Telecom providers and tech firms see significant opportunities in mobile security, according to a report released today by KPMG International. But success in this emerging market sector will depend on organizations building and leveraging consumer trust.
“Demand is running high for mobile security products and solutions within both the consumer and the enterprise markets,” noted Sanjaya Krishna, Digital Risk Consulting leader with KPMG in the US. “Our report shows that mobile operators and tech firms stand to gain significant new revenue opportunities by leveraging their unique position within the market to create, deploy and manage mobile security services.”
Based on research conducted by Forrester Research and the experience of leaders within KPMG’s Global Technology, Media & Telecommunications practice, the report, Mobile Security: from Risk to Revenue identifies a number of emerging and nascent opportunities where telecom and technology organizations are particularly well-positioned to achieve growth from mobile security.
For example, mobile operators and carriers could focus on delivering personal ‘trust’ services to consumers such as personal fraud watches and management, application risk management services, or other services such as identity management, loyalty program management or privacy monitoring. The report shows that some mobile carriers and operators are already focused on leveraging their position within the network to deliver services such as traffic filtering and performance monitoring as well as app store management and secure cloud storage.
According to the KPMG report, telcos and tech firms will need to rethink their value proposition and redefine their relationships with their customers to truly capitalize on this new market.
“Mobile operators and carriers are already in a unique position to provide a broad range of mobile services but they will need to migrate to a user-oriented mindset and focus on the whole end-to-end customer experience,” said Greg Bell with KPMG in the US. “Essentially, the emerging mobile security market will offer telecom players an opportunity to move up the value chain and away from the parts of the business that are rapidly becoming commoditized.”
Similarly, the report finds that while the security and privacy market is still nascent, a number of innovative security technologies and services have been rapidly emerging from technology firms and service providers in the mobile space. Some are looking to leverage their data and access to customer information to develop location-based security services and hardware-assisted security assurance technologies. Others are focused on the enterprise market by offering new solutions such as enterprise-integration-as-a-service or device and application virtualization technologies.
“Mobile has emerged as a veritable hothouse for technology innovation,” said Mr. Krishna. “In part, the increase in activity is because there is now a fairly level playing field where small and nimble boutique tech firms that have an interesting technology alternative to offer can compete head-to-head with more established players or partner with telcos and corporates to create niche solutions.”
The report notes that the ability to build and leverage trust in the market will be the key success factor for those seeking to capitalize on new opportunities in mobile security. But it will take more than a clean bill of health; players in this space will also need to be open and transparent with their customers in order to foster a stronger and more trusting relationship.
“Trust has become the byword of the mobile era; consumers need to trust that their data and information is being kept securely when using mobile devices and services, while corporations need to trust that their service providers, technology environments and employees are adhering to their security protocols,” added Mr. Bell. “The bottom line for telcos and tech firms is that – unless your customers trust that you will not share their data with third parties or lose their data – there will simply not be a market for mobile services.”
Partnerships, in particular, will be critical. “Like it or not, neither telecom nor technology companies can (at this point) deliver a full range of end-to-end solutions without developing mutual partnerships with clients, service providers and even each other,” noted Graeme Ross, Global Chair of KPMG’s Media and Telecommunications practice and a partner with KPMG in the UK. “In many cases, the success of partnerships will depend on how they are structured and how the resulting customer data is shared.”
About the report
Mobile Security: from Risk to Revenue was developed in partnership with Forrester Research. Analysis was provided by KPMG’s Global TMT practice, which examined the current mobile security market and some of the key indicators of future success in the sector to identify and define new opportunities for telecom and technology organizations. Analysis and commentary was provided by leaders from KPMG in the US, the UK, Germany and Australia, as well as interviews with business leaders from US-based communications provider AT&T and UK-based Sophos, a mobile security technology developer and provider.
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About KPMG International
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 156 countries and have 152,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.