|By Marketwired .||
|November 6, 2012 02:39 AM EST||
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
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Dec. 9, 2016 02:15 AM EST Reads: 6,221
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
Dec. 9, 2016 02:00 AM EST Reads: 3,004
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 9, 2016 01:45 AM EST Reads: 975
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
Dec. 9, 2016 01:45 AM EST Reads: 1,951
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 9, 2016 01:15 AM EST Reads: 1,654
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Dec. 9, 2016 01:15 AM EST Reads: 3,973
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 how...
Dec. 9, 2016 12:45 AM EST Reads: 5,113
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Dec. 9, 2016 12:30 AM EST Reads: 882
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 9, 2016 12:00 AM EST Reads: 1,175
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Dec. 9, 2016 12:00 AM EST Reads: 705
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 8, 2016 09:45 PM EST Reads: 1,242
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Dec. 8, 2016 09:15 PM EST Reads: 1,672
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 8, 2016 09:15 PM EST Reads: 967
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Dec. 8, 2016 08:30 PM EST Reads: 1,895
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Dec. 8, 2016 07:15 PM EST Reads: 410
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Dec. 8, 2016 05:45 PM EST Reads: 955
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 8, 2016 05:45 PM EST Reads: 1,729
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 8, 2016 05:00 PM EST Reads: 1,825
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 8, 2016 04:45 PM EST Reads: 1,855
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Dec. 8, 2016 04:45 PM EST Reads: 2,259