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Ericsson Market Analysis

3954 words - 16 pages

Company Assessment

Ericsson
Market: Transport and Routing Infrastructure Service: Service Provider Infastructure Report Date: November 17, 2011
 Current Threat Index

Glen Hunt
Current Analysis Principal Analyst, Transport and Routing Infrastructure

Rating Update: Ericsson’s threat index has risen as a result of the first release of the new SSR 8000 family service aware edge routing and application platform, and the shipping status of the SPO 1460. Solutions: Threatening Ericsson’s solutions message is anchored by its “4th Generation IP Networking” mantra, which was formally launched in February at the Mobile World Congress 2011. Ericsson strives to make its solutions simple, ...view middle of the document...

The scalable 16 Tbps - 800 Gbps (half duplex) per slot router family will support applications such as traditional edge routing (Release 1, Q4 2011); plus mobile gateway, subscriber management, video caching, plus business and residential services. The MINI-LINK PT provides packet microwave support in a compact all-outdoor radio with high-capacity links; and the MINI-LINK SP delivers switched or routed gigabit Ethernet backhaul over fiber. The Smart Packet Optical (SPO) 1400 family (former OMS 1400) offers integrated functionality for mobile backhaul with integrated TDM, packet, and DWDM support. The higher scale provided SPO 1460 (now shipping) expands supported applications beyond mobile backhaul to include support for metro network convergence and connection-oriented MPLS-TP for resilient backhaul and optical transport services. All MINI-LINK platforms operate under Ericsson’s transport operating system and are managed by the IP Transport Management system, which provides a common software environment to deliver features across multiple transport media. Service/Support: Leader Ericsson claims more than 50,000 services professionals deployed in 175 countries. Services offered by the vendor include: customer support, consulting, network rollout, managed services, systems integration and operator employee education. Professional services Q2 2011 represented 71% of Global Services revenue, indicating a strong demand and consistent with trends reported in our Telecom Vendor Service (TVS) tracker. Growth of managed services is a clear indication of uptake for the higher-value services not tied to product revenue. Managed services deals last year totaled 54; this year saw the award of a seven-year managed services contract with Clearwire, a major North American service provider and Sprint partner and showing an uptake for Ericsson in the North American market. China Mobile, its largest deal ever, calls for 22,000 sites over a three-year period. Ericsson’s scale advantage has taken a hit, as Alcatel-Lucent and Nokia Siemens Networks each boast a similar reach. As these major competitors enter the services market, Ericsson’s traditional lack of share in fixed networks could become more pronounced. Strategy Execution: Threatening Ericsson’s overall market strategy is aimed at leveraging its mobile strength and focused on maintaining its wireless leadership status. Today, that strategy revolves around leveraging market leadership to push into new mobile opportunities (such as GSM-to-WCDMA, WCDMA-to-LTE and CDMA-toTD-LTE) while assuring operators of the company’s stability and its solution soundness, including its transport and routing portfolio. The company focuses on major market opportunities, opting to ignore some of the more niche markets such as WiMAX and femtocells in the wireless domain, as well as one-off router/switch opportunities in the wireline space that could distract it from leading in its primary market.To enable its wireless successes...

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