Tuesday, May 31, 2011

Mobile Heights is Open for New Members

In the Öresunds region of Sweden, the region between Sweden and Denmark, there is a very exclusive industry collaboration platform that promotes innovations throughout the region. Its called Mobile Heights which was founded by the major telco companies in Sweden (TeliaSonera, Ericsson, Sony Ericsson, ST Ericsson) and the local governments. Its original aim is to establish Southern Sweden as an internationally leading region in research, innovation and entrepreneurship in mobile communications and its entire value chain in hardware, software and services.

This month Mobile Heights invited other companies to become members and in particular companies that compete with them, which is very interesting... and with the aim to increase innovations within the region. This is a very unusual but I believe is very good for the region and companies in the region. Collaboration between competitors create a healthy and innovative environmen. Now consider if you are not competing put purely collaborating.

Saturday, May 14, 2011

Why Merging with DingLi Makes a Lot of Sense?

Since the news broke out and the M&A between DingLi and AmanziTel became public I got several press calls, with so many calls during the day and so many questions it feels like I was conducting a press conference. The two main questions I have been asked were:
• Why merge with DingLi, a Chinese company?
• How did the merger came about?
First off its more of an acquisition than a merger with DingLi being the bigger partner, however I like the word merger (something like Nokia merging with Siemens to create NSN, we all knew what happened to that) so I will stick with that.

Why a Chinese company like Dingli and why not take merge with Western companies or take investment from western investors? The simple answer is actually provided by Robert Lindell (who joined DingLi from Ascom / TEMS) and I quote “In a few years time one third if all employees will be employed by a Chinese company”. That is a very strong statement, however more than that there are several benefits to both parties which I will outline here:
• DingLi has the hardware tools while AmanziTel have the software solutions, jointly allow us to provide a true end-to-end network performance monitoring, management and optimization solution. The solution is not just what others call as end-to-end, but true end to end from data collection on various interfaces to correlation of network, business and service performance. This goes up to automated reporting in various levels from engineering to top management on the same data sources without the need for manual manipulation.
• DingLi has plans to expand outside China while AmanziTel is penetrating the largest telecom market in the world and with a combine product both can be achieved
• To the customer its more than cost savings, its adding value to their operations and ensuring a lasting partnership with solutions driven by their unique environments and business strategies
• Cross innovations in home markets, this merger enable us to increase our research and development and at the same time bring close collaboration with both Chinese and Scandinavian vendors and partners

Of course since it’s really an acquisition there’s the financial incentive, it’s not the main driver but it is a component of the deal.

This merger took several months in the making to ensure that everything is in place and that the combination of products will create the desired solution for our existing and potential customers. Careful evaluation of each other’s products and more importantly the combine solution took the most time while the legal aspect like in any mergers simply took its own course. So now that the merger is public, the new solutions are actually ready to be deployed and the first few customers are lined up.

This are exciting times and as CEO of AmanziTel, the challenge of delivering the solution with the desired results to our customers takes the highest priority in the this phase of our operations. Both our commercial and open source applications are enhanced by the use of DingLi’s test and measurement portfolio, somehow if feels like the early days of Hewlett and Packard….

And oh by the way I am writing this blog while on the air, and for a change I found economy seats where I solely occupy the entire row, it’s good enough to enable to work while on the move…..

