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

Ericsson Strengths, Domain Expertise, and Key Differentiators

Ericsson's relentless pursuit of excellence is evident in its commitment to delivering comprehensive solutions that span hardware, software, and services. Their holistic approach ensures that clients can leverage the full potential of connectivity, particularly in the realms of 5G and IoT. Unlike competitors, Ericsson doesn't merely offer products; they provides end-to-end solutions that empower businesses to thrive in the digital age. With decades of experience under its belt, Ericsson boasts unparalleled domain expertise in telecommunications. Their deep understanding of industry nuances enables them to anticipate market trends and tailor solutions accordingly. From network management to core infrastructure, Ericsson's proficiency shines through, making them the go-to choice for businesses seeking reliable, future-proof telecommunications solutions.

Ericsson Recent Developments

In 2024, Ericsson's AI-powered intent-based operations mark a significant milestone in the company's journey towards enabling dynamic, responsive networks. By harnessing the power of artificial intelligence, Ericsson Operations Engine can now translate business requirements into real-time network actions, ensuring optimal performance and seamless user experiences.

Ericsson's latest offering, Explainable AI in Cognitive Software, represents a significant leap forward in AI adoption within the telecommunications sector. By providing full explainability on the actions recommended by AI-powered solutions, Ericsson enables Communication Service Providers (CSPs) to gain deeper insights into network performance and end-user experience. The announcement of Ericsson's XAI solution has generated considerable buzz within the industry, with analysts and experts lauding its potential to address longstanding challenges in network optimization. The ability to identify root causes of events affecting network performance and end-user experience positions Ericsson as a trailblazer in the field of AI-driven network management.

In 2022, Ericsson's IoT Accelerator has been making waves in the tech industry with its promise of simplified connectivity solutions for enterprises of all sizes. The launch of IoT Accelerator Connect represents a significant milestone, offering a seamless plug-and-play experience that eliminates the complexities associated with IoT integration. By streamlining digital sales and automating business processes within the IoT ecosystem, Ericsson is poised to redefine the landscape of cellular IoT connectivity.

In November 2021, Ericsson Ericsson launches Intelligent Automation Platform a service management and orchestration product which-enables any mobile network to be intelligently automate. Building on existing offerings, including cloud-native dual-mode 5G Core and the Cloud RAN portfolio, the company is adding the Ericsson Intelligent Automation Platform and a suite of rApps as a natural next step to build the networks of the future.

Ericsson acquired 100 percent of the shares in CENX, boosting Ericsson’s Operations Support Systems (OSS) portfolio with vendor-agnostic service assurance and closed-loop automation capability. Ericsson has a market-leading position in NFV and orchestration. This capability will be further enhanced with CENX’s closed-loop automation and service assurance capabilities.

To unleash the potential of 5G, telecom operators need to leverage network virtualization and orchestrate and automate network slices to serve the needs of enterprise customers towards their digital transformation – all while reducing operational costs. Ericson is in the procedure of building its first fully-automated smart factory in the US. The smart factory will be powered by Ericsson 5G solutions tailored to the industrial environment and will also advance Ericsson’s commitment to sustainability. It will be operational in early 2020.

Ericsson Mergers and Acquisitions (M&A) Activities

In 2023, Aeris's acquisition of Ericsson's IoT-A and CVC businesses marks a strategic milestone in the company's journey towards becoming a dominant player in the IoT ecosystem. By expanding its portfolio, strengthening its capabilities, and forging strategic partnerships, Aeris is poised to shape the future of IoT and drive meaningful impact across industries.

In 2022, Ericsson's acquisition of Vonage aligns perfectly with its strategic vision of leveraging technology leadership to drive growth in the mobile network business and penetrate the enterprise market. By integrating Vonage's robust suite of communication solutions, including CPaaS, UCaaS, and CCaaS, Ericsson aims to offer end-to-end communication services that cater to the evolving needs of businesses in the digital age. This strategic alignment not only enhances Ericsson's competitive edge but also positions the company as a key player in shaping the future of telecommunications.

In March 2020 Ericsson has acquired 100 percent of the shares in Genaker, a provider of Mission Critical Push-to-talk (MC-PTT) solutions, based in Barcelona, Spain.

The acquisition strengthens Ericsson’s MC-PTT offering as the mission-critical communications and private network market is going through a significant technology shift. Traditionally, public safety communications have relied on private land mobile radio (LMR) networks limited to simple push-to-talk (“walkie talkie”) functionality. With the increasing demand for the exchange of other types of data, such as pictures and videos, the legacy LMR networks need to be replaced, and cellular networks have proven to be the best fit for existing and emerging requirements.

Ericsson has been a pioneer in Mission Critical Push-to-talk over 3GPP technology and has been driving the standardization from the start in 3GPP release 12. Ericsson is now taking the next step by investing in the MC-PTT applications and clients of Genaker. The acquisition is a building block in Ericsson’s focus on strengthening service providers’ capabilities towards mission-critical users.

