San Jose, USA. It is in Silicon Valley that Ericsson's future is decided. Here are Google and Apple, which changed the rules. Here is the internet talent, which lacks Ericsson, and there are now Hakan Eriksson, mobile giant's chief technology officer.
200 Holger Way is located just off the highway between San Francisco and San Jose. It is Ericsson Silicon Valley on the door. An important marker by management.
It's walking distance to Cisco, Ericsson's perhaps the toughest competitor in the future. And only a quarter of a drive to the new friends at Google in Mountain View.
Hakan Eriksson, Ericsson's chief technology officer, since 2003, year-end is also responsible for operations in Silicon Valley. He moved here with his family in February.
That someone from the management team in place marks the importance of the activity. Both externally and internally.
-The choice of me as a CTO is quite natural since Silicon Valley is an environment where technicians are very high regard, "said Hakan Eriksson.
Ericsson has tried to establish themselves in Silicon Valley before, without success. But this time the conditions are better. The interest in mobile communications in the United States has never been greater.
Pre-iPhone, as the period before 2007 are called over here, it was Europe that ruled the mobile development, while the development of the Internet was in Silicon Valley.
Now is also a lot of mobile innovation in California. Apple's iPhone and AppStore and Google Android open operating system has changed the rules in the mobile industry. Suddenly, taking mobile broadband speed. The mobile giants like Ericsson and Nokia talked about for years.
-Yes, they say that Google's Eric Schmidt at mobile trade show in Barcelona, said "Thank you, Europe. Now we're in the U.S. over". And that's almost true. But only almost, "said Hakan Eriksson.
- It is true for mobile phones, applications and operating systems. It is not from Nokia will no longer news, "he says.
-Nokia's still run by "Connecting People", but now it's "Connecting To The Cloud" that everyone talks about in Silicon Valley.
Although Ericsson is talking increasingly about the so-called "computer cloud, in which the programs are available online instead of in their own computer or mobile phone. It is part of the vision for 2020, when 50 billion gadgets expected to be connected to - yes - the cloud.
And there are links between the cloud and stuff like Ericsson can offer. With equipment and solutions for the mobile and fixed networks.
- In order for the mobile systems that have not taken over the United States, opposition Hakan Eriksson. There it is the contrary. Nortel is no more. Alcatel-Lucent is headquartered in Paris. and Motorola has almost disappeared. We at Ericsson are now the largest manufacturer in North America with over 14 000 employees. Although it is one of the reasons that we are in Silicon Valley.
But rival Cisco, world number routers for Internet traffic, which is becoming an increasingly important part of the combined fixed and mobile networks, is left - stronger and more prosperous than ever. And as I said, just blocks from Hakan Eriksson's own office.
- Yes, but Cisco sells cans, not mobile, he says only a bit perfunctory, as if he had stayed in the radio headquarters in Kista.
Then he informs.
- But of course, Cisco will be a tougher competitor in the future. And that's why we are here. In order to spend more on Internet technology.
In order to survive in the fierce competition needs to attract more internet Ericsson talents. It is not enough to have the world's best radio engineers on the ground in Chest. Not when the data traffic, which recently passed the voice traffic in the global mobile networks, is expected to be 30 times larger than voice traffic already 2015th Not at all fixed and mobile solutions will be based on Internet Protocol, IP.
- And 80 percent of the world ip talent in Silicon Valley. They are not in Kista, "says Jan Uddenfeldt, one of the world's mobile pioneers, which was established by Ericsson and world number one in the GSM and 3G, but has worked in San Jose two years ago.
Competition for the best is fierce. Google, for example, offers not only attractive jobs, but also free smoothies, climbing walls and Friday meetings with the two founders Larry Page and Sergey Brin.
Ericsson to sell as an employer is therefore one of Hakan Eriksson's key tasks. Hence the line of the opening speech at conferences such as The Open Mobile Summit and The Global Semiconductor Alliance and the many visits to universities as Stanford and Berkeley.
To help, he has renewed the interest for mobile communications. In Silicon Valley want the best work with the very latest.
So far this year, Ericsson hired new staff close to 100 people in Silicon Valley and it is now evident in nearly 1300 employees. But there is space for 1 600.
In addition to attracting geniuses Håkan Eriksson must also establish and maintain partnerships with other companies. He mentions Intel, Juniper, IBM, HP, Sun, Apple and Google.
- Although it has become easier thanks to the iPhone and Android, assures Hakan Eriksson, and talks about his recent panel discussion.
It was with President Barack Obama CTO Aneesh Chopra. His vision was to build on two pillars: "The Cloud and The Mobile", then the cloud and mobile.
- The mobile gadgets have to have a link to the cloud, and I could tell you who is the leader in mobile systems in the world.
