounting software and services provider. Financial terms were not disclosed. From Amalgam’s perspective, this acquisition is important in demonstrating the plans of Calero under its new ownership, Riverside Partners, and in establishing Comview’s role in the Technology Expense Management market. With this acquisition, all Comview personnel other than Founder John Perri are expected to move to Calero. Calero has committed to supporting Comview’s solution for the immediate future. Comview is expected to run as “a Calero company” with independent development and operations in the short term.
Overall, Amalgam is bullish on this acquisition as it combines the strengths of a veteran TEM provider, Comview, with strong customer service and an integrated platform with the scale and breadth of Calero’s capabilities.
On December 28th, Apple released a statement regarding the fact that it was planning to lower the battery replacement costs for Apple 6s and 7s from $79 to $29 as a followup to a December 20th statement made to Techcrunch in which Apple described how it was slowing down iPhone 6s and 7s. This piece provides guidance to enterprise IT, mobility, and procurement managers on what this issue is and how to take full advantage of this situation to improve your enterprise mobility environment.
Recommended Audience: CIO, Chief Procurement Officer, IT Procurement Directors and Managers, Mobility Directors and Managers, Telecom Directors and Managers, IT Service Desk Directors and Managers
Vendors Mentioned: Apple, Samsung, Huawei, Calero, DMI, DXC, Ezwim, G Squared Wireless, Honeywell, IBM, Intratem, MDSL, MOBI, Mobichord, MobilSense, Mobile Solutions, NetPlus, Network Control, One Source Communications, Peak-Ryzex, RadiusPoint, Stratix, Tangoe, vCom Solutions, Visage, Vox Mobile, Wireless Analytics
On September 13th, 2017, Riverside Partners, a Boston-based private equity firm, announced the acquisition of Calero Software from Clearlake Capital. Calero manages more than $6 billion of annual telecom, mobility, and cloud spend for more than 3,000 customers in 40+ countries and provides managed mobility services for more than 400,000 devices, making it one of the largest technology expense management solutions overall behind Tangoe’s $38 billion+ in technology expense management and Flexera’s $13 billion+ in software expense management. (Cass does not break out its telecom spend, but Amalgam believes it to be similar in scale to Calero.)
This blog covers Amalgam’s perspective on:
- Why Clearlake sold Calero?
- Who is Riverside Partners, a relatively new player in the TEM space?
- What to expect from Calero going forward?
Over the past decade, Telecom Expense Management has evolved substantially from its roots of telecom and network spend to a more holistic combination that also includes mobility, end user computing, Software as a Service, and Infrastructure as a Service. Because of this expansion of spend, TEM has evolved from Telecom Expense to Technology Expense Management which can be used to manage the majority of enterprise IT.
Amalgam finds that there are a number of high-quality TEM solutions that are hiding under the radar of enterprise buyers despite being market leaders. As an example, in May of 2017 Gartner put together a Market Guide of Telecom Expense vendors including vendors handling multiple billions of dollars in technology spend such as Calero, Cass Information Systems, Cimpl, Dimension Data, MDSL, Tangoe, and WidePoint as well as strong competitors Comview, Mobile Solutions, Network Control, Saaswedo, TNX, and VoicePlus. Although these Gartner-named vendors all provide TEM solutions that are appropriate for various market sectors and needs, Amalgam believes that a number of strong competitors were left out both in the multi-billion dollar management and the strong competitor categories that should be considered in competitive vendor selection environments.
To provide additional insight and to ensure that representative global vendors such as the largest standalone Australian TEM vendor and the largest standalone European TEM vendor were covered, Amalgam is proud to present 8 Hidden Gems for Telecom Expense Management available at no cost for the first 100 downloaders.