Competitors - Telecom Vendor Services (Current Analysis 2013-01-28)

8/14/2019 Competitors - Telecom Vendor Services (Current Analysis 2013-01-28)

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Competitor ComparisonCompetitor Comparison

urrent Threat

ndex

Alcatel-Lucent -

Telecom Vendor

Services (*)

Aricent Group -

Telecom Vendor

Services (*)

Ciena - Telecom

Vendor Services

(*)

Cisco - Telecom

Vendor Services

(*)

Ericsson - Telecom

Vendor Services (*)

HP - Telecom

Vendor Services

(*)

Huawei - Telecom

Vendor Services (*)

IBM - Telecom Vendor

Services (*)

Nokia Siemens

Networks - Telecom

Vendor Services (*)

Tech Mahindra -

Telecom Vendor

Services (*)

Tellabs -

Telecom

Services

hreat Index Chart

itle

ating Update

ummary

urrent Threat

sses sment

olutions

roducts/Roadmap

ervice/Support

trategy Execution

omentum/Traction

erspective

Alcatel-Lucent -

Telecom Vendor

Services (*)

Aricent Group -

Telecom Vendor

Services (*)

Ciena - Telecom

Vendor Services

(*)

Cisco - Telecom

Vendor Services

(*)

Ericsson - Telecom

Vendor Services (*)

HP - Telecom

Vendor Services

(*)

Huawei - Telecom

Vendor Services (*)


Services (*)

Nokia Siemens

Networks - Telecom

Vendor Services (*)

Tech Mahindra -

Telecom Vendor

Services (*)

Tellabs -

Telecom

Services

urrent

erspective POSITIVEPOSITIVE

We are maintaining

a positive rating on

Alcatel-Lucent in the

telecom vendor

services (TVS)

market, and by a

slim margin of one

deal it was the 2011

second place winner

behind Ericsson a nd

NSN who tied for

first, based upon

the total number of

deals logged in our

database. In July

2011, Alcatel-Lucent

formed its Software,

Services and

Solutions (S3)

business segment

making one of three

primary focus areas

the others being

Networks and

Enterprise. S3 ranks

number two in

terms of revenue

contributing

approximately 28%

based upon FY 2011

revenue, behind

Networks at 62%

and ahead of

Enterprise 8% and

others with 2%. The

S3 segment is

effectively flat from

a revenue

standpoint although

margins have been

improving, reflecting

results from

previously

implemented cost

reduction programs.Alcatel Lucent

Services is focused

on offering services

designed to help

operators transform

and leverage their

networks as a

business platform. It

is now organized

into three major

practice areas.

1. Consulting

Services: Provides

recommendations to

help clients define

and prioritize

projects. The

practice leverages

the depth and

breadth of its global

business and

technology

expertise and Bell

Labs innovation to

provide

recommendationsand best practices

MODERATEMODERATE

We are taking a

moderate stance

on Aricent Group in

the telecom vendor

services market.

Founded in 2006

from Hughes

Software Systems

and acquired by

Flextronics

Software Systems,

who also acquired

Frog Design, the

privately held

company

consolidated all

companies under

the Aricent Group

brand in August

2011. Today,

Aricent Group

provides Product

Engineering

Services, Carrier

Services and

Solutions, and

design and

innovation services.

The Aricent Group

has delivered

design solutions

from chip sets to

devices to network

equipment to back-

end BSS/OSS

systems. The

company has

10,000 employees

serving a wide

spectrum of the

communications

industry and

ecosystem, helping

it to substantiate

its claim of anexclusive

communications

focus thats vendor

agnostic.

With solutions for

telecom network

vendors, device

makers, application

providers and

operators, Aricent

Group addresses a

range of network

operator needs.

This breadth of

experience gives it

a solid claim to end-

to-end service

expertise a nd

capabilities. As

operators focus

more and more on

user experience as

a differentiator,

end-to-end services

offerings and

credible claims tonetwork

POSITIVEPOSITIVE

We are taking a

positive stance

on Ciena in the

telecom vendor

services (TVS)

market. Where

the company

plays p rimarily

design,

deployment,

optimization and

in some cases,

limited

operational

tasks related to

its own

equipment it

does we ll. Ciena

effectively placed

fourth behind

industry leaders

Alcatel-Lucent,

Ericsson and

NSN in our TVS

Tracker 2011

roundup.

Historically Ciena

has not

promoted its

managed

services with the

same vigor as its

larger

infrastructure

rivals,

positioning its

service business

as one of

Spe cialists

particularly in

the area of

optical and

Ethernet. Ciena

reports services

revenues as anindependent

segment, apart

from equipment

sales, making it

clear that the

company is

committed to

being a fully

engaged partner

in Ciena-

powered

networks. At

Ciena, services

are clearly tied

to equipment

sales, with a run

rate of 19.6% of

revenue in fiscal

2011; the

correlation

between

equipment sales

and services

revenue could

compound a

profit dip should

Cienasequipment sales

MODERATEMODERATE

We are

maintaining a

moderate stance

on Cisco in the

telecom vendor

services market.

Although the

company can

point to a

complete set of

network-focused

services within its

technical services,

remote

management, and

advanced

services, its

offerings do no t

share the same

breadth and

depth as other

industry leaders

such as Alcatel-

Lucent, Ericsson,

and NSN. The

primary difference

is Cisco purposely

keeps its services

offerings focused

on the Cisco kit

and does not

provide managed

multivendor

support on

products it does

not produce. This

makes sense,

since Cisco does

not offer products

in some of these

market segments,

such as the radio

access network

(RAN). Pa rtnering

helps to make upfor these

deficiencies;

however, while

partners are used

to augment its

reach, relying on

partners is risky,

as tensions

between

cooperation and

competition arise

and these

partners are

potentially

marginalized.

Cisco has

recognized this

and taken steps

in the last couple

years to make its

service provider

support services a

more direct and

high-touch

offering including

SLAs. Cisco is

attempting tomorph its services

VERY POSITIVEVERY POSITIVE

We are maintaining

our very positive

rating on Ericsson in

the telecom vendor

services (TVS) space.

It tied with NSN for

first place based upon

the total number of

deals logged in 2011

from our TVS data

base and claimed 70

new managed

services contracts

during the same

period. The vendors

Global Services unit is

one of the largest and

most extensive in the

world, covering 175+

countries and

employing 56,000

service professionals.

It once again

generated

approximately 37% of

the companys annual

revenue that ran at

SEK 227.9 billion (USD

31.5 billion) in 2011.

Its one of three

reporting divisions --

the others being

Networks (58%) and

Multimedia (5%). Its

service portfolio is

divided betw een

professional services

and network rollout.

