Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 1 (33)

Digital Industrialisation:Powering the Networked SocietyVANCE HEREDIA

Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 2 (33)

Five Digital mega trends...

Cost Pressure

Technology Disruption

RegulationM&A

Data Explosion

Business & IT need to ensure agility in order to adequately respond to the changing business climate

44XBY 2020

4%EU Non compliance fines

Of Global Turnover1TUSD

23,312 Deals Q2,16

88%Cost Improvement Programs

Of fortune 1000

Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 3 (33)

Hyperscale Platforms

Ope

ratio

nal E

ffici

ency

Asset Efficiency

High

LowLow High

EnterpriseService Provider

Google

AmazonFacebook

Traditionalcustomers and

ourselves

Cloud giants Digitally Industrialised

MSFT

Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 4 (33)

Platforms enabling Societal Disruption

HYPERSCALE PERFORMANCE

FULLY PROGRAMMABLE

INTEROPERABLE & ACCESSIBLE

(API)

EXTENSIBLE MANAGEMENT

E2E AUTOMATION

DATA CENTRIC SECURITY

Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 5 (33)

Operators need to digitally industrialise Cloud Infrastructure … for 5G & IOT

Enterprises need to digitally industrialise Cloud Infrastructure … to compete

Cloud, 5g and IOT All Connected

Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 6 (33)

Powering the digital industrialisation

Operate with efficiency

Transformbusinesses

Industrialise cloud infrastructure

Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 7 (33)

Ericsson Digital Industrialisation entry

Network & IT Public

We (and our customers) want open, flexible solutions with industrialised automation capabilities

Hyperscale performance with public cloud interoperability

Control

Elastic Open

Secure

Services

Edge

QoS & SLAs

Compliance

Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 8 (33)

› The Digital Industrialisation Race is on

› Uneven playing field

› Cloud – 5G – IoT are interconnected

› Digital Industrialisation Strategy

› Ericsson’s approach – Digital Industrialised Platforms for the Network Society

In Summary

Why Cloud & Our target customers' journey | Ericsson Internal | PPM Express 2016 | September 2016 | Page 9 (33)