lte revenues pour in from mature markets in 4q12 - insights from the tbr 4q12 telecom vendor...
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The TBR Networking and Mobility research team recorded a webinar on Tuesday April 9, 2013,recapping vendor performance as reported in TBR's 4Q12 Telecom Vendor Benchmark. The webinar focused on how specific vendor, go-to-market and resource management strategies impact financial performance. TBR Analyst Chris Antlitz and Research Analyst Michael Soper shared their perspectives on the results in the benchmark and provided additional insight into the performance and future of the networking and mobility market. They answered questions covering all aspects of the market, including: 1. Which regions are currently deploying LTE or nearing LTE investment? 2. Have Nokia Siemens and Alcatel-Lucent made progress in their restructuring programs? 3. What is the state of the TIS market following a shift by some vendors to deliver higher value services? For more information visit www.tbri.com Follow us on twitter @TBRInc Michael Soper @MichaelJSoper Chris Antlitz @chrisNMPTRANSCRIPT
TBR
T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
TBR’s Telecom Vendor Benchmark Research Highlights and Outlook
Technology Business Research (TBR) Quarterly Webinar Series
April 9, 2012
TBR
2 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
Telecom Vendor Benchmark 4Q12 Research Highlights and 2013 Outlook: Webinar Presenters
Michael Soper
Networking & Mobility Analyst
Email: [email protected]
Twitter: @MichaelJSoper
Chris Antlitz
Networking & Mobility Analyst
Email: [email protected]
Twitter: @chrisNMP
TBR
3 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
TBR’s Telecom Vendor Benchmark reports deliver unique insight and value through in-depth analysis in a concise, consumable format TBR’s quarterly Telecom Vendor Benchmark report:
• Analysis of leading vendors in the telecom industry.
• Financial modeling and TBR insights to help customers gain a better understanding of vendor business models.
• Evaluation of vendor strategies in the telecom infrastructure, services, and applications markets
• Breakdown of vendor performance in the Americas, EMEA, and APAC regions.
Telecom Vendor Benchmark 4Q12 Research Highlights and 2013 Outlook: Webinar Overview
TBR Telecom Vendor Benchmark Portfolio
TBR
4 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
Key Themes in 4Q12
Telecom Vendor Benchmark 4Q12 Research Highlights and 2013 Outlook
• LTE offsetting the decline in legacy technology revenues
• Latin America and China will drive LTE in 2013
• Huawei and ZTE building up managed services capabilities as NSN and Alcatel-Lucent
reduce exposure to low-margin services
TBR
5 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
Vendors improved their margins due to seasonality and restructuring, while revenues recovered as LTE ramped up in the U.S. and parts of Asia
Telecom Vendor Benchmark 4Q12 Research Highlights: Infrastructure
Cisco
HP
Alcatel-Lucent
Ericsson
NSN
ZTE
Huawei
Samsung
IBMAccenture
Juniper
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
-10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Year
-to
-Yea
r R
even
ue
Gro
wth
Operating Margin
4Q12 REVENUE, OPERATING MARGIN & YEAR-TO-YEAR REVENUE GROWTH
TBR
SOURCE: TBR AND COMPANY DATA
TBR
6 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
Declining demand for legacy technologies had a lesser impact on vendor infrastructure sales due to the rise in LTE deployments in 4Q12
Telecom Vendor Benchmark 4Q12 Research Highlights: Infrastructure
Alcatel-Lucent
Cisco
Ericsson
NSN
ZTE
Huawei
Juniper
Samsung
HP
IBM
-30%
-20%
-10%
0%
10%
20%
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0
Year
-to-
Year
Rev
enu
e G
row
th
Revenue (in $ billions)
INFRASTRUCTURE SEGMENT 4Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
TBR
SOURCE: TBR AND COMPANY DATA
TBR
7 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
LTE is helping drive growth in the applications market as operators invest in OSS, IMS and VoLTE
Telecom Vendor Benchmark 4Q12 Research Highlights: Applications
Alcatel-Lucent
Cisco
Ericsson
HP
IBMNSNSamsung
ZTE
Huawei
Juniper
-15%
0%
15%
30%
45%
60%
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80
Year
-to-
Year
Rev
enu
e G
row
th
Revenue (in $ billions)
APPLICATIONS SEGMENT 4Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
TBR
SOURCE: TBR AND COMPANY DATA
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8 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
Ericsson is maintaining its edge as Huawei and ZTE build up their managed services businesses and Alcatel-Lucent and NSN focus on restructuring
Telecom Vendor Benchmark 4Q12 Research Highlights: Services
Accenture
Alcatel-Lucent
Cisco
Ericsson
HP
IBM
NSN
ZTEHuawei
JuniperSamsung
-10%
-5%
0%
5%
10%
15%
20%
