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The TBR Networking and Mobility research team recorded a webinar analyzing vendor performance as reported in TBR's 3Q12 Telecom & Mobility Vendor Benchmark. The webinar focused on how specific vendor, go-to-market and resource management strategies impacted 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. This deck is from that presentation. They answered questions covering all aspects of the market, including: •Infrastructure: How is the TD-LTE market developing, and what vendors are taking the lead? •Services: How are M&A and restructuring changing the services landscape? •Applications: How are vendors leveraging new acquisitions and alliances to improve their telecom software offerings?
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TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
TBR’s Telecom Vendor BenchmarkResearch Highlights and Outlook
Technology Business Research (TBR) Quarterly Webinar Series
January 23, 2012
TBR
2 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook: Webinar Presenters
Chris AntlitzNetworking & Mobility Analyst
Email: [email protected]: @chrisNMP
Michael SoperNetworking & Mobility Research Analyst
Email: [email protected]: @MichaelJSoper
TBR
3 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
TBR’s Telecom Vendor Benchmark reports deliver unique insight and 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 mobility industries.
• 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.
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook: Webinar Overview
TBR Telecom Vendor Benchmark Portfolio
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4 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Applications:• Vendors going after OSS/BSS transformation deals• Software players leveraging analytics and cloud enablement
services to cater to operators
Telecom vendors are fleshing out their OSS/BSS and managed services strategies while dealing with a flagging infrastructure market
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Telecom Vendor Trends entering 2013
Infrastructure:• Declining demand for legacy technologies (GSM, CDMA)• Ramp up in LTE in North America, while Europe holds back• Increased competition for incumbents, especially in Europe
Services:• Ericsson extending its market leading position• Decline in the professional services market• NSN and Alcatel-Lucent to concentrate on high-value services
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Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Decreased demand for legacy technologies weighed on vendor infrastructure sales
Applications:• Vendors going after OSS/BSS transformation deals• Software players leveraging analytics and cloud enablement
services to cater to operators
Telecom Vendor Trends entering 2013
Infrastructure:• Declining demand for legacy technologies (GSM, CDMA)• Ramp up in LTE in North America, while Europe holds back• Increased competition for incumbents, especially in Europe
Services:• Ericsson extending its market leading position• Decline in the professional services market• NSN and Alcatel-Lucent to concentrate on high-value services
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6 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Revenue growth slowed or declined for nearly all vendors as operators delayed investments, especially in Europe
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Alcatel-Lucent
Cisco
Ericsson
NSNSamsung
ZTE
Huawei
JuniperHP
IBM-40%
-30%
-20%
-10%
0%
10%
20%
30%
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0
Year
-to-
Year
Rev
enue
Gro
wth
Revenue (in $ billions)
INFRASTRUCTURE SEGMENT 3Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
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SOURCE: TBR AND COMPANY DATA
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7 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Vendors were impacted by a lack of spending on the part of European operators
Alcatel-Lucent• Weakened demand for wireless and optical
equipment• Impacted by lower capex spend on GSM,
CDMA• Wireline is showing improvement on strength
of China deals• IP expected to continue growth
NSN• Taking advantage of LTE opportunity in APAC• Contracts with SK Telecom, LG U+, KT,
Softbank, and KDDI• Strong reference group points to success when
India and China launch LTE RFPs
Ericsson • 3Q12 Networks Revenues:
• Northern Europe & Central Asia: - 38% year-to-year• Western & Central Europe: - 48% year-to-
year• Mediterranean: - 11% year-to-year
• Increased competition from Huawei in Europe• Leader in heterogeneous networks
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
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NEPs focus on OSS/BSS while software vendors see analytics and cloud enablement as an opportunity to win business
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Applications:• Vendors going after OSS/BSS transformation deals• Software players leveraging analytics and cloud enablement
services to cater to operators
Telecom Vendor Trends entering 2013
Infrastructure:• Declining demand for legacy technologies (GSM, CDMA)• Ramp up in LTE in North America, while Europe holds back• Increased competition for incumbents, especially in Europe
Services:• Ericsson extending its market leading position• Decline in the professional services market• NSN and Alcatel-Lucent to concentrate on high-value services
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9 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Huawei and Ericsson leverage OSS/BSS as part of their network rollout activities to gain a revenue advantage over dedicated software players
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Alcatel-Lucent
Cisco
Ericsson
HP
IBM
NSN
Samsung
ZTE
Huawei
Juniper
-30%
-15%
0%
15%
30%
45%
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
Year
-to-
Year
Rev
enue
Gro
wth
Revenue (in $ billions)
APPLICATIONS SEGMENT 3Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
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SOURCE: TBR AND COMPANY DATA
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10 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Ericsson and Huawei found success in OSS/BSS while Alcatel-Lucent pushed its CEM suite and updated its Applications Enablement strategy
Ericsson• Working to fully integrate new telecom
software assets• ConceptWave provides more advanced order
management and product catalog management solutions than previously acquired Telcordia
Alcatel-Lucent• Applications Enablement strategy received
updates in 3Q12• Focused on pushing its Motive CXS CEM suite
• Belgacom selected Alcatel-Lucent’s Service Quality Manager
