About 80 mobile phones are stolen in London every day. The IMEIs of many of these phones are blocked when they are reported stolen, which supposedly renders them unusable. But in practice, the BBC has demonstrated that some dodgy London businessmen will still buy these blocked and stolen phones – even though handling stolen goods is punishable with a prison sentence of up to 14 years. Watch the video at the BBC’s website, to see hidden camera footage of the crooked traders.
Archive for the News Category
23 04 2014
Last week I reported that Praesidium, formerly the consulting division of WeDo, has been transferred to Mainroad, WeDo’s sister company. Admittedly, talkRA dropped the ball, failing to notice the original press release, which was issued in February. The move raised questions about WeDo’s perception of the revenue assurance consulting market, so I was glad to speak with Sérgio Silvestre, WeDo’s Marketing Vice-President, about the reasons behind it. He identified two motives for the move: independence and fit.
When Praesidium was acquired by WeDo in 2007, the British firm already boasted a strong brand, punching above its weight in a specialized global consulting market. However, the feeling is that joining with WeDo critically altered customer perceptions about the independence and objectivity of Praesidium’s advice. Now that Praesidium has joined Mainroad, WeDo apparently have no plans to recruit or acquire a replacement consulting team. Customers who ask WeDo about consulting services will be referred to Mainroad and Praesidium. Praesidium is still scheduled to provide one of the training sessions at WeDo’s upcoming worldwide user group meeting.
The impartiality of consultants is a subject which provokes different responses from different telcos. Some telcos want their software providers to provide them with consulting services at the same time. Others want a separation between the two, to ensure consultants do not behave like salesmen in disguise. Though the amount of consulting work done by vendors has gone up and down over the years, some of WeDo’s competitors continue to earn a significant share of their revenues by providing consulting services in parallel to selling software licences. We will need to monitor the market to determine if the separation of Praesidium from WeDo is part of a trend towards accommodating stricter procurement expectations, or whether some of WeDo’s rivals will continue to prosper by offering a mix of solutions and services. For WeDo, it is clear they are streamlining one side of their business in anticipation of the growing diversity of software products they will offer, and of customers they will sell them to.
Sérgio also highlighted that demand for information security consulting will drive Praesidium’s future growth. Praesidium’s expertise covers the connected domains of fraud management and information security. If customers are spending more on security – which seems likely given current global priorities and risks – then Praesidium’s best sales pitch will more naturally fit with Mainroad’s IT-centric business offerings, than with WeDo’s assurance-centred value proposition.
Again, this may be an interesting indicator of trends. Over the years there have been many arguments about how to organize and coordinate various risk and control silos, and the extent to which these silos should be kept apart. Whilst one debate focuses on the pros and cons of linking revenue assurance to fraud management, there is a second debate which revolves around the relationship between fraud management and security. If spending on security rises, it becomes natural to order these debates so that a telco first decides if it will handle fraud management as a component of an overall security strategy. And if fraud is treated as a subset of security, this will have a knock-on impact on how the telco will divide responsibilities and coordinate work between its fraud management and revenue assurance teams.
For several years WeDo have explained their suite of products by reference to the umbrella concept of business assurance. Rising expenditure on security may create opportunities, but also challenges for WeDo and their rivals. Security is not amongst their core strengths, though the risk mitigation provided by their products has some overlap with the goals of security. And in the context of security, customers will be less forgiving towards any supplier who over-promises and under-delivers. Like telcos, suppliers will also need to develop a more sophisticated and consistent understanding of the telecoms risk universe, the relationships that exist within it, and which elements they are competent to deal with. In that respect, WeDo already does a better job than some of their peers. Having sister companies will help WeDo to perform a balancing act between refusing to do work outside their range of competence, whilst still being able to satisfy customers and draw incremental revenues into their corporate group. Rival vendors should consider the extent to which they have formal and informal partnerships that would help them to connect their areas of proficiency to other parts of a holistic risk universe.
cVidya, the Israeli revenue assurance vendor, has announced their software will ‘support’ Hadoop, the open source technology for processing very large data sets across a distributed environment. You can read the press release here.
