Welcome!

@CloudExpo Authors: Pat Romanski, Gregor Petri, SmartBear Blog, Elizabeth White, William Schmarzo

News Feed Item

Ericsson's investor day 2012

STOCKHOLM, SWEDEN -- (Marketwire) -- 11/06/12 --

* Management outlines list of ongoing activities to improve profitability

* The fundamentals for longer-term positive development for the industry remain solid. Ericsson continues to invest in its main competitive assets - technology leadership, services leadership and global scale in order to become a leading ICT solutions provider in telecoms

* Ericsson estimates the overall addressable equipment market will show a CAGR of 3-5% 2012-2015. Telecom services expected to show a CAGR of 5-7% and support solutions expected to show a CAGR of 9-11%

Today, Ericsson (NASDAQ: ERIC) will hold its annual Investor Day in Stockholm. President and CEO Hans Vestberg will elaborate on how Ericsson will leverage its current assets - technology leadership, services leadership, global scale - to move from being a leading mobile infrastructure vendor to become a leading Information and Communications Technology solutions provider in telecoms.

"This development will naturally imply a future business mix for Ericsson with more recurring software and services revenues. However, hardware will always be part of the mix and a key differentiator for Ericsson," says Hans Vestberg.

Ericsson is currently in a phase with a higher share of coverage than capacity projects due to a high proportion of hardware being rolled out. At the Investor Day Management will reiterate that this mix is expected to prevail short-term but that the negative impact from the network modernization projects in Europe will start to gradually decline end 2012. Hans Vestberg will point to the fact that the company presently has a selective approach to market share investments and a strong focus on commercial management. Management will also discuss some uncertainties going forward such as macroeconomic factors, the competitive situation and operator consolidation.

A market outlook for 2012-2015 will be presented. Ericsson estimates that the total network equipment market will show a compound annual growth rate (CAGR) of 3-5%. In Ericsson's key equipment market segments - radio, IP and transport, core - the CAGR is expected to be 4-6%. In radio a CAGR of 2-4% is expected, in IP and transport a CAGR of 6-8% and in core a CAGR of 0-2%. Ericsson expects the market for telecom services to show a CAGR of 5-7% in the same time period. The market for support solutions is forecasted to show a CAGR of 9-11%, including a CAGR of 12-14% for the media market. The market for OSS/BSS software and services is expected to show a CAGR of 5-7%.

Ericsson has a leading market position in four out of its six businesses. In mobile equipment, Ericsson increased its market share to 38% in 2011. In the three key equipment market segments, radio, IP and transport, core, the company has an aggregated market position of 27% which makes Ericsson the largest player. In the fragmented telecom services market Ericsson increased its market share 2011 from 11% to 12%. The company also has a leading market position in OSS/BSS.

During the Investor Day, Hans Vestberg will elaborate on strategies to deliver profitable growth. Areas with portfolio momentum expected to contribute to top-line growth are mobile broadband, managed services and OSS/BSS. He will also describe how the company is expanding beyond its core business in order to capture value from adjacent industries, while operators continue to be the major customer segment.

Jan Frykhammar, CFO and Executive Vice President, will elaborate on how Ericsson intends to improve capital efficiency. The working capital targets for the company will remain unchanged with DSO of less than 90 days, payable days of more than 60 days and Inventory turnover of less than 65 days.

Jan Frykhammar will reiterate that the company will continue to proactively identify and execute on additional efficiency gains and cost reductions in order to improve profitability. He will also outline a list of profit improvement areas to reach the compound operating income growth of 5-15% required in the Executive Performance Stock Plan.

Johan Wibergh, head of business unit Networks and Executive Vice President, will point out key contributors for the segment to return to double digit operating margin. He will mention a number of examples of these contributors including Ericsson's ability to gain a price premium through its technology leadership, business mix improvements, scale and agile software development. Rima Qureshi, head of business unit CDMA Mobile Systems, will elaborate on how all Ericsson's CDMA customers have successfully evolved into Ericsson's LTE solutions. Ericsson's acquisition of Nortel has been successful and focus for the CDMA operation is now on maximizing business contribution as well as to excel in life cycle and cost management.

Magnus Mandersson, head of business unit Global Services and Executive Vice President, will describe the company's services journey to drive the transformation to becoming a leading ICT solutions provider in telecom. Mandersson will outline the continued focus on industrialization of services, leveraging global scale and how the company drives services innovation for continued growth.

Per Borgklint, head of business unit Support Solutions, will discuss how the segment Support Solutions showed a trend shift Q212 and Q312 when it reported profit. He will describe the strategy for Support Solutions with focus on OSS, BSS, Media and m-commerce. The presentation will also focus on the characteristics of the business where a subscription based model for recurrent software revenues is being introduced.

Ulf Ewaldsson, Chief Technology Officer, will discuss key technologies for evolving the networks, including heterogeneous networks, 4(th) generation IP, cloud and software defined networks as well as OSS/BSS and real-time analytics.

At the end of the day, Hans Vestberg will conclude that the fundamentals for longer-term positive development for the industry remain solid. He will stress how increased smartphone penetration and consumers demand for having data connectivity around the clock is driving increased complexity in the networks. Until now, the major part of the investments in the telecom industry has been directed to devices and applications. Going forward, Ericsson expects the industry to re-balance investments towards optimizing network performance.

"Mobility is becoming even more relevant in the networked society, driving the demand for our offering," Hans Vestberg will conclude. "We have a clear long-term objective to increase our value share from the networked society through becoming a leading ICT solutions provider in telecom. In the short-term, we aim to improve value creation by focusing on profitable growth."


Ericsson discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on November 6, 2012 at 2012.


Ericsson's investor day 2012: http://hugin.info/1061/R/1655260/534849.pdf


This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1655260]

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: Email Contact

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@CloudExpo Stories
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
Recognizing the need to identify and validate information security professionals’ competency in securing cloud services, the two leading membership organizations focused on cloud and information security, the Cloud Security Alliance (CSA) and (ISC)^2, joined together to develop an international cloud security credential that reflects the most current and comprehensive best practices for securing and optimizing cloud computing environments.
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, will discuss using predictive analytics to ...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...