C114 News On May 23, the latest report of (Ace) market research company Omdia wrote that communication operators (CSPs) are worried about the return on investment in building new networks. In order to increase revenue, they need to provide more services outside the connection. If new services and applications are not provided - consumers and enterprises are willing to pay extra for them - all this will not happen. Instead, they must turn to a partner service provider, a professional company that provides these applications.
In the past, developing platforms to manage the rich ecosystem of upstream and downstream partners was a task that many CSPs were not competent for. Large operators try to build internal DIY solutions, but the development costs are high and difficult to maintain. The solution is suitable for operators of all sizes, and it is the most advanced partner management platform provided by multiple suppliers.
Omdia recently released the survey report "Partner Management System Supplier Survey: Improving the Partner Experience is the Key to CSP Platform Ambition", which pointed out the emerging trend of partner management system. The report also discusses the users of these systems, various problems existing in them, and the main considerations for operators to upgrade their products and services (not just to provide network connectivity).
Partner Management System Survey
In January and February 2024, Omdia conducted a preliminary and secondary investigation on the partner management system. Amdocs, Beyond Now, CSG, Netcracker, Salesforce and ZIRA participated in this study.
CSP is facing difficulties in increasing its revenue only by selling network connections, and providing applications and services is one way out of this dilemma. However, they do not have domain knowledge or professional experience in application, so providing partner services and managing ecosystems is the direction of their development. CSP must also minimize friction and maximize the value of its delivery, while the partner management system can take both aspects into consideration. The focus of the Omdia report's research is to identify trends and themes that CSPs and suppliers should consider to meet their needs. Omdia's survey questions cover the following topics:
·Customer characteristics, analysis and trends
·Partner participation, process and time involved
·Security, including access, partner data, and internal fraud
·Activation, Shipping, Commissions, Dispute Resolution, and Revenue Sharing Visibility
·Built in integration and API
·Main characteristics and differentiation factors
·Market prospect of partner system
Partner management system for CSPs of all sizes
CSP regards mobile connection as its main revenue source, and its future revenue will be increased through partner value-added services. The partner management system provides these opportunities for all operators, including small companies that have lagged behind before.
In the Omdia survey, the research company asked suppliers to identify customers of its partner management system (all names are strictly confidential). Omdia will cross reference this highly sensitive CSP list with the Omdia World Information Series (WIS) database to find the development trend or possible market segmentation according to geographical location, revenue and number of users. One of the findings is that CSP customers with different revenue scales are using partner service and management systems, as shown in Figure 1. It is worth noting that due to the large difference between operator revenue (from $100 million to more than $100 billion) and number of users (from 500000 to more than 200 million), the chart uses the log scale.
Figure 1: Partner management system customers - revenue and number of users. Source: Omdia. Therefore, CSPs (regardless of location or scale) should seize these value-added opportunities and use these partner management systems to develop their business. The following is Omdia Chief Analyst Joe Hoffman's advice to all CSPs:
·If you do not provide partner value-added services to increase revenue, please start now.
·If you have an internally developed service, but it is troublesome or expensive to develop, please check the vendor's eye-catching solutions.
·If you are facing the threat of a large operator with a lot of resources, please improve your service through the partner management system and catch up with the development level in this field.
Omdia concluded that CSP should take the future into its own hands and increase its revenue through the most advanced partner management system that provides value-added services.
[C114 Note: Omdia, as a part of Informa Tech, is a leading research and consulting group focusing on the technology industry. With in-depth understanding of the technology market and practical insight, Omdia will enable enterprises to make wise growth decisions. To learn more, visit www.omnia.com.]
