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Telecom vendors aim to capitalize on investments in OSS/BSS, small cells and LTE
 

Telecom vendors aim to capitalize on investments in OSS/BSS, small cells and LTE

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The TBR Networking and Mobility research team recorded a webinar on Thursday, Oct. 11, 2012, recapping vendor performance as reported in TBR’s 2Q12 Telecom & Mobility Vendor Benchmark. The webinar ...

The TBR Networking and Mobility research team recorded a webinar on Thursday, Oct. 11, 2012, recapping vendor performance as reported in TBR’s 2Q12 Telecom & Mobility Vendor Benchmark. The webinar focused on how specific vendor, go-to-market and resource management strategies impact financial performance. TBR Analyst Chris Antlitz and Research Analyst Michael Soper shared their perspectives on the results in the benchmark and provided additional insight into the performance and future of the networking and mobility market.

They discussed:

• Infrastructure: Which vendors are leading the way in heterogeneous networks, including Wi-Fi and small cells?
• Services: What will happen to the managed services contracts that Alcatel-Lucent and NSN are exiting?
• Applications: How are vendors positioning themselves to capitalize on the CEM opportunity, including OSS/BSS and analytics?

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  • The framework for the client readouts will be to identify three key take aways from the report listed here. This take aways will be tied to the TBR Business Lens value proposition. Insert an appropriate image to the left of the topic bullet that correlates to the topic.
  • The framework for the client readouts will be to identify three key take aways from the report listed here. This take aways will be tied to the TBR Business Lens value proposition. Insert an appropriate image to the left of the topic bullet that correlates to the topic.
  • The framework for the client readouts will be to identify three key take aways from the report listed here. This take aways will be tied to the TBR Business Lens value proposition. Insert an appropriate image to the left of the topic bullet that correlates to the topic.
  • The framework for the client readouts will be to identify three key take aways from the report listed here. This take aways will be tied to the TBR Business Lens value proposition. Insert an appropriate image to the left of the topic bullet that correlates to the topic.

Telecom vendors aim to capitalize on investments in OSS/BSS, small cells and LTE Telecom vendors aim to capitalize on investments in OSS/BSS, small cells and LTE Presentation Transcript