- That is why we are perceived as the most attractive partner. Everyone wants to work with us. Those who develop applications (see Google, prepared note.) See ourselves not as competitors but as someone who makes vision impossible.
Hakan Eriksson, Ericsson's positive vision of possibilities is not new. So he tends to sound.
But it's certainly harder to imagine such cooperation between Nokia and Google, then both decided to launch mobile services. Google would be placing the intelligence in the cloud computer, while Nokia wants it in their mobiles.
Following talks with Håkan Eriksson and Jan Uddenfeldt it is clear that cooperation with Google broadened and deepened over recent months.
Both stresses several times that share Google's vision of cloud computer. And the two companies have much to learn from each other. A joint project is about the open Android operating system and another for equipment and services over fiber to the home.
- Then there are other interesting collaborations, which we can not talk about, "says Jan Uddenfeldt, Google has found at least once a month.
But a little indication he gives.
- Google is a software company, they understand nothing about bandwidth. We can ensure that their applications do not require as much bandwidth, but can be run more efficiently in the mobile networks.
Uddenfeldt also notes that Sony Ericsson, with 200 employees in Silicon Valley, has a close partner with Google. Not least in connection with the development of the company's next Androidmobil. Recently offentligjorde addition, Google's partnership with Sony for its new television venture.
Google, need more knowledge of consumers in order to compete with Apple. The Sony can give them, "says Jan Uddenfeldt, as the first July to take over as new CTO of Sony Ericsson, and will head its operations in Silicon Valley.
Cooperation with perhaps the world's hottest IT companies open large opportunities for Ericsson. But it does mean a significant risk.
Many customers of Ericsson, the world's largest mobile operators, see Google as its main enemy. And they have the support of the British-analysis firm Ovum, in a recent report points out that Google sökjätten rival for mobile operators as well as broadcasters in the future.
- Google's ambition is to make money from ads and at the same time offering attractive free services everywhere. Not just in the computer, but also on mobile phones and televisions, "said Tony Cripps, the author of the report.
Therefore it becomes tough for the operators, he believes, to try to compensate for the lower traffic revenues by offering new services that cost money. Especially as Google spits out one enticing service after another - all for free.
- Google is not investing in their own infrastructure, but people reach their free services via the Internet. While mobile operators have invested billions in their networks. Clear that there are conflicts, continues Tony Cripps.
But Hakan Eriksson sees no risk in the approach to Google.
"We really just looking for different gadgets and applications more efficient operation in mobile networks. And it benefits the operators.
In addition, he has noticed a clear change in direction of sökjätten the last three or four months.
-Google are beginning to realize that investing in mobile network equipment must be able to recoup the transaction. And we are probably one of those who have been thinking about Google, "said Hakan Eriksson.
Ericsson Silicon Valley also has a key role to develop and sell IP products. The idea was to get a kick start by buying the company Redback routers and optical-specialist Entrisphere in early 2007.
Ericsson paid almost 15 billion for Redback's 800 employees, of whom 500 worked in development. Entrisphere 140 employees, costing SEK 700 M.
With the mobile giant's global sales force, the two IP companies have proper spin on shops, on schedule, so it was not.
Arpit Joshipura, who is now responsible for strategy and marketing at Ericsson, Silicon Valley, was formerly CTO and marketing at Redback. Today he admits that the culture clash between the companies dovetailed growth rate during the first two years.
-Mobil engineers were used to working with standardization and consensus. While IP engineers worked customized and quickly. Two completely different way to work, he said.
One year ago was decided that the Internet culture, which applies to Ericsson's Silicon Valley. One needs also to attract the best Internet talent, believes Jan Uddenfeldt.
-At Ericsson, we are good at planning. But we must also learn to work as we do here: to run in time without always really know exactly where you are going, "he says.
This is one reason that former Redback-Head Georges Antoun become head of Ericsson's new product unit's IP and broadband. It is also the group's first unit with headquarters outside Sweden.
Ericsson is not shown on the sale of Redback routers and Entrispeheres equipment for passive optical networks, known as GPON. However Hakan Eriksson assures that the situation is now under control.
"We increased our global market share last year," he says.
It's true. But the shares are still well below 10 percent. So far from Ericsson's superior position in the mobile market, where the proportion is over 35 percent.
Ericsson's so-called edge routers to increase its share of world trade by just one percentage point between 2008 and 2009. From just over 5 percent to just under 6 percent.
And GPON-products' market share increased from less than 5 percent to 7 percent. Data are taken from Ericsson's latest Capital.
Ericsson say that there is no point in engaging in a market if we do not think they can take a share of over 20 percent.
On point after point is therefore Hakan Eriksson facing great and difficult tasks. The recruitment of top performers will be strengthened, market share in IP telephony products must be increased and collaborations will be established and deepened, while the pitfalls of these collaborations must be avoided.
