Alcatel-Lucent is at the forefront of global communications, providing products and innovations in IP and cloud networking, as well as ultra-broadband fixed and wireless access to service providers and their customers, enterprises and institutions throughout the world.Alcatel-Lucent achieved revenues of €14.4 billion in 2012 and is headquartered in Paris. France.Bell Labs, an integral part of Alcatel-Lucent and one of the world’s foremost technology research institutes, are responsible for countless breakthroughs that have shaped the networking and communications industry. For the third year in a row, Alcatel-Lucent has been recognized by Thomson Reuters as a Top 100 Global Innovator, named by MIT Technology Review as among “World’s Most Innovative Companies” in 2011, 2012 and 2013. What is a TR100 company? It is a business whose innovations force other businesses to alter their strategic course. TR100 members are nominated by MIT Technology Review’s editors, who look for companies that over the last year have demonstrated original and valuable technology, are bringing that technology to market at a significant scale, and are clearly influencing their competitorsFor the third year in a row, Alcatel-Lucent was named Industry Group Leader for Technology Hardware & Equipment sector in the 2013 Dow Jones Sustainability Indices review. The company was named Technology Supersector Leader in 2012 and leader of the CMT Communications Technology Sector in 2011.In September 2013, Alcatel-Lucent was awarded an Emmy® Award for Technology and Engineering from the National Academy of Television Arts & Sciences in the United States for its “Pioneering Work in Implementation and Deployment of Network DVR”. We bring an unmatched heritage of ideas and execution, and our innovations are regularly recognized by international institutions for their impact on the world. Some of our most recent innovations are listed at the bottom of the chart, starting with the breakthrough FP3 network processor through creation of our cloud-based Nuage Networks business and the Emmy Award for our Network DVR.
Bell Labs has an unparalleled history of innovation and pioneering research focused on solving the complex problems that face the communications industry. The slide shows some of the areas where Bell Labs has had, is or will be making a difference, evidenced by these examples: Satellite based networks: Bell Labs worked with the U.S. government to solve one of the most perplexing broadband challenges of the time – how to send televisions signals across the ocean. Transatlantic communications existed in the form of undersea cables but couldn’t support the broadband video technology of the day – black and white television signals. Telstar ushered in a new era in communications, and added the phrase "live via satellite" to our vernacular.Broadband access: Our innovative VDSL2 Vectoring technology accelerates broadband speeds and delivers superfast broadband over existing copper lines with ‘Zero Touch Vectoring’. It lets operators reuse existing infrastructure , reduces investment costs and risks and helps with eco-sustainability targets.lightRadio™ : A breakthrough in mobile and broadband infrastructure that streamlines and radically simplifies mobile networks. It represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components and distributed into both the antenna and throughout a cloud-like network. It cuts power consumption and operating costs on wireless networks while delivering lightning fast Internet access.Small cells: Offer a cost-effective alternative to macro-only deployments for meeting growing coverage and capacity demands. They are small, low-cost access points that can be self-installed and offload traffic from the macro network. Most recently:Bell Labs has built a camera that has no lens and uses just a single sensing pixel to take photographs. The imaging device uses a technique called compressive sensing. It relies on the assumption that many common measurements have a lot of redundancy. It's possible to acquire the same data by taking just a few carefully chosen measurements. This technique has the potential to revolutionize traditional optical imaging, with a lens to create an image and device to record the light -- such as an array of pixels, or light-sensitive film. There are a number of benefits to the approach: no lenses are used, reducing cost & complexity; no scene will ever be out of focus -- the clarity of images is simply limited by the number of aperture elements. The disadvantage, at least for now, is that it takes time to acquire the data for each image. The camera only creates images of still scenes, but even that’s useful for surveillance since it’s possible to compare consecutive images of the same scene to determine things that have changed or work out the speed of moving objects. Fiber optics: Bell Labs broke a new record for the amount of data transmitted over transoceanic distances on a single optical fiber, successfully sending data at speeds of 31 Terabits-per-second (Tbps) over 7200km – a capacity exceeding most advanced commercial undersea cables today by a factor of three (July 2013)Fiber optics: Dr. Nicolas Fontaine, a researcher at Bell Labs, has been included in Popular Science magazine’s ‘Brilliant 10’ list of top researchers under the age of 35. He was recognized for his revolutionary work developing novel techniques designed to enable fiber-optic networks to meet the world’s insatiable demand for ultra-high speed data services and content. (September 2013)
