Ericsson-Intel Partner To Develop Advanced Platform For CSPs

Ericsson (NASDAQ:ERIC) recently teamed up with Intel Corporation (NASDAQ:INTC) to streamline developments in its software-defined infrastructure (SDI) Manager software and Intel Rack Scale Design (Intel RSD) while boosting the solutions for facilitating migration to 5G. The companies will exhibit the Ericsson SDI Manager at Mobile World Congress 2019 in Barcelona, from Feb 25 to Feb 28.

The multi-year collaboration aims to provide advanced hardware management platform that augments the agility of the cloud to the hardware infrastructure layer. Notably, the new infrastructure management solution is expected to help communications service providers (CSPs) remove deployment barriers, speed time-to-market, optimize utilization and minimize cost of ownership.

The unified efforts would significantly strengthen the competitiveness and roadmap of the Ericsson SDI offering. The state-of-the-art solution will enable service operators to leverage multi-vendor hardware options, Ericsson’s software solutions and Intel’s innovating edge. This will offer new cloudlike agility, transparency and efficiency required for Network Functions Virtualization, cloud and 5G. While many operators have started transitioning to standards-based servers to decrease infrastructure costs, others require more management capabilities to modernize operations and deliver services to realize the full potential of their infrastructure.

Ericsson’s Key Focus

Ericsson continues to execute its focused strategy and is well on track to achieve its financial targets. The telecommunications equipment provider is investing in its competitive 5G-ready portfolio to enable seamlessly migration to 5G. It also maintains strong control of its cost position to stay competitive and profitable.

Furthermore, the Swedish firm’s R&D investments over the past two years have stoked competitive and industry-leading offerings. Artificial intelligence and automation remain key enablers for the company’s future business development, creating customer and shareholder value. Ericsson is confident in achieving its long-term target for 2020 and 2022.

Share Performance

Courtesy of proper execution of operational strategies alongside collaborations with industry frontrunners, Ericsson’s shares have rallied 35.7% on an average against the industry’s decline of 4.7% over the past year.



Zacks Rank and Stocks to Consider

Ericsson currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Comtech Telecommunications Corp. (NASDAQ:CMTL) and Harris Corporation (NYSE:HRS) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Comtech has a long-term earnings growth expectation of 5%.

Harris has a long-term earnings growth expectation of 8%.

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