Ericsson's answer to Cisco's all-IP threat - mobile

After a torrid few years Ericsson has launched a fight back against Cisco and fellow telecoms equipment vendors based around its pedigree in mobile.

On the product front, the Swedish vendor has added mobility and IP networking capabilities to its BusinessPhone PBX and launched MD110 Convergence Communication System, an upgrade to its MD110 around which it will base much of its upcoming mobile enterprise strategy.

It argues the three key enterprise trends now are migration to IP for most networking, which is a key concern for IT departments; increased mobility, a key concern for end users; and enterprises gluing their systems together by top-notch application integration.

As such, it hopes its new products will form the basis for large user organisations to tie mobile worker and hybrid IP PBXes together.

Hybrid PBXes, combining IP and old-fashioned circuit-switched lines, now account for over half the market, according to the latest figures from Canalys. While Ericsson remains one of the top five vendors - alongside, from first to fourth, Nortel, Siemens, Avaya and Alcatel - Cisco is in sixth place and the perception is that its IP-centric approach has it coming up quickly on the rails.

However, Ericsson reckons its strength in mobile - it is still the leading mobile network infrastructure equipment maker - will give it an edge.

Lars Svensson, president Ericsson Enterprise, said: "The cost of mobile telephony [end] users is high because the IT department doesn't have control." His answer - and one he says resonates with CEOs - is for CIOs to go to operators, he hopes with Ericsson in tow, and look to do a deal that sees PBXes combined with mobile.

This would give, for example, access to PBX directories and voicemail from mobile devices or the ability to arrange free or cheap calls between employees in certain areas, probably around a work campus.

IDC estimates there will be 170 million mobile workers, defined as spending at least a day a week out of the office, by 2006.

Ericsson, to back up its pitch and MD110 announcement, cites a new five-year, $10m contract extension with New Zealand Police.

Svensson added: "About 18 months ago we were informed they were going from MD110 to a Cisco IP system. I said to their IT manager: 'I though mobility would be very important to any police force,' and we convinced them not to do it."

Cisco was unavailable for comment on this contract.

NZ Police will from the start of next year use a GPRS network nationwide and various devices to link into central PBX exchanges and systems. Ericsson highlights what can be done with a SonyEricsson P800 device integrated with the MD110 but says over 50 devices can be used.

It also doesn't mind if other traditional PBX vendors with a hand in mobile have the same strategy.

Svensson added: "Siemens and Alcatel will be there, they will catch up. I hope they will. It all needs to be integrated and it's better to have a 60 per cent penetration [in enterprises] with a little lower margin than 20 per cent with huge margins."