The document provides an overview of the global telecom industry in 2023, including: - Challenges like geopolitical tensions, inflation, and economic uncertainty. - The industry is recovering from stagnation through vertical plays like data centers and horizontal plays like utilities. Organic growth strategies include 5G, IoT, and edge computing. - In Australia, the industry follows a four pillar model of Telstra, Optus, TPG, and NBN. Key players are decentralizing assets and spending is shifting to cloud, software, and digital transformation to enable new services and revenue streams in areas like IT.

1. 1
GLOBAL SATE OF TELECOM INDUSTRY- 2023

2. 2
Agenda
Disclaimer: This presentation acknowledges and gives credit to the work of others. Necessary validation have been taken to
avoid copyright infringement. Any instances that violate terms can be removed when notified. All discussed thoughts &
opinions are my own & not that of my employer or other parties.
§ Global Challenges - 2023
§ GFC to GIC 2023
§ Why Inflation is Rising
§ Telecom Industry - 2023
§ Performance, Growth Strategy – Organic vs Inorganic
§ Todays State and Building Blocks, Future Network
§ Telecom Industry - Australia
§ Adopting the Four Pillar Model
§ Inorganic Growth - Decentralise
§ Australia – Future Spend Profile, IT Services Opportunity
§ Summary
§ Appendix
§ IT Trends -2023
§ 5G, SD WAN – Growth Area, AI Use Cases, Salesforce Stack for BSS, Amdocs OSS Capability View
§ Why Cloud is on Fire, Post COVID Growth Drivers and Revenue Generation

3. 3
Attribution
Licensed Under
This work is Licensed Under
No Derivative 4.0 International

4. 4
Global Challenges - 2023
Macro Economic & Geopolitics
• Geopolitical View
• Credit Suisse strategist Zoltan Pozsar, who challenges investors to think
tensions between the US (and West) and China, Russia as part of an
economic war destabilising the low-inflation world.
• His view is that low inflation has simplistically been built on three things:
• Immigration keeping wages low in the US (and in the West);
• Cheap goods from China helping to raise living standards despite
stagnant wages;
• Cheap Russian gas powering Europe & Germany
Macro View
• Russia / Ukraine War
• Recalibrating Economic Growth and Activity
• Inflation, Interest Rates, and Exchange Rates
• Consumer Purchase Power Erosion
• Energy, Commodities and Stock Market
• Quantitative Tapering and Recession Fears
• The Shrinking Labor Force, Skill Scarcity and
Hiring
• Manufacturing and Supply Chains strained
• Ongoing Pandemic Concerns
• Elections, Government Policy, Regulation
• Digital Sovereignty and Falling Globalisation
Source: AFR, Mckinsey, Gartner, Forrester

5. 5
GFC to GIC
Economic Crisis Spectrum
2008 2019
GIC
2011
unable to meet the
Demand
and
are driving
The Price Rise
Bailed out by Govt.
GFC - 2
2022
Bailed out by Govt.
Govt. Rescued
COVID driven
and addressed the
GFC - 1
PIIGS
GFC: Global Financial Crisis, GIC: Global Inflation Crisis

6. 6
GIC - 2023
Why Inflation is Rising
GFC: Global Financial Crisis, GIC: Global Inflation Crisis
• Geopolitical View
• Credit Suisse strategist Zoltan Pozsar, who challenges investors to think
tensions between the US (and West) and China, Russia as part of an
economic war destabilising the low-inflation world.
• His view is that low inflation has simplistically been built on three things:
• Immigration keeping wages low in the US (and in the West);
• Cheap goods from China helping to raise living standards despite
stagnant wages;
• Cheap Russian gas powering Europe & Germany
Macro View
• Economic Downturn
• Conflict in Europe
• Energy Scarcity
• Cyber Attacks
• Material Shortage
Source: AFR, Mckinsey, Gartner Forrester
Risk is Stagflation and Prolonged Recession

