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In today’s increasingly interconnected and technologically advanced IT and telecommunications sector, almost everything revolves around data. It manifests itself in everything from studying customer behaviour and buying trends to monitoring employee performance and wellbeing.
With the relevant, high-quality data, used in real-time, companies can analyse it to gain deeper and more meaningful insights into their business and customers than they have ever been able to do before.
The end result is that they can then use that insight to drive improvement within their organisation and, ultimately, deliver a better customer experience (CX).
The biggest gamechanger in data services delivery has been the adoption of artificial intelligence (AI) and machine learning (ML). The technology enables companies to automate data management processes and, thus make them quicker, and more accurate and efficient. It also frees up managers’ and workers’ time and resources, enabling them to focus on more value-added customer services.
“AI and ML have a substantial impact on data processing, analysis and utilisation,” said Tim Hood, VP, EMEA and APAC at Hyland.
“This technology allows organisations to automate data management tasks such as data cleansing, categorisation and anomaly detection – improving efficiency and accuracy.
“In the insurance industry, for instance, AI is speeding up claims processing, improving underwriting accuracy and reducing fraud, making the overall process quicker and improving customer satisfaction.”
Sweeping benefits
The benefits of AI are far-reaching. Through ML algorithms, AI can be used to analyse large data sets, and more quickly and accurately identify patterns and insights, picking up on key customer behaviours and market trends, enabling businesses to make faster and more informed decisions.
The technology can also be used to improve data security by providing advanced threat detection and response mechanisms. By continuously monitoring for unusual activities, it can then respond to potential breaches faster than a human, thus strengthening a company’s data protection. It can also boost performance.
“AI and cloud computing significantly improve scalability and performance optimisation in data services,” said Hood. “By leveraging AI-driven resource management, organisations can efficiently allocate resources, ensuring that large-scale data operations run smoothly and cost-effectively. AI algorithms predict demand and adjust resources to match, preventing bottlenecks.
“Predictive maintenance powered by AI helps foresee and address potential system failures before they occur, reducing downtime and maintaining continuous service. This proactive approach not only ensures high performance but improves the reliability and availability of data services, enabling businesses to meet growing demands without compromising on quality.”
As well as having the capability to significantly improve network and service provision, AI can also enhance the CX. Accordingly, there has been increasing demand for differentiated and prioritised AI use cases from a wide range of enterprises with growing innovation budgets and data-driven investment strategies.
“Leveraging AI tech and tools continues to be a gamechanger for telcos and service providers – executive teams and boards are now increasingly willing and ready to invest in differentiated and focused solutions that will drive sustainable growth for their businesses and the telecoms/IT channel provide the network and platform enablers for this,” said Dhana Doobay, telecoms partner, Spencer West.
“That said, data-based models require a shift in internal culture, customer mindset and often employee base too – which can be a big ask, particularly for established providers.
“[The] opportunities [for AI] appear endless. AI is an enabler, driving efficiencies and productivity by allowing more effective internal decision-making, as well as enhancing customer interfaces and experiences through exploiting the value of advanced analytics to context-based personalisation and marketing for customers.”
Human intervention
Despite the clear advantages that AI brings, however, it’s also fraught with challenges. Chief among them is the constant need for human intervention and management of the technology.
Doobay said, “AI-driven growth is an iterative process and relies on human engagement and investment to evolve into a useful tool. Responsible AI, where systems and tools which do not promote unconscious or conscious bias, is a must too, with particular focus on controlling the datasets/governance processes in relation to high-risk systems and tools.
“For successful implementation of AI, there also needs to be an internal mindset/cultural shift towards embracing a data-driven approach involving experimentation and testing, and which could involve expansion of the existing talent pool to bring in data scientists/AI experts, as well as the necessary investment in internal governance and learning.
“Additionally, stakeholder engagement will be crucial to internal acceptance/integration of AI tools/tech and development of external customer strategies.”
Analytics and insights
There has also been a move towards the greater provision of data analytics and insight within the Channel. Used in combination with AI, it can drive better CX and outcomes.
