As Telit continues expanding its market footprint in managed services, they adopted an IoT solution from Tele2 IoT that incorporates high-quality managed connectivity into their global portfolio. Telit chose the Tele2 IoT service because of the company’s responsive, customer- first strategy and focus on innovation. Three years after its inception, the Telit services business unit – Telit IoT Services — is growing over 100% a year and accounted for approximately 7% of Telit’s global revenues in 2014.
Telit rises above market competition in a growing sector
Telit’s core business has been designing and manufacturing IoT modules. With 2014 global revenues of approximately USD294 million, Telit is one of the largest IoT device vendors in the world. Its products are known for their quality, innovation and value.
While its module business will continue to grow, Telit found that customers were willing to engage for a more complete solution of products and services. So in 2011, Telit created “Telit IoT Services”, a business unit focused on all the ways to add value to customers with IoT services. With several successful acquisitions, Telit expanded its portfolio to include connectivity, mobile deployment value added services and cloud-based platform solutions.
Telit correctly recognized that adding managed IoT connectivity to its offerings would allow it to sell a more complete solution to customers while also creating a source of recurring revenues. With this expanded offering, Telit established more touch-points with customers by selling more elements of the IoT value chain. Telit calls this approach, “ONE STOP ONE SHOP”.
Tele2 IoT provides the connectivity tools
Tele2 supplies the Telit services business unit with connectivity and a managed connectivity platform. Tele2 also provides Telit with enhanced roaming capabilities to ensure devices are always connected and getting the most favorable connectivity pricing.
Why Tele2 IoT?
Telit had several choices of IoT partners, but chose Tele2 for its customer-first strategy and focus on innovation. According to Gal Olshinka, COO & VP Product Management at Telit IoT services, “Tele2 is very innovative and open to looking for ways to provide better value with us.” Because the connectivity solution is managed, Telit is able to offer new services, deep integration and a high level of quality assurance. “The level of integration that Telit got from Tele2 allowed us to build additional layers of value into the Telit IoT Services solution,” states Olshinka.
Telit IoT Services services business grows over 100% per year
According to MachNation, a dedicated Internet of Things analyst rm, Telit is growing its Telit IoT Services services revenues at a rate of over 100% per year to an estimated USD20 million in 2014. This growth of services is significantly higher than the growth of its well established modules business.
Having seen the positive operational impact of adding IoT services to its module business, Telit expects to continue adding IoT features and functionality, including application support and other services to its already strong line of solutions.