7. 7
• Telecom Industry is Capital Intensive, with high Fixed Costs. As a
result, Barriers to entry are high for new entrants. Its Business
Model is Volume centric and with minimal margins, hence relies on
Economies of scale and operational efficiency dividends.
• In the last decade Price to Earnings (P/E) ratio on average has been
less than 15 across the globe (no growth), but since the COVID
demand profile has changed and the telecom industry is recovering
from being stagnant or declining.
• Traditionally Telecoms have sold fixed line, voice, mobile and data
as their key offerings. Today, these offerings are digitised and have
become a commodity (demand is elastic). Hence Telecoms as an
industry segment is finding it hard to survive.
• To compete with traditional and new OTT agile players, it is opting
for Vertical and Horizontal Play to generate new revenue streams.
• Vertical play is driven by moving into Datacenter, Cloud, Network
Managed Services, Mobility, M2M (IoT), Communication Services
(incl Embedded), Security, OTT (App Store Economy) and Enabling
B2B Services (Customer Care, Payments, Identity). Besides they are
offering industry specific solutions to other industries like health,
energy, education, transport, government, postal and entertainment.
• Horizontal Play is by selling utilities like gas and electricity as the
E2E value chain activities are very similar.
• Next generation of growth is anticipated from Connectivity (5x data,
from 13 to 40 devices at home), 5G & Private 5G, IoT, Network
Edge, SD-WAN, SDN, Hybrid Cloud.
Telecom Industry
State - Today
Key Message
• Industry is struggling in generating ROI
• Avg P/E < 15 (no growth)
• Digitisation of cores services has commoditised it
• Both Horizontal and Vertical Play are employed
Source: AT&T, IBM’s 2015 Scenario for Telco Industry - 2011
Horizontal
Declining
Addressable
Market
Expanding
Clash of Giants Generative Market
Market Shakeout
Survivor
Vertical Industry Structure

8. 8
Recovering Firms
-100.0
0.0
100.0
200.0
300.0
-50.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
Verizon AT&T Deutsche
Telekom
Vodafone Telefonica China
Telecom
Telstra BT Singtel NTT Teleocm
Italia
Amdocs Cisco
Market Cap (Bn.) IBL- Cash (Bn.) Brand Value in (Bn.) Rev (Bn.)
Source: Google Finance
Telecom Operators and Services - Enterprise Value vs Brand Value
• Key Message - Telecom Services Market
• Market Size: $2.9 Tn
• Growth (CAGR): (6%), Recovering since COVID
• Technology Change: High
• Life Cycle: Matured
• Regulation: Heavy
• Avg P/E < 13 (no growth), Industry is struggling in generating ROI
• Organic Growth: Both Horizontal and Vertical Play are employed
• Inorganic Growth: Adapt, Amalgamate, Acquire
• Business Environment: Challenging, hence all of them have debt
undertakings on their B/S with Verizon and AT&T having the
maximum debt on their books
• NZD and Australian Telcos are the best performing telcos across the
globe.
• AT&Ts brand equity is in –ve, Telstra and Verizon are holding and
leading the pack. Dividend
Challenging
Stock (P/E)
Op
Condition
(P/B)
Adequate
Falling Stars
Dogs
Rising Stars
Deutsche Tel
China Tel
BT
Verizon
Vodafone
Telefonica
Dividend
Growth
Undervalued
Telstra
AT&T Singtel
NTT
Tel Italia
Amdocs
CISCO
TPG
Chorus
NZD
ABB
Super Loop
Telecom Industry
Performance - 2023

9. 9
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
NBN
AT&T
Teleocm Italia
Verizon
BT
Cisco
Vodafone
Deutsche Telekom
ABB
Telstra
Singtel
Amdocs
China Telecom
Telefonica
NTT
Ericsson
EBITDA Margin
Key Message - Telecom Services Market
• Market Size: $2.9 Tn
• Growth (CAGR): (6%), Recovering since COVID
• Technology Change: High
• Life Cycle: Matured
• Regulation: Heavy
• Avg P/E < 13 (no growth), Industry is struggling in generating
ROI
• Organic Growth: Both Horizontal and Vertical Play are
employed
• Inorganic Growth: Adapt, Amalgamate, Acquire
EBITDA Margin
• NBN has the highest EBITDA Margin whereas NTT has the
least.
Volatility and Safe Heaven Stocks.
• Verizon and Telstra are the safe heaven stocks whereas NTT and
CISCO are showing challenging market conditions with high
volatility.
Telecom Industry
Performance - 2023
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
Ericsson
Verizon
Telstra
China Telecom
Singtel
Vodafone
Deutsche Telekom
BT
Amdocs
AT&T
Telefonica
NTT
Cisco
Beta

