MWC 2023: Ericsson and Aeris Ready to Accelerate and Secure IoT with Joint Solutions

The News: Ericsson and Aeris Communications showcased the joint capabilities of their combined IoT solutions at Mobile World Congress 2023 in Barcelona. Read the Ericsson Press Release here.

MWC 2023: Ericsson and Aeris Ready to Accelerate and Secure IoT with Joint Solutions

Analyst Take: Ericsson and Aeris prudently used Mobile World Congress (MWC) Barcelona to update the mobile ecosystem on their alliance. Ericsson announced in December 2022 the transfer of its IoT Accelerator and Connected Vehicle Cloud businesses to Aeris, a U.S.-based IoT solutions specialist. The deal is expected to close in Q1 2023.

The combined capabilities of Aeris’s and Ericsson’s IoT business seeks to support the launch and management of IoT programs on a global basis. For instance, Aeris’s secure Intelligent IoT Network and value-added services targets vertical industries such as transportation, utilities, automotive, and healthcare, cultivating opportunities for communications service providers (CSPs) to monetize new services using the planet-wide reach of the Ericsson IoT Accelerator platform.

Specifically, Ericsson IoT Accelerator is used by over 9,000 enterprises to manage more than 95 million connected devices with 22 million eSIM connections globally. Together, Aeris’s and Ericsson’s IoT platforms will connect over 100 million IoT devices worldwide, covering 190 countries.

At MWC, the duo touted new security capabilities designed to protect IoT programs from cybersecurity hazards and other liabilities. I find IoT security taking on more importance as organizations increasingly rely on IoT to improve their operations across both IT and OT environments. Through implementing tighter IoT security, control system availability and performance are better assured through improved threat detection, proactive monitoring, and predictive maintenance.

For Ericsson, I find the Aeris deal makes sense. Its IoT business, with 2022 full year forecasted net sales of SEK 0.8 billion, had been the key driver of the losses in Business Area Technologies and New Businesses across the company’s Enterprise segment. The transaction is set to eliminate quarterly losses of SEK 0.25 billion ($24.18 million USD). This amounted to around $100 million in annual losses.

Through the Aeris deal, Ericsson can reduce any channel tension with its key CSP customer base as the IoT Accelerator platform is no longer a more direct competitive alternative to the CSP’s own IoT connectivity management platform (CMP). Plus, CSPs can gain more flexibility in developing their own multi-platform strategy, as selecting Aeris can help reduce concerns related to becoming overreliant on Ericsson as their prime source for mobile-IoT connectivity, including 5G-IoT, while also gaining the benefits of direct Ericsson portfolio backing.

For Aeris, the deal positions the company to become a more strategic CMP provider to CSPs, particularly in the U.S. where most of its business originates. Also, Aeris rapidly scales up its business and takes a giant step toward primarily becoming a CSP-centric vendor and can use its enterprise roots and expertise to help drive more enterprise business toward CSPs while also supporting and growing its existing enterprise customer base. The key is agile channel coordination between the pair and their CSP partners. For example, I see this applying to Aeris’s existing relations with Chrysler, Fiat, Honda, Mitsubishi, and Volkswagen aiding the Connected Vehicle Cloud business that can also align with CSP managed services using the IoT Accelerator platform.

Key Takeaways: Ericsson and Aeris Advance IoT Alliance

The MWC announcement clearly emphasized Ericsson and Aeris’ commitment to driving CSP monetization with major CSPs Softbank, Telenor, and Telstra featured prominently as partners, assuaging any concern that the duo is competing for the same enterprise business that CSPs prioritize. As such, I believe Aeris is now better positioned to deliver full lifecycle support for IoT programs on a global scale across multiple verticals.

Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.

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Image Credit: Ericsson

Author Information

Ron is an experienced, customer-focused research expert and analyst, with over 20 years of experience in the digital and IT transformation markets, working with businesses to drive consistent revenue and sales growth.

He is a recognized authority at tracking the evolution of and identifying the key disruptive trends within the service enablement ecosystem, including a wide range of topics across software and services, infrastructure, 5G communications, Internet of Things (IoT), Artificial Intelligence (AI), analytics, security, cloud computing, revenue management, and regulatory issues.

Prior to his work with The Futurum Group, Ron worked with GlobalData Technology creating syndicated and custom research across a wide variety of technical fields. His work with Current Analysis focused on the broadband and service provider infrastructure markets.

Ron holds a Master of Arts in Public Policy from University of Nevada — Las Vegas and a Bachelor of Arts in political science/government from William and Mary.


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