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Ericsson to Pump $1B Into Tech Centers

Ericsson has announced plans to spend 7 billion Swedish kronor (US$1 billion) during the next five years on the construction of three new technology centers that are designed to support the vendor's global R&D teams and to enhance the testing capabilities Ericsson can offer to its customers worldwide. (See Ericsson to Build Global ICT Centers.)

The centers -- two in Sweden (Stockholm and Linköping) and the third in Montreal, Canada -- are being built close to the company's existing R&D facilities and will aim to provide on-demand, cloud-based capabilities for internal development and for customers tests and trials. Ericsson AB (Nasdaq: ERIC) says each center will house its entire products portfolio, which includes hardware and Service Provider IT (SPIT) systems for all manner of fixed, mobile and cable networks.

Ericsson is hoping that the greater collaboration made possible by hosting its products in cloud-enabled facilities that can be shared and accessed by internal and external users globally will speed up its development and delivery processes.

The vendor is also building a single hardware R&D center in Stockholm that consolidate a number of current development sites in and around the Swedish capital.

Like its main rivals, Ericsson is keen to benefit from the efficiencies that hosted and shared facilities can deliver, as well as making itself more indispensable to its customers by providing round-the-clock cloud-based test facilities to its customers, something that other vendors such as Juniper Networks Inc. (NYSE: JNPR) already have in place. (See Juniper Boasts Junosphere Traction.)

— Ray Le Maistre, Editor-in-Chief, Light Reading

pdonegan67 9/3/2013 | 3:09:53 PM
Re: 5G - Air interface not the priority ? Yes, Ericsson is intent on rebalancing its R&D focus a little away from radio and towards enhancing network efficiency and end to end protocol interactions. I wouldn't expect Ericsson to surrender its world leadership position in radio networks any time soon though.
kaop 9/2/2013 | 10:02:10 PM
Re: 5G - Air interface not the priority ? Does this have anything to do with Ericsson's evolution into cloud and smart devices.  They forcast mobile subscriptions to reach 4.5B by 2018: http://www.ericsson.com/res/docs/2013/ericsson-mobility-report-june-2013.pdf
DOShea 9/2/2013 | 4:25:43 PM
Re: Europe, North America.... Although, locating tech centers close to your customers is something that once might have been seen as a symbolic gesture of commitment to that market, and good for business.
rockingstone 9/2/2013 | 1:15:40 PM
Re: Europe, North America.... hi Ray, 

With cloud, it doesnt matter where datacenter is located. You just need a pipe.. And you would be knowing that datacenter consumes lots of power in cooling them down, there are security issues etc etc..so best best to put datacenter in extreme cold conditions...I think canada & sweden are best bets as they are safer, cooler and you get the best talents to work there as well.....thanks
Gabriel Brown 9/2/2013 | 11:59:14 AM
Re: 5G - Air interface not the priority ? New protocols, as yet not invented. He referred to ultra low latency and ultra reliability, as key requirements. For example, to control self-driving cars. 
[email protected] 9/2/2013 | 10:41:41 AM
Re: 5G - Air interface not the priority ? Did he say which protocols?
pdonegan67 9/2/2013 | 10:40:06 AM
5G - Air interface not the priority ? Interesting to hear Ulf Ewaldsson, Ericsson's CTO, saying at a London briefing this morning that new networking protocols will be at the heart of 5G. If anything, he said, this will be more important than the evolution of the air interface.
[email protected] 9/2/2013 | 10:28:04 AM
Europe, North America.... ...but not Asia/Pac. For sure these are global centers taht can be used and accessed by all (all those invited, that is) but won't there be questions from Ericsson's APAC customers about why there isn't such a center closer to them?
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