Our industry is huge & growing fast - and will continue to do so in the coming 3 years.Broadband traffic continues to grow thanks to increasing fixed and mobile connectivity penetration– from machine-to-machine devices, sensors and RFID tags - better connectivity, more compelling applications and better devices. The consumer appetite for new applications has become limitless while the network touches more and more aspects of life. This consumer-led revolution is driven by the need for increased mobility, multimedia content, greater collaboration influenced by social networks and the rapid adoption of smartphones and tablets. These trends are also driving the enterprise market to make new choices about the applications and devices they support. All in all, there is massive growth in demand for communication services for consumers and enterprises and consequently significant growth in the fixed and mobile connections of all kinds. We expect growth in the double to triple digits from connections in fixed, mobile, WIFI, machine-to-machine, all the way to enterprise services and applications and video in the cloud. In particular, by 2015, we will have the equivalent to every person in the planet having some type of mobile or broadband connection.But most importantly data is moving to the cloud. Access is no longer a barrier. Content, applications and information are stored and shared centrally in massive data centres. We estimate that cloud usage and storage will grow 5 times over the next five years in public cloud alone, not counting the personal and hybrid clouds.The result: An empowered consumer, more content shared in the cloud – what about the network that sits in between?Sources for the global trends:FIXED BROADBAND: (Source: Gartner, Nov. 2011)MOBILE CONNECTIONS: (Source: Gartner, Nov. 2011) WI-FI PUBLIC SPOTS: (Source: Informa, Global Developments in WiFi, Sep. 2011)APPLICATION DOWNLOADS: (Source: OVUM, Sept 2011)SMARTPHONE SALES: (Source: Pyramid, Nov 2011)DATA MOVING TO CLOUD:. (Source for public cloud: Gartner, Jun. 2011; Source for enterprise: Yankee Group Mar. 2011.)M2M DEVICES: (Source: Machina Research).MOBILE VIDEO CONSUMPTION: (Source: comScore, Inc.)
Michel Combes, our CEO, announced The Shift Plan in June 2013 – a three year transformation program that addresses the challenges the company faces and defines a clear path for our future. The Shift Plan is described in more detail later in the presentation.As he stated:We are becoming a more focused company to position Alcatel-Lucent at the heart of the high-performance networks of tomorrow. The shift requires a leadership culture based on true accountability for performance enabling us to work more effectively and efficiently.Let’s take a look at the Leadership team and the operational organization created that will help us generate maximum value from our specialist focus on IP Networking and Ultra-Broadband Access.
Alcatel-Lucent has the right people, technologies and DNA to be successful in this fast changing futureWinning Products: we know how to build highly scalable all-IP platforms providing multi service and multi tenant capabilities. We have Cloud IP assets that provide our customers with the highest value, including: IP routing, Nuage Networks – Alcatel-Lucent SDN, IP transport – WDM, and selected IP platforms such as Advanced Communications (IMS), Customer Experience Management and CloudBand - Alcatel-Lucent’s virtualized software platform. In addition, for Ultra-Broadband, we will continue to invest in our leadership position in FTTx and in LTE, including small cells.Strong Customer Relationships: Alcatel-Lucent is at the forefront of this strategic change with its service provider customers as well as in strategic industries such as Transportation, Utilties, Oil and Gas and Government agencies. Our relationships are global and span both IP networks and ultrafast broadband.Strong Innovation Capabilities: this is in the DNA of the company as evidenced by recent breakthrough innovations such as Nuage Networks, CloudBand, Vectoring, and lightRadio. Alcatel-Lucent is redefining its approach to innovation in order to further provide significant, measurable, near and long-term monetization. We are building on top of our 2 billion Euro investments in Bell Labs and R&D, our talented workforce and extensive portfolio of patents with over 30,000 active patents and 16,000 patent applications.
