Enter Calero: New Competition for the Telecom Expense Management and Managed Mobility Services Markets
Today Clearlake Capital Group, L.P. announced the formation of Calero Software, LLC – a new provider of communications management software and related services to global enterprises. Calero is the combined businesses of Veramark Technologies, Inc., PINNACLE and Movero.
The company provides communications expense management, managed mobility services, and mobile device management products and services. All three of the combined companies are known to Gartner and the companies have been reviewed and rated in Gartner’s Magic Quadrant for Telecom Expense Management.
The formation of Calero is a welcomed infusion of capital and consolidation in a market that struggles to sell the value of its solutions with user propositions ranging from industry leading ROI to visibility and transparency of communications spend to external services to improve the management and governance of corporate liable and BYOD smartphones and tablets.
Calero will find a welcoming market for a provider that executes to achieve such value.
By Gartner’s estimate, Calero enters the market as one of the three largest companies dedicated to communications expense management. To compete more effectively, and secure its place as a market leader, Calero must:
Execute, execute, execute – The telecom expense management market suffers from significant dissatisfaction with its providers. Calero will need to work to gain the trust of large global enterprises looking to change providers. Gartner is witnessing a huge wave of large companies that are dissatisfied with their TEM providers and the migration of these big logo brands is just beginning. Gartner believes that the market is willing to pay a premium for execution and stability.
Create world class operations focused on a single platform and deep expertise – Over the past 10 years of market coverage Gartner has learned that roll-ups can buy share but that doesn’t guarantee success. Roll-up strategies that do not bring in market leading executives (in SW and Outsourcing) focused on improvements in customer experience, service delivery, service management and operations cost effectiveness are doomed to fail and become the next distressed asset and fire sale.
Become the leading Sales and Marketing and Partnering force in the industry – A persistent problem that has nagged the TEM industry is that most go-to-market strategies are fueled by half measures. Most TEM companies struggle to understand if they are a Software company or a Services company or a Business Process Outsourcing company. The answer is ‘yes’. To effectively straddle the complexity of those roles requires significant investment in sales and marketing personnel and programs…sometimes ahead of revenue. Success in TEM and MMS requires hiring sales and marketing individuals knowledgeable of communications, software and business process.
Add value to the Enterprise mobile estate – The market continues its single-minded message to BYOD and the ‘automagic’ of EMM software. However, corporate liable devices make up the majority of supported devices in the market and represent significant expense and support challenges. Enterprises require managed mobility service providers that message to, and can support, hybrid mobile governance and liability. Hosted or cloud-based EMM (e.g. MDM. MAM, PIM, MCM) is the beginning, not the end, of the Enterprise’s mobility management needs. The market is looking for partners that can provide:
- project-based business and technical consulting and advisory services relating to mobility,
- application development and testing: and,
- annuity-based contracts for forward and reverse logistics (e.g. sparing, kitting, incident management, onsite & depot repair, remote help desk and onsite “genius bars”, advanced replacement) support of their mobile estate.
The TEM market continues to do 360s and ponder its future with consolidation slowing and R&D and innovation nowhere to be seen. Calero comes to market as an integrated TEM-MMS provider that is much larger than traditional TEM providers.
This should be interesting.
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