Exclusive extracts from this 69-page-long report:
- Who are the key players?
Facing extraordinary changes, telecom equipment providers have diversified their activities, entering the broader information and communication technology (ICT) market to respond to rising demand from consumers for software and services. 7 out of 10 companies analysed in this report can now be characterised as IT services providers. [...]
Groups analysed in this report include: Cisco, Qualcomm, Motorola Solutions, Juniper Networks, Huawei, Fujitsu, Nokia, Ericsson, NEC and ZTE.
- What are the players' strategies?
For several years, Cisco's has been focused on shifting its traditional, product shipping-centred approach towards a software and subscription-based business model. This strategy has several objectives: firstly, it allows the company to differentiate from competitors by proposing a different approach to software sales, based on monthly/quarterly/annual payments; secondly, a subscription-based model increases recurring revenues, allowing for greater flexibility, especially in resource management; thirdly, this approach enables companies to retain customers, who must opt out if they wish to change providers. […]
- What are the players' key growth and profitability drivers?
Fujitsu's overseas revenue was badly hit in FY2016 (-13.2% year on year), while Japan-based activities remained flat (+0.7%), mainly due to declining revenue and weak demand for LSI devices used in smartphones. However, the company enjoyed robust sales growth in its Services sub-segment, both in system integration and infrastructure services.