Mohamed Mahfouz, CEO of Advanced Company speaks with Teletimes International in an exclusive interview
Gulraiz Khalid
Mohamed Mahfouz boasts an illustrious career spanning two decades in executive management positions across the Middle East and Africa. At present, he holds the esteemed role of CEO at Advanced Company for Operations and Maintenance, a preeminent ICT service provider in Saudi Arabia.
A versatile and accomplished leader, Mahfouz assumed the CEO mantle at Advanced Company in December 2020, charting an audacious course to elevate the company’s offerings in ICT deployment, managed services, and satellite communication. His transformative vision has redefined the company from a conventional operations and maintenance entity into a comprehensive ICT service and solutions provider.
Under his guidance, the company underwent a remarkable metamorphosis, establishing new departments, shuttering unprofitable units, and streamlining costs, thereby fortifying the company’s EBITDA performance. This strategic overhaul not only secured financial gains but also positioned the company as a key player in Saudi Arabia’s ICT landscape, in alignment with the ambitious Vision 2030 initiative aimed at digitalizing the nation.
Prior to his tenure at Advanced Company, Mahfouz held the position of General Manager at TECH MAHINDRA for Saudi Arabia and Bahrain. With an extensive footprint across 31 countries in the Middle East and Africa, he has held pivotal roles at industry giants such as Huawei and Nokia.
His academic journey includes a master’s degree in Telecommunication and Electronics Engineering, complemented by a bachelor’s degree in Telecommunication Engineering from the Arab Academy for Science, Technology, and Maritime Transport in Alexandria, Egypt.
Mahfouz’s unwavering commitment to Advanced Company’s values is evident, as he champions the company’s Sustainable Impact strategy, harmonizing business objectives with societal and ecological imperatives. His proactive stewardship has been instrumental in propelling the company’s eco-friendly initiatives and fostering positive change within global communities.
Gulraiz Khalid: Please tell us about the vision behind Advanced Company?
Mohamed Mahfouz: The core concept driving Advanced Company is to utilize the potential of information and communication technology for the advancement of innovation, effectiveness, and sustainability across diverse sectors. The organization’s goal is to forge pioneering solutions that empower enterprises and institutions to flourish in the digital era. By harnessing cutting-edge technologies and insights derived from data, Advanced Company aspires to provide its clients with the tools to make well-informed choices, enhance efficiency, and attain sustainable expansion in their operations. This vision revolves around harnessing the capabilities of ICT to revolutionize industries and pave the way for a more promising future for all.
At present, Advanced Company offers a range of ICT services and solutions, managed services, satellite connectivity offerings, and professional services to a diverse clientele in Saudi Arabia. Our current portfolio strikes a balance between established services and solutions that are currently in demand within the market. Simultaneously, we’re also in the process of developing solutions and services that align with the ongoing advancements and changes projected for the next decade. For instance, we’re working on introducing NOC and SOC services along with virtual and on-premise 24/7 support for managed services.
Our dedicated team comprises over a thousand skilled engineers, technicians, and consultants who are strategically positioned across 47 support centers throughout Saudi Arabia. These teams are reinforced by a centralized NOC, SOC, front office, and back office, all working in tandem to deliver round-the-clock service support to our esteemed clients.
GK: How does Advanced Company align with the Saudi Vision 2030? What will be the impact of the Saudi Vision 2030 on the telecom sector and how does Advanced Company plan on supporting this?
MM: Advanced Company is fully dedicated to supporting the objectives of Saudi Vision 2030, demonstrating its commitment as a forward-looking ICT company. Recognizing the imperative of diversifying the Saudi economy away from oil, the company has undergone a strategic transformation to cater to the evolving needs of the nation.
Saudi Vision 2030 places a significant emphasis on reducing reliance on oil-based GDP, instead focusing on initiatives such as creating new cities to attract tourism, developing the entertainment industry, and establishing an economic hub in the Middle East. In response, Advanced Company has restructured itself to align with these goals and become a catalyst for ICT advancement.
The influence of Saudi Vision 2030 on the ICT sector is substantial, highlighting the need for expanded digital infrastructure, improved connectivity, and the fostering of innovation. In seizing these opportunities, Advanced Company is poised to drive growth and transformation within the Saudi Arabian ICT landscape.
To effectively contribute to Saudi Vision 2030, Advanced Company has meticulously devised comprehensive plans. Investments have been channeled into crucial areas such as network infrastructure implementation, satellite connectivity enhancement, and innovative telecom solutions. These endeavors are meticulously designed to cater to the evolving demands of businesses and consumers alike. A key aspect of this effort involves empowering individuals and organizations through digital literacy and skills development, ensuring they can harness the full potential of technology.