Professional services

include: managed

services, consulting

and system

integration, custom,

and project-based

offerings and, in2012, Ericsson led the

pack for managed

services awards,

indicating a strong

demand and

consistent with these

and other trends

reported in our

Telecom Vendor

Service (TVS) tracker.

The high percentage

and growth of

managed services is a

clear indication of

uptake for the higher-

value services not

tied to product

revenue. Last year

saw several

significant awards: a

seven year managed

services contract to

Clearwire, a major

North American

service provider and

Sprint partner, andmore recently a four

MODERATEMODERATE

We are taking a

moderate

stance on HP in

the telecom

vendor services

(TVS) market.

Even though it is

not a

manufacturer of

telecom

equipment, the

company has

used its

organization,

products (such

as analytics),

and partners to

create a niche

for itself within

the IT segment

of the TVS

market. HP

claims hundreds

of service

provider

customers, and

annual revenues

of $127.2 billion.

With 28% of the

companys

revenues

coming from

Services, HPs

size as a

services vendor

dwarfs the

services

businesses of

even the largest

of the traditional

telecom network

vendors. Going

forward, its

deep set of IT

products andexpertise

provide HP with

increasing

relevance as IT-

oriented

solutions like

OSS/BSS and

customer

experience

management

(CEM) begin to

play a larger

role in operator

business

models.

Additionally, as

virtualization

and cloud

architectures

become

increasingly

relevant as

telecom-grade

services, HP has

a natural

opportunity to

expand itsrelevance in the

POSITIVEPOSITIVE

We are raising our

rating on Huawei from

moderate to positive in

the telecom vendor

services market

segment. Building on

the consistent network

sales and service

success over the last

several years, the

company can point to

a growing number of

service engagements

beyond the basic

technical services that

all vendors provide in

support of their

platforms. Huawei

offers perhaps a

broader array of

services over other

vendors of its size and

in addition to the

standard, network

operation and

integration or

migration services it

will supply facility

construction as well. It

is no surprise that

Huawei points to

managed services as

the fastest growing

segment of its

business claiming a

CAGR of 70% for the

last six years. Huawei

clearly views

professional and

managed services as a

strategic long-term

company growth

engine and way to

move up the value

chain. Given its ascentin the equipment

market - and

demonstrated ability

to achieve strategic

growth targets across

a range of areas

within this market

there is little reason to

doubt Huawei cannot,

in time, exert similar

pressure in the

services market.

Although Huawei has

done we ll with its

baseline services

assets, capabilities,

past project

experience and vision

for the future, it has a

substantial amount of

work ahead to execute

on this vision.

Huaweis products,

and the resulting

opportunity to sell

product attachedservices, are clearly a

POSITIVEPOSITIVE

We are taking a

positive stance on IBM

in the telecom vendor

services market,

because its global

delivery capability,

consulting and

software integration

expertise are in many

ways unrivaled. IBM

strategically

approaches Global

Services as critical to

providing support to IT

infrastructure and

solutions to clients.

Global Services consists

of Global Technology

Service (GTS), which

provides IT

infrastructure and

business services with

employees in 40

countries supporting

430 data centers, and

Global Business

Services (GBS), which

provides the

professional services.

Its combined revenue

for FY 2011 was $60.1

billion, and the services

backlog number stood

at $141 billion,

indicating a strong

business pipeline.

In terms of its focus on

the telecommunications

market, sales into the

vertical account for

approximately 9.3% of

the companys revenue.

Specific offerings a imed

at CommunicationsService Providers

(CSPs) include services

aimed at data center,

cloud, mobility and

integrated

communications. IBMs

strength in IT services,

its credibility in vertical

markets that are

increasingly orientating

towards telecom-grade

networking solutions,

and the co-opetition

model which it enjoys

with most major

network equipment

vendors, put the

company in a strong

position to benefit as

network operators are

forced to devote

increasing attention to

the monetization and

business side of the

network as well as

optimizing and

transforming IT-relatednetwork functions.

POSITIVEPOSITIVE

We are maintaining

a positive stance

on NSN, which due

to this years series

of announced

service wins,

remains

threatening to the

competition in the

telecom vendor

services (TVS)

market. With

services

consistently

accounting for

approximately 50%

of revenues (EUR

14.04 billion, or

$18.33 billion USD,

in 2011), it is

impossible to

ignore the

importance of

services to the

vendors bottom

line. Last years

announcement that

it would focus its

business on global

service along with

mobile broadband

(including optical)

and customer

experience

management (CEM)

was a bold yet

necessary move.

NSN must prove its

sustainability by

becoming

profitable, and it

has moved quickly

to divest itself of

business units that

are not strategic tothis goa l. NSNs

global service

delivery plays to its

focus on remote

delivery while

meeting spe cific

local and regional

requirements

offering 99.99%

availability to

operators. It has

supported the

build-out of

additional Global

Network Solutions

Centers (GNSCs)

and Global Network

Operations

Centers, having

opened its last

Service Delivery

Center in Mexico in

December 2011.

NSN is taking

proactive steps to

narrow its services

consulting focusand has targeted a

POSITIVEPOSITIVE

We are taking a

positive stance on

Tech Mahindra in

the telecom vendor

services (TVS)

market. While the

company does not

develop telecom

network

equipment, it does

engage in

managed network

services contracts

on a turnkey basis.

Its true strength,

however, is in the

IT domain, where it

is w orld-renowned,

and its integration

with sister

company Mahindra

Satyam should put

the company in a

prime position to

leverage its

telecom know-how

across a broader

range of vertical

industries.

While Tech

Mahindra is not the

first name that

comes to mind

when thinking of IT

specialists focused

on the telecom

industry, it does

hold the distinction

of being the largest

Indian player in the

TVS market

segment based

upon revenue. In

2010, Tech

Mahindra crossedthe billion dollar

threshold, and it

was recently

named the number

one

telecommunications

software service

company in India

by an Indian tech

publication. Tech

Mahindra claims a

presence in 31

countries,

employing 43,657

professionals and

serving 128

customers, with 36

new logos added

this quarter. It

boasts a global

reach and has an

impressive resume

of telecom

operators as

customers along

with a quality

reputation forsoftware

MODMOD

We are t

moderat

stance o

Tellabs i

telecom

services

The com

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packet o

and mob

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transpor

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Poor rev

performa

the mob

packet c

market h

caused T

to aband

market

complete

along wi

20% rev

drops in

Broadba

Transpor

segment

has caus

institute

restructu

program

the com

focused

back on

Service r

which is

third of i

reporting

segment

in at $22

million in

decline oThis

represen

about 17

revenue

gross ma

33%, wh

about av

for a com

its size.

upon his

service r

as a perc

of produ

revenue

within a

percenta

points, it

that Tell

services

business

product-

remains

tied heav

the ebbs

flows of

equipme

sales.To its cre
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2/12

to its customers.

