competitors - telecom vendor services (current analysis 2013-01-28)
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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 (*)
IBM - Telecom Vendor
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
has a so
reputatio
packet o
and mob
backhau
transpor
fixed-line
applicati
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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8/14/2019 Competitors - Telecom Vendor Services (Current Analysis 2013-01-28)
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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
-
8/14/2019 Competitors - Telecom Vendor Services (Current Analysis 2013-01-28)
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 (*)
IBM - Telecom Vendor
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
http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=54094http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=55623http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=54480http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=54827http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=52631http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=53966http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=54797http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=53690http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=53925http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=55850http://www.currentanalysis.com/COMPETE/FrontEnd/Report.aspx?rid=53004 -
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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