Over the past three years, Advanced Company has been resolutely aligned with its strategic plan, resulting in the successful execution of five significant projects. These projects encompass vital elements such as ICT infrastructure deployment, managed services for Optical Fibers and IT networks, and satellite connectivity provisions for government and enterprise sectors. This track record underscores the company’s commitment to driving tangible outcomes in line with Saudi Vision 2030.
Additionally, Advanced Company has adopted a collaborative approach, actively seeking partnerships with industry stakeholders on a global scale. By engaging with government bodies, regulators, and telecom vendors/providers, the company is collectively propelling digital transformation while advancing the realization of Saudi Vision 2030.
Advanced Company is acutely aware of the potential impact of Saudi Vision 2030 on the ICT sector. With unwavering dedication, the company is positioned to play a pivotal role in the growth and advancement of the industry in alignment with the vision’s strategic goals
GK: Please tell us about the services Advanced Company is offering and which industries do its major customers belong to?
MM: Advanced Company offers a diverse array of services tailored to meet the unique needs of its clients. Its core service offerings encompass network infrastructure deployment, ICT managed services, satellite connectivity solutions, and professional services. However, the company’s distinctive strength lies in its ability to provide comprehensive bundled services. These bundled services encompass complete network deployment, hardware provisioning, end-to-end project management, and ongoing managed services.
The company’s client base spans a wide range of industries, reflecting its commitment to catering to various sectors. Noteworthy clientele include telecommunications companies, government and semi-government entities, enterprises, banking and finance institutions, as well as players in the oil & gas sector. Through its innovative and dependable solutions, Advanced Company contributes to the growth and advancement of these industries by offering tailored services that precisely align with their individual requirements.
GK: Can you tell us in more detail about your ICT Managed Services and the VSAT services?
MM: Certainly! Advanced Company offers a comprehensive suite of ICT Managed Services designed to streamline businesses’ technology operations and ensure seamless functionality. Our services encompass end-to-end solutions with stringent Service Level Agreements (SLAs) and Key Performance Indicators (KPIs). With an expansive network of 47 maintenance centers strategically placed across the kingdom, our team of expert engineers and technicians provide round-the-clock support to bolster our clients’ networks. Our operation is further bolstered by a state-of-the-art Network Operations Center (NOC), Security Operations Center (SOC), as well as proficient front and back-office teams.
Our specialized Managed Services portfolio includes a variety of offerings such as Managed FTTH network, Managed VSAT services, Wireless and Microwave managed services, and Managed IT network services. Through these offerings, we address a wide spectrum of networking needs tailored to different industries.
Moreover, our proficiency in VSAT satellite communication technology enables us to extend stable and reliable internet connectivity to remote or geographically challenging areas where traditional connectivity infrastructures are impractical. Based in Riyadh, Saudi Arabia, our Satellite Hub boasts cutting-edge features that set us apart from competitors, ensuring unparalleled service quality.
To supplement our capabilities, we leverage our wealth of experience, a proven track record, and a roster of satisfied clients across various sectors. We’re dedicated to not only meeting technological requirements but also contributing to our clients’ overarching business objectives. Our success stories and client testimonials underscore the tangible advantages of partnering with Advanced Company.
Advanced Company stands as a frontrunner in delivering advanced technology solutions while maintaining an unwavering commitment to exceptional customer support. Our comprehensive range of services, combined with our focus on innovation and customer satisfaction, makes us the ideal ally for businesses seeking to optimize their technological infrastructure.
GK: How do you see the growing role of AI and cloud computing in the ICT space?
MM: The convergence of AI, cloud computing, and cutting-edge networking technologies holds immense promise within the realm of Information and Communication Technology (ICT). AI’s prowess in automation, predictive analysis, and machine learning stands to revolutionize decision-making processes, rendering them more intelligent and efficient. Paired with cloud computing, this duo presents a transformative potential for businesses. Cloud technology offers a pliable and scalable infrastructure, eliminating the need for substantial investments in hardware and software. Consequently, AI’s benefits can be harnessed without resource constraints, ushering in a new era of data-driven decisions, optimized operations, and heightened productivity.