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

No. of Ericsson Enterprise Applications Customers: x

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Ericsson's customer-centric ethos is exemplified by its expansive clientele, comprising over 500 customers worldwide. Notably, the top 10 customers command nearly half of the net sales, a testament to Ericsson's ability to forge enduring partnerships with industry leaders. Recent customer wins such as Frontier Communications, Tellus, AT&T, and Swisscom underscore Ericsson's unwavering appeal across diverse sectors. Furthermore, Ericsson's customer base spans across regions and industries, reflecting its global reach and domain expertise. From telecommunications giants like Airtel and Telefonica to emerging players in IoT and digital transformation, Ericsson's solutions cater to a diverse spectrum of needs, ensuring seamless connectivity and innovation.

Ericsson Market Opportunities, M&A and Geo Expansions

In November 2021, Ericsson acquired Vonage for USD 6.2 billion to spearhead the creation of a global network and communication platform for open innovation. The acquisition underlines Ericsson strategy to expand its presence in the wireless enterprise and broaden its global offerings.

The solution facilitates AI and automation, which improves network performance, operational efficiency and customer experience to help create smarter networks.

In July 2019, Verizon and Ericsson have introduced cloud-native, container-based technology on the core of Verizon’s active network. It is a first container-based wireless EPC (Evolved Packet Core) technology deployment in a live network in the world, introduces a much more efficient way to deliver operational applications that run the network. It is a solution that will increase agility and enable deployment at scale for new services in 4G and 5G.

In September 2018, Juniper Networks, an industry leader in automated, scalable, and secure networks, unveiled it has expanded its 18-year partnership with Ericsson to deliver a comprehensive end-to-end 5G solution leveraging each company’s complementary portfolios. Together, the companies are now offering service providers a complete 5G transport network solution with a single pane of glass visibility to manage the new requirements of next-generation mobile service delivery.

In September 2018, Ericsson signed a multi-year, $3.5 billion contract to support T-Mobile’s nationwide 5G network deployment. Under the deal, Ericsson will provide T-Mobile with the latest 5G New Radio (NR) hardware and software compliant with 3GPP standards. Bridging from a nationwide LTE Advanced network to 5G, T-Mobile will leverage Ericsson’s market-leading 5G portfolio to expand existing LTE capacity needs while future-proofing the network. Ericsson's sales increased, primarily driven by investments in 5G readiness across all major customers.

Ericsson Risks and Challenges

The move to 5G presents tremendous opportunities for Ericsson and the obvious question is how the vendor can capitalize on that by siphoning shares from Huawei, Cisco and other telecom vendors from NEC to Amdocs. While government help from US and elsewhere may help, it will be more critical than ever for Ericsson to move fast in its turnaround efforts, which are still a work in progress with a 2% gain in first-half 2020 revenues.

Ericsson Ecosystem, Partners, Resellers and SI

The launch of IoT Accelerator Device Connect represents a paradigm shift in IoT connectivity, empowering enterprises with unprecedented flexibility and agility. Through strategic partnerships, technological innovation, and a relentless commitment to customer-centricity, Ericsson and Thales have redefined the boundaries of possibility in the IoT landscape. As the digital revolution accelerates, the true potential of IoT awaits those bold enough to embrace change and forge new paths towards a connected future.

The partnership between Ericsson and Google Cloud represents a paradigm shift in the way telecommunications operators harness the power of 5G and cloud technologies to meet the evolving demands of the digital economy. By combining Ericsson's market-leading 5G portfolio with Google Cloud's cutting-edge cloud infrastructure and services, the partnership is poised to redefine the future of networking, unleashing a new era of innovation, connectivity, and possibilities.

Ericsson has increased its footprint in China through 5G contract awards from all three major operators in China. The strengthened market position is strategically important for Ericsson as this will generate scale advantages and strengthen Ericsson’s position in the world’s largest 5G market, which is expected to be an important driver of critical future requirements and new feature developments. Overall, Ericsson’s 5G business in China is expected to have healthy profitability over the life of the contracts. However, the margins during the second quarter of 2020 are expected to be negative due to high initial costs for new products.

In November 2018, Deutsche Telekom and Ericsson partner to provide an industry solution for OSRAM. Ericsson's sales to operators and other customers represent a mix of equipment, software, and services, which normally generate different gross margins. It sells its own products as well as third-party products, which normally have lower margins than its own products. The two new IT & Cloud business units will have a strong focus on profitable growth as a natural next step after a period of investment. This will involve a focus on software sales and recurring business to compliment the already strong business in Consulting & Systems Integration and the Broadcast Services business.

In October 2018, Fujitsu Limited and Ericsson partnered to deliver end-to-end 5G network solutions and related services under a strategic partnership. The two companies are joining forces to develop this based on their combined portfolios – spanning radio access and core network – for the dynamic 5G market in Japan, connecting communications service providers to the global 5G ecosystem.

Ericsson Cloud Infrastructure Insights

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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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