10. 10
Telecoms Growth
Inorganic Strategy Spectrum
Primarily selling assets with no
Growth or Noncomplementary to
business or to reduce Information
Asymmetry, to free up more cash or
create passive cash flow.
Ex Selling Towers
Combine with another company's
complementary assets to scale and
expand services and enhance ROCE
over WACC
Ex Selling 5G using other companies
Tower and Spectrum and in return
giving access to their Services
Telecoms Inorganic Growth Strategy Spectrum
Technology & Customer Behaviour Change is Accelerating the Evolution of Telecom Industry
Acquire
Adapt Amalgamate
Acquire a company competing in
growth areas to
Strengthen Scale & Competitiveness
Ex Buy a Cloud or DC Operator

11. 11
Telecoms Growth
Organic Play
Vertical
Service
Market
Play
Product
Renaissance
Carnage
Horizontal Growth
Revenue Play
Margin Play
Key Message
Horizontal Play
• Regulation and commodification of the retail arm of telecom operators
are forcing them to move away from vertical integration to horizontal
play.
• With the digitisation of voice, video and telecom services (less capital
intensive, low barriers to entry) industries with similar Ops value chain can
penetrate the telecom sector with ease. In order to defend and find new
revenue streams, telecoms are leveraging economies of scope and scale,
and are venturing into Horizontal segments like Utilities to grow.
• Besides telecom operators are creating a low-cost player (like a white
labelled MVNO) as a way of protecting existing revenue from
commodity players and defending the premium segment.
Vertical Play
• Vertical play is driven by moving into Datacenter, Cloud, Network
Managed Services, Mobility, M2M (IoT), Communication Services (incl
Embedded), Security, OTT (App Store Economy) and Enabling B2B
Services (Customer Care, Payments, Identity). Besides they are offering
industry specific solutions to other industries like health, energy,
education, transport, government, postal and entertainment.
• Telecom Industry is Capital Intensive, with high
Fixed Costs. As a result, Barriers to entry are high
for new entrants. Its Business Model is Volume
centric and with minimal margins, hence relies on
Economies of scale and operational efficiency
dividends.
• To compete with traditional and new agile OTT
players, it is opting for Vertical and Horizontal Play
to generate new revenue streams.

12. 12
Telecom Industry
Todays Setup - Building Blocks
Source: Vodafone
Key Message
• Vodafone’s E2E technology landscape encapsulates the building blocks
for todays Telecom set up.

13. 13
Telecom Industry
Programmable Network
Key Message
• Future of the telecom network is programmable (intelligent and smart),
enabled by SD-WAN (NFV) and Cloud.
Source: Gartner, TMForum, Forrester

14. 14
Telecom Industry
Australia - Four Pillar Model
Key Message
• In a country like Australia most industry verticals follow 3 or 4 pillar model
like Banking (CBA, NAB, ANZ, Westpac), Retail (Coles, Woolies, Aldi) or
Mining (BHP, RioTinto, Fortescue).
• Telecom Industry is also aligning towards a 4 pillar model.
• Market Size: $35 Bn
• Growth: (0.6%), Recovering since COVID
• Technology Change: High
• Life Cycle: Matured
• Regulation: Heavy
Telstra
Optus
TPG
NBN