There is much that has to go the way of Ericsson's Silicon Valley in the coming years.
200 Holger Way is located just off the highway between San Francisco and San Jose. It is Ericsson Silicon Valley on the door. An important marker by management.
It's walking distance to Cisco, Ericsson's perhaps the toughest competitor in the future. And only a quarter of a drive to the new friends at Google in Mountain View.
Hakan Eriksson, Ericsson's chief technology officer, since 2003, year-end is also responsible for operations in Silicon Valley. He moved here with his family in February.
That someone from the management team in place marks the importance of the activity. Both externally and internally.
-The choice of me as a CTO is quite natural since Silicon Valley is an environment where technicians are very high regard, "said Hakan Eriksson.
Ericsson has tried to establish themselves in Silicon Valley before, without success. But this time the conditions are better. The interest in mobile communications in the United States has never been greater.
Pre-iPhone, as the period before 2007 are called over here, it was Europe that ruled the mobile development, while the development of the Internet was in Silicon Valley.
Now is also a lot of mobile innovation in California. Apple's iPhone and AppStore and Google Android open operating system has changed the rules in the mobile industry. Suddenly, taking mobile broadband speed. The mobile giants like Ericsson and Nokia talked about for years.
-Yes, they say that Google's Eric Schmidt at mobile trade show in Barcelona, said "Thank you, Europe. Now we're in the U.S. over". And that's almost true. But only almost, "said Hakan Eriksson.
- It is true for mobile phones, applications and operating systems. It is not from Nokia will no longer news, "he says.
-Nokia's still run by "Connecting People", but now it's "Connecting To The Cloud" that everyone talks about in Silicon Valley.
Although Ericsson is talking increasingly about the so-called "computer cloud, in which the programs are available online instead of in their own computer or mobile phone. It is part of the vision for 2020, when 50 billion gadgets expected to be connected to - yes - the cloud.
And there are links between the cloud and stuff like Ericsson can offer. With equipment and solutions for the mobile and fixed networks.
- In order for the mobile systems that have not taken over the United States, opposition Hakan Eriksson. There it is the contrary. Nortel is no more. Alcatel-Lucent is headquartered in Paris. and Motorola has almost disappeared. We at Ericsson are now the largest manufacturer in North America with over 14 000 employees. Although it is one of the reasons that we are in Silicon Valley.
But rival Cisco, world number routers for Internet traffic, which is becoming an increasingly important part of the combined fixed and mobile networks, is left - stronger and more prosperous than ever. And as I said, just blocks from Hakan Eriksson's own office.
- Yes, but Cisco sells cans, not mobile, he says only a bit perfunctory, as if he had stayed in the radio headquarters in Kista.
Then he informs.
- But of course, Cisco will be a tougher competitor in the future. And that's why we are here. In order to spend more on Internet technology.
In order to survive in the fierce competition needs to attract more internet Ericsson talents. It is not enough to have the world's best radio engineers on the ground in Chest. Not when the data traffic, which recently passed the voice traffic in the global mobile networks, is expected to be 30 times larger than voice traffic already 2015th Not at all fixed and mobile solutions will be based on Internet Protocol, IP.
- And 80 percent of the world ip talent in Silicon Valley. They are not in Kista, "says Jan Uddenfeldt, one of the world's mobile pioneers, which was established by Ericsson and world number one in the GSM and 3G, but has worked in San Jose two years ago.
Competition for the best is fierce. Google, for example, offers not only attractive jobs, but also free smoothies, climbing walls and Friday meetings with the two founders Larry Page and Sergey Brin.
Ericsson to sell as an employer is therefore one of Hakan Eriksson's key tasks. Hence the line of the opening speech at conferences such as The Open Mobile Summit and The Global Semiconductor Alliance and the many visits to universities as Stanford and Berkeley.
To help, he has renewed the interest for mobile communications. In Silicon Valley want the best work with the very latest.
So far this year, Ericsson hired new staff close to 100 people in Silicon Valley and it is now evident in nearly 1300 employees. But there is space for 1 600.
In addition to attracting geniuses Håkan Eriksson must also establish and maintain partnerships with other companies. He mentions Intel, Juniper, IBM, HP, Sun, Apple and Google.
- Although it has become easier thanks to the iPhone and Android, assures Hakan Eriksson, and talks about his recent panel discussion.
It was with President Barack Obama CTO Aneesh Chopra. His vision was to build on two pillars: "The Cloud and The Mobile", then the cloud and mobile.
- The mobile gadgets have to have a link to the cloud, and I could tell you who is the leader in mobile systems in the world.
- That is why we are perceived as the most attractive partner. Everyone wants to work with us. Those who develop applications (see Google, prepared note.) See ourselves not as competitors but as someone who makes vision impossible.
