& cplSiteName &

Ericsson Boards Its Own BUSS

Ray Le Maistre
2/21/2012
50%
50%

Ericsson AB (Nasdaq: ERIC) has had a busy Mardi Gras Tuesday. Not only has it made a significant acquisition but it has also tweaked its organizational structure by renaming its Business Unit Multimedia as Business Unit Support System (BUSS) and updating the unit's strategy. (See Ericsson Adds Wi-Fi With BelAir Buy and Ericsson Revamps Multimedia Unit.)

The move, which comes in the wake of the company's acquisition of Telcordia, helps to identify some of Ericsson's new strategic focus areas and also enables the company to relocate some products and developments, though only a single specific product line is being killed off. (See Euronews: Ericsson Seals Telcordia Deal, Ericsson Signals New M&A Era and Ericsson Closes Telcordia Acquisition.)

BUSS, one of three main organizational units (along with Networks and Global Services) has three main focus areas: OSS and BSS systems; TV & Media; and M-Commerce.

  • OSS and BSS: This part of the unit (fulfillment, assurance, analytics, charging and billing and so on) is now greatly expanded with the integration of Telcordia and has a key focus area of customer experience management (CEM). "Telcordia has filled a number of holes in our portfolio," noted BSS senior expert Jaco Fourie at a media briefing in London. (See Ericsson Shines a Light on CEM.)

  • TV & Media: This incorporates all the IPTV and video capabilities, much of which came on board with the Tandberg TV acquisition a few years back. It also includes much of what was formerly known as Consumer and Business Applications (messaging systems, service delivery platforms, rich communications suite and so on). However, the Business Communication Suite (VPN management, enterprise applications) has been shifted into the Networks unit to "better fit with our core IMS solutions," the vendor tells Light Reading. The company is also performing a "strategic overview" of the IPX multimedia brokering platform that sits between enterprises and multiple mobile operators to evaluate whether that should remain as part of BUSS. (See DT Does Enterprise Services With Ericsson, Ericsson Offers $1.4B for Tandberg TV and IBC: Ericsson Boasts Biggest IPTV Upgrade.)

  • M-Commerce: With 1.6 billion mobile users around the world linked to Ericsson's charging systems (mostly pre-paid), Ericsson sees a real opportunity to help service providers provide those users (and more) with mobile wallet services. The vendor has a number of products that service providers can deploy -- the Wallet Platform, the Converged Wallet and the Merchant Wallet -- and the M-Commerce Interconnect platform that Ericsson plans to use to become a broker (to "facilitate transactions") between mobile operators, financial institutions and businesses looking to sell their products and services. Ericsson, which believes the value of m-commerce transactions will reach US$800 billion annually by 2016, says it will announce a number of M-Commerce partners during Mobile World Congress.

    The one product Ericsson is discontinuing as part of this revamp is the consumer Money Service it launched last year in an effort to stimulate the mobile commerce sector in Europe. Now the company believes it is better positioned to help other companies provide such services. (See Ericsson Launches Money Service .)

    Why this matters
    The move marks the further evolution of the company to focus on a smaller number of key areas. Ericsson's CMO Arun Bhikshesvaran told the London media briefing that the company would be focusing its attention on mobile broadband, managed services and OSS/BSS at Mobile World Congress. (That, of course, makes its core focus areas pretty much the same as Nokia Networks -- see Analysts: NSN Focus Makes Sense.)

    The increased focus on OSS and BSS was expected following the Telcordia deal as the acquisition has made Ericsson one of the largest Service Provider Information Technology (SPIT) players globally. Now it can start sending that message to the operator community and look to develop business deals that encompass physical networks, supporting software and IT technologies and relevant professional services. (See Ericsson + Telcordia: What the Analysts Say and Why Ericsson Wants Telcordia .)

    However, there are still a lot of loose ends and Bhikshesvaran said there were still some parts of BUSS that could still be shifted into either the Networks or Global Services business units. And while its areas of key focus may be very similar to those of NSN, Ericsson has not (yet) decided to follow its rival's lead by culling non-core product lines. (See NSN Unveils Its Kill List .)

    Light Reading asked about the company's fixed-line broadband and optical transport assets that have hardly ever been mentioned by Ericsson since the Marconi acquisition: Bhikshesvaran said they are "alive and kicking … we need to talk more about that." (See Ericsson Buys Bulk of Marconi.)

    And there is still no real articulation of Ericsson's carrier cloud strategy: What can it do to help operators become cloud services players? Bhikshesvaran said the company will reveal its cloud enablement strategy at Mobile World Congress and doesn't believe Ericsson is too late in revealing its hand. "You have to come out with the right thing … we will take the cloud and the network to the next level." (See What Carriers Are Missing About Cloud and 5 Takeaways From Carrier Cloud Forum.)