  • TBR’s Telecom & Mobility Vendor BenchmarkResearch Highlights and OutlookTechnology Business Research (TBR) Quarterly Webinar SeriesOctober 11, 2012 TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
  • Telecom & Mobility Vendor Benchmark Review: Webinar Presenters TBR Chris Antlitz Networking & Mobility Analyst Email: chris.antlitz@tbri.com Twitter: @chrisNMP Michael Soper Networking & Mobility Research Analyst Email: michael.soper@tbri.com Twitter: @MichaelJSoper2 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark Review: Webinar Overview TBRTBR’s Telecom & Mobility Vendor Benchmark reports deliver unique insightand value through in-depth analysis in a concise, consumable format• TBR reports are unique for their deep, holistic analysis of leading vendors in the telecom and TBR Telecom & Mobility Vendor Benchmark mobility industries. Portfolio• Financial modeling and TBR insights help customers gain a better understanding of vendor business models.• TBR’s quarterly reports and webinars are responsive to client timelines, clear and concise, and provide insights across multiple layers of a vendor’s organization.• TBR’s strategic assessment provides an impartial check on a vendor’s progress in its strategic objectives.3 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Networking & Mobility 2Q12 Research Highlights and 2012 Outlook TBRAfter a weak 2Q12, vendors are positioning themselves to capitalize onoperator investments in OSS/BSS, small cells and LTETelecom & Mobility Vendor Trends for 2012 Infrastructure: Most vendors continued to experience falling infrastructure sales as operator spend on legacy technologies such as CDMA and GSM slowed dramatically OSS BSS Applications: Vendors are gearing up for an increase in OSS/BSS modernization and transformation projects CEM Services: Ericsson remained well ahead of the competition in 2Q12, while NSN and Alcatel-Lucent’s revenue slumped as they began to exit unprofitable contracts and noncore markets4 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark 2Q12 Review and 2012 Outlook TBRWith revenues from legacy technologies eroding, infrastructure playersare beefing up their small cell solutionsTelecom & Mobility Vendor Trends for 2012 Infrastructure: Most vendors continued to experience falling infrastructure sales as operator spend on legacy technologies such as CDMA and GSM slowed dramatically OSS BSS Applications: Vendors are gearing up for an increase in OSS/BSS modernization and transformation projects CEM Services: Ericsson remained well ahead of the competition in 2Q12, while NSN and Alcatel-Lucent’s revenue slumped as they began to exit unprofitable contracts and noncore markets5 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark 2Q12 Research Highlights: Key Trends TBREquipment deals in which Huawei offers a better value proposition thanthe competition are becoming commonplace TBR INFRASTRUCTURE SEGMENT 2Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH Huawei 20% Year-to-Year Revenue Growth Cisco 10% HP ZTE 0% Samsung Alcatel-Lucent -10% Juniper Ericsson -20% -30% IBM NSN -40% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 Revenue (in $ billions) SOURCE: TBR AND COMPANY DATA6 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark 2Q12 Research Outlook: TBRDecreased demand for CDMA products in North America is harming salesat Alcatel-Lucent and Ericsson, while Huawei expands further in EMEA Huawei • Legacy buildout deals in emerging markets are leading to upgrades and expansions. • Huawei continues to take market share from rivals by pursuing its aggressive pricing tactics. Ericsson • Ericsson will continue to squeeze revenue from network modernizations in Europe in 2H12. • CDMA sales will fall further in 2H12, but higher LTE capex outlays will partially offset the decline, as Ericsson is the top LTE vendor in the U.S. with contracts with all four Tier 1s. Alcatel-Lucent • China’s massive investment in fiber access — called Broadband China — will be a boon for Alcatel-Lucent starting in 1H13. • Top-line growth at Alcatel-Lucent in 2012 is looking unattainable as revenues from legacy products such as CDMA and GSM equipment continue to fall.7 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark Review and 2012 Outlook TBRVendors will seek revenue growth from customer experiencemanagement (CEM) and OSS/BSS transformationsTelecom & Mobility Vendor Trends for 2012 Infrastructure: Most vendors continued to experience falling infrastructure sales as operator spend on legacy technologies such as CDMA and GSM slowed dramatically OSS BSS Applications: Vendors are gearing up for an increase in OSS/BSS modernization and transformation projects CEM Services: Ericsson remained well ahead of the competition in 2Q12, while NSN and Alcatel-Lucent’s revenue slumped as they began to exit unprofitable contracts and noncore markets8 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark 2Q12 Research Highlights: Key Trends TBRMost of Huawei and Ericsson’s applications revenue comes from OSS/BSS,while IBM derives the bulk of revenue from analytics and cloud APPLICATIONS SEGMENT 2Q12 REVENUE TBR & YEAR-TO-YEAR REVENUE GROWTH 80% Year-to-Year Revenue Growth 60% Ericsson Huawei 40% ZTE 20% Cisco Samsung HP IBM NSN 0% 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 -20% Juniper -40% Alcatel-Lucent Revenue (in $ billions) SOURCE: TBR AND COMPANY DATA9 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark 2Q12 Research Outlook: TBRVendors are focusing their software efforts on billing and CEM, thoughboth markets will not see rapid growth until 2013 Alcatel-Lucent • Motive Customer Experience Solutions, or Motive CXS, is Alcatel-Lucent’s entry in the emerging CEM space • CloudBand became commercially available in May. The company has secured a trial customer: Texas-based operator Transtelco will offer cloud services to its U.S. and Mexican customers via Alcatel-Lucent’s El Paso data center. NSN • NSN will differentiate from competitors with its CEM focus, emphasizing operator accessibility and analytics. • NSN is searching for a buyer for its BSS assets after placing the unit in “maintenance mode” as part of its 4Q11 restructuring announcement. NSN’s billing assets are an attractive acquisition target to companies like Ericsson or Amdocs. Ericsson • Support Solutions, formerly Multimedia, is better positioned to capture opportunities in OSS/BSS following the integration of Telcordia. • Ericsson, with its new Telcordia assets, is best positioned in the billing systems market to provide BSS transformation to operators.10 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark Review and 2012 Outlook TBRAlcatel-Lucent and NSN’s restructuring programs unlock opportunitiesfor rivals to take market share, particularly Huawei and ZTETelecom & Mobility Vendor Trends for 2012 Infrastructure: Most vendors continued to experience falling infrastructure sales as operator spend on legacy technologies such as CDMA and GSM slowed dramatically OSS BSS Applications: Vendors are gearing up for an increase in OSS/BSS modernization and transformation projects CEM Services: Ericsson remained well ahead of the competition in 2Q12, while NSN and Alcatel-Lucent’s revenue slumped as they began to exit unprofitable contracts and noncore markets11 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark 2Q12 Research Highlights: Key Trends TBRTIS leaders are challenged by an anemic equipment market and weakmargins, necessitating vendors to move up the value chain SERVICES SEGMENT 2Q12 REVENUE TBR & YEAR-TO-YEAR REVENUE GROWTH 40% Ericsson Accenture Year-to-Year Revenue Growth 30% Huawei 20% Juniper Cisco 10% NSN Samsung HP 0% -10% ZTE IBM -20% Alcatel-Lucent $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Revenue (in $ billions) SOURCE: TBR AND COMPANY DATA12 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark 2Q12 Research Outlook: TBRNSN and Alcatel-Lucent are reducing their exposure to low-margin services Ericsson • Ericsson is working to protect its customer base from Huawei and ZTE. • Ericsson added to its capabilities with the acquisition of Telcordia. The company views Telcordia’s expertise as a key asset to drive OSS/BSS transformation projects. NSN • NSN will continue exiting unprofitable managed services contracts to boost margins and hone its focus on higher-value services that are not commoditized. • NSN is focused on leveraging its stable of GNOCs in all deals that include a service component, while reducing its reliance on local delivery resources. Alcatel-Lucent • Alcatel-Lucent’s evaluation of managed services contracts for termination or restructuring will negatively impact services revenue in the short term, but will lead to margin gains. • Similar to NSN, Alcatel-Lucent will concentrate on high-value services, such as consulting.13 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark Research Outlook – 2Q12 Research Highlights TBRVendors are looking to CEM, small cells, services and backhaul to drivegrowth in the industryQuarterly Topics TBR Value Proposition Related Reports • Determine which services and software (e.g., OSS/BSS,Customer analytics) telecom infrastructure vendors are including in their Alcatel-Lucent,ExperienceManagement  CEM solutions. Ericsson, Huawei, • Evaluate how vendors are leveraging partnerships with IBM, NSN(CEM) analytics and software players to differentiate CEM offerings. • Determine which vendors are technology leaders. • Determine in which regions small cells are in highest demand. Alcatel-Lucent,Wi-Fi/SmallCells  • Evaluate how vendors are integrating Wi-Fi with small-cell Cisco, Ericsson, products (e.g., acquiring the technology, high R&D Huawei, NSN investment). • Anticipate the next services boom following heavy deployment activity in India, the U.S. and Europe. Alcatel-Lucent,Services  Ericsson, Huawei, • Determine to what extent low-cost telecom infrastructure IBM, NSN players are gaining traction in services-only deals. • Track developments in demand for microwave and optical backhaul. Alcatel-Lucent, • Analyze new backhaul technologies that are coming toBackhaul  market. Cisco, Ericsson, Huawei, NSN • Analyze which backhaul technologies are best suited for small cells.14 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • Telecom & Mobility Vendor Benchmark 2Q12 Review and 2012 Outlook TBR Questions?15 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • TBR Chris Antlitz Michael Soper Networking & Mobility Networking & Mobility Analyst Research Analyst Email: chris.antlitz@tbri.com Email: michael.soper@tbri.com Twitter: @chrisNMP Twitter: @MichaelJSoper For further information, please contact: Kate Price James McIlroy Director, Networking & Mobility Practice Vice President, Sales kate.price@tbri.com mcilroy@tbri.com16 TBR Quarterly Webinar Series | 10.11.12 | www.tbri.com | ©2012 Technology Business Research Inc.
  • About TBR Contact Us Technology Business Research (TBR) is a leading independent technology 1.603.929.1166 market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and info@tbri.com professional services vendors. www.tbri.com 11 Merrill Drive Serving a global clientele, TBR provides timely and accurate market research Hampton, NH 03842 and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information USA needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today. TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. TechnologyBusiness Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is notand should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This reportis copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.