Hakan Eriksson, Ericsson's positive vision of possibilities is not new. So he tends to sound.
But it's certainly harder to imagine such cooperation between Nokia and Google, then both decided to launch mobile services. Google would be placing the intelligence in the cloud computer, while Nokia wants it in their mobiles.
Following talks with Håkan Eriksson and Jan Uddenfeldt it is clear that cooperation with Google broadened and deepened over recent months.
Both stresses several times that share Google's vision of cloud computer. And the two companies have much to learn from each other. A joint project is about the open Android operating system and another for equipment and services over fiber to the home.
- Then there are other interesting collaborations, which we can not talk about, "says Jan Uddenfeldt, Google has found at least once a month.
But a little indication he gives.
- Google is a software company, they understand nothing about bandwidth. We can ensure that their applications do not require as much bandwidth, but can be run more efficiently in the mobile networks.
Uddenfeldt also notes that Sony Ericsson, with 200 employees in Silicon Valley, has a close partner with Google. Not least in connection with the development of the company's next Androidmobil. Recently offentligjorde addition, Google's partnership with Sony for its new television venture.
Google, need more knowledge of consumers in order to compete with Apple. The Sony can give them, "says Jan Uddenfeldt, as the first July to take over as new CTO of Sony Ericsson, and will head its operations in Silicon Valley.
Cooperation with perhaps the world's hottest IT companies open large opportunities for Ericsson. But it does mean a significant risk.
Many customers of Ericsson, the world's largest mobile operators, see Google as its main enemy. And they have the support of the British-analysis firm Ovum, in a recent report points out that Google sökjätten rival for mobile operators as well as broadcasters in the future.
- Google's ambition is to make money from ads and at the same time offering attractive free services everywhere. Not just in the computer, but also on mobile phones and televisions, "said Tony Cripps, the author of the report.
Therefore it becomes tough for the operators, he believes, to try to compensate for the lower traffic revenues by offering new services that cost money. Especially as Google spits out one enticing service after another - all for free.
- Google is not investing in their own infrastructure, but people reach their free services via the Internet. While mobile operators have invested billions in their networks. Clear that there are conflicts, continues Tony Cripps.
But Hakan Eriksson sees no risk in the approach to Google.
"We really just looking for different gadgets and applications more efficient operation in mobile networks. And it benefits the operators.
In addition, he has noticed a clear change in direction of sökjätten the last three or four months.
-Google are beginning to realize that investing in mobile network equipment must be able to recoup the transaction. And we are probably one of those who have been thinking about Google, "said Hakan Eriksson.
Ericsson Silicon Valley also has a key role to develop and sell IP products. The idea was to get a kick start by buying the company Redback routers and optical-specialist Entrisphere in early 2007.
Ericsson paid almost 15 billion for Redback's 800 employees, of whom 500 worked in development. Entrisphere 140 employees, costing SEK 700 M.
With the mobile giant's global sales force, the two IP companies have proper spin on shops, on schedule, so it was not.
Arpit Joshipura, who is now responsible for strategy and marketing at Ericsson, Silicon Valley, was formerly CTO and marketing at Redback. Today he admits that the culture clash between the companies dovetailed growth rate during the first two years.
-Mobil engineers were used to working with standardization and consensus. While IP engineers worked customized and quickly. Two completely different way to work, he said.
One year ago was decided that the Internet culture, which applies to Ericsson's Silicon Valley. One needs also to attract the best Internet talent, believes Jan Uddenfeldt.
-At Ericsson, we are good at planning. But we must also learn to work as we do here: to run in time without always really know exactly where you are going, "he says.
This is one reason that former Redback-Head Georges Antoun become head of Ericsson's new product unit's IP and broadband. It is also the group's first unit with headquarters outside Sweden.
Ericsson is not shown on the sale of Redback routers and Entrispeheres equipment for passive optical networks, known as GPON. However Hakan Eriksson assures that the situation is now under control.
"We increased our global market share last year," he says.
It's true. But the shares are still well below 10 percent. So far from Ericsson's superior position in the mobile market, where the proportion is over 35 percent.
Ericsson's so-called edge routers to increase its share of world trade by just one percentage point between 2008 and 2009. From just over 5 percent to just under 6 percent.
And GPON-products' market share increased from less than 5 percent to 7 percent. Data are taken from Ericsson's latest Capital.
Ericsson say that there is no point in engaging in a market if we do not think they can take a share of over 20 percent.
On point after point is therefore Hakan Eriksson facing great and difficult tasks. The recruitment of top performers will be strengthened, market share in IP telephony products must be increased and collaborations will be established and deepened, while the pitfalls of these collaborations must be avoided.
There is much that has to go the way of Ericsson's Silicon Valley in the coming years.
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