Networks and services cannot be divorced from the vendors that help to make them a reality. The Vendor Transformation posts look to ways in which network infrastructure suppliers are competing or otherwise evolving themselves – for good or bad.
On December 5-6, Amdocs held an Industry Analyst Summit to provide an update on its product portfolio, corporate strategy, innovation efforts, and customer attraction across its business lines.
One constant across the product and business line updates is an expectation that telecom networks and services will continue to get increasingly complicated – and that Amdocs will benefit by addressing that complexity and educating its customers.
Amdocs is a fixture in telecom networking and service enablement. It’s not surprising, then, that across our telecom networks research, assessments on the vendor and its positioning are plentiful, including:
• KPN is taking a leadership position in driving its vendor community toward more sustainable practices. Other operators are likely reviewing KPN’s “Circular Manifesto” as a template for how they should revise their own sustainability initiatives.
• Telecom technology and software vendors are increasingly being pushed by their key operator customers to commit to adopt manufacturing and production practices that rely on reusable or recyclable components, as well as renewable energy sources.
Revenue was down year-to-year for Ericsson, Nokia, Cisco and even ZTE, which had carried positive growth for H1 2017. But, vendors are generally doing a good job driving out costs in order to increase profitability.
On their face, Ericsson’s Q3 2017 results reflected a company facing multiple challenges and a lengthy road to recovery. However, there were signs of light indicating that the fundamental business may return to solid footing once painful restructuring initiatives are completed.
This week, ZTE announced 5G network testing trials in Europe with Wind Tre and Orange, building on previous high-profile work with Telefonica and Telenet.
Financial stability when compared with its European vendor counterparts could explain the success, but the story goes much deeper, including the right 5G strategy and targeted marketing.
This week, ZTE announced its Q3 2017 earnings. For the most part, the results weren’t too surprising. Revenues for the first nine months of 2017 were up (though down in Q3 2017 compared to 2016). Profits were up significantly. The company did not report on the geographic makeup of its revenues, but if they resembled the vendor’s mid-year results, it’s safe to assume that China continues to the biggest contributor to ZTE’s sales; it was ~60% of mid-year revenues and the most profitable of the reported regions. Continue reading “ZTE’s European Success: What’s the Story?”→
Ongoing questions around CBRS priority access license (PAL) terms suggest that licenses won’t likely be available until a year from now.
Without priority access, CBRS will still roll out; many use cases don’t require it. However, the sooner PAL terms are decided on and licenses auctioned, the better it will be for driving the industry forward.
The concept of marketing new technologies or solutions around use cases seems like a logical way to link deployment to real world carrier requirements and opportunities.
Use case marketing is also a not-so-subtle way to suggest that competitor messaging is based on hype more than reality, in the process flagging areas where a vendor potentially sees itself at a perceived competitive disadvantage it needs to counter.
Over the past year, the stock performance of ZTE and Ericsson has diverged, with ZTE’s share price up almost 60% over a year ago and Ericsson down almost 20%.
With Ericsson being a traditional telecom networking leader and ZTE just outside the top three players in the market, their stock performance tells a broader story about the market’s view of telecom and market concentration.