Specific consulting

practices offered

include: Operations

Excellence,

Customer

Experience, Value

Chain and

Innovation, New

Operator and

Wholesale, and

Architecture.

2. Professional

Services: Provides

solutions designed

to help customers

transform and

leverage their

networks as a

business platform.

The Practice uses its

industry leading

network planning,

design,

optimization,

integration and

applications support

services to deliver

innovative customer

solutions. Specific

areas of expertise

offered include: NGN

Wireless, NGN End-

to-End

Transformation, NGN

OSS/IT, Advanced

Communications,

Application

Enablement, Cloud,

Customer

Experience

Management, Mobile

Commerce, Payment

& Charging, and

Billing.

3. Operation

Management

Services: Provides

transformational

managed services

and maintenance, to

help service

providers operate

their networks more

effectively,

maximizing network

availability and

quality for a high

quality end-user

experience. Specific

offerings include:

Managed Services,

Proactive Services,

Maintenance, and

Multivendor

Maintenance.

Alcatel-Lucents

telecom experience

and offerings range

from fixed and

mobile infrastructure

through OSS/BSS

and application

products all

supporting

customers in 130

countries. Service

assets are equallybroad: 90 welcome

and technical

centers; seven

regional solutions

units; ten network

operations centers;

five IP

transformation

centers; nearly

20,000 services

staff. With a solid

position in fixed

access and mobile

backhaul, the

company is arguably

the leading services

player in the fixed

network market and

with services being

one of the

companys

consistently

profitable

businesses, ALUs

commitment to th e

space is obvious.

Despite its well-

known strengths,

ALU still faces no

shortage of

obstacles in the TVS

space. Like most

vendors with a

services business,

ALU might have a

tough time

differentiating its

offering and many

service deals are

product led. Its

doing a good job

bundling

professional a nd

technical services

together in the

support of customer

transformation

projects most

recently with its

end-to-end 4G LTE

wireless network

offering and this

may lay thegroundwork for

agnosticism should

become

increasingly

important. At the

same time, key

competitors in the

services space will

claim similar

capabilities and

those which deliver

network

infrastructure are

likely to be as

credible. To this

end, as Aricent

Group pushes

deeper into hot

market

opportunities such

as OSS/BSS

integration a nd

LTE, it will continue

to bump up against

these network

services

heavyweights.

Perhaps more

importantly, while

Aricent Group may

actually sell into

these vendors, its

broader focus on a

wide array of

telecom customers

actually limits its

expertise a nd

image in the service

provider space

again, positioning it

as a niche player

against the

markets

entrenched vendor

services players.

falter. Whats

more, at least

from a marketing

perspective, the

vendor does

leave some

relatively

obvious gaps:

namely backhaul

and IP expertise.

Competitors like

Tellabs have

specifically

targeted these

hot transport-

related areas

offering an

architected

solution where

Ciena is less

active, thereby

ceding a degree

of market

credibility. Ciena

is working on a

microwave

backhaul based

services

capability it

hopes to field

this year.

Beyond the

Ciena Specialist

Services

positioning, the

company

segments its

capabilities into

four service

suites: Consult

and Design

Services,

basically

professional

services tailored

towards a

customers

unique network

environment;

Implementation

Services,

designed to

provide tech

support, turn-up

and test,

through turnkey

deployment;

Manage and

Maintain

Services,

focused on

missio n-critical

network

operational

aspects,

including

surveillance,

fault detection,

performance

services, and

inventory and

spare parts

management,

which Ciena

terms logistics

management;

and Ciena

LearningSolutions,

providing formal

training on the

products and

networking to

help customers

best manage the

strategic aspects

of the network

resource. Ciena

also provides a

24x7 NOC an

integral building

block in support

of many of the

offered services

and customers

directly for

complex and

critical issues .

strategy to

address the

needs of both

operators looking

for a partner

(rather than just a

vendor) as well as

its sales and

distribution

channels (i.e.,

direct touch vs.

partners).

Services have

become an

integral portion of

infrastructure

build-outs and

lifecycle costs , so

operators are

correctly viewing

them as an

important

component to any

deal, making them

as strategically

important as the

technology being

deployed.

In fiscal 2011,

Ciscos service

revenue grew

12% year-over-

year, and it is a

significant

contributor at

$8.69 billion,

providing slightly

more than 20% of

total revenue;

with a gross

margin of 65.0%,

it is very

profitable. For

fiscal 2012, Cisco

is on track to

grow its service

revenue at 8-10%

this year and

again contribute

approximately

20% of revenues

with margins in

the sixties. Its

service provider

strategy is to

become a trusted

and preferred

business and

technology

partner working in

collaboration with

its partners to

provide a

complete solution.

As an

acknowledged IP

specialist, the

company

maintains an

advantage in IP

transformation

projects. Likewise,

with a focus on

unified computing,

where Cisco sees

the network

integrated with

the data center

andcommunication

and content

services

independent of

the network, it

has worked with

its Global Service

Alliances members

for IT support and

a tighter

integration of

these functions.

Cisco should

enjoy a stronger

role for its

professional and

managed services

assets in next-

generation

solution delivery.

The company has

also adopted an

aggressive focus

on building out its

presence in

emerging markets

using more of adirect touch

strategy.

year engagement

with MetroPCS for

backhaul using

microwave. This

shows uptake for

Ericsson in the North

American market and

helps break the long-

held tradition of

network operators

being reluctant to

outsource the running

of their networks to

third parties. Another

marquee deal was

China Mobile, its

largest ever, which

calls for 22,000 sites

over a three-year

period. Ericssons

acquisition of

Telecordia clearly

telegraphs a strategy

of building immediate

support and further

penetration into the

OSS/BSS market tha t

Ericsson categorizes

as one o f its growth

levers. On the

downside, however,

Ericssons scale

advantage has taken

a hit over the last few

years, as Alcatel-

Lucent, Huawei and

Nokia Siemens

Networks can each

boast of similar global

reach and presence.

As they do, Ericssons

traditional weak spot

in the fixed rea lm (i.e.,

lack of share in fixed

networks) is more

pronounced.

network

operator

ecosystem. In

terms of

packaging aimed

at increasing

visibility with

operators, HP

has re-launched

its Solution

Consulting

Services (SCS)

by adding

prepackaged

solutions to its

OSS

Transformation

portfolio as well

as

benchmarking in

support of

transformation

analysis. Finally,

HPs joint

venture with

Alcatel-Lucent

provides the

company with a

networking

equipment play

when competing

for contracts

such as data

center

transformation

projects

where telecom-

grade transport,

routing and

network

management

are fundamental

to a complete

offering.