Justin Hamilton Martin, director of product strategy at Enreach for Service Providers, said, “If we rewind the clock, we used to talk about connectivity and bandwidth, then, more recently, the focus shifted to the content being delivered. Now, the industry has moved into the analytics of that content.
“So, what we’re looking for is all about taking the data to drive analytics and embracing AI to automate. This will, in turn, help better customer experience and deliver productivity enhancements. Small gains in the CX or team productivity soon add up, leading to improved staff engagement and use of peoples’ time.
“For instance, having an AI-driven transcript of a customer phone call automatically dropped into the CRM record saves a lot of time for the user and is also a service for which the Channel can charge because it has a clear value-add.”
Jonathan Wright, director of products and operations at GCX, said, “The boom in connected devices is generating masses of data. However, businesses require AI and advanced analytics capabilities to unlock their value.
“Configurable data platforms, like Power BI or Tableau, have accelerated the ability to generate actionable insights, but the next wave of growth will come from this data being used to automate diverse tasks across industries, from optimising production lines to managing pool chlorine levels to regulating motorway traffic.”
Andy Readman, senior manager of strategic consulting at Pax8, said, “AI boosts predictive capabilities, allowing businesses to anticipate future trends and behaviours. Real-time analytics powered by AI provide immediate insights, which are invaluable for quick decision-making. Moreover, cloud technologies support the development of scalable data solutions, catering to growing data needs.”
Mirroring this, there has been a marked move towards cloud-native solutions over the last 12 months. Unlike traditional cloud-enabled systems, cloud-native platforms are built specifically for the cloud, offering better scalability, reliability and cost-efficiency.
“This technology is a game changer for organisations that manage large volumes of data day-to-day,” said Hyland’s Hood. “Cloud-native solutions also integrate seamlessly with emerging technologies. By removing barriers for the adoption of future technology, it provides a strong foundation for digital innovation.”
At the same time, the mass migration to cloud storage applications has unlocked vast amounts of data for analysis. This surge in data has only driven demand for robust data management, migration and security services.
Regulatory challenges
While data services undoubtedly provide a host of benefits for its users, they can also bring a multitude of challenges. The main one is maintaining data privacy and security, especially given the rise of cyberattacks such as ransomware.
Accordingly, companies have to adhere to the relevant regulations, most notably the General Data Protection Regulation (GDPR). But given the regular introduction of stringent new regulations and their global reach, companies have to navigate a potential minefield of data protection laws to ensure that they remain compliant. Another issue is that companies need to ensure their staff comply with the regulations.
“Data privacy and security are so important, but are also a big challenge for data service providers,” said Hood. “Whilst breaches and cyberattacks grow in frequency and complexity, organisations have to navigate the complex data privacy regulations – sometimes on an international scale, such as GDPR and CCPA.
“Compliance and adequate cybersecurity often require meticulous attention to data handling practices and rigorous auditing processes, which can be resource intensive.”
GCX’s Wright said, “While regulations like GDPR aren’t new, there is a heightened awareness of delivering best practices in data management and compliance. Additionally, the proliferation of raw data for analytics requires stricter compliance measures to ensure responsible data handling. As data volume and value grow, so does the risk of breaches. Robust security measures are crucial to protect businesses’ assets.
“A single security breach can completely damage reputations. MSPs must implement robust security solutions and rigorous protocols to mitigate this risk, which are continuously updated to respond to new cyber threats.”
One solution is the adoption of cloud-native security and compliance tools. By leveraging these services, data service providers can take advantage of scalable robust security solutions that are continuously updated to counter new threats.
Additionally, companies can use advanced compliance management systems to make their data services safer and more reliable, through the use of enhanced encryption, access controls and secure data sharing practices. They also ensure regulatory compliance, which has the added benefit of improving their integrity and building customer trust.
Seamless data flow
Another critical challenge for companies is integrating diverse data sources and ensuring interoperability. The issue arises from the need to align and standardise data from various formats, systems and platforms that often don’t follow set protocols, making it a long and demanding technical process, requiring robust integration frameworks and tools to ensure seamless data flow.
