Summary Bullets:

• ANS’ acquisition of Sci-Net Solutions expands its portfolio of value-added enterprise technology solutions in a highly competitive UK B2B market
• AI is a hook everyone latches on to – there are even products and solutions out there – but this is an acquisition of a service provider with current revenues

The ANS acquisition of Sci-Net Business Solutions is positioned as a complement to previous acquisitions such as Makutu as part of the ANS strategy to exploit and deliver the opportunities presented by artificial intelligence (AI). Sci-Net is an Oxford-based business solutions specialist with expertise in ERP, CRM, and cloud infrastructure solutions (e.g., 365 Business Central, Microsoft Dynamics NAV, CRM, and Microsoft Azure).

With ANS already having a strong relationship with Microsoft (Services Partner of the Year in 2024 and over 100 certified Microsoft specialists), the combination makes sense and grows the ANS talent base to over 750 including 65 technology consultants from Sci-Net. It offers opportunities to cross- and up-sell to the companies’ existing customer bases, and to continue to move up the value chain as a managed services provider (MSP).

The move also underlines some key trends in the UK marketplace. Competition remains fierce, so being able to act as a trusted advisor is becoming more important to win and retain business. At the same time, technology continues to become more complex, therefore offering a full portfolio of services ‘above and beyond’ connectivity is vital. MSPs and value-added resellers (VARs) recognize this and represent an ever-stronger force in the market as they can work closely with customers to develop technology solutions that directly address their business needs.

That is not to say that the ‘Big Three’ B2B service providers – BT, Vodafone, and O2 Daisy – do not also recognize this. All of them are positioning to become more solutions-oriented with a focus on areas like cloud, security and, increasingly, AI. They have the advantage of significant existing customer bases, deep human and partnership resources, strong brands, and nationwide fixed and mobile networks from which to deliver their services. By contrast, the likes of ANS and other VARs/MSPs can exploit their agility to differentiate themselves in the market.

It will continue to be a highly competitive market to win the custom of enterprises of all sizes in the UK, which is a tough challenge for all service providers. But it is good news for UK plc as businesses stand to benefit from innovation and value.

Summary Bullets:

• Sale of BT Radianz to Transaction Network Services (TNS) is the latest phase of BT ‘tidying up’ its international business as it looks to focus mainly on the UK market.

• Underlines how service providers are having to refocus their strategies from general goals to specific, achievable ambitions.

BT has announced that it is to sell its BT Radianz business, which connects financial information exchange networks and a base of brokers, institutions, exchanges, and clearing houses across capital markets worldwide, to TNS, a global provider of ultra-low-latency trading infrastructure, connectivity, and market data services.

This marks the latest step in BT’s retreat from its historic global retail ambitions as it looks to transition to focus on the UK market for business, consumer, and wholesale customers, and to evolve its international business base around its Global Fabric Network-as-a-Service (NaaS) platform.

Radianz, originally formed in 2000 as a joint venture between Reuters and Equant (the then-brand of France Telecom/Orange global business services), was sold to BT in 2005 for $175 million as part of the UK incumbent’s then ambitious global growth strategy. The company is reported to have current annual revenues of GBP142 million.

The move makes perfect sense both parties. For TNS it complements its existing core business of IaaS-based financial transactions for point-of-sale (POS) terminals, ATMs, and various other payment systems, and for BT as it continues to refocus its business towards being UK only. BT has not released details on Radianz’s revenues or profitability, but it is clear that Radianz is no longer a core proposition and does not obviously fit inside the new BT International’s stated go-to-market strategy. The deal also releases further valuable capital for BT Group to invest in UK infrastructure and deal with other corporate challenges facing the provider.

Outside the UK, BT now only has its BT International division which essentially operates as an arm’s-length business unit. BT is in the process of figuring out how best to use its BT Fabric proposition to realize some return on its investment in what is largely regarded as a cutting-edge international NaaS platform. To date, the asset shedding has been more decisive and clearer than the future of BT International – but that must surely come soon.

