Thread by @SampalikCapital

#TataCommunications

It said "Transformation is in our DNA"

So is it really a GEM 💎which can be market leader in New Digitally Transformed World?🧐

Let's deep dive its transformation journey, current biz. portfolio & future prospect.

Here we start this LONG #Thread..

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https://twitter.com/SampalikCapital/status/1464216856328224770

#TataCommunication
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Evolution & Journey so far.

#DoYouKnow: The business was founded as Videsh Sanchar Nigam Limited (VSNL) in 1986. VSNL is credited to have brought the internet into the country.

#TataCommunication
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Current Biz. portfolio can be clubbed in 3 large bucket
1⃣ Data
➖Core Connectivity & Next-Gen Connectivity
➖Collaborations and Connected Services
➖Cloud, Edge and Security
➖Media Services
2⃣Voice Services
3⃣Others
➖NetFoundry
➖Other subsidiaries

#TataCommunications

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More insight on Data biz., which contribute ~75% of total revenue (voice contribute ~15%, others ~10%).

📈Data Business seeing consistent strong growth with margin expansion 🚀
📉Voice business is declining in-line with industry and technology trends

#TataCommunications

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Within Data Biz., we will study 4 key pillars, which can lead to biz. transformation & significantly contribute to revenue growth:

⭐️Next-Gen Connectivity
⭐️Collaboration-UCaaS & CPaaS
⭐️Cloud, Security & SD-WAN
⭐️Connected Services-MOVE & IoT

#TataCommunications
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A Transformational shift from:
Core Connectivity⏩⏩ NEXT-GEN Connectivity

#TataCommunications
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Next-Gen Connectivity:
⚡️Single Point of contact to manage & provision a variety of connectivity solutions across the globe
⚡️On-demand connectivity solutions addressing dynamic requirements of cust.
⚡️Integrated WAN management with hybrid connectivity

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2nd pillar (Collaboration):

The communications services industry has gone through multiple phases of evolution over the last decade & now stands at a point where hybrid models coming up to provide customizable plug & play solutions for every org. needs.

Src:Redseer

#TataCommunication

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Now, let's understand UCaaS & CPaaS.

UCaaS (Unified Communications as a Service) is a cloud based enterprise communication platform supported by telephony, meetings, messages, mobility & communication enabled features

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UC-aaS

"UC" integrates many communications (phone, chat, video conferencing) & provides ways to interact across diff. channels

“aaS” is a delivery model for cloud service & software. Unlike Software as a Service (SaaS), UCaaS is exclusive to communication tools & APIs.

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UCaaS advantages:
1. Lower cost than an on-premises PBX
2. Superior employee mobility
3. Enhanced team collaboration
4. Greater reliability and scalability
5. Higher overall productivity
6. Consolidated tech stack

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Huge Potential:
The unified communications market has grown at 25% CAGR. Some analysts expect the UCaaS market to surge past $100 billion by 2024, often at the downfall of on-premises phone systems.

#tatacommunications addressable market $44B by 2024 (CAGR~14%)

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CPaaS = Communications Platform as a Service

It is Cloud based platform for omni-channel communications on the software layer which can be accessed via APIs along with developer integration to build custom services as per the needs (configurable).

Src: NextivaBlog

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CPaaS functions:
- Outbound voice calls
- Inbound call routing
- WebRTC-based calling
- Text messages (SMS)
- On-demand SIP trunking
- Multimedia and video messaging
- Social media messaging (such as WhatsApp)
- Number masking (proxy)

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CPaaS use cases:
- Appointment confirmations & reminders, order confirmations & delivery tracking information
- Fraud and abuse mitigation (OTP, 2FA etc.)
- Privacy-focused messaging (policy renewals etc.)
- Scalable voice and messaging
- Automated customer interactions

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#TataCommunications addressable CPaaS market is ~$44B by 2024 (CAGR~14%). Though yet to fully launch.

Key Competitors: Route Mobile, Gupshup etc.

But attached is Q2FY22 con-call snippet about advantage it will have wrt competitors.

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3rd Piller i.e. "Cloud, Security & SD-WAN"

Its 'IZO Cloud' platform & services help to build an agile IT ecosystem with hybrid multi-cloud environments, security and network.

It is expected that CLOUD AND HOSTING (INDIA) market size will ~$6.8B by 2024 (CAGR: 24%)

#TataCommunications

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So last post was assuming we all know basic of basic of Cloud, its evolution and models i.e. IaaS, PaaS, SaaS ......and XaaS (Everything as a Service).

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Next comes in this 3rd Piller is 'Security'. And we know very importance of robust security system in Digital Transformation.

We heard many times about leakage of private data, attack/hacking of website/cloud etc.

Infact with time, security system also evolved manifold.

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Tata Communications' Manage Security System (MSS) - Delivering Connected Security from Cloud to Edge

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MSS (Focus Market) size is expected to grow ~$15.5 B by 2024 (i.e. CAGR of ~8%) and present good opportunity for Tata Communications to not only increase the market size but also bundling of products portfolio.

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Infact the world of MSS is changing rapidly, expanding with Managed Detection and Response (MDR) services

MDR, a combination of technology & human res. includes Artificial Intelligence (AI), Machine learning (ML), behavioral analytics, Reactive to Proactive protection etc

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AI and ML are critical areas of growth for next-generation MSSPs.

-The first reason is that threat actors are actively leveraging AI and ML to target organizations and find massive data sets of personally identifiable information (PII).

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-Secondly, without real-time security analytics and management through the use of AI and ML, organizations are unable to obtain contextual, meaningful insights in their security posture as they grapple with an ever-increasing volume of alerts.

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So, AI & ML help accelerate response, reducing the time it takes to complete an investigation from days to just a few minutes.
AI & ML-powered detection & response can leverage data & insights from previous attacks to help identify similar characteristics in new threats.

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And how #TataCommunications taking this challenge? Well by 'managing the complexity and simplifying security' :)

Attached is reply from Investor con-call, Jun-2021.

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Will now move to last part of this 3rd Piller i.e. SD-WAN.

So again, let's understand the WAN & SD-WAN concept briefly.

In its simplest form, a wide-area network (WAN) is a collection of local-area networks (LANs) or other networks that communicate with one another.

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A WAN is essentially a network of networks, with the Internet the world's largest WAN.

Today, there are several types of WANs, built for a variety of use cases like from emails and conference calls to data sharing and dedicated server networks etc.

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As WANs are so expansive, modern organizations have been eager for a more optimized version of a WAN connection.

So improved version of WAN is SD-WAN (Software-Defined WAN).

SD-WAN) is an approach for making WAN architectures easier to deploy, operate, and manage.

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SD-WANs have a software overlay for connection provisioning & management. This software contains all the connection, security and network info. It increases data-transfer efficiencies across a WAN by moving traffic to lower-cost network links (dynamically managing traffic)

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So what #TataCommunications is doing in SD-WAN?

As, global network service provider, it has edge & strength in this. They pushing the SD-WAN plus security narrative in the market.

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Market size of SD-WAN is expected to reach to $8B by 2024 from $1B in 2020 i.e. CAGR of ~65% ! 🚀🚀

So HUGE potential for significant growth for #TataCommunications as they have strong capabilities to capture & expand this area.

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#tatacomm

Now will study the 4th & last Pillar, i.e. "Connected Services-MOVE & IoT"

Remember the Pillars na? 😆😉

Hope you are taking interest, enjoying and learning few new concepts 😍😎

Anyway in case you missed, here is tweet for ref.:

https://twitter.com/SampalikCapital/status/1479946264301166594?s=20