Ericsson Named Top-Tier Software Vendor by APPS RUN THE WORLD in the APPS TOP 500 Market Report

Ericsson Strengths, Domain Expertise, and Key Differentiators

Ericsson's competitive edge lies in its extensive telecommunications expertise, broad end-to-end solution portfolio, and strong focus on artificial intelligence and programmable network technologies. Its advanced product offerings, including a growing range of energy-efficient, programmable radios, serve as a foundation for differentiated software capabilities. Ericsson’s AI initiatives, such as Explainable AI and the generative AI assistant ANA, enhance network transparency and operational efficiency, allowing service providers to address performance issues with greater precision. The company's cloud-native solutions, including intent-based operations and a compact packet core, further strengthen its position against both traditional and cloud-native competitors. Collaborative innovations like Agentic AI systems highlight Ericsson’s leadership in autonomous network operations and sustainable network optimization.

Ericsson Recent Developments

Ericsson has advanced its position in AI-driven telecommunications through the launch of new 5G Advanced software products, including AI-powered RAN solutions, intent-based operations, and service-aware technologies aimed at optimizing network performance and efficiency. The company also introduced Cognitive Labs, an AI research initiative focused on cutting-edge areas such as Graph Neural Networks and Large-Scale Language Models. Its Explainable AI (XAI) in Cognitive Software enables greater transparency in AI decision-making, allowing communication service providers to better understand and manage network performance. These innovations collectively enhance Ericsson’s ability to deliver dynamic, responsive, and insight-driven network management solutions.

Ericsson Mergers and Acquisitions (M&A) Activities

The company’s most significant recent acquisition was Vonage in 2021 for $6.2 billion, aimed at expanding its enterprise communications portfolio through Vonage’s communication platform as a service (CPaaS) capabilities. This acquisition has enabled Ericsson to offer end-to-end communication services, particularly in the enterprise market. In 2024, Ericsson divested its US subsidiary iconectiv to Koch Equity Development LLC for $1.0 billion, allowing iconectiv to pursue its growth trajectory independently.

Smaller but strategically important acquisitions include the purchase of CENX to enhance Ericsson's Operations Support Systems portfolio with vendor-agnostic service assurance and closed-loop automation capabilities. The company also acquired Genaker in March 2020 to strengthen its Mission Critical Push-to-talk offerings for public safety communications. These targeted acquisitions demonstrate Ericsson's commitment to building comprehensive automation and service orchestration capabilities essential for next-generation network management.

The formation of Aduna, a joint venture with leading global communications service providers, represents a novel approach to market development rather than traditional M&A activity. This venture aims to aggregate and sell network APIs globally, creating new monetization opportunities for advanced 5G network capabilities while accelerating enterprise digitalization through mobile connectivity.

Ericsson Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Ericsson applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Ericsson and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Ericsson Cloud customers.

Ericsson Key Enterprise and Cloud Applications

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Ericsson Direct vs Indirect sales

Ericsson Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Ericsson Customers

No. of Ericsson Customers: 500

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Ericsson's global customer base encompasses over 500 clients worldwide, with the top 10 customers commanding nearly half of the company's net sales, demonstrating the vendor's ability to forge enduring partnerships with industry leaders. Recent significant customer wins include AT&T, MasOrange in Spain, and Telstra in Australia, representing successful expansion across key geographic markets. The AT&T contract serves as a foundational proof point for high-performing programmable networks, while the MasOrange agreement positions the Spanish operator at the forefront of European 5G Standalone deployment.

Regional customer distribution reflects Ericsson's global market position, with strong performance in North America offsetting softer demand in other markets during Q1 2025. The company has strengthened its position in China through 5G contract awards from all three major operators, generating scale advantages in the world's largest 5G market. European expansion continues through partnerships like the Three UK collaboration, which achieved up to 70% improvement in network energy efficiency at selected sites.

Ericsson Market Opportunities, M&A and Geo Expansions

Ericsson is well-positioned to capitalize on several market opportunities in 2025. The stabilization of the Radio Access Network (RAN) market, particularly in North America, is driving growth in its Networks business, with Q4 2024 showing strong sales momentum. The enterprise segment offers significant potential in private wireless networks and mission-critical communications, where Ericsson’s cellular expertise provides a competitive edge. The launch of 130 programmable network radios to support 5G Advanced is expected to unlock new use cases, such as network slicing and differentiated connectivity services, enabling CSPs to monetize 5G beyond traditional models.

Ericsson’s focus on AI-driven networks, exemplified by its role in the Swedish AI Factory and its Cognitive Labs initiative, opens new avenues in Gen AI and cloud technologies. The partnership with Google Cloud facilitates the integration of 5G with cloud infrastructure, enabling CSPs to deliver innovative services. The Aduna joint venture, launched in 2024 with leading mobile network operators, aims to aggregate and sell network APIs, creating new revenue streams for CSPs and developers. Additionally, the projected growth of Fixed Wireless Access (FWA) data traffic to 170 exabytes per month by 2030 presents a significant opportunity for Ericsson to expand its market share.

Ericsson Risks and Challenges

Geopolitical tensions and trade friction represent significant external risks to Ericsson's global operations, with the company acknowledging rising tariff risks despite its diversified production model. The acceleration of North American equipment purchases ahead of anticipated tariffs in Q1 2025 demonstrates how trade policy uncertainty can create demand volatility that challenges operational planning and revenue predictability. Ericsson's global manufacturing footprint provides some resilience, but sustained trade conflicts could impact supply chain efficiency and cost structures.

The substantial impairment charges related to the Vonage acquisition highlight integration risks associated with major strategic investments. The nearly $4 billion in write-downs suggests challenges in realizing anticipated synergies between traditional network infrastructure and cloud-based communications platforms. This experience underscores the risks inherent in transforming from a hardware-centric to a software and services-oriented business model.

Competitive pressures from both traditional telecommunications vendors and emerging cloud-native solution providers pose ongoing market share risks. The company's need to maintain technology leadership while managing margin pressure requires continuous innovation investment that may not generate immediate returns. The transition toward software-defined and programmable networks intensifies competition with software-focused companies that may have structural cost advantages in development and deployment.

Ericsson Ecosystem, Partners, Resellers and SI

Ericsson’s ecosystem is a cornerstone of its innovation and growth strategy. The company collaborates with technology leaders such as Google Cloud, Intel, and Red Hat to deliver integrated solutions across Packet Core, Communication Services, and Cloud RAN (Portfolio Partnerships). Its partnership with Google Cloud, recognized with the 2025 Google Cloud Partner Award, has enabled breakthroughs like the migration of Indosat Ooredoo Hutchison’s business support systems for over 100 million subscribers. Industry-specific partnerships in manufacturing, healthcare, and transportation enhance Ericsson’s ability to address vertical market needs.

The Swedish AI Factory consortium, involving AstraZeneca, SAAB, and others, underscores Ericsson’s role in fostering national and global AI ecosystems. The Aduna joint venture, launched in 2024 with leading mobile network operators, aims to supply network APIs globally, creating new monetization opportunities for CSPs and developers. Ericsson’s ecosystem approach combines direct sales with indirect channels through system integrators and value-added resellers, amplifying its market reach and innovation potential. Its participation in initiatives like the World Economic Forum’s Edison Alliance and UNICEF’s Giga project further demonstrates its commitment to global digital inclusion.

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

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