The move also underlines the changing nature of telecoms service provider global strategies. Many are withdrawing in part or in whole, or focusing on niche markets where they have a clear advantage (e.g., T-Systems). Others continue to look to serve multinational and enterprise clients across borders with both connectivity and value-added services like cybersecurity (e.g., Orange Business and Telefónica). Then you have the likes of NTT DATA, looking to offer the full stack from telecoms and data center infrastructure to systems integration. The main point is that service providers are choosing their strategic focus and looking deliver on it.

Summary Bullets:

• Comcast has nearly doubled the energy efficiency of its network ahead of its 2030 target while also carrying 76% more data.
• Other examples of greater energy efficiency through new technology include BT Global Fabric, where the replacement of legacy platforms will see a 79% energy consumption reduction.

Comcast announced that it is near to reaching its goal of doubling its network energy efficiency ahead of its 2030 target, stating that it is “delivering dramatically more data at faster speeds and greater reliability at the highest quality for our customers, all while conserving the amount of energy needed to power our network.”

Comcast reported that it has achieved an 11% reduction in energy usage between 2019 and 2024, while at the same time carrying 76% more traffic over the same period as all customer segments use their connections for applications and services needing higher bandwidths – ranging from streaming videos to unified communications. As a result, the energy savings combined with network growth have delivered a 49% reduction in electricity per consumer byte since 2019 (from 18.4 kWh [kilowatt hour] per Terabyte to 9.3 kWh in 2024). Like many others, Comcast has noted both the increase in data as a result of the artificial intelligence (AI) revolution as well as its potential to optimize network performance, including enhanced monitoring/network diagnostics, and optimization.

The other trend driving improved sustainability and efficiency in networks is the latest generation of equipment, with decommissioned legacy technology having been far less efficient. GlobalData analysis has found that replacing copper lines with fiber can be up to 85% more efficient, and power-saving measures using AI can lead to energy savings of up to 40%.

Another notable example is BT’s move to the BT Global Fabric Network-as-a-Service (NaaS) platform, which replaces multiple previous technology platforms and will result in a 79% energy consumption reduction. These technology developments and evolutions are all helping to keep telecoms service providers – national and international – in the vanguard of reducing greenhouse gas (GHG) emissions. Given recent flash floods in Texas (US) and wildfires across Europe and Canada, alongside further destructive climate change impacts on society and nature, these examples of progress should be celebrated and encouraged.

Summary Bullets:

• BT, Orange, and Vodafone have launched significant multi-channel advertising campaigns targeted at the small and medium-sized business (SMB) market, underlining its importance to future growth.

• They all emphasize the evolving role of the service provider beyond connectivity, with a focus on security and digital business-enabling solutions that characterize the future of enterprise.

Traditionally, telecom companies have focused mass media advertising campaigns on the consumer market. But now major European service providers are advertising to target the enterprise market, focusing on smaller businesses (e.g., SMBs). This reflects both their strategic shift toward SMBs as offering the best potential for revenue growth, and that their portfolios of technology solutions have become far more relevant in running businesses of all sizes – the market has moved beyond connectivity.

BT Business, Orange Business, and Vodafone Business (there is a trend here in the naming conventions) have all been using adverts across TV, online, and other digital media to promote their business solutions. All their adverts cover similar messages but are also distinctive and memorable.

The BT Business campaign is based on the line ‘We’ve Got Your Back.’ It aims to “showcase BT’s support for every type of business, from the person just starting out at their kitchen table, to major multinationals and critical public services.” The focus of the campaign is to recognize that every business today is a digital business. The goal for BT is to position itself not merely as a supplier, but as a partner offering digital solutions and security alongside reliable connectivity:

BT Business campaign – screengrab

Orange Business aims to underline “the importance of network and digital integrators in the digital ecosystem.” The campaign illustrates the challenges of interconnected components in a complex digital landscape as well as underlines Orange Business’ ability to help across technology areas such as AI, IoT, connectivity, cloud, data, and cybersecurity, promoting the concept that ‘it works better when we work together.’ The campaign avoids the dullness often associated with technology by taking a comedic angle across its adverts, with the goal of making businesses think ‘maybe they should have asked Orange Business?’