Huawei• Focused on OSS/BSS opportunity to start 2013• A full-fledged CEM proposition is expected this
year, but for now Huawei remains behind NSN and Alcatel-Lucent in CEM• Will undercut pricing models of competitors to
take share in CEM
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Key OSS/BSS Acquisitions
Ericsson
Telcordia Closed January 2012
ConceptWaveClosed September 2012
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Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
The TIS market is fluid, with Ericsson expanding its lead and NSN and Alcatel-Lucent taking a more selective approach to contracts
Applications:• Vendors going after OSS/BSS transformation deals• Software players leveraging analytics and cloud enablement
services to cater to operators
Telecom Vendor Trends entering 2013
Infrastructure:• Declining demand for legacy technologies (GSM, CDMA)• Ramp up in LTE in North America, while Europe holds back• Increased competition for incumbents, especially in Europe
Services:• Ericsson extending its market leading position• Decline in the professional services market• NSN and Alcatel-Lucent to concentrate on high-value services
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12 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Ericsson pulls farther away from the pack as close competitors Alcatel-Lucent and NSN restructure
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Accenture
Alcatel-Lucent
CiscoEricsson
HP IBMNSN
Samsung
ZTE
HuaweiJuniper
-20%
-10%
0%
10%
20%
30%
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0
Year
-to-
Year
Rev
enue
Gro
wth
Revenue (in $ billions)
SERVICES SEGMENT 3Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
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SOURCE: TBR AND COMPANY DATA
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13 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Restructuring is causing NSN and Alcatel-Lucent to focus on winning high-value services contracts in regions that yield higher margins
NSN• Slower growth due to focus on higher-margin
opportunities as part of restructuring• NSN is focused on providing high-value
services rather than managed or maintenance services contracts
Alcatel-Lucent• Low deployment activity as company secured
fewer LTE contracts than competitors such as Ericsson, Huawei, and NSN• Similar to NSN, Alcatel-Lucent will
concentrate on high-value services, such as consulting
Ericsson• Protecting its install base from Huawei and
ZTE, particularly in Europe, is a key strategy• Entering modernization and transformation
contracts • Leverages its status as end-to-end services
leader
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Priority Markets Identified as Part of Restructuring
Alcatel-Lucent NSN
China Japan
EMEA South Korea
North America United States
Overview of Ericsson’s 3Q12 Global Services Segment
Contract Type 3Q12 3Q11
New managed services contracts 6 8
Expansions or extensions of existing contracts
5 6
Consulting & systems integration contracts 3 4
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14 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Applications:• Vendors going after OSS/BSS transformation deals• Software players leveraging analytics and cloud enablement
services to cater to operators
Telecom vendors are fleshing out their OSS/BSS and managed services strategies while dealing with a flagging infrastructure market
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
Telecom Vendor Trends entering 2013
Infrastructure:• Declining demand for legacy technologies (GSM, CDMA)• Ramp up in LTE in North America, while Europe holds back• Increased competition for incumbents, especially in Europe
Services:• Ericsson extending its market leading position• Decline in the professional services market• NSN and Alcatel-Lucent to concentrate on high-value services
TBR
15 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Vendors are investing in customer experience management, small cells and high-value services to drive growth
TBR Networking & Mobility Practice Syndicated Topics 4Q12: Telecom Vendors
Quarterly Topics TBR Value Proposition Related Reports
Customer Experience Management (CEM)
• Determine which services and software (e.g., OSS/BSS, analytics) telecom infrastructure vendors are including in their CEM solutions.
• Evaluate how vendors are leveraging partnerships with analytics and software players to differentiate CEM offerings.
Alcatel-Lucent, Ericsson, HP, Huawei, NSN
Wi-Fi/Small Cells
• Identify which vendors are technology leaders.• Determine in which regions small cells are in highest demand.• Evaluate how vendors are integrating Wi-Fi with small-cell products
(i.e., acquiring the technology, high R&D investment).
Alcatel-Lucent, Cisco, Ericsson, Huawei, NSN
Services
• Anticipate the next services boom following heavy deployment activity in India, the U.S. and Europe.
• Identify which vendors are making a strategic push into high-value services, such as consulting and systems integration.
• Determine to what extent low-cost telecom infrastructure players are gaining traction in services-only deals.
Accenture, Alcatel-Lucent, Ericsson, Huawei, HP, NSN
Consolidation
• Track developments in vendor M&As, identifying which players need to acquire to enhance their portfolios or enter new markets.
• Analyze the impact of operator consolidation on the telecom infrastructure and services markets.
Alcatel-Lucent, Cisco, Ericsson, Huawei, Juniper, NSN
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16 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
Questions?
Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook
TBR
17 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.
For further information, please contact:
Kate PriceDirector, Networking & Mobility Practice
Chris AntlitzNetworking & Mobility Analyst
Email: [email protected]: @chrisNMP
James McIlroyVice President, Sales
Michael SoperNetworking & Mobility Research Analyst
Email: [email protected]: @MichaelJSoper
@TBRincwww.slideshare.net/TBR_Market_Insightwww.youtube.com/user/TBRIChannel
TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
About TBR
Technology Business Research (TBR) is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors.
Serving a global clientele, TBR provides timely and accurate market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information 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.
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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. Technology Business 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 not and 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 report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.