Wednesday, May 11, 2011

AmanziTel is Merging with DingLi

So now its officially public

DingLi Communications Corporation, Ltd., the leading provider of mobile network measurement equipment and services in Asia, has signed an agreement for the acquisition of 51% of AmanziTel AB, the leading open source network performance management company. DingLi’s acquisition of AmanziTel enables DingLi to expand its portfolio towards a unique unified platform offering and establish a foothold in Europe and incorporate AmanziTel’s unified platform in its suite of network measurement products.
DingLi, a publicly listed company at the Shenzhen Stock Exchange (#300050), is Asia’s premier supplier of network diagnostics systems encompassing competitive benchmarking, maintenance, optimization, planning, post-processing, rollout and testing for all existing wireless technologies including the latest 4th Generation networks (WiMax and LTE).
AmanziTel is the leading provider of open source network performance management and optimization solutions. Its solutions are vendor and technology agnostic, deployed in wireless networks, security networks and broadband networks. The collaboration with DingLi puts AmanziTel in the forefront of network diagnostics considering that DingLi’s products are deployed in wireless networks serving billions of mobile customers.
Joe Wang, CEO of DingLi, commented “The acquisition of AmanziTel demonstrates our commitment to provide regional presence and support to our customers worldwide while expanding our product portfolio and incorporating a common platform for performance monitoring and management. This illustrates DingLi’s long term goal and mission to become the premier vendor and operator partner in the field of network performance monitoring, management and optimization.”
AmanziTel’s CEO Ian Vernon commented “The product and company tie-up with DingLi makes perfect sense for us as we expand our business towards a single platform for network management and optimization delivered as a complete solution or as a fully managed software-as-a-service”.
This collaboration enables both companies to offer true end-to-end network performance management and optimization covering both business and operational drivers throughout the network’s life-cycle. Such end-to-end solutions allow analysis and correlation of relationships and dependencies between business operations and network operations enabling network operators to make the right decisions well suited to their strategies.

Saturday, May 7, 2011

Are there any simple M&A deals around?

In the past 15 years I have been directly involved in about a dozen M&A deals in one capacity or the other. Most of these were within the technology industry, one or two outside it. So far I have mixed opinions on how easy or how fast M&A's are agreed and reaches closing. I am by no means an expert so your opinions are most welcome.

In most M&A I have been involved in I was mostly one of the guys sweating, working for the shareholders and top executives except for about 3 deals where I was actually a major shareholder and recently where I was actually driving it. While working for others I used to think that the executives/shareholders have it easy since they don't have to do the leg work. However recently I have a shot in the arm on how difficult it is when you are on the top side of the wall.

The most recent M&A I have been involved with was the most intense and took the longest compared to other deals I have worked on in the past and upon signature it felt good. Now the ideal scenario is of course a simple deal that closest fast. Is there any of those around?

Tuesday, May 3, 2011

Telecom industry collaboration, what are the benefits?

In the South of Sweden, a region called Öresund, there is an initative called Mobile Heights founded by the major telecom players in Sweden namely Ericsson, Sony Ericsson and Telia Sonera. This regional initiative aims to foster collaboration between members with the central theme of open innovations. Mobile Heights is helping new start-ups in the region to gain traction by providing funding support, industry support and access to IPR. This regional initiative is sponsored by the regional government in the south of Sweden.

Industry collaboration is not a new concept, its employed all the time from lobbying for a just cause to promoting a common idea. What differentiates Mobile Heights is that it intends to help promote entrepreneurship, help establish new companies while at the same time foster collaboration between members. Once a company within its wings grows and prosper, does it make sense to contribute back? As a gesture of gratitude perhaps it is, however does it make good business sense

Industry collaboration is never free, there are always cost associated to it including time and effort. Having said that, are the benefits gained better than the cost of admission and membership? There are several initiatives today that mostly a platform by the founding members to promote their cuase while minor members tag along to network and possibly to gain business out of other members. The beauty of Mobile Heights is that was founded with the intention to help the young and small companies to prosper and grow.

AmanziTel is one of the first Alumnis of Mobile Heights in terms of start-ups. The company's solution was not created from IPRs shared, however we benefitted from collaboration with other members in fine tuning components of our solutions. We are now in a crossroad, do we want to become a contributing member? What do we gain? Is it good for our business?

Being associated with well respected names in the industry has its plus factors to potential customers. Being a contributing member what are we suppose to give back to the industry. First off, AmanziTel is an open source company, so it can open up its source code and let other members use it and write their own innovations. Secondly AmanziTel is expanding and can use Mobile Heights's university connection and support new start-ups as well.

So should we explore being a contributing member to an industry initiative? I would like to gather your thoughts.