This is a very smart move by cVidya. cVidya’s core competence lies in skilfully presenting end users with conclusions drawn from data. Hadoop is a genuine Big Data technology which can greatly expand the volume of data which can be usefully accessed, whilst also lowering the cost of storing that data. By integrating with Hadoop, cVidya’s tools will sit atop a mature and powerful open source technology in order to deliver far superior results to their customers, without needing to make much change to their proprietary software. The press release states that cVidya’s software will be able to interface with a customer’s existing Hadoop solution. Alternatively, cVidya say they can provide customers with the hardware and software to implement Hadoop.
cVidya CEO Alon Aginsky is quoted as saying:
For once, talkRA can find no fault with the words of Aginsky. This development suggests cVidya’s management may finally be grappling with the strategic weaknesses that have seen them lagging competitors in recent years, after once claiming to have the leading market share for RA and FMS. In the past, cVidya CTO Gadi Solotorevsky advocated that business assurance departments should fight the rise of Big Data, taking a purist approach towards maintaining and controlling their own unique data repositories, even if this resulted in higher costs and duplication of effort within the business. By adopting Hadoop, it seems cVidya has realized there is a better way forward. Hadoop will see business assurance analysts working with the same data as used by the rest of the business. Those analysts will have much freer reign to tackle a broader scope of challenges. At the same time, cVidya’s software is more likely to attract the attention of telco staff working in other parts of the business. So this new, more open approach, is actually in cVidya’s best interests, despite their previous encouragement of empire-building within business assurance departments. Saying business assurance should be located in silos, surrounded by thick walls, was never going to be more than a tactic to increase sales, by providing those silos with data and technology that was separated from the rest of the business. It fell short of being a proper strategy, because it set endemic limits on what could be achieved. Those limits were not just felt by the departments that followed the advice, but ultimately they were felt by cVidya, as limits on what they could sell.
Big Data inevitably tears down walls within organizations, and opens up former silos. It looks as though cVidya has also come to that realization, and they will seek to harness the potential on behalf of their customers, and for their own business.
WeDo, vendors of business assurance software, have sold their Praesidium consulting unit to Mainroad, providers of managed IT and various continuity and security-related services. Mainroad’s press release can be found here.
WeDo and Mainroad are sister companies within the Portuguese Sonae group, so this move is more like an internal transfer than a conventional trade sale. WeDo CEO Rui Paiva also sits on the board of Mainroad. Nevertheless, no price was disclosed for the deal, a fact which was also picked up by Computerworld.com.pt. It is not known if the deal had any impact on WeDo’s reported 12% rise in revenues during FY13, though it would be reasonable to assume, based on the date of the announcement, that the transaction occurred after the FY13 year end. This still leaves an open question about how much Praesidium contributed to WeDo’s 2013 revenues, and if WeDo has any plans to compensate for the drop in revenues by building up or acquiring a replacement team of consultants.
Praesidium is now described as the ‘Information Security Division’ of Mainroad. WeDo originally acquired British-based Praesidium in 2007, also for an undisclosed sum. The transfer suggests that the core technical strengths of Praesidium’s consultants are best focused on giving advice about information security and business continuity. When Praesidium was a unit of WeDo, their consulting skills most naturally complemented WeDo’s product suite within the domain of fraud management and related risks.
On a final note, I want to apologize to readers for being unusually slow to report this story. The announcement was made in February, during the run-up to Mobile World Congress. It is unclear if the announcement was timed so Mainroad could feed into the usual pre-MWC rush of press releases, or whether the publicity was intentionally muted, to avoid drawing attention to the fact that WeDo has seemingly exited the consulting market. Either way, I failed to notice. I will follow-up, and report more as I learn more, but I did not want to further delay the sharing of this information. Though Praesidium is small, I believe this deal merits the attention of talkRA readers. Firstly, this may be another sign of declining demand for consultants working in the fields of revenue assurance and fraud management. Secondly, it reiterates a trend that some skills and services previously drawn into the scope of revenue assurance and fraud management may find a better home when teamed up with security and business continuity. Both of these observations are relevant to practitioners working in the field. They should be kept in mind when contemplating the pros and cons of a job in consulting versus being employed by a telco, and also when considering where certain jobs belong in the telco’s org chart. If I learn more about the motivation behind Praesidium’s transfer, I will pass it on.
Dan Baker of the Technology Research Institute (TRI) and Black Swan has published a comprehensive new report into Telecom Analytics and Big Data Solutions. The report covers 42 different vendors, clarifying the variety of products and services on offer. Dan sidesteps the problems caused when words like ‘analytics’ are overused, breaking the market down into coherent sub-markets, and explaining the differences between each vendor’s offerings. In an excellent interview for B/OSS World, Dan also points out what telcos have in common, not least that:
The report can be purchased from here.