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In the course of the ICT transformation, Ericsson has now become very light. During the 2015 MWC, Ericsson CEO Hans Vestberg told Artesyn Technologies in an interview, said, "We now have 66% of the sales revenue from software and services. We expect that in 2020 75% of the company's revenue comes from software and services So, we do go on a road change very fast, and now 90% of our investment in R & D are also software. "visible, Ericsson's future income anchor has been getting" light. "
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Ten years ago, Ericsson's sales and 75% of the proportion contributed by the hardware. Also, if any, and global software company than Ericsson in the software and services market are among the best, one of the world's most competitive companies. It is understood that this year, Ericsson will be used to come up with the money for the amount of ICT transformation.
Currently, the telecommunications equipment market and the whole ICT market is undergoing a huge change: on the one hand, mobile data traffic showing explosive growth, ubiquitous network connectivity needs to bring more new challenges; at the same time, the traditional telecom market competition is increasingly fierce, profits gradually diluted, market growth and profit margins gradually touch the ceiling, industry chain parties are facing multiple challenges, such as business income.
In response to market changes brought about by ICT series of challenges, Ericsson chose to take restructuring and early in 2010 proposed a vision of "network society". Ericsson believes that nearly 50 billion in 2020 to connect to the global interconnection terminal equipment will produce, called the network society.
It is understood that, in recent years, Ericsson has done a lot of acquisitions and software related services. Last month in September, including the acquisition of San Francisco-based software startups Apcera, 10 月份 has acquired established in 2003 in Silicon Valley data center monitoring services company Sentilla, highlights Ericsson preference in software and services, rather than hardware transformation for clients network to improve performance.
Vestberg said: "all sectors will be widely adopted new logic, we can clearly see a clear shift from physical products to digital services, new business models are emerging, with its accompanying solve old problems and create entirely new. The new method efficiency. We can also make use of digital tools to really establish a close relationship with our customers. All in all, we can see ICT driven transformation is to effectively change the rules of the game. "
It is understood that in 2014 Ericsson OSS / BSS, software, television and media, IP and cloud services and other key areas of the company, were up more than 10%. Meanwhile, Ericsson and IP technology in the wireless field has evolved. "The company transformational change is one of the best examples of Ericsson in 2014 hired 19,000 new employees, at the same time, we have 15,000 employees leave, so this company's shake-up also reflects a company's business and strategic transformation. "
In fact, the hardware and software are linked together, and now Ericsson has launched many products have implemented virtualization portfolio, customers can already buy separate hardware and software.
In addition to hardware and software, Ericsson also launched the application experience optimization services, content access speed will increase 70 percent, while the upload speed is increased by 50%. Ericsson's advantage in terms of IT transformation is reflected in the digital transformation of the telecommunications companies to launch, which is the consulting and systems integration toolkit to help operators realize the digital operations and customer interactions. Digital telecommunications business transformation, including Expert Analytics 15.0, the software solution can predict customer satisfaction, and to help operators automate measures taken to improve the Net Promoter Score.
For other emerging competitors such as Google announced before building mobile networks in the United States. Wei Han Sitan words, "Some telecom operators have begun to provide some services provided in the past by the Internet service providers, Internet service providers, there are some services provided by telecom operators, so the boundaries between them are no longer so clear. Now Ericsson's focus is on cooperation with all parties, because they are our partners. However, no company has the ability to develop an Internet infrastructure, nor like us to enter the television media or OSS / BSS services, so we do not think they are competitors. "
Facing the future, Vestberg, Ericsson set for the development strategy is to continue to improve the profitability of the core areas. 2014, Ericsson's core business growth in wireless, core network and transport and telecommunications services reached 10% in the future, Ericsson will continue to strengthen the dominant position in these areas. Meanwhile, Ericsson in some target areas have also established a leadership position in the BSS / OSS, cloud and other fields to achieve growth, and plans to expand into new areas.
Some analysts believe that the future will be a place of hardware, because of the need to provide a strong foundation for the hardware to run the software and services. But the next 15 years, Ericsson's hardware and software business income will be completely swapped positions.