With increasing focus on the cloud as a key to the networked society, the recently-announced partnership between Ericsson and Akamai, and Ericsson’s vision of 50 billion connected devices by 2020, it is clear that software is an important part of Ericsson’s business. In 2010, Ericsson was included for the first time in Software Top 100’s global rankings as the fifth-largest software company in the world, alongside and ahead of more traditional IT companies, and leading other telecommunications suppliers in both software revenue and software revenue share.
Eric Villa, Head of the Software Program in Ericsson Latin America, explains, “The market is changing, and now we are also competing with traditional IT companies. The telecommunications and IT markets are merging into the Information Communication Technology arena, or ICT, bringing added value and synergies to our customers.”
Ericsson’s customers benefit from greater control of the software used in their networks, as well as the ability to offer more and better services for their end users.
“Almost everything Ericsson sells has software associated with it, from MINI-LINK systems to LTE networks and multimedia solutions,” says Virgilio Fiorese, Software Sales Manager at Ericsson Brazil. “This means Ericsson can solve customers issues in most cases with changes in software, without requiring big changes in our customers’ infrastructure. Ericsson’s software development team is in sync with and even ahead of market and customer needs, benefiting end users and service providers as well as Ericsson.”
Ericsson has continued to build on its existing BSS strengths through investments such as the acquisition of LHS in 2007 (integrated into Business Unit Multimedia as “Solution Area Billing & Customer Care”), the 2010 agreement with Telefónica and Indra involving the transfer of Telefónica’s pre-paid billing assets, and the most recent acquisition of Tridge Group, a French software company specializing in telecom billing solutions.
One of the biggest advantages of Ericsson’s high level of investment in software is the flexibility it provides our customers: “Previously, you often had to modify the network infrastructure in order to add a new feature. Now we can quickly enable new network features and improve network performance without having to make hardware modifications,” Hans Sjogren, Head of Business Operations at Ericsson Brazil, says. “This allows operators to deliver new services to end users more quickly, as well as increases the possibilities for remote configuration and management of networks.”
“We continue to show our customers the value of Ericsson solutions, whether it be hardware, software or services,” Fiorese notes. “This is what our customers truly appreciate about Ericsson.”
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