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0
Year
-to
-Yea
r Rev
enu
e G
row
th
Revenue (in $ billions)
SERVICES SEGMENT 4Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
TBR
SOURCE: TBR AND COMPANY DATA
TBR
9 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
LTE deployments by Tier 1 operators in the U.S. drove revenue for most vendors, while Latin America will be a growth driver throughout 2013
Telecom Vendor Benchmark 4Q12 Research Highlights: Americas
Alcatel-LucentCisco
Ericsson
HP IBM
NSNSamsung
ZTE
HuaweiJuniper
Accenture
-20%
-10%
0%
10%
20%
30%
40%
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0
Year
-to
-Yea
r R
even
ue
Gro
wth
Revenue (in $ billions)
AMERICAS REGION 4Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
TBR
SOURCE: TBR AND COMPANY DATA
TBR
10 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
European carriers are cutting capex outlays and delaying LTE investment, instead opting for low cost modernizations and opex reduction initiatives
Telecom Vendor Benchmark 4Q12 Research Highlights: EMEA
Accenture
Alcatel-Lucent
Cisco
EricssonHPIBM
NSN
Samsung
ZTE
Huawei
Juniper
-20%
-15%
-10%
-5%
0%
5%
10%
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5
Year
-to
-Yea
r R
even
ue
Gro
wth
Revenue (in $ billions)
EMEA REGION 4Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
TBR
SOURCE: TBR AND COMPANY DATA
TBR
11 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
Operators in China cut GSM and 3G spending in advance of LTE buildouts in 2013, weighing down Ericsson, Huawei, ZTE, and Alcatel-Lucent
Telecom Vendor Benchmark 4Q12 Research Highlights: APAC
Accenture Alcatel-Lucent
Cisco
Ericsson
HP
IBM
NSN
Samsung
ZTE
Huawei
Juniper
-20%
-10%
0%
10%
20%
30%
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0
Year
-to
-Yea
r R
even
ue
Gro
wth
Revenue (in $ billions)
APAC REGION 4Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH
TBR
SOURCE: TBR AND COMPANY DATA
TBR
12 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
Key Themes in 4Q12
Telecom Vendor Benchmark 4Q12 Research Highlights and 2013 Outlook
• LTE offsetting the decline in legacy technology revenues
• Latin America and China will drive LTE in 2013
• Huawei and ZTE building up managed services capabilities as NSN and Alcatel-Lucent
reduce exposure to low-margin services
TBR
13 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
As LTE deployments shift regions, vendors will push into the enterprise space to expand their addressable markets in 2013
TBR Networking & Mobility Practice Syndicated Topics 1Q13: Telecom Vendors
Quarterly Topics TBR Value Proposition Related Reports
Network Function Virtualization
• Determine which vendors are the early leaders in technologies such as software-defined networking and self-organizing networks.
• Evaluate vendor network function virtualization (NFV) road maps.
Alcatel-Lucent, Cisco, Ericsson, IBM, Juniper, NSN, Samsung, ZTE
LTE Deployments
• Identify which vendors are LTE leaders in revenue and contract count.
• Determine in which regions LTE is being deployed.
• Anticipate the next regional shift of LTE revenue.
Alcatel-Lucent, Cisco, Ericsson, NSN, Samsung, ZTE
Enterprise Solutions
• Determine which vendors are expanding their addressable markets to cater to the enterprise sector.
• Identify which vendors are making a strategic push into enterprise services, such as consulting and systems integration.
• Analyze which vendors are likely to succeed and which are most likely to spread themselves too thin by catering to the enterprise.
Alcatel-Lucent, Ericsson, Huawei, NSN, Samsung, ZTE
Consolidation
• Track developments in vendor M&As, identifying which players need to acquire to enhance their portfolios or enter new markets.
• Analyze the impact of operator consolidation on the telecom infrastructure and services markets.
Alcatel-Lucent, Cisco, Ericsson, Juniper, NSN, Samsung, ZTE
TBR
14 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
Questions?
Telecom Vendor Benchmark 4Q12 Research Highlights and 2013 Outlook
TBR
15 TBR Quarterly Webinar Series | 4.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
For further information, please contact:
Kate Price Director, Networking & Mobility Practice [email protected]
Michael Soper Networking & Mobility Analyst Email: [email protected]
Twitter: @MichaelJSoper
James McIlroy Vice President, Sales
Chris Antlitz Networking & Mobility Analyst Email: [email protected]
Twitter: @chrisNMP
@TBRinc
www.slideshare.net/TBR_Market_Insight
www.youtube.com/user/TBRIChannel
TBR
T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
About TBR Technology Business Research (TBR) is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors. Serving a global clientele, TBR provides timely and accurate market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today.
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