February 3, 2017

Rapid Increases in Mobile Spending Leave Room for Strategic Savings

The Cellular Telecommunications & Internet Association lists approximately 30 US-based wireless service providers, with 93% of Americans having more than 4 wireless provider choices.  However, as studies have shown, more choice is not always a good thing.

One of the key points that Gartner highlights is the idea of carrier consolidation. This means limiting US cellular voice and data service mobile spending to one or two providers—ideally just one.  By focusing efforts on a single vendor for carrier plans, organizations can realize economies of scale and improved contract negotiations.  Unfortunately, many organizations stop their optimization efforts there, leaving a lot of money on the table.  Working with a single vendor allows organizations to achieve a clearer view of data usage and costs by device and app, and they can leverage this information to ensure a right-sized data pool.

According to the CTIA, US wireless devices are consuming 137% more data in 2015 compared to 2014, with our own research showing nearly 7x more data consumption on 4G compared to 3G.  Yet Gartner points out that US companies with 500+ employees can be spending up to 30% more than necessary for cellular voice and data services.

By separating carrier services from device purchases, organizations can look to capture additional savings on both sides of the equation. The ideal model would entail pushing the logistical mobile support on a 3rd party with the in-house skills and resources to support a full mobile deployment and replacement plan for a higher ROI; rather than relying on carrier subsidies and in-house support.

Something as prevalent as mobile devices should not be approached with a status-quo strategy.  In 2015, there were over 378 million wireless devices in the US; compare that with the US population of 320 million people.  Mobile devices are ingrained in today’s workplace and are essential in a growing percentage of roles.  When a technology becomes essential for corporate success, shouldn’t it also be a part of the IT strategic policy and held to the same level of excellence and support?

Not sure where to start?  Gartner’s paper slims it down to four key areas for you.

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