NEC Strengthens Global Software Business to Support Communications Service Providers ~Acquisition of NetCracker~

Transcription

1 NEC Strengthens Global Software Business to Support Communications Service Providers ~Acquisition of NetCracker~ June 27, 2008 NEC President Kaoru Yano

2 Agenda 1.Growth strategy and the aim of acquisition 2.NetCracker's profile and its position 3.Business strategy after the acquisition 2

3 1.Growth strategy and the aim of acquisition 3

4 NEC's Growth Strategy "Expansion into global business" "Enlargement of non-hard business" Market and Competition Overview While the Japanese market has matured, global market is expanding rapidly Global market are following the lead of the Japan in NGN/Wireless Broadband Commoditization of hardware and price pressure continue to impact the hardware market Software Service Hardware Current Business Area Japan Mid-term focus Business Area Overseas 4

5 Portfolio and Business Strategy "Leverage the know-how and expertise gained from the NGN" "Position NEC for growth in the "Management Systems" market" Mid to Long Term Growth Directions Software Products/ Services Management Systems Service Applications Service PF Today's Announcement Strategic Acquisition of U.S. Software Vendor (NetCracker) Hardware NW Infrastructure (Mobile/Broadband equipment) Japan Overseas 5

6 Importance of Management Systems Service variety over the integrated networks make "Management Systems," especially "Operation Support Systems" a critical requirement Mngmt System Past Mngmt System System Mngmt System Mngmt NGN Management System Necessity of improvement BSS: Business Support System OSS: Operation Support System BSS OSS Fixed Network Mobile Network Internet Various combination of services and tariffs IP Network Fulfillment Assurance Billing Telephone Cell Phone Data Video Telephone Cell Phone Data Video Quick installation of new services Improvement of business efficiency 6

7 Operation Support System (OSS) Market Forecast OSS market forecasted at +6~7% (CAGR) growth owing to investment of NGN related new service OSS represents a 20% of overseas communications market (US$150B*) * NEC estimate (FY2011) (Millions of USD) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 OSS Market by Region CAGR (07-11E): 6.8% Western Europe North America APAC/Japan APAC / Japan N. America S. America W. Europe E. Europe Mid.East / Africa Source: Gartner Forecast:Operations Support Systems, Worldwide, Maritina Kurth, June 18, 2007: GJ

8 2. NetCracker's profile and its position 8

9 NetCracker's Profile Corporate Overview Company name: NetCracker Technology Corporation Establishment: October 1993 Business area: Providing OSS software and services Headquarters: Waltham, Massachusetts, USA CEO: Mr. Andrew Feinberg Numbers of Employees: Approximately 1,000 Strength Core focus is the high growth "Fulfillment and Provisioning" solution Unique and strong technical capabilities in software and system integration including "Web base automatic fulfillment tool" with close interaction to support customers Global customer base including communications service providers in the US and Europe 9

10 Positioning of NetCracker NetCracker corresponds to "Service Layer" and "NGN" combined growing business area Legacy Network Telephone network "Positioning of similar players with representative products" High Intelligence F Mobile Application IT Service C Element Management, Provisioning D Billing, Call Center NetCracker E Billing G Domestic SI H Inventory Fulfillment A Multimedia Application B Network Management, Billing I Element & Service Management Provision of business assistance information NGN Adaptability to New Network Migration Network Service Managing the Condition of Network Elements 10

11 NetCracker's Business Performance and its footprint Rapid Growth in OSS Customers include major carrier mainly in North America and European M$ Sales Europe/Russian Market FranceTelecom/Orange UPC Swisscom MTS Comstar Sprint TELUS Time Warner Telecom COVAD North America Market (planned) Telstra TNZ Oceania Market 11

12 3.Business strategy after the acquisition 12

13 Operation after the Acquisition Wholly-owned subsidiary Continue current structure (Management & Employees) Continuous use of the brand Structure after the Acquisition Management NEC board representation Development & SI Continue NetCracker product development Joint development plans NEC Management Development SI Board member Collaboration NetCracker Management Development SI Sales Utilize both NetCracker/NEC sales channels (Japan & Oversea) Sales NEC's Market Collaboration Sales NetCracker's Market 13

14 Synergies as a Result of the Acquisition End to End NGN service solutions by incorporating NetCracker products and SI capabilities in NEC business IT/NW Infrastructure Service Platform (SDP) Network Platform (NW Infrastructure) Operation Support System is a gateway to IT Synergies Business Support Operations Support Service Intro. Support Service Quality Management NetCracker Information/Communication /Broadcasting services IPTV SaaS Terminals NEC Billing Management End Users Electronic Settlements 14 Synergies

15 Expansion of IT and Network Solutions Expand IT and Network solutions through the integration of NetCracker's OSS product and SI capabilities with that of NEC's full-layer technological strengths Japanese Market Global Market IT Service Network Service IT Global Expansion Starting from product level, OSS Service Platform Network Infrastructure Integration NW NetCracker and expanding to IT/Network solution through synergy 15

16 Business Goals Expect 200 billion yen business as a result of 売上高 ( 億円 ) Sales of Management System Business 新規 New Old 既存 acquisition Sales (100 mil yen) Fiscal Year 年度 Aiming to attain leading position in global IT/Network business 16

17 Attachment 17

18 NetCracker's OSS Business NetCracker's strength in fulfillment and OSS Highly versatile products in the fulfillment area + SI service capabilities backed by skillful engineers Client-based business Expanding OSS business centered on fulfillment Fulfillment (Service Support) Assurance (Service/Quality Management) Billing (Rating & Charging) System manages and operates service set-up and order receipt System manages service content quality, customer requirements and claims System manages confirmation of content use, billing and charges 18

19 About OSS OSS (Operations Support System) is an essential system for CSP to streamline networks, service resources and provide communications services. Systems become increasingly important as service diversification and IP implementation progress. OSS: OSS: Operations Operations Support Support System System Customer Relations Order entry Network Network Transport Fulfillment Assurance Billing Network Interface Design, Allocate, Activate, Deliver Service/ Quality Management Network fault & Performance Usage time/data volume Rating & Charging Service Bill Claim Access End User End User Mobile Wireless LAN Broadband 19

20 About Fulfillment 20

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