Vodafone 2016 Annual Report Download - page 15

Context
a Businesses are increasingly searching for
one communications provider to supply
both xed and mobile to their workforce
a It is important for communication
service providers to offer businesses
reliable connectivity to employees,
customers and suppliers
What we’re aiming for
a We want to maintain our strong mobile
market share in enterprise, which has
been earned from our trusted brand,
global footprint and service quality
a We aim to increase our market share
in xed enterprise services, by building
on Project Spring investments
a We intend to continue to invest
in the growth areas of converged
communications, cloud & hosting
services, and the Internet of Things
Enterprise Enterprise communications is a substantial
and growing market. In a digital world,
it is vital for companies big and small
to be always connected with each other, their
customers and their suppliers. They want
to do so in a seamless, cost-effective way,
without managing multiple suppliers across
many borders. They need to have a mobile
and digital strategy: it is no longer simply
about equipping a workforce with mobile
phones. Our customers are assessing how
new services such as the Internet of Things
can enhance their customer proposition and
simplify their businesses. Plain connectivity,
whether mobile or xed, is becoming more
commoditised: enterprise communications
providers increasingly need to be experts
in a wider range of services to address these
changing needs.
Vodafone has positioned itself well
in this changing marketplace. Enterprise has
always been at the centre of our strategy,
and we continue to enjoy strong market
share in mobile enterprise across all our
major markets. Enterprise customers value
our trusted brand, network quality and
wide geographic reach, and this has been
a strong foundation on which to build our
expansion into xed-line and value-added
data and managed services. With an estimated
Enterprise market share in Europe of 33%
in mobile and only 6% in non-mobile, the long-
term growth opportunity is signicant.
Our Enterprise service revenue grew 2.1%*
to reach £10 billion in the year, or 28% of total
Group service revenue. All of our strategic
growth areas performed well, supported
by Project Spring investments. Enterprise xed
revenue grew 4.4%*, as customers increasingly
look to procure xed and mobile from a single
provider. We have substantially expanded our
international presence over the last two years:
we now offer IP-VPN services (secure private
data networks) in 70 countries, with 268 points
of presence. In Cloud & Hosting, we now have
capabilities in 12 countries. Both of these
specialisms build on our acquisition of Cable
&Wireless Worldwide in 2012.
Vodafone Global Enterprise (‘VGE’), which
serves our biggest multi-national customers,
saw revenue growth of 5.9%* in the year driven
by emerging markets. Our IoT unit achieved
service revenue growth of 29%*, with a 37%
rise in connections to 38 million. We are the
acknowledged world leading mobile provider
for IoT, in both scale and expertise, with
a global SIM available in over 200 countries,
and we are evolving our model from simple
connectivity (for example, smart meters
and vehicle tracking) to capture more of the
value chain. The acquisition of Cobra in 2014,
which now operates as Vodafone Automotive,
has signicantly extended the breadth and
value of our services in the automotive sector,
and we see similar opportunities in other
industry sectors.
Project Spring has strengthened
ourEnterprise business
Project Spring has helped scale our
converged communications offer One
Net, which is now available in 30 countries.
It has also enabled us to increase our points
of presence by 57% to 268 and double our
IP-VPN geographic coverage to 70 countries.
Internet of Things connections
million
2014
2015
2016
20.2
27.8
38.0
28%
of our service revenue is from
enterprise customers
Overview Strategy review Performance Governance Financials Additional information
Vodafone Group Plc
Annual Report 2016
13