How Can NEPs Satisfy Today’s Market Demands while Pursuing Tomorrow’s Growth Opportunities?

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By Don Alusha | 4Q 2020 | IN-5939


Scope versus Scale


Network Equipment Vendors (NEPs) are looking to pursue new growth beyond the traditional telco market. There is growing interest in diversifying revenue by leveraging software, Artificial Intelligence (AI), 5G, and cloud platforms. Nokia, for example, recently announced a new offering for data center networking that includes a Network Operating System (NOS), a Service Router Linux (SR Linux), and the Nokia Fabric Service Platform (FSP). With a highly diversified product portfolio that spans software, IP/optical networks, radio, core, and cloud platforms, Nokia offers end-to-end capabilities. Ericsson, on the other hand, as outlined in ABI Research’s report 5G Provides an Unlimited Window to Move from the Short Tail to the Long Tail (IN-5743), is pursuing a very focused strategy that is aimed at scale. The acquisition of Cradlepoint, a U.S.-based vendor for 4G and 5G enterprise solutions, further augments Ericsson’s established position in cellular technologies.

Clearly, NEPs, like the rest of the market, are seeking to establish new business models and institute new growth engines. Th…

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