    For more on Ericsson's recent activities:

    — Ray Le Maistre, International Managing Editor, Light Reading

    (1)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    cnwedit
    50%
    50%
    cnwedit,
    User Rank: Light Beer
    12/5/2012 | 5:42:03 PM
    re: Ericsson Boards Its Own BUSS


    They seem to be hedging their bets a bit, but it's interesting they chose to house the Telcordia SPIT assets in what was the multimedia group. I wonder if this means Ericsson sees the delivery of video over all various networks as one of the key challenges that its OSS/BSS business needs to solve?


    Like Ray, I'm wondering when their cloud strategy will emerge, since the back office integration bit is emerging as key to the success of cloud and Ericsson has certainly assembled a powerful set of assets in that space.

    From The Founder
    Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Interviews
    CenturyLink: Are We All Security Service Providers Now?

    5|29|17   |   3:40   |   (2) comments


    As the security environment gets more threatening, in the wake of WannaCry and other attacks, service providers need to shoulder more responsibility for securing networks, says Tim Kelleher, vice president for IT security services at CenturyLink, in an interview at the Light Reading Big Communications ...
    LRTV Documentaries
    Verizon's Ed Chan on the New World for Networks

    5|29|17   |   19:08   |   (0) comments


    In this 2017 Big Communications Event keynote, Ed Chan Senior Vice President, Technology, Strategy and Planning, Corporate Networking and Technology, Verizon, discusses the coming world of sensors and the smart edge, powered by new spectrum and faster fiber uploads. For more BCE coverage and videos,
    LRTV Interviews
    Zayo's CTO: Respect the Infrastructure!

    5|29|17   |   3:04   |   (0) comments


    At Light Reading's Big Communications Event in Austin, Texas, Zayo's CTO Jack Waters talked about infrastructure and the changing customer landscape for network providers. While everyone else is chatting up applications and services, Waters urges the industry not to downplay the role that ...
    LRTV Interviews
    AT&T: Creating Dynamic Networks to Meet Business Needs

    5|26|17   |   4:24   |   (0) comments


    As enterprises need more dynamic networks, service providers need to deliver on-demand, virtual services to meet those needs. AT&T is creating a networking fabric to mix-and-match SDN technologies for enterprise customers, says Roman Pacewicz, AT&T senior vice president for offer management and service integration, in an interview at Light Reading's
    LRTV Interviews
    EdgeConneX on Industry Headwinds & Tailwinds

    5|26|17   |   2:41   |   (0) comments


    At Light Reading's Big Communications Event 2017, EdgeConneX CTO Don MacNeil discussed the value of partnerships in the digital world.
    LRTV Documentaries
    4 Steps Toward a Higher Network IQ

    5|26|17   |     |   (0) comments


    At the Big Communications Event in Austin, Texas, EXFO CEO Philippe Morin explains how sensors and analytics can boost a network's intelligence and enable on-demand customer experiences. Find more BCE 2017 coverage here.
    LRTV Interviews
    BT's McRae Sheds Light on 4K Strategy

    5|25|17   |   4:45   |   (0) comments


    At Light Reading's Big Communications Event 2017 in Austin, Texas, BT Group's Chief Network Architect Neil McRae talks about what it took for BT to broadcast live sports in 4K. Catch up with all our BCE coverage at http://www.lightreading.com/bce.asp.
    From the Founder
    How the NIA Aims to Advance NFV

    5|25|17   |   08:07   |   (1) comment


    Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
    LRTV Custom TV
    Better Solutions That Address Growing Scale

    5|25|17   |     |   (0) comments


    For Comcast, the X1 rollout and 17-fold increases in broadband speeds in the past 16 years are among factors driving the need for Energy 2020 solutions that reduce cost and consumption, says Mark Hess.
    LRTV Custom TV
    Ethernity Network Delivers Instant Offloading of Network Functions With All-Programmable Intelligent NIC

    5|25|17   |     |   (0) comments


    David Levi, CEO of Ethernity Networks, explains that programmability of the hardware makes the company's All-Programmable Intelligent NIC uniquely beneficial for communications service providers that need advanced data appliances with agile support of virtualization. Utilizing the company's patented network processing technology, Ethernity offers data path ...
    LRTV Documentaries
    BCE 2017: Vodafone Gets Obsessed With Cloud-Native

    5|25|17   |     |   (0) comments


    Vodafone's Matt Beal updates us on Project Ocean and explains why simple virtualization isn't enough of a goal for network transformation. Catch up with other BCE 2017 keynotes and news at http://www.lightreading.com/bce.asp.
    LRTV Documentaries
    BCE 2017: Intel's Take on Network Transformation

    5|24|17   |     |   (0) comments


    In this BCE 2017 keynote, Lynn Comp discusses Intel's vision for areas such as analytics, automation and service assurance. For more videos and BCE coverage, see http://www.lightreading.com/bce.asp.
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    Cities Clamor for More Clout at FCC
    Mari Silbey, Senior Editor, Cable/Video, 5/23/2017
    Sonus & Genband Finally Combine to Form $745M Company
    Dan Jones, Mobile Editor, 5/23/2017
    NB-IoT? Not at Those Prices, Say DT Customers
    Iain Morris, News Editor, 5/26/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
    TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
    Animals with Phones
    What Brogrammers Look Like to the Rest of Us Click Here
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.