15. 15
Telecom Industry
To Grow - Decentralise
• In a country like Australia most industry verticals follow 3 or 4 pillar model
like Banking (CBA, NAB, ANZ, Westpac), Retail (Coles, Woolies, Aldi), or
Mining (BHP, RioTinto, Fortescue).
• Telecom Industry is also aligning towards a 4 pillar model.
• Besides, key players are opting for decentralisation to grow and find new
revenue streams.
• Market Size: $35 Bn
• Growth: (0.6%), Recovering since COVID
• Technology Change: High
• Life Cycle: Matured
• Regulation: Heavy
Monolithic Telecom Structure
Towers
Co
Net
Co
Services
Co
Digital
Co
Fintech
Co
Decentralised Telecom Structure
Reduce Information Asymmetry
Monetise and increase the utilisation of
Passive Assets
Free up cash for growth in Digital
and enable Horizontal Play
Telstra
Optus
TPG
NBN
Australian Telcos Four Pillar Model
Source: IBIS, NBN Co, AFR, Gov.au, TMForum

16. 16
Telecom - Australia
Future Spend Profile - 2023
Dividend
Low
P/E
P/B
High
Dogs
TPG
Rising Stars
Telstra
Falling Stars
Growth
Recovering Firms
Optus
Chorus NZD
NBN (pvt) ?
Telecom Opportunity – Key Trends
• Telecom industry across the globe is recovering from being in decline or
stagnant in the last 5-10 years. This recovery is driven by the change in
demand profile because of COVID.
• Since early 2020 demand for digital enabled services like self serve, self care,
mobile first, remote work and collaboration has grown by 3-5 times. This
has resulted in a spurt in demand for data (x3), high speed internet and
mobility.
• Industry's focus has shifted from Revenue Generation to Revenue Protection
and Generation. The Customer engagement has shifted to non negotiable
CX (intuitive and simplicity), Resiliency and Stickiness.
• Fulfillment of this demand is enabled by accelerating digital transformation
(simplify offerings and services) across the business.
• Industry is rapidly adopting technology enablers like Cloud, AI/ML, 5G,
IoT, Security, Platform (API) and SD-WAN to fulfil the growing and elastic
demand.
In Australia
• Optus & TPG are going through Transformation (rise in CAPEX & OPEX),
Telstra is at the tail end of Transformation and is heading for Growth
(CAPEX & optimised OPEX), NBN Co being a private entity has information
asymmetry, currently it is going through a nation building transformation
by upgrading the network (CAPEX centric, rise in OPEX).
Network Spend
• Spending is shifting from Core & RAN into the Cloud.
• From H/W centric & E2E services from NEPS to fragmented spending on
S/W, Integration and Orchestration
• Passive Network - Selling Towers & then leasing them back (Airlines Model)
• Network Realisation – bring together all in one new core network
People Spend - is Declining
• no insourcing, hiring is for IT only, rise in Automation & Integration.
IT Spend
• SAAS instead of a license, Public Cloud for IT and Private Cloud for
Networks. Cloud Migration for Agility & Savings 10-20%.
• With Open API Architecture less spending on people, more on Integration.
Other Spending Growth Areas
• Network as a Servicing (slicing), Edge
• Recovering Firms have growth potential but their
operation needs transformation to spur that growth.
Often these firms are undervalued.
• Firms in the Dogs domain have minimal growth
potential and their current state of operation needs an
uplift.
• Rising Star Firms have growth potential and
operations are performing quite well. Source: Tmforum, Gartner, Mckinsey, BCG, Forrester NBN Co, AFR,
ABB
Super Loop

