& 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
    Carol Wilson
    50%
    50%
    Carol Wilson,
    User Rank: Blogger
    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.

    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
    NEXT COURSE
    Wednesday, September 28, 1:00PM EDT
    Gigabit 101
    Will Barkis, Senior Technology Analyst, Orange
    UPCOMING COURSE SCHEDULE
    Friday, September 30, 1:00PM EDT
    Gigabit & the Great Migration
    Robert Howald, Vice President, Network Architecture, Comcast
    Wednesday, October 5, 1:00PM EDT
    Gigabit & Smart Cities
    Joe Kochan, COO & Co-Founder, US Ignite
    Friday, October 7, 1:00PM EDT
    Gigabit & DOCSIS 3.1
    Ty Pearman, Director, Access Architecture, Comcast
    in association with:
    From The Founder
    Light Reading today starts a new voyage as part of a larger Enterprise.
    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 Custom TV
    Introducing IoT World News

    9|27|16   |   01:43   |   (0) comments


    Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
    LRTV Interviews
    AT&T: Re-usable Functions Next NFV Key

    9|27|16   |   06:03   |   (0) comments


    The next generation of NFV has to break functions down into re-usable software chunks, making everything much more cloud-like.
    LRTV Interviews
    Masergy on Security: Attackers Gaining Upper Hand

    9|27|16   |   5:10   |   (0) comments


    At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
    LRTV Interviews
    Verizon Takes Next Step on Biz Virtualization Journey

    9|26|16   |   4:38   |   (1) comment


    At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
    LRTV Interviews
    Global Services: The $40B Face-Off

    9|26|16   |   05:53   |   (1) comment


    More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
    LRTV Documentaries
    MEC Congress: The Key Takeaways

    9|22|16   |   03:25   |   (3) comments


    Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
    Wagner’s Ring
    Time to Shut Up About 'Dumb Pipes'

    9|22|16   |     |   (12) comments


    Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
    Wagner’s Ring
    Keeping Your Tech Career Going After 50

    9|21|16   |     |   (13) comments


    How do you keep your career moving forward when you're past the half-century mark?
    LRTV Interviews
    Peering Into the Digital Future

    9|20|16   |   04:25   |   (0) comments


    Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
    LRTV Custom TV
    Napatech Tackles NFV's Major Challenge

    9|7|16   |   08:42   |   (0) comments


    One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
    LRTV Custom TV
    Huawei Optical Innovation 2016

    9|6|16   |     |   (0) comments


    Highlights of the 2016 Huawei Optical Innovation forum.
    LRTV Huawei Video Resource Center
    Are You Ready for Huawei Connect 2016?

    8|31|16   |     |   (0) comments


    Join us for an exclusive sneak peak of Huawei Connect, an integrated conference for the global ICT ecosystem taking place in Shanghai.
    Upcoming Live Events
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 1, 2016, The Westin Times Square, New York, NY
    December 6-8, 2016, The Westin Excelsior, Rome
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    Keeping Your Tech Career Going After 50
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/21/2016
    Time to Shut Up About 'Dumb Pipes'
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
    Verizon CFO: Eat Our (Fixed) 5G Dust!
    Dan Jones, Mobile Editor, 9/22/2016
    WiCipedia: The Women Helping Women Edition
    Eryn Leavens, Special Features & Copy Editor, 9/23/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Animals with Phones
    There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
    Live Digital Audio

    A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

    During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.