On the other

side of the coin,

however, as

much as HP may

see itself

competing with

Ericsson, NSN,

or other

services-led

telecom vendor

organizations,

the fact remains

that beyond its

JV with Alcatel-

Lucent (which,

by all indications

is somewhat

limited in scope

to data center

transformations)

it comes up

short in terms of

telecom

products and IP

expertise. HP

has much more

in common with

its IT-focused

brethren, and

while it may

have a wide

array of service

provider

customers,many link

directly to IT or

enterprise

components. It

may partner

(liberally) with

telecom network

vendors, but so

too do its

closest

competitors, all

while

increasingly

competing with

these same

vendors. HPs

emphasis on the

enterprise

market is clear,

along with the

specific and

traditionally

targeted

verticals of

government,

health, and

education,leaving one to

speculate on the

strategic value

of the traditional

telecom services

vendor beyond

their IT needs.

strength. Leveraging

this, services revenues

have grown to around

USD 5.4 billion and

account for about 17%

of company revenue

(FY 2011) and have for

the past two years. As

a private company

Huawei is not obliged

to release the same

level of financial

reporting that public

companies typically

provide breaking out

service revenue and

expenses as it own

P&L. This percentage

level is more indicative

of product-led services

company as opposed

to managed and

professional, which

would tend to run

higher as a

percentage of sales.

However, it is equally

clear that Huawei is

making the investment

to build out the

infrastructure to

support managed and

professional services

with a local touch and

is gaining traction as a

result. Huaweis

service business is still

evolving and will take

some more time to

build out the

infrastructure required

and gain the

experience and

credibility on a number

of fronts before it can

be considered as

robust a services

player as its chief

rivals.

At the same time, even

within its scale and

telecom-related

capabilities, IBMs core

strengths, and the

benefits of co-

opetition with vendors

are coming under

increasing pressure as

the aforementioned

equipment vendors are

aggressively targeting

OSS/BSS relate d

opportunities and the

consulting and systems

integration services

that IBM has

traditionally brought to

the co-opetition

relationship. This,

combined with IBMs

lack of telecom

equipment expertise,

should require the IT

giant to compete more

directly than ever in the

telecom market against

companies that have

traditionally served as

partners.

couple select

verticals where it

has some tenure,

specifically

transportation

(railways), the

public sector

(governments), and

enterprises. In the

vendor services

market, few

vendors can match

NSNs reputation,

resources, and

traction. It claims to

be the second

largest wireless

infrastructure and

service provider in

the world, and it is

very active in the

support and

deployment of LTE-

based networks

globally, with over

58 commercial LTE

deals. NSN serves

over 600 service

providers in more

than 150 countries,

with networks and

systems supporting

over 1.5 billion

subscribers for

mobile broadband

services.

NSN must rely on

other infrastructure

vendors for their IP

core devices,

having none of its

own, and it has

developed global

alliances with both

Cisco and Juniper,

making it one of the

few truly multi-

vendor yet vendor-

agnostic and multi-

technology options

available. Such a

large percentage of

revenue drawn

from services rivals

could portray the

company more as a

services specialist

than as a network

vendor, although

NSN can claim a

mobile access

leadership position

with 58 commercial

LTE network deals.

Most worrying,

though, are NSNs

financials, as it has

been unable to

demonstrate

sustained viability.

This has prompted

the parent

organizations to

appoint an

executive chairman

and provide an

additional EUR 1

billion in funding to

help achieve thestrategic imperative

of financial

independence. The

program calls for a

workforce reduction

of 17,000 by the

end of 2013, with

operating expenses

reduced by EUR 1

billion compared to

current levels. A

services business is

largely built around

qualified people

and offers lower

margins than

product sales

typically provide.

This means the

proper balance

between product

sales and service

must be achieved

to provide the

stability sought,

and the

management teamfaces the challenge

of doing all this

while maintaining

forward progress.

development.

These strengths

should help the

company rise in the

ranks of global

telecom services

heavyweights in

coming years. Its

telecom-focused

core services are

split between

network services

and IT services,

with common

service offerings of

security, testing,

and performance

engineering being

offered across

each. The services

themselves are

provided as

consulting, system

integration,

solution

engineering,

application

development,

product lifecycle,

professional, or

managed Services.

As previously

mentioned, its

expertise in vertical

industries,

accentuated by the

merge r with

Mahindra Satyam,

puts it in an

advantageous

position in what

many vendors see

as the next major

telecom networking

opportunities

particularly services

opportunities,

given the need in

these markets for

business-specific

and customized

solutions.

Together, they are

targeting 15

specific verticals

identified as

playing to their

core strengths.

Finally, a list of

recent partnership

activities (notably

with ZTEsoft, BMC,

Aeris

Communications,

Redknee, and CA

Technologies, all

unveiled in the first

half of 2012)

demonstrates that

Tech Mahindra is

aggressively

building out its

partner ecosystem

to address the

concern that it

does not possess

the requisite

platform portfolio

to understandnetwork operator

needs.

On the other side

of the coin, while

Tech Mahindras

fact sheet would

seem to place it

near the top of the

list of global TVS

leaders, it is not

without issues.

Although the

company was

historically focused

on

telecommunications

as a ve rtical, it

does not focus all

its resources

exclusively on the

telecom market

segment of carriers

and service

providers. With its

merger with

Mahindra Satyam,

telecom will nowbecome one of 15

verticals the

company targets.

Moreover, recent

partnerships

notwithstanding,

the fact that it

does not develop

telecom network

equipment

hardware

relegates the

company to the

role of an

equipment-

agnostic niche

provider large

though that niche

might be vis--vis

the likes of

Ericsson, NSN, and

Alcatel-Lucent.

Naturally, Tech

Mahindras lack of

institutional

product expertise

impacts itscredibility

Tellabs s

have a s

grasp th

largely a

product-

attached

services

yet it see

intent on

out a pla

services

increasin

sufficient

To this e

has man

execute

network

mobile b

product

momentu

know-ho

build a s

and sust

services

business

complem

its stand

product-

attached

services,

offers Te

Insight A

Services

service o

that prov

end-to-e

analysis

vendors

network

professi

services

engagem

Without

product

or servic

personn

of compe

Tellabs h

generally

eschewe

manage

services

built

relations

with par

both sell

services

bolsterin

capabilit

outside o

home ter

North Am

Yet, eve

though T

has play

strength

worked t

expand i

services

the fact

that it co

with ven

which ca

promise

services

portfolio

(manage

services,

deliveredservices

places) a

demonst

broader

expertise

Perhaps

importan

these ve

can poin

longer h

with mob

and cons

While Te

plans to

into thes

spaces a

encourag

only with

will it be

whether

execute

strategy

compete

mobile

heavywe


3/12

potential managed

services

engagements in the

future. The bigger

issues facing ALUs

services prospects,

however, run

beyond its S3

business.