17. 17
Telecom - Australia
IT Opportunity - 2023
Opportunity for IT Services
• COVID has created the pent up demand for vertical & bespoke solutions
because of a change in working culture.
• Data growth and the need for boundary less information means back end
assets need to be transformed for information manageability & flexibility.
• Rollout of 5G for next gen services will increase the software spend by around
38% by 2026 (AI and Cloud are focus areas for new deployment & use cases).
• BSS like Payroll, HR & BI are driving the digital transformation as the
solutions from Workday, Twilio, Salesforce (Slack) and others are hosted in
Cloud, providing agility and scale on demand. These systems are an easy sell
(shorter sales cycle) because they have minimal dependency on core IT systems.
• OSS’s are primarily on premise COTS or hosted in a private cloud. These
systems are not an easy sell (longer sales cycle) as they have a lot of linkages
and dependencies, including legacy integration in some cases. Ex Amdocs
core operational support systems (leader) are still lagging in Cloud 3.0
(composable) adoption. Their 1st billing system in a cloud (private) was recently
rolled out in North America.
IT Spend Profile
• Customer Centric BSS – Increase by 5-7%
• Omnichannel sales & ordering (salesforce), CRM - (salesforce)
• Revenue Management (billing, rating, charging)
• OSS Service Fulfilment – Increase by 5-6%
• OM (Amdocs), Service Orchestration,
• Prod/Service Asset Catalog, Planning and Optimisation,
• Activation and Management
• OSS Service Assurance - Increase by 5-6%
• Assurance Data Analytics
• Performance Management, Fault and Alarm Monitoring
Key Focus Areas in IT
• API and Orchestration (for Composability and Agility)
• Microservice Architecture (containers for Portability)
• ML and AI enabled S/W and H/W
• Agile - Devops, CI/CD (Agility, MVP)
• Data Analytics focused closed loops (Intelligence)
• Cloud Native Apps and Migration to Cloud (Agility and Savings)
• Mapping of Tech Spend and Technology gives
a good view of IT spend in 2022
New
OPEX
Spend
CAPEX
CX, AI
Automation,
B2B Platforms
Regulatory &
Compliance,
Cyber Security
BPM/O
Existing Technology
Collaboration
Digitisation of CX
New B2B & B2C
Services
Streamline IT
Cloud Migration
App Upgrades
Agile Delivery,
Devops, CI/CD
SD WAN, NAAS,
5G, IoT, Edge,
Cloud Native
Source: Tmforum, Gartner, Mckinsey, BCG, Forrester NBN Co, AFR,

18. 18
Summary
Telecom Industry - 2023
• Telecom industry with a market size of $2.9 Tn has grown (CAGR) by 6% across the
globe.
• Business environment is challenging with rising inflation and muted customer
demand.
• Telcos are exploring both organic and inorganic growth.
• Key Ares for growth are Connectivity (5x data, from 13 to 40 devices at home), 5G &
Private 5G, IoT, Network Edge, SD-WAN, SDN, and Hybrid Cloud.

19. 19
IT Trends -2023
Macro View & Spend Profile
Inflation and USD
• Inflation and a steep rise in IR have impacted the middle class across the globe with minimal cash to spend. Softening of
economies is happening now and in within 1-2 quarters rates will move downwards
• The rise in inflation and IR has helped the USD rise and impacted Software Products, Services including Cloud and Devices
(mostly priced in USD) pricing and impacted the purchasing power of enterprises in other parts of the world.
IT Spend (Run, Build, Design, Support)
• IAAS is rising by > 35% with a rise in Cloud and Digitisation .
• Cloud juggernaut is heading for more growth.
• Design (incl. consulting) and Build are part of a healthy increase in IT spending.
• Support Services spend is declining
Verticals
• Online Entertainment & Gaming, Healthcare Insurance, and Hospitals are attracting top dollars for IT and Digitisation.
• Air, Agriculture, Rail and Telecom are on the lower end of the spending profile.
Enterprise vs Consumer
• When it comes to IT spending Enterprises are less impacted as compared to consumers because enterprise spending is moving
away from ownership to leasing or usage-based
Digital Transformation
• IT is moving from a cost centre to revenue generation.
• Digitisation is forcing enterprises' infrastructure to be resilient, driven by AI Augmented testing, Auto remediation, and Apps
Security to mitigate Op risks and enhance CX. Key Deliverables are Security, Scalability, and Stability for Revenue Generation.
Source: AFR, Mckinsey, Gartner, Forrester
• Key Message - IT Services and Software Market
• Market Size: $2.3 Tn
• Growth: (8-10%)
• CAGR Average Spend: 7%
• Technology Change: High
• Life Cycle: Matured
• Regulation: Medium - Low
• Business Environment: High Risk

