TelcoDR makes play for Ericsson cloud assets

Public cloud evangelist Danielle Royston (pictured) perked up at the news that Ericsson is looking to offload some of its sub-scale contracts and products in its cloud software and services division [1] by stating she would be a buyer.

Royston, the acting CEO of Totogi and self-proclaimed public cloud evangelist at consultancy TelcoDR, stated to Mobile World Live she would like to engage with Ericsson on any cloud-related assets it’s looking to shed.

“I’d love to look at the whole lot of products or contracts they’ve deemed subscale,” she noted. “I’d run it through a simple and fast valuation and provide a bid to them to evaluate. I would be happy to do an asset sale or divestiture and would be interested in taking on some of their people as well (to service the product and deliver to the customers). Your basic due diligence process for a carve out or divestiture.”

She defined subscale contracts or products as items that may not be profitable for an organisation due to the economics of the revenue compared to the cost to deliver the products or projects.

“It’s a relative definition; what’s subscale for Ericsson might be at scale for another organisation with a lower cost to deliver,” she stated. “Fully depends on the cost structure and cost to fulfill the commitments of the contract and the organisation on the hook to deliver.”

She noted competition for Ericsson’s cloud assets could include other vendors, such as Amdocs or Netcracker, or acquisition companies including TelcoDR subsidiary Skyvera or Constellation Software’s Lumine Group as well as additional companies looking to invest in the telco sector.

Royston is well-known across the industry for scooping up [2] Ericsson’s exhibition space at MWC21 in Barcelona after the vendor pulled out of that year’s show due to the global pandemic.

[1] https://www.mobileworldlive.com/featured-content/home-banner/ericsson-takes-76m-hit-on-cloud-services-unit/
[2] https://www.mobileworldlive.com/featured-content/home-banner/telcodr-scoops-up-huge-public-cloud-space-at-mwc-barcelona/

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