Regardless of the

aforementioned

efforts, the vendors

reputation of fixed-

line strength could

hurt its prospects

with wireless

operators vis--vis

acknowledged

wireless

powerhouses of

Ericsson and NSN.

deploying,

managing, or

operating another

vendors

equipment. This

presents an

interesting

marketing

challenge for Tech

Mahindra to gain

visibility and

credibility for its

network

optimization and

systems

integration services

and capabilities

against established

telecom equipment

vendors and a

growing a rmy of IT

specialists, such as

HP and IBM, which

can also claim

equally deep ties

to the telecom

space.

trengths and

Weaknesses

Alcatel-Lucent -

Telecom Vendor

Services (*)

Aricent Group -

Telecom Vendor

Services (*)

Ciena - Telecom

Vendor Services

(*)

Cisco - Telecom

Vendor Services

(*)

Ericsson - Telecom

Vendor Services (*)

HP - Telecom

Vendor Services

(*)

Huawei - Telecom

Vendor Services (*)


Services (*)

Nokia Siemens

Networks - Telecom

Vendor Services (*)

Tech Mahindra -

Telecom Vendor

Services (*)

Tellabs -

Telecom

Services

tre ngths Alca te l-Lucent is,

by most accounts,

including our TVS

database, a top

three vendor in the

infrastructure

services space.

Perhaps more

importantly, it is one

of the companys

undisputed sweet

spots. In 2011,

Services accounted

for Euro 4.461 billion

and was a profitable

business unit

throughout the

year, generating an

operating profit of

Euro 227 million forthe segment.

Ultimately, this

position and

momentum gives

ALUs services

business the

internal leverage to

demand continued

investment, and an

external perception

of stability to gain

customers and keep

them happy.

Alcatel-Lucent has

made significant

strides bundling

product with

managed services

for mobile

operators,

especially those

that have complex,

multi-vendor mobile

networks deployed.

Its recent win with

Saudi Telecom

Company for an LTE

network includes

managed services

for all sites, for

example.

Additionally recently

extended contracts

and have taken on

a trusted advisor

role with mobile

carriers such as E-

Plus in Germany

with a two year

extension and

Telecom New

Zealand for a three

year managed

service extension.

Extensions or

renewal of existing

managed service

contracts point to a

high degree of

customer

satisfaction.

Though Alcatel-

Lucent enjoys solid

traction within the

mobile operator

community, it has a

particularly

impressive

reputation in the

fixed space. Building

on product

strengths in optical,

fixed access, carrier

routing, and IPTV,

the vendors

wireline services

give it a

differentiator over

the predominantly

wireless-focused

image of

competitors like

Ericsson and NSN

as well as more

narrowly focused

fixed line specialists

such as Ciena, ECI,

and Tellabs.

Further

highlighting Alcatel-

Lucents fixed line

prowess, the

company is

Aricent Group

highlights an

exclusive focus on

the communications

industry as a

strategic

differentiator. This

focus gives the

company a claim to

deeper insights and

expertise than

companies with a

broader purview. At

the same time, a

focus that extends

to many aspects of

the communications

ecosystem (e.g.,

components,

devices, networkR&D and services)

gives Aricent Group

access to the

revenue diversity

that is critical for

stability.

Aricent Groups

development

organization has

been assessed and

awarded a CMMI

Level 4 rating. Most

development

organizations are

CMMI Level 1 or 2,

with 5 being the

highest. The

achievement of this

level is truly an

accolade to its

development

discipline and

predictability. Few

companies in the

world achieve this

level of rating and it

is not accomplished

overnight, typically

taking several

years and requiring

a serious

management

commitment.

As operators look

beyond narrow KPI-

based network

evaluations to

focus on end-user

experience, Aricent

Groups broad set

of communications

capabilities should

be an asset. End-

to-end optimization

programs, for

example, by

necessity touch on

the entire network,

but they could be

taken more broadly

to include location-

based service (LBS)

delivery, location-

based advertising

(LBA), device

components and

service design.

When presented as

a so lution provider

across all of these

spaces, Aricent

Group should

benefit.

Aricent Group

claims a deep base

of employees,

customers and

assets: 800+

customers, 10,000+

employees and

125+ licensable

products.

Employees and

products are

important for

executing on major

projects on a global

scale. Customers,

including a claimed

seven of the top

ten Tier 1 service

providers, signal

that Aricent Groups

Ciena touts a

robust set of

hardware-

attached

professional

services focused

on design,

deployment,

maintenance

and

optimization. By

doing so, the

vendor plays to

its strength as a

network

specialist and

positions its

services

capabilities as

be st of b reed .It has many case

studies to which

it can point as

evidence of its

capabilities and

customer

success stories.

The larger

players in this

space like to

position

themselves a s

services experts

in all aspects

concerning

networks and

the services that

run over them.

Since Q4 2011

and into 2012,

Ciena has

shown strength

in winning

submarine

optical cable

system

upgrades, a

niche within the

optical

infrastructure

space served by

only a handful of

vendors. Of late,

Ciena has won

three different

submarine cable

upgrade

projects, the first

was for Reliance

Globalcom in the

Asia region, the

second for

Southern Cross

Cable that

serves

Australasia and

the third for

PCCW Globals

North Asian

subseas routes.

The latest

project also

included Cienas

intelligent

submarine

networking

solution that will

help in the

management of

third-party

devices as well.

Though product-

led, the inclusion

of Cienas

technical and

professional

services in each

of these projects

provides a

strong public

endorsement of

Cienas service

offerings.

Cienas service

business is

strong,

accounting for

19.6% of

company

revenue in fiscal

2011, and has

stayed within +/-

1% since 2010.

With FY 2011

service revenues

of $8.69 billion

and representing

about 20% of its

total revenue,

Ciscos services

business is

noteworthy.

Services revenue

also grew 12% in

2011, outstripping

the growth in

product areas

such as routers

and advanced

technologies and

delivering margins

in the mid-sixties.

For FY 2012, Ciscois on the path

once again to

grow service

revenue in the 8-

10% range w hile

delivering margins

in the mid-sixties.

Cisco has spent

years de veloping

a solid set of

services

capabilities,

including: TAC,

training, and

investing over

$100 million in the

tools required,

particularly

focused around

product support,

maintenance, and

rollout. Perhaps

more notably, the

company has

developed a

broad portfolio of

services partners

in the telecom and

service provider IT

spaces, ranging

from Nokia

Siemens Networks

(NSN) to IBM to

Tech Mahindra

and many others.