20. 20
5G Rollout
Challenges in Scaling up
Key Message
• Confidence in the technology is high, but less clear is whether and how soon
it can fuel new products and services that customers are willing to pay for.
Challenges:
• Spectrum availability issues and national policies
• ROI on 5G is not clear
• Confusing range of technology variations and various deployment scenarios.
• Coverage & rollout schedule varies by country and operators
• Changing Regulation
Devices &
Things
Connectivity
Edge
Computing
5G Core
Content, Apps &
Cloud service
5G Platform
Orchestration and Automation
Source: Gartner, TMForum, Forrester

21. 21
Private – 5G
Telcos – Engagement Model
Key Message
• Private 5G is about transforming business operations and driving new revenue opportunities via the application layer.
• Telcos are adopting different engagement & deployment models for Private 5G.
o Increase in the footprint across the engagement value chain leads to an increase in the complexity but reduces time to market
o Jio in India is heading for end to end value chain control
• Ecosystem is getting more complex as partners are also competitors.
Source: Gartner, TMForum, Forrester, STL
Key Challenges
• Enterprise requirements are not articulated well – telcos primarily play in
horizontal segment; vertical play is new for them.
• Complex technology and ecosystem with minimal returns esp. in the
connectivity is a big risk.
Time
to
Market

22. 22
Telco Cloud Adoption
Engagement Model
Key Message
• Private 5G is about transforming business operations and driving new revenue opportunities via the application layer.
• Telcos are adopting different engagement & deployment models for Private 5G.
o Increase in the footprint across the engagement value chain leads to an increase in the complexity but reduces time to market
o Jio in India is heading for end to end value chain control
• Ecosystem is getting more complex as partners are also competitors.
Source: Gartner, TMForum, Forrester, STL
Key Challenges
• Enterprise requirements are not articulated well – telcos primarily play in
horizontal segment; vertical play is new for them.
• Complex technology and ecosystem with minimal returns esp. in the
connectivity is a big risk.
Time
to
Market

23. 23
Edge on Cloud
Revenue Model
Key Message
• Edge Computing is a decentralised mechanism done at the edge of the network, close to
the data source, as opposed to on the cloud or away in data servers. With the rise of the
Internet of Things (IoT) devices more and more smart devices connect to the network, hence
businesses are facing demanding and diverse data challenges.
Key Strategies are
• Retail – Sell directly to Enterprise
• Retail – Sell via Partners like HPS
• Wholesale - become Wholesale provider
Source: Gartner, Forrester, TM Forum, STL,
Transport
Access
Network
Access Point
Enterprise
End Device
Internet
Exchange
Core
Network
Value
Chain
Edge
Continuum
Type
of
Edge
Computing
Technology
Assets and
Locations
Device
Edge
On Premise
Edge
Network Edge
(Edge Apps, Core Network, RAN)
Regional
Edge
Edge Computing
Internet
HPS
Cloud
Telecom Edge Computing
Multi Access (Mobile/Fixed) Edge Computing
Network Edge
On Premise Edge Computing
Sensor,
Robot, Drone
Street Lamp
IoT Gateway,
Server
Retail Factory
CPE, Set Top
Box, Sim
Gateway
Micro/Macro
Cell
Central
Office
CDN,
Central
Office
CDN, Internet
Exchange
City
CDN,
Data Centre
Private LTE/5G Network
Single Tenant Single /Multi Tenant
Single Tenant Multi Tenant
Tenancy
Cloud Type
Likely
PAAS
PAAS/
SAAS
IAAS
IAAS
SAAS/IAAS
Revenue
Model
Consumption Based - IAAS like AWS Wavelength Azure Edge, PAAS like Force.com, SAAS, HAAS (OPEX centric) like HPE GreenLake, CDN
Other - License Based (not in demand), Managed Services (Availability, Security, Responsiveness), Co Location

