Ericsson kicks-off 2019 by writing down $680 million after their next gen BSS failed to lift off.
Ericsson’s announcement today informs us that they are essentially abandoning their next gen BSS solution, Revenue Manager, due to a lack of customer interest.
“The company’s past BSS strategy included pursuing large transformation projects based on pre-integrated solutions, including development of a next generation BSS platform, the full-stack Revenue Manager.”
However, this strategy has not translated in to sales: “The strategy has not been successful and to date the full-stack Revenue Manager has not generated any revenues.”
They go on to list the reasons, which reads like a full and complete set of possible failure scenarios for software development projects.
Ericsson plan to “increase investments in the established platform, Ericsson Digital BSS, and refocusing the full-stack Revenue Manager to fulfilling existing customer commitments only.”
Ericsson believe this restructuring will set their Segment Digital Services business on a “strong path to achieving the target of low single-digit operating margin (excluding restructuring) in 2020”.