For small to medium enterprises (SMEs) where cost-efficiencies are essential, managing SIM cards for machine-to-machine (M2M) systems is vital.
This is according to Kees Snijders, MD of Flickswitch, who notes for SMEs' SIM management can be a laborious and expensive task if not managed effectively.
Until recently, M2M has been left to large businesses, but due to the evolution of technology, smaller companies are also benefiting from such systems, he says.
SA's SME M2M market is predominantly on prepaid, and statistics in the rest of Africa show almost 98%of the market relies on prepaid SIMs, says Snijders.
"The key driver of prepaid M2M market growth is that there are simply no surprises with prepaid - you get what you pay for. With post-paid, you run the risk of overspending."
Post-paid SIM cards require lengthy contracts and the user is subject to credit approval, Snijders notes, adding the user can consume services at will, depending on any prior maximum soft limit agreed with the service provider.
"We have seen that if SMEs want to take ownership of SIM management, they run into difficulties - both in terms of funds and in terms of human resources required to manage all aspects of the SIM lifecycle. The opportunity lies in removing the elements of uncertainty around SIM management."
He points out SIMs extend beyond just data and voice billing employees' devices - but are essential to M2M communication. Forming part of the Internet of things, M2M enables systems to communicate with other devices anywhere in the world, he adds.
"This means organisations can have multiple connected devices that transmit large amounts of data back into the corporate back-end."
However, if there is an error on the SIM embedded in one of these devices or there is no airtime to send the information back to head office - in a world where deliverables are measured in hours, sometimes minutes - the business impact could be severe.
"Part of a SIM management approach is it needs to be reliable and have real-time monitoring of SIMs in the field. Devices should communicate when they need to be topped up with data irrespective of time or location. Secure M2M communication is also vital."
The Vodafone M2M Barometer 2015 report notes SMEs adopt M2M for the same reasons as their larger competitors - to decrease costs, increase productivity and gain competitive advantage.
Start-ups in some industries may structure their business processes to take advantage of connectivity from inception to gain a competitive advantage over larger, less agile firms, it says.
But other SMEs are not as technologically savvy, and may have neither an IT department nor the capability to take on significant ICT projects, adds Vodafone.
As a result, Snijders says, SMEs require a full service partner that is capable of managing all aspects of SIM management while they focus on their core business.
"We have seen that if SMEs want to take ownership of SIM management to make M2M connections effective, they run into difficulties - both in terms of funds and in terms of human resources required to manage all aspects of the SIM lifecycle," he adds.
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