With the caveat that we can always be wrong, connectivity service providers looking at 5G business-to-business revenue opportunities believe security services offer the most potential, along with the internet of things.
Those opportunities are followed by cloud computing, managed services and edge computing. Relatively few executives see as much upside for creating marketplaces or platform business models.
The issue, in nearly all cases, is cash flow: both the magnitude and the profit margin. If one assumes that core retail connectivity services can have cash flow in the 30-percent to 35-percent range, then many of the new B2B opportunities might have cash flow (EBITDA) in the 10-percent range.
In some cases, as with security, there might be only indirect cash flow implications. Where security is included as a feature of a specific service, there might be almost zero incremental direct revenue, the value coming in the form of higher revenue, higher customer accounts, lower churn or length of engagement.
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