Cisco has made

these investments

to support its

partners, allowing

them to provide

an e quivalent

level of support as

a direct touch

relationship.

Ciscos is

beginning to

target service

providers directly

and enterprise

customers

through partners,

which historically

represented a key

component of its

services strategy.

Embedded in its

longstanding

Lifecycle Se rvices

vision, the

company targets

mobile, cable, and

fixed operators

with a similar set

of services:

network planning,

design, rollout,

production

support, and

network

optimization. To

be sure,

competitors offer

the same

services, making

these table

stakes; however,

the quality and

value of the

companys

offerings and

services

capabilities cannot

be overlooked or

Ericssons depth of

services expertise is

matched by significant

breadth. It is active in

all areas of the

telecom infrastructure

services market, and

the company can

point to we ll-

established track

records in such

disparate services as

managed operations,

systems integration,

applications hosting

and managed field

maintenance. Equally

important is its 15-

year tenure providing

these servicesolutions in a multi-

vendor multi-

technology

environment with

50% of its managed

nodes being non-

Ericsson; this is critical

given the value of a

vendors resume in

terms of

competitiveness.

Ericsson points out

that it is the market

share leader in terms

of services revenues

in the telecom

operator services

segment, claiming its

10% larger than its

closest competitor. It

tallies 6,000 million

subscribers connected

to its networks and

an additional 300

million covered by its

field operations and

spare part

management for a

total of 900 million

users. This provides

Ericsson with a large

opportunity base that

it can successfully

leverage to win long-

term, high-value

contracts which

provide predictable,

recurring revenue

streams in an industry

otherwise prone to

boom-bust business

cycles.

In support of the

Global Services

operation, Ericsson

maintains the

distributed resources

necessary to be a

strong services

player. It has ten

regional competence

centers, with four

global network

operations service

centers (GCSs)

located in China,

India, Mexico and

Romania. In total, the

company claims

104,525 employees

with 54% of them

services professionals

providing an

organization thats

56,000 strong and

globally distributed.

Where the services

business depends on

having the right

people in the right

places, Ericssons

resources are an

undeniable asset.

Ericsson is without

question one of the

strongest

GSM/WCDMA vendors

in the market and a

top contender in 4G,

laying claim to the

first managed service

LTE netwo rk for TDC

in Denmark and

HP is, by all

accounts, a

leading player in

the IT products

and services

markets, with a

presence in

nearly all

telecom service

provider

companies. Its

history as a

technology

supplier

provides it with

a powerful

brand, important

in establishing

trust and

credibility. Itsrevenues and

Fortune 10

status (with

fiscal 2011

seeing the

company net

$127.2 billion

and service

contributing

28% of

revenues)

provide the

stability

operators look

for in a partner,

as well as

differentiation

against mobile

network

vendors that

may be facing

financial

difficulties.

HP is, first and

foremost, an IT

player; IT

products and

services are

increasingly

important to

telecom

operators,

including:

Application

Modernization

Services, Care

Support

Services, Cloud

Consulting

Services,

Converged

Infrastructure

Services, Data

Center

Transformation

Services, and

Information

Management

and Analytics.

This becomes

especially

relevant as CEM

begins to take

hold with

network

operators as a

cross-

organizational

imperative. To

this end, HPs

high regard as

an OSS/BSS

solution

provider, and as

an IT integrator

bode well for

the companys

near term

prospects to

increase its

wa llet sh are

with telecom

network

operators.

Beyond its

position as an IT

product and

services player,

HP has a

portfolio of

software-based

telecom

products to

By all accounts,

Huawei is one of the

strongest telecom

network vendors in

the market today, as

evidenced by

sustained revenue

growth, which reached

USD 32.4 billion in

2011 a 13.7% year-

over-year increase.

Over the past few

years, this sales and

revenue growth has

outpaced competitors,

quickly elevating it to a

top three market

share position in

multiple product

portions of thenetwork. While not

specific to services,

this success gives the

vendor an increasingly

significant opportunity

to sell services to

support its customers.

Specific to services,

Huawei does make a

number of claims that

testify to its recent

momentum in building

out services

capabilities. For FY

2011, Huawei reported

services revenue of

approximately USD 5.4

billion, a 12.5% year-

over-year increase,

and claims the number

one position in

network roll-out and

integration services.

On the managed

services front, the

vendor points to

managed services

contracts with 115

networks in 60

countries, and over

25,000 non-Huawei

nodes under

management. Taken

as a w hole, the clear

implication is tha t

where Huawei has

chosen to play in

services, it has

successfully

established itself as a

major force.

In terms of the ability

to deliver on contracts,

Huawei claims a solid

set of resources to

back up its services

business: 26,000

services employees;

130+ services branch

offices; 190 field stock

locations; 16 regional

services resource

centers; 15 regional

offices for managed

services; 36 training

centers; four Global

Service Resource

Centers, three

regional Network

Operations Centers

and a 77% localization

rate in overseas

markets. While every

major network

services vendor relies

on a W eb of globally

distributed assets, the

breadth of Huawe is

assets signals its

ability to support

operators in a variety

of engagement

models.

Huaweis Global

Services division offers

an extensive portfolio

of services packaged

to address the needs

of the operator.

Huawei offers

complete services

including: engineering,

furnish and insta ll (EFI)

IBM is the global

leader in delivering

services related to IT

integration,

optimization and

transformation. As the

originator of the multi-

vendor turnkey model

of IT, IBM has

established more

credibility than anyone

else in helping

customers manage the

issues and challenges

involved, and it can

point to a business

relationship with almost

every major carrier in

the world. Beyond the

obvious sales reachand revenue bene fits

associated with this

position, it also grants

the firm access and

advantage in delivering

software and services-

based solutions across

the gamut of fixed and

mobile network

domains.

IBM has effectively

productized its Service

Provider Delivery

Environment now up to

level 4.0 (SPDE 4.0).

The SPDE is a strategic

architectural platform

from which to develop

solution for

communications service

providers (CSPs). It

uses common software

building blocks for

information

management, analytics

and OSS/BSS

transformation. This

enables faster

development times with

lower and controls

costing while reducing

risk. It bridges the gap

between middleware

and custom delivered

software solutions to

solve unique business

issues.

Beyond its specific

focus on the telecom

industry, IBMs status

as a leading player

among network

integrators for vertical

markets such as the

smart grid, financial,

government, healthcare

and transport spaces

puts the company in

position to benefit as

networks in many

verticals begin to

demand the exacting

requirements that

characterize telecom-

grade networks. To this

end, while traditional

telecom vendors seek

to leverage their

telecom experience to

tap verticals, IBM is

already deeply

entrenched in most of

these markets; thus, it

does not have

credibility barriers to

overcome.