The synergy extends to advanced networking technologies. The emergence of 5G, with its rapid data speeds, low latency, and expanded connectivity, dovetails seamlessly with AI’s demands. Industries reliant on real-time data processing, such as autonomous vehicles and remote surgeries, stand to gain from this swift communication between devices and cloud servers. Furthermore, the bedrock of these advancements lies in a robust fiber optics infrastructure. With its high-speed data transmission capabilities, fiber optics underpin the seamless transfer of information between devices, data centers, and the cloud.
GK: Keeping in mind the recent energy crisis in Europe due to Russia Ukraine conflict and the opportunities it created for the Gulf market, what is the future of energy industry.
MM: The energy industry is on the brink of substantial change and evolution, particularly in the aftermath of recent energy crises. These crises have had distinct impacts on the USA, Europe, and the Middle East, shaping their energy landscapes in unique ways.
In the USA, the energy crisis has had a relatively limited impact due to the nation’s discovery of significant oil reserves. Since the late 1990s and early 2000s, the USA has achieved self-sufficiency in energy through robust oil extraction from its own reserves, particularly in the form of shell oil. This discovery has shielded the country from severe energy shortages, allowing it to meet its energy demands without relying heavily on external sources.
Contrastingly, Europe has found itself grappling with the challenges posed by the energy crisis. Multiple factors have converged to create a complex situation. Notably, the conflict between Ukraine and Russia has resulted in decreased natural gas supplies, causing supply disruptions. The depletion of inventories, coupled with heightened energy demand due to colder weather conditions and industrial requirements, has exacerbated the issue. The consequence has been the reversion to older energy sources, including coal power plants, in a desperate attempt to address the energy shortfall. Unfortunately, this has contributed to elevated carbon emissions, exacerbating global warming and greenhouse effects on a global scale.
The impact of soaring energy prices has been particularly pronounced in energy-intensive sectors like manufacturing and transportation in Europe. These industries have faced elevated production costs, diminished profit margins, and even business closures due to the unmanageable energy expenses. Moreover, the escalating energy prices have hindered the research and development initiatives crucial for the European Union’s ambitious 2040 vision.
In response to these challenges, European countries have had to heavily rely on energy imports, particularly liquefied natural gas (LNG), to meet their energy needs. This heightened demand and limited supply have driven energy prices to unprecedented levels, casting a significant shadow over the European economy.
Conversely, Gulf countries, notably Saudi Arabia, have seized the energy crisis as an opportunity. They have capitalized on their own oil and gas resources while simultaneously consuming inexpensive energy from Russia. By exporting their own oil to Europe at elevated market prices, these Gulf nations have made substantial contributions to their economies and GDP.
As the energy industry navigates these intricate challenges, it’s clear that a diverse set of strategies and policies will be required to ensure sustainable and reliable energy sources for the future. The choices made by different regions will significantly influence not only their economic well-being but also the global environmental landscape.
GK: What is your opinion on sustainability and energy efficiency in the ICT environment? Would you like to talk about some solutions that really caught your eye?
MM: Sustainability and energy efficiency are pivotal factors in today’s digital landscape. The ICT sector significantly influences energy consumption and greenhouse gas emissions, prompting the exploration of solutions to address these concerns.
One solution gaining attention is the integration of renewable energy sources to power ICT infrastructure, including data centers. Many companies are investing in solar and wind energy to curtail their carbon footprint.
Another avenue is the adoption of energy-efficient hardware and software technologies. Employing virtualization and cloud computing optimizes resource utilization, resulting in reduced energy consumption. Additionally, efforts are underway to develop processors and networking equipment that consume less energy.
Innovative strides have also been made in data center cooling strategies. Innovations like liquid cooling and free cooling play a pivotal role in trimming energy consumption within data centers.
Moreover, the concept of a circular economy is finding traction within the ICT industry. This involves designing products for longevity, recyclability, and reusability. Responsible management of e-waste and robust recycling initiatives are also integral components.
Collectively, these measures foster a more sustainable and energy-efficient ICT environment. By embracing these practices, businesses can diminish their ecological impact while simultaneously reaping cost savings and operational efficiencies.
GK: How do you see the ever-increasing global warming issue? How can ICT companies?play a role in addressing this issue?
MM: Global warming is a significant concern with profound implications for the environment and human well-being. The primary driver of this phenomenon is the release of greenhouse gases resulting from human activities, particularly the combustion of fossil fuels for energy generation.