Orange Business campaign – screengrab

Vodafone Business’ campaign is based on the strapline ‘Your Business Can’ (echoing Vodafone Group’s ‘Together We Can’ strapline) and is aimed at SMBs that can benefit from digital tools to help boost productivity and security. It also looks to help move the perception of Vodafone as ‘just’ a mobile company to support its strategic push into the broader business market with solutions such as cybersecurity, collaboration tools, and connectivity products.

Vodafone Business campaign – screengrab

Although adverts are often seen as ‘fluffy,’ these three campaigns absolutely underline the seriousness with which these major service providers are focused on the SMB market. Telecom companies globally have realized that the SMB market provides the best opportunity for selling additional services beyond connectivity, with the goal of adding revenues from value-added solutions, leveraging their resources to differentiate against price-focused competitors, and cementing longer-term, stronger relationships with customers. Adverts might just be seen as ‘a bit of fun,’ but this is serious stuff.

Summary Bullets:

• Vodafone Business Germany’s partnership with Envoria offers CSRD-compliant ESG reporting for enterprises as service providers continue to shift toward offering technology-enabled business solutions.

• Growing range of ESG reporting portals being made available to enterprises from telecoms services providers to meet evolving legislation and customer demand.

Vodafone Business Germany has teamed with Envoria, a sustainability reporting specialist, to help its customers meet the environmental, social, and governance (ESG) reporting requirements of the European Union Corporate Sustainability Reporting Directive (CSRD). This requires sustainability reporting by large companies and listed SMBs. Some non-EU companies also must report if they generate over EUR150 million in the European Union market. The companies must apply the rules for the first time in the 2024 financial year for reports published in 2025.

The new offering, ESG Navigator, aims to act as an all-in-one solution for collecting and analyzing ESG data. According to Vodafone, “companies can use the tool as a central collection point for all relevant data, bringing together sources from different locations and systems for processing and analysis.”

The tool lets customers create and export reports, including visualizations that comply with the CSRD’s predefined templates. Alongside the tool, Vodafone Germany is also offering workshops, training courses, and demos to help customers’ relevant employees to use the software correctly.

The scope of regulation both for telecoms services providers and their customers continues to grow because technology plays an ever greater role in all business and personal aspects of life, and because the technology sector as a whole is a major source of greenhouse gases – most notably this has recently been further highlighted by the impact of generative AI (GenAI) in data center usage, with both Microsoft and Google admitting the impact of heavy cloud computing usage is responsible for their net-zero targets being impacted. They are still committed to reducing their emissions, but they are going to have to be very smart and innovative to meet their goals. This also impacts enterprises along the supply chain as part of Scope 3 emissions targets – which are tougher than Scopes 1 and 2 where companies have greater direct control.

Failure to comply with the EU’s goals, or goals set by corporations themselves, will potentially attract fines by the EU (and other) regulators. Other potential negative impacts include corporate reputation and a growing number of customers and consumers choosing only to deal with enterprises that they perceive to be responsible. This is particularly true in Germany where the Green Party (even though its vote share in the recent European Parliament election fell to 12%, it is indicative of substantial environmental concerns in the country).

Offering solutions like these also makes commercial sense for telecom services providers targeting the enterprise market. As noted in GlobalData’s recent quarterly SMB Watch report, there is a continued movement away from selling connectivity products to selling services that have tangible positive business impacts. These are largely focused on productivity and security, but increasingly include sustainability – and they will embrace GenAI over time too.