Specifically related to

optimization, IBM has

arguably the most

robust offering on the

market involving the

use of analytics as a

way not only to gather

data, but also to

interpret its meaning to

improve both customer-

facing and back-office

operations. As

operators become

increasingly attuned to

the value of analytics

as a business process

improvement tool, IBMs

NSN claims a so lid

position in the

network services

space, as well as

the resources to

back it up. NSN

Global Services

employs w ell over

45,000 employees

in 150+ countries,

and it has added

another 2,000 in

support of the

Motorola Solutions

acquisition. It

claims a number

two position in

managed and care

services, managing

690+ millionsubscribers.

Network

implementation, in

turn, accounts for

350 mobile and 50

turnkey projects

globally. In total,

the result is a

strong business

backed by the

resources and

proof points

operators seek in a

partner.

While all vendors

slice the market to

show themselves in

the bes t light, NSN

remains a generally

accepted top-tier

player across many

segments in the

market and its

services business

has benefitted.

Several

quantitative analyst

organizations rate

NSN a leader in LTE

network

deployments.

Recent services

wins point to NSNs

penetration of

wireless operators

moving towards

LTE. As mobile

broadband services

transition to LTE

and operators are

constantly looking

for ways to run

their wireless

networks more

efficiently, NSNs

position in wireless

and its high-profile

work with LTE put it

in a good position

to reap the

benefits.

Similar to some

other competitors,

NSN can point to a

renewed focus on

CEM and has

moved away from

the products and

associated support

services for

BSS/OSS syste ms.

As operators look

to maximize the

return on their

network

investments, the

focus is logical.

Having delivered

500 consulting

engagements in

the space for over

100 operators, the

vendors

capabilities are

clear and they

support its efforts

to build its mind

share and

credibility in the

space.

Completion of the

its most recent

Service Delivery

Tech Mahindra

boasts a full range

of telecom network

optimization

service offerings

including metrics

analysis, RF

benchmarking,

access and core

audit, design

validation and

network

performance

monitoring. As the

list implies, Tech

Mahindras

optimization

offerings span the

gamut of both

wireless and fixedIP/transport

networks. While

there is no

shortage of

companies offering

optimization

services, the ability

to take an

equipment-

agnostic approach

to addressing the

full gamut of

network

architectures

potentially puts

Tech Mahindra in a

stronger position

than some

equipment

providers (e.g.,

Ciena, ECI

Telecom, and

Tellabs) that

specialize in a

narrower segment

of the network.

Tech Mahindra,

while not the first

name in the TVS

arena, claims an

impressive roster

of telecom operator

customers,

including five of the

top seven

European telcos

and six of the top

ten North American

telcos. In 2011, the

company won

Outs tan ding

Supplier awards

from AT&T and

Bharti Airtel, as

well as the

Microsoft

Communications

Sector Partner of

the Year Award.

The award, which

goes to partners

for demonstrating

excellence in the

innovation and

implementation of

customer solutions

based o n Microsoft

technology,

strongly suggests

that the company

has customer

relationships that

not only add

credibility to its

value proposition

aimed at

prospective

customers, but also

provide valuable

avenues to growth

via existing

channels.

Tech Mahindras

integration with

sister company

Mahindra Satyam

matches Tech

Mahindras telecom

industry expertise

with Satyams

enterprise IT

expertise serving

vertical industries

Tellabs

services

strength

include a

of profes

and tech

offers, in

deploym

support,

training,

network

optimiza

network

and traff

migratio

These ar

stakes fo

credible

services

portfolioHoweve

requisite

services,

are critic

any vend

services

solution

as puttin

Tellabs i

good pos

meet op

demand

Tellabs

professi

services

good rep

for qualit

service,

shares le

learned t

its white

and case

studies.

Tellabs

particula

credible

transpor

network.

professi

services

develope

around

Ethernet

and espe

packet o

are built

network

heritage

as produ

indepen

services

in the sp

(backhau

consultin

transpor

optimiza

performa

manage

and spea

success

leveragin

expertise

transpor

on a new

importan

mobile

broadba

overall v

cannot b

denied.

Tellabs

smartly f

out how

leverage

channels

partners

support

services

business

the com

2011 saw

make pr

on insert

itself into

partner s

solutions

gaining

addition

channels

the mark

opening

specific

countries
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4/12

undeniably adept at

mining opportunities

within its core

strengths. Whereas

there are no

shortage of players

that target the

services aspect of

optical transport

deployments

Huawei, Ciena, NSN,

ECI, Tellabs, etc.

Alcatel-Lucent has

managed to

demonstrate more

public momentum in

the past six months

than, arguably, all of

the five highlighted

competitors

combined except

NSN. While tapping

new markets is an

aspiration for all

businesses,

executing on

fundamentals

provides the

foundation for

ongoing success.

A large part of any

telecom vendors

service capabilities

comes from the

breadth and depth

of its reach. Here,

Alcatel-Lucent does

well. Overall, the

vendor claims more

than 20,000 people

in its global services

organization. Staff

members are based

in 63 countries in 90

welcome and

technical service

centers, 15 regional

services centers,

ten NOCs, and five

IP transformation

centers. Managed

services touch 100+

networks and 250+

million sub scribers.

Alcatel-Lucents

end to end

integration

capabilities enables

it to work in a

partnership

approach with

customers to

mitigate risk

associated with new

service deployment

and/or the migration

from legacy to NGN

networks. Alcatel-

Lucent claims

trusted partner

status to 30 of the

world's largest

operators and over

100 e nterprises

worldwide. It has a

track record in

designing and

deploying IMS

networks as well as

IP Transformation

networks and more

recently LTE

migrations claiming

over 200 mobile

network migrations

and over 70 IP

transformation

projects.

service offering for

operators is

resonating in the

market.

OSS/BSS and LTE

have emerged as

key initiatives for

Aricent Group. In

conjunction with

MindSpeed, it has

created a small-cell

optimized, LTE

eNodeB reference

design that runs on

MindSpeeds

chipsets. Since

these are

undeniably hot

areas for

operators, Aricent

Groups focus is

seem timely and on

target. Beyond

timeliness, Aricents

June 2012 deal to

license the

software

framework portion

of the program to

Latin American ICT

R&D group, CPqD,

opens up new

business

opportunities in

one of wireless

hottest growth

markets.

Aricent Group is

well positioned to

take advantage of

emerging market

opportunities in

India through its

partnership

arrangements with

NEC. Although the

specific

arrangement is for

femtocell

technology that is

complementary to

both companies

strengths, it also

provides additional

opportunities for

potential up-sell of

additional sites and

ongoing service

business. NEC

claimed nine

femtocell

deployments a nd

another 24 trials in

progress.