In the battle against this challenge, ICT companies possess a pivotal role to play. By embracing sustainable measures and advocating environmentally conscious initiatives, they can contribute effectively. For instance, these companies can focus on enhancing the energy efficiency of their products and services. This entails making devices and data centers more energy-frugal, optimizing algorithms to minimize power consumption, and endorsing the adoption of renewable energy sources within their operational frameworks. Moreover, they have the potential to develop and promote technologies that directly diminish greenhouse gas emissions in various sectors. For instance, smart grid systems offer the promise of optimizing energy distribution and curbing wastage, while teleconferencing and remote work tools can curtail the necessity for extensive travel.
Another facet of their influence involves raising awareness about climate change and sustainability. By leveraging their reach, which extends to employees, customers, and the broader public, ICT companies can amplify the understanding of these critical issues. They can also supply educational resources and tools to empower individuals and businesses to reduce their carbon footprint.
In summary, the role of ICT companies in combating global warming is profound. Through their operational strategies, product offerings, and broader impact, they have the capacity to steer us towards a future characterized by sustainability and ecological responsibility. By adopting sustainable practices and championing green initiatives, they pave the way for a more environmentally harmonious future.
GK: In the near future, what will be some of the key drivers of the ICT market especially in the Middle East region?
MM: In the coming years, several key factors are anticipated to strongly influence the ICT market in the Middle East region. These factors encompass crucial elements like the integration of Digital Transformation, involving technologies such as cloud computing, artificial intelligence (AI), Internet of Things (IoT), and big data analytics. Additionally, the ascendancy of 5G Technology, Cybersecurity, E-commerce, and Digital Payments are poised to play pivotal roles.
These highlighted drivers are poised to wield significant impact on shaping the ICT market within the Middle East region in the foreseeable future.
GK: How do you see the future of Advanced Company?
MM: The future outlook for Advanced Company appears highly promising. Our strong emphasis on innovation and sustainability places us in an advantageous position to excel in a world that increasingly esteems eco-friendly practices. We possess the potential to emerge as frontrunners in the ICT industry by pioneering and implementing cutting-edge technologies, thereby assisting our clients in realizing their digital aspirations. Furthermore, our unwavering dedication to nurturing and empowering local talent positions us to cultivate the next generation of industry leaders.
Overall, I am content with the deliberate and stable growth of our business. Our incremental revenue enhancement of 35% in the first year, 59% in the second year, and an impressive 83% in the third year marks significant milestones. Our progress in Q2 reinforces our commitment to maintaining this momentum.
GK: As one of the vocal regional leaders with strong track record of leading multiple multinational organizations, where you will see the ICT industry in coming 10 years.
MM: Anticipated shifts in the ICT industry over the next decade are set to be profound, driven by technological advancements and evolving consumer demands. The core of these transformative technologies relies on vast data and Internet connectivity needs. This demand has spurred the necessity for cutting-edge infrastructure solutions, leading to a rapid overhaul of traditional systems. An illustrative example is the replacement of antiquated copper networks with advanced Fiber networks in Saudi Arabia, where telecom companies have made remarkable progress, outpacing even Europe and the rest of the world.
Analogously, the sunsetting of 2G and 3G networks in favor of 5G and more advanced technologies signifies the pivotal transformation from archaic to state-of-the-art networks. This progression is of utmost significance for Saudi Arabian Telecom service providers, as it enables them to meet the evolving requirements of individuals, businesses, and governmental entities.
A compelling forecast in the industry pertains to the shift from hardware to software-based infrastructure. This transition promises a harmonious integration of diverse technologies on a single platform, allowing seamless compatibility with products from various vendors. This evolution not only enhances flexibility but also addresses a significant challenge faced by telcos—the high capital investment (CAPEX) required for traditional infrastructure. A consequential consequence is the rise of infrastructure firms and tech giants, ushering in a potential shift in ownership, which raises important questions about the security and resilience of these critical assets.
On this trajectory, a pertinent proposition for telecom operators arises. Given that technologies like 5G and Fiber serve as the bedrock for advanced innovations like AI, blockchain, and IoT, the notion of regulatory measures granting operators a share in the sales of these technologies merits consideration. This supplementary revenue stream, alongside standard internet fees, could be linked to application usage, leveling the playing field between individual and commercial users. Drawing parallels with utility pricing discrepancies for residential and commercial usage further strengthens this suggestion.
It is imperative to recognize that these changes extend beyond a singular jurisdiction; they are part of a global evolution that will impact various sectors, economies, and societies. In navigating this evolution, collaboration among stakeholders, including operators, regulators, and technology providers, will be paramount. Striking a harmonious balance between innovation, competition, security, and accessibility will remain a central challenge as the industry propels forward, and your insights pave a thoughtful path in this dynamic landscape.