24. 24
Managed
Service
Overlay
Connectivity
Access
Telecom
Wholesaler
Telecom
Operator
Telecom
RSPs
OTT/IT
Service
Providers
Tier 2 Network
Operators
Tier 3 RSP
OTT MNS
Providers
Tier 1
Wholesale
SD WAN
Growth Area
Key Message
• Traditional Managed Services have more activity but declining spending whereas WAN
Managed services are transitioning from traditional delivery to Software Defined (#SDWAN).
• SD WAN is a growth area for telecom players as it is tipped to grow by 40%
driven by demand for 5G, Distributed Cloud, IoT, Edge, AI/ML and others
• Competition is aggressive because of the entry of Tier 3 and OTT players. At Access Level
(Layer 1) battle is competitive between Enterprise Ethernet, G.fast driven FTTP and high speed
FTTP. SD WAN provides stickiness to the provider.
Source: ITnews, TMForum, AFR, Gartner, Forrester
SD WAN Building Blocks
• Orchestration
• Application Awareness
• Intelligent Routing
• Flexible and Hybrid Network
• NFV
• Security
SD WAN Bare Bone Working
Telstra – FY 22 Results
The Data & Connectivity
outlook remains challenged
with competitive pressures,
especially nbn’s release of more
fibre business zones. In
addition, customers are using
SDWAN and internet as an
alternative to private dedicated
connectivity, especially for
smaller locations.

25. 25 Source: Tmforum.com Oracle
Telecom
AI Use Cases

26. 26
Source: SalesforceBen.com
Salesforce (BSS)
Product Under The Hood
• BSS like Payroll, HR & BI are driving the digital transformation as the solutions from
Workday, Twilio, Salesforce (Slack) and others are hosted in Cloud, providing agility
and scale on demand. These systems are an easy sell (shorter sales cycle) because they
have minimal dependency on core IT systems.
• Their sales positioning is about Revenue Generation, Agility to market and CX.
• The Salesforce Cloud offering has come a long way and with a Composable API-
centric SaaS platform for sales and marketing, it's enabling the digital transformation

27. 27
Amdocs (OSS)
Product Capability View
• Amdocs offering in BSS with Digital Play is about Vertical Integration of its assets and
positioning it as a telco in a box solution.
• Their Cloud adoption needs to pick up the pace as they are still lagging in Cloud 3.0
(composable) adoption. Their 1st billing system in a cloud (private) was recently
rolled out in North America.
• OSS’s are primarily on premise COTS or hosted in a private cloud. These systems are
not an easy sell (longer sales cycle) as they have a lot of linkages and dependencies,
including legacy integration in some cases. Since they are OPEX centric, their sales
positioning is about Price, Function and Risk Appetite.
Source: AWS, Amdocs.com

28. 28
B2B Sales
• Enable Remote and Virtual Sales
• from 10% to > 35% virtual engagement on the rise
• field sales sentiment dropped to 42% from 63%
• Enable Sales Analytical Capabilities
• focus on quality than volume of pipeline
• historical analysis is of little help
• Buyers need more help
• because they are struggling with new engagement
• need discovery and dialog from sellers
• Buyers are revising the buyers map
• catering for change in engagement model
• Buyers risk appetite has jumped from 20% to 33%
• trying new revenue generation channels
• resilience and continuity of operations driving the rollout
• ex digital workplace or securing remote working
• Marketing team is in a state of flux on how to position
• because engagement model has changed
• Sellers need to prepare demand profile and validate it with buyers
• because future is uncertain and no one knows what is ahead
• collectively walkthrough short, mid and long term needs
• get commitment to ongoing initiatives
• Domain Skills in Demand
• automation, cloud, agile delivery via Scrum and DevOps
Source: HBR, Gartner, Sales Academy, Forrester, Mckinsey, Forbes, BCG
Pre COVID
During &
Post COVID
Virtual Sales
Engagement
10%
35%
Buyers
Risk Appetite
20%
33%
Post COVID
Dynamic Demand Profile

