Technology news and Jobs arrow Telecommunications arrow NEC aims to get 70 percent of revenue from services
NEC aims to get 70 percent of revenue from services E-mail
by Stuart Corner   
Wednesday, 17 June 2009
NEC flagged the new strategy in January when it announced plans to exit the consumer electronics and whitegoods markets in Australia and retrench 200 staff with Takeuchi, saying: "This move forms part of our strategic evolution towards redefining NEC Australia as a business services company.

That announcement was followed by one in March when NEC Australia announced plans to re-organise into four business units - Unified Communications, Managed Services, Network Solutions and Display Solutions - and the restructure of its R&D operation to focus on commercial ICT technologies. As a result some 153 staff were to lose their jobs.

Under the new structure, the Unified Communications group would focus on corporate sales of unified comms products; the Managed Services group on systems integration and delivering managed voice, data, IT, unified communication and data centre services; the Network Solutions group on "connecting software, systems and people together using our extensive solution and system integration capability," with an initial focus on "growing our activity in the health/ aged care, connected communities and education."

These moves are the latest in a series of internal re-organisations in recent times, starting with the announcement in December 2006 of the absorption into NEC Australia of NEC Business Solutions from 1 April 2007 with the aim of " increasing synergy and business collaboration between the two in the key areas of IT and networks." At the time of the announcement NEC Australia claimed revenues of $582m, including NEC Business Solutions. NEC Business Solutions provided provides end-to-end voice, data and video solutions for business and government, offering IP telephony, contact centre and managed services.

At that time NEC had been a major player in circuit switched enterprise telephony systems for many years, but acknowledged that it had been slow to embrace IP telephony and unified communications. It made a major shift in that direction in mid 2008 when it launched the first of a range of new IP based communications servers, the SV8100 saying "It really advances the migration path for existing customers."
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