Lightreading considers the sparse details of Ericsson’s restructuring plan and the insistence that OSS/BSS remains strategic for their growth.
There is little doubt that Ericsson needs a shake-up, cutting out non-strategic and loss-making product lines.
Morris Lore of Lightreading explains, “That will leave the company with its vast networks business, which accounted for nearly three quarters of sales last year, a digital services outfit that includes the OSS/BSS product portfolio and a slimmed-down managed services unit…. If the decision to retain the OSS/BSS division hardly came as a surprise, it is one that some analysts find troubling.”
Yes, that may come as something of a surprise, considering the apparent negative effect OSS/BSS had on recent Ericsson results (Ericsson Down 10% – OSS BSS Gets the Blame). But it just goes to show how important OSS/BSS is to delivering network transformation – Ericsson’s core business.
“Ekholm insists that OSS/BSS is strategically important both to Ericsson and to its customers…. And Ekholm believes he can restore profitability here by ditching legacy activities and channeling resources into exciting new areas.”
Read the full analysis at Lightreading.