29. 29
Existing New
Existing
Customers
New
Revenue
Milking
Pre COVID
Revenue
Expansion
Post COVID
Products
Revenue
Acceleration
&
Diversification
Post COVID
Revenue
Protection
During COVID
§ Ongoing pandemic has created challenges
for B2B Technology Growth across
industry verticals
§ By analysing customers vs products or
service offerings, technology demand
drivers can be identifies for – pre, post and
during COVID scenarios
Post COVID
B2B Tech Growth Drivers
• Primarily business driven
• Chasing sales revenue and CX enhancements
• Business owners controlled spending
• Business centric or CX centric assets transformed
with no major change in back end assets
• Cloud delivered on promise, CX partial success,
others RPA, ML, AI yet to deliver on ROI
• Primarily resilience driven
• Chasing mixture of sales & need driven revenue
• CX is non negotiable
• Fulfil pent up demand for vertical & bespoke
solutions
• Transform back end assets as need for information
manageability & flexibility grows
• New Tech Normal - Cloud becomes platform of
choice and RPA, ML, AI are revived to cater for
change in demand profile
• Primarily tactical driven
• Chasing need driven sales revenue and CX
• Controlled Cost & Cash Conserved
• Not sure to be innovative or pay the bills
• Building pent up demand for vertical &
bespoke solutions
• Information harness is required
• RPA, ML, AI on backburner for next half
Source: Gartner, HBR, Sales Academy, Forrester, Mckinsey, Ansoff Matrix
Pre
COVID
During
COVID
Post
COVID

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Software
Assets
Infrastructure
Assets
Virtual
Physical
Demand Centric
Fulfillment Centric
Security
Overlay
IT
Assets
Setup
Digital 1.0
Digital 1.0
Digital 2.0
Digital 2.0
Pre COVID
Digital 1.0
Digital 2.0
Digital 2.0
• Primarily business driven, business owners controlled spending
• Demand centric or CX centric assets transformed with no major
change in Fulfilment assets
• Cloud delivered on promise, CX with partial success, others like
RPA, ML, AI yet to deliver on ROI
• Overall IT spend is in decline by 5-7% FY20 & 1H FY21, however
digital and cloud spend is on the rise, driven primarily by Resilience,
ex. JIT supply chain is adapting to Resilience during pandemic
• Standardised Demand Centric Assets consulting and rollout is
growing underpinned by the rise in digital channels for revenue
generation
• Transformation for Fulfilment Assets are on the rise as the need for
information harnessing, manageability & flexibility grows
• New Tech Normal - Cloud becomes a platform of choice,
Optimisation of business process and hybrid workloads on the rise
via automation for OPEX relief, RPA, ML, AI are revived to fulfil the
change in demand profile
• Infrastructure and services outsourcing on the decline
• Concern for Remote Working & IT Assets security driving the rise in
ringfencing
• Fulfil the tactical demand during pandemic and the pent up demand
Post COVID for vertical & bespoke (expensive) solutions
During &
Post COVID
Digital 2.0
Source: Gartner, BCG, HBR, Sales Academy, Forrester, Mckinsey
Post COVID
Digital and Cloud is on Fire
• Digitisation and Personalisation is driving the
Consumerisation of IT (app, services on demand),
which is driving cloud adoption Post-COVID.
• Since Cloud is an enabler of consumerisation, hence
IT spending on the Cloud is in demand.

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Low High
Low
Digital
Operations
High
Growth
New Rev,
Existing Model
Digital Value
Transformation
New Rev,
New Model
Post COVID Key Drivers for Digital Acceleration
• Efficiency
• Staff Performance and Employee Engagement
• Liquidity
• Costs aligned to growth
Key Digital Trends
• Process Mining
• Discovery, Conformance, Enhancement
• RPA
• From Efficiency Compliance, Productivity Cost Reduction
• Moving to Hyper automation, OCR, ML
• Artificial Intelligence
• Analytics
• Digital Acceleration is about transforming the business not just
restructuring and opening some new channels for revenue growth
and customer retention and acquisition
• Example
• Restructuring could be about account receivable in finance
where late payments can be predicted using ML
• Transformation could be about transforming sales activity by
predicting which prospects will pay on time
Source: Gartner, Sales Academy, Forrester, HBR, BCG
§ Ongoing pandemic has created a challenge for
organisations to fast track their digital
transformation journey as the demand profile
has changed rapidly in last 12 months.
§ Digital transformation is about moving from
demand fulfilment to demand generation of
customers
BAU
Existing Rev,
Existing Model
Restructure
Existing Rev,
New Model
Post COVID
Digital Acceleration Trend

32. 32
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