This consistent

trend is an

indication that

Cienas is

supplying its

customers with

the necessary

maintenance

programs and

packages to

keep the

maintenance of

its networks in-

house rather

than being

outsourced to

multi-vendor

services

companies.

With Nortels

transport

business in its

fold, Ciena now

has a greatly

expanded pool

of network

equipment it

could potentially

service, maintain

and optimize.

While the direct

revenue

implications a re

straightforward,

having access to

incumbent

status at

Nortels accounts

also presents

Ciena with the

opportunity to

use its services

capabilities to

serve as a

catalyst for

additional

product pull-

through. Since

professional

services have

become a critical

piece of a

vendors overall

equipment value

proposition, the

fact that Ciena

can tout strong,

albeit targeted,

service

capabilities puts

it in better

position to

defend and grow

existing Nortel

accounts.

On the mobile

network front,

Cienas October

2011 win with

Fibertech

Networks to

provide a n

optical backhaul

network for a

wireless service

provider in

Connecticut

marks a

milestone win, in

terms of

penetrating both

the mobile

operator

community and

the geographic

territory of North

America that has

seen few

services awards

of late. While

Ciena may have

the home field

advantage, for

this particular

opportunity it is

an important win

because it will

help Ciena to

gain the

experience it

needs in mobile

backhaul and

leverage this

opportunity to

help it win other

wirelessbackhaul

opportunities.

underestimated.

Ciscos services

footprint is global,

with around

12,000 employees

in service out of

its 71,825 total

employees. In

part, this footprint

derives from the

vendors focus on

partnering. At the

same time, Cisco

has aggressively

been investing in

emerg ing

markets

(including massive

investments in

India), improving

its ability to

support

distributed

services demands

and setting it up

to improve service

support around

the world to

Ciscos focus on

collaboration

technologies and

the virtualization

of expertise

centers.

Cisco has used

its strategic

relationships to

create its network

of Global Services

Alliances for

supporting IT

projects around

the world.

Members include

Dimension Data,

HP, IBM, and

Orange Business

Services, and it

provides a higher

level of vendor

collaboration

throughout

deployment and

lifecycle. Cisco ha s

developed a

series of

compatible routing

and switching

blades for HP,

IBM, and others

vendors servers,

as well as special

function blades for

others. In a joint

development with

HP released in

November 2011,

Cisco announced

the Nexus B22

Fabric Extender

for HP, a special

blade that allows

the integration of

existing data

center technology

to a new

environment,

enabling

investment

preservation while

providing better

integration and

control.

Ciscos

Assu rance

Services for IP

NGN provide a

great illustration

of where the

vendor plays well

in service provider

networks. In

short, the offer

revolves around

IP network

optimization

extended by

network

monitoring as well

as proactive

performance

management,

availability

management, and

capacity

management.While product-

attached, it

speaks to the

value of Ciscos IP

expertise,

simultaneously

moving it into

proactive care at

a time when

network quality

and end-user

experience have

become operator

buzzwords.

subsequent LTE wins

at AT&T, Verizon

Wireless and more

recently Clearwire. By

dominating the

worlds foremost

wireless access

technology, it has

earned its place

among the most

important wireless

equipment makers,

positioning it very well

for services

opportunities in the

fast-growing wireless

and mobile

infrastructure services

market. Traditionally,

wireless networks

account for two-thirds

of the telecom

infrastructure services

market opportunity,

giving Ericsson Global

Services strong

credibility in most of

its addressable

market.

Wireless may

dominate Ericssons

reputation, but it is

not the companys

only focus. Ericsson

has the expertise

required to address

fixed line network

services requirements

beyond simple

wireless backhaul. In

July 2011 it was

awarded a managed

services contract by

Chunghwa Telecom

for digital media

infrastructure build

out in support of IPTV

service offerings.

Ericsson realizes that

for any company

hoping to sell its end-

to-end services

capabilities and

mitigate competition

in the wireless

network services

space, a strong mix of

fixed and mobile

expertise is critical.

Ericssons recent

acquisition of

Telcordia, a major

OSS/BSS playe r

historically strong in

the North American

markets, will bolster

its current offering

allowing support for

legacy systems and

support for the

convergence of

technologies moving

forward. This move

supports two aspects

of Ericssons strategy

of levers, one being

OSS/BSS within a

product portfolio and

the other being one

of M&A. Additional

benefits include

building and

strengthening its

presence in North

America, a potentially

fertile market for

services business.

drive its

relevance

further. The

vendor can claim

OSS/BSS

products. It can

point to service

delivery platform

products

distinguished by

a focus on

integrating

third-party

partners and

developers. HP

has a proven

ability to enter

new markets

and quickly gain

a share, w inning

against

incumbents in

their traditional

accounts.

HP enjoys

global reach,

with a

distributed

workforce

located in 170

countries and

55% of

revenues

derived from

outside the U.S.

In addition to

standard service

offerings HP

offers some

unique

capabilities like

the HP Intel CME

Solutions

Centers of which

it has three,

located in

Richardson,

Texas;

Grenoble,

France; and

Shanghai,

China. These

centers

represent a joint

initiative with

HPs partner

Intel and

provide telecom

operators with

centers of

expertise

designed for

proof of concept

and

benchmarking.

HP is expert in

partnering for

mutual go-to-

market and

delivery. The

vendor can claim

experience

working with

over 500

software,

services, and

telecom

infrastructure

vendors,

including key

partnerships

with Huawei and

Alcatel-Lucent.

Its partnership

with Alcatel-

Lucent holds a

ten-year term

and has

promised

innovative

solutions and

offers since

inception.

Ultimately, these

relationships

present HP with

a stellar channel

into telecom

providers as

well as the

benefit of added

telecom know-

how where

needed.

that includes the build

out o f facilities, to

managed services

providing a depth of

service coverage. It

also complements the

services with special

offerings like Huaweis

SmartCare service that

addresses special

needs of the operator

in the area of QoE

enhancements and

assurance. This is a

good example of how

Huawei will invest to

developed specific

competencies to allow

it to become a more

comprehensive service

player.

Huaweis ability to

help customers

arrange financing be

it through preferential

relationships with

Chinese banks, or

through a strong

financial position which

puts Huawei in

position to engage in

shared risk financial

terms yields a sales

tool that cant be

matched by all

vendors. Where

competitors might cast

this as little more than

vendor financing or

even part of a

standard build-

operate-transfer

model, the rea lity is

that Huawei can

position this as a

natural follow-on to its

solid finances, and can

point to successes in

Europe, the Middle

Documents

Competitors - Telecom Vendor Services (Current Analysis 2013-01-28)