The Total Economic Impact Of Arm Pelion Connectivity Management

Executive Summary

Arm commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Arm’s Pelion Connectivity Management. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Pelion Connectivity Management on their organizations.

Arm provides SIM cards that are able to connect to any network carrier as well as a central management platform that helps its customers build a more reliable and easier-to-manage internet-of-things (IoT) network. To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed three customers with years of experience using Pelion Connectivity Management.

Prior to using Arm Pelion Connectivity Management, the interviewed organizations purchased SIM cards and connectivity services through specific mobile network operators (MNOs), locking the organizations into using the carrier’s technology and management services. However, organizations reported that their previous solutions were expensive, unreliable, and labor-intensive to manage.

The interviewed organizations decided to deploy Pelion Connectivity Management due to Arm’s technical expertise and its ability to connect to more than one carrier; they also deployed Pelion Connectivity Management to gain more control over expenses with predictable and transparent billing practices. This resulted in significant benefits, as detailed in this case study. With Arm, organizations significantly reduced the amount of labor related to management and maintenance and saved on monthly per-SIM costs.

Forrester developed a composite organization based on data gathered from the customer interviews to reflect the total economic impact that Arm could have on an organization. The composite organization is representative of the organizations that Forrester interviewed and is used to present the aggregate financial analysis in this study. All values are reported in risk-adjusted three-year present value (PV) unless otherwise indicated.

Key Financial Findings

Quantified benefits.

The following benefits reflect the financial analysis associated with the composite organization.

› Reduced number of required site visits, saving $141,353 over three years. Organizations were no longer required to replace SIM cards when switching carriers and, through Arm’s Pelion Connectivity Management platform, were able to remotely troubleshoot issues and perform maintenance, saving a site visit for a field technician.

› Single view of entire SIM deployment, reducing management effort by 40%. Pelion Connectivity Management allowed organizations to more easily monitor and maintain their SIM networks without the need for onsite visits. Additionally, organizations were no longer required to physically extract data from SIMs or the systems they connect to due to the platform’s data and reporting capabilities, saving $134,694 over three years.

› Cheaper and more predictable monthly operation costs, saving $145,033 over three years. Arm’s clear and transparent pricing lets organizations accurately forecast monthly costs, and Arm’s services are cheaper than previous solutions.

Unquantified benefits. The interviewed organizations experienced additional qualitative benefits. These are not quantified in the financial analysis but were mentioned as significant benefits by customers.

Flexibility and technical expertise. Arm’s technical expertise allows it to be flexible and work with customers on unique or challenging projects. One customer was able to roll out a completely new service leveraging Arm’s Pelion Connectivity Management capabilities that would have not been possible with a single-carrier provider.

Improved customer experience. Arm provides better uptime and reliability, creating a better experience for customers. Additionally, if there are issues, Pelion Connectivity Management allows organizations to identify and remediate these problems more quickly and keeps customers informed of outages and updates them with progress.

Costs. The following costs reflect the financial analysis associated with the composite organization.

› Total cost to purchase and install new SIM deployment of $80,730. Forrester’s interviews with three existing customers and subsequent financial analysis found that an organization based on these interviewed organizations experiences benefits of $421,080 over three years versus costs of $80,730, adding up to a net present value (NPV) of $340,350 and an ROI of 422%.

Key Challenges Before Arm

Before the investment in Arm, interviewees described the following challenges with their previous solutions:

Poor connectivity or lack of signal in certain locations. Interviewed organizations found that with their previous, single-provider solutions, SIMs would sometimes lose signal, or the organizations would be unable to serve certain geographies because the provider did not have coverage. This directly impacted the organizations’ bottom lines and provided a poor customer experience when services were not working properly or unavailable in certain areas. A head of facilities in the advertising industry said “If we were to go with a single-network carrier, we find that, due to geography, SIMs do not always have signal.”

Poor customer experience, inconsistent billing practices, and inability to deliver on promises. Interviewed organizations reported that their previous providers simply did not live up to what was promised in terms of support, services, and costs. A project manager in the transportation industry said: “They didn’t deliver on what was promised in the sense that we were expecting to have a limit for data usage on the SIMs that was actively managed — and it wasn’t — and it led to severe overages and penalty charges, which they did not deal with particularly well. And on top of that, the overages were not even calculated properly.”

Additionally, interviewees expressed their frustrations with poor customer experience with previous providers. A head of facilities in the advertising industry explained: “Network providers don’t tell you the truth, or they don’t reply at all. And when they do reply, sometimes we have to spend hours trying to prove the root of the problem, rather than focusing on fixing it. Meanwhile, we’re losing revenue, and the provider doesn’t seem to understand the urgency. It’s very frustrating.”

To read full download the whitepaper:
The Total Economic Impact Of Arm Pelion Connectivity Management

SEND ME WHITEPAPER

Previous articleRaising awareness around IoT strategy, A Mobile Network Operators perspective on approaches and challenges
Next articleBuilding cellular connectivity into your next IoT design