“To achieve optimal interoperability, organisations will need to provide regular maintenance and make ongoing updates to overcome any inconsistencies and compatibility issues,” said Hyland’s Hood. “Without effective integration, businesses will suffer from inefficiencies and data silos, which prevents comprehensive analysis and informed decision-making.”
Another problem is that many existing data services solutions used by companies still operate in silos and fail to integrate with their broader enterprise architecture. But by adopting a more holistic approach, they can make far better use of their data.
This is a prime opportunity for resellers to provide customers with data as a service and business intelligence solutions. By using the greater insights they can gain from the data, this enables companies to drive actionable outcomes.
“The demand for data services really depends on your position in the data processing chain,” said GCX’s Wright. “For example, for those with a focus on building services, installing and managing sensors is a good first step.
“The next place to look involves aggregating this data and channelling it towards a central repository, such as a data lake. MSPs can offer data infrastructure solutions, such as data warehousing and server management, ideal for storage needs.
“Added to this, industry-specific data analytics teams are emerging as a trend. These teams merge operational technology and information technology to ensure data insights reach the most relevant stakeholders across a business.”
Education and skills
Given the increasing sophistication and complexity of data services, it’s also vital that MSPs attract and retain the best people with the right data management, analysis and security skills. This can be achieved by investing in comprehensive employee training programmes to ensure that their expertise continues to meet both the company and its clients’ needs.
Data services providers also need to better educate end users, particularly those that are unsure which solutions best suit their needs. But by partnering with the right vendor that has the necessary experience and resources required to deliver the best solution, and working with other partners in the value chain to ensure all the messaging and marketing is consistently aligned, they can achieve the desired outcome for their client.
Another key opportunity is the shift to all-IP and 5G mobile connectivity. Both are already having a profound effect on demand for data services.
Gavin Jones, channel partners director, BT Wholesale, said, “As businesses move onto future-proof networks, legacy solutions can’t keep pace and provide the necessary level of capacity, speed and reliability to support the larger volumes of data business applications now produce. Channel companies have an opportunity to help customers make the transition to newer, more efficient technologies – and those that seize it will come out on top.”
He added, “Customers are looking for solutions that can best handle their data needs. Whether it’s ensuring a robust connection to collaborate in the workplace or solutions that can manage processing large amounts of data without crashing, end users are focused on reliability.
“5G standalone brings huge opportunities for the Channel and data service providers. Network slicing and massive data throughput will help them to deliver mobile connectivity for specific use cases using the same physical infrastructure. Not only will providers be able to better service customers, but they will be able to lower costs and ensure a more sustainable industry. Similarly, channel companies that capitalise on super high bandwidth solutions will be able to meet customer demand for greater speeds and high capacity.”
Tailored solutions
Channel partners should also be focused on tailoring their data services solutions to specific industry needs. By adding value in this way, they can set themselves apart from their competitors.
Spencer West’s Doobay said, “Data-centric operating models continue to be at the heart of comms and IT transformation and diversification. Inherent telco/IT advantages of rich data sets, experienced tech talent pools and scalable networks can be exploited and monetised to drive sustainable growth and maximise falling revenues.”
Pax8’s Readman said, “A strong data strategy is essential for navigating these trends, overcoming challenges and seizing market opportunities. It ensures that data service providers can offer innovative, secure and efficient solutions to meet the evolving demands of their clients.”
Moving forward, it’s clear that AI will continue to be the main driver for data services delivery in the Channel. Therefore, it’s vital MSPs, resellers, distributors and vendors stay on the cutting edge of the technology to ensure that they are consistently meeting the needs of their end users.
Hyland’s Hood said, “AI and cloud technology are not just enhancing current data service provisions – they’re paving the way for new, more efficient and highly-personalised data-driven services. Fostering innovation allows organisations to develop new services and solutions, giving them an edge in a competitive landscape.”
This market report appeared in our July 2024 print issue. You can read the magazine in full here.