Ericsson, like its other vendor counterparts may have continued to see their profits dwindle as a result of price savvy competitors and cutbacks, but it thinks the network services market could be its savior. The Swedish company is so confident about its services drive that it forecasts services revenue will grow 10-12 percent annually.
And it looks like Ericsson could be onto something. Two-thirds of the world's service providers still oversee their network operations--a largely untapped market for Ericsson to step in with their service experience.
Hans Vestberg, Ericsson's CEO, believes what will get service provider's attention will be how they can show them how to save money. "You can gain from that two-thirds," said Vestberg in a Bloomberg article. "If you do perform well in the services, they see efficiencies gained."
While service providers vary in their views on whether to outsource their operations to a vendor, Ericsson was able to win a $5 billion network outsourcing contract with Sprint last year.
- Bloomberg has this article
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