Our industrial ambition is focused on moving from a generalist to a specialist. We see our customers moving their center of gravity to Cloud IP networking capabilities - this is an area where we can provide significant value in meeting the demands for an information-rich globally connected world. We will leverage these opportunities to re-focus our investments and operations, making Alcatel-Lucent a specialist in IP networking and Ultra-Broadband.Departing from several “generalist” practices run so far in the company, Alcatel-Lucent will focus over the next 3 years, in developing becoming a “specialist”: Products & services specialized on all-IP networking & Ultra-Broadband Fostering Professional Services, centered around all-IP, Cloud-IP and Ultra-BroadbandFocus on business segments & geographies, where it can take leading positionsSimplified portfolio focus outside strategic product and services areasFocused customer engagement on specialized competenciesAdditional customer segments addressed where we can add significant value Go-to-market partners, alliances and channels to cover new customers Through this transformation we keep as a priority the operational and delivery excellence, with customer satisfaction as a major Key Performance Indicator (KPI).
INNOVATION & TECHNOLOGYAlcatel-Lucent’s commitment to innovation is far more than just a component of our strategy; it is the foundation of everything we do.This commitment can be seen in the Eur 2.3 billion we invested in 2012 in R&D, representing around 16% of sales. It can also be seen in our portfolio of more than 30,700 active patents worldwide, which span a vast array of technologies.As the world becomes ever more connected, networks deliver the lifeblood of the digital economy – collaboration, business and social interactions, entertainment. It’s a fast-moving world. The time it takes for a new idea to become a new application is ever-shrinking.Alcatel-Lucent is not just adapting to this evolution – we are actively driving it.For service providers to stay competitive, they must offer compelling new experiences to their customers. The network is the launching pad for new services and the experiences they offer. Service providers need a dynamic network where new services can be launched quickly, without losing pace. Alcatel-Lucent is delivering one breakthrough innovation after another to bring this dynamic network to life.Researchers at Bell Labs – Alcatel-Lucent’s research organization – work in close collaboration with the company’s product development teams and customers to create and enhance the technologies that are transforming the way people connect with each other and the information around them. Our experts, many of them world leaders in their respective disciplines, collaborate on fundamental and applied research to solve the complex networking and communications challenges confronting our world. They are continually expanding the capabilities of communications networks of all kinds: optical, wireless, Internet protocol, broadband access – with novel technologies and techniques to make them faster, smarter and greener.Innovation is a core part of our business heritage and is a key driver of our future. To ensure a continued pipeline of technology breakthroughs, we are refining our R&D approach to more closely link innovation assets to the day-to-day operations of the business. We are implementing a tighter connection of our world-class Bell Labs organization to our product roadmaps. Between 2012 and 2015, R&D will be re-directed to the assets driving profitable growth in our portfolio - IP routing, transport & platform, LTE and FTTx - as well as “Strategic Technologies”. We will continue to leverage Bell Labs to drive disruptive innovation into our portfolio, previous successes include developing industry first 100G coherent optical technologies, CloudBand or vectoring for DSL – among other innovations. We will also aggressively pursue new product ventures (such as Nuage Networks within our market-leading IP portfolio, Cloudband our virtualization platform or Velocix our content delivery network asset), in incubation hubs like California, Israel or the UK. Finally, Alcatel-Lucent plans to generate substantial Intellectual Property on an annual basis. Alcatel-Lucent's patent monetization effort includes aggressive licensing and enforcement of the Alcatel-Lucent patent portfolio. A specific Bell Labs program named “Strategic Technologies” will focus on high-value technologies with the express intent of creating patents for the monetization effort.In short, the market will more than ever receive the innovative capabilities it has come to expect from Alcatel-Lucent, in a manner that is even more connected to the overall strategy and deliverables.
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