Ericsson India acquires minority stake in Novatium

Novatium has a cloud computing, virtualization and PC-as-a-Service where people can simply plug and compute

Market for cloud computing: 

The cloud services market was estimated at $46.4 billion in 2008 — and is expected to increase to $150.1 billion by 2013. The overall compound annual growth rate (CAGR) is forecast to be 26.5 percent

Ericsson gains:
  •  Ericsson becomes a prime driver in an all-communicating world, voice, data, images and video to share ideas and information wherever and whenever they want.
  • Provide affordable communication for all 
  • Get a piece of existing revenue pie: Network providers are supporting bandwidth increases for cloud computing. But the revenue from cloud services still flows chiefly  to cloud service providers, with little if any going to network providers. 
  • New revenue opportunities – benefit by switching enterprise-hosted services to private or virtual private clouds (“everything-as-a-service (XaaS) solutions). This approach offers better margins, along with decreased management demands.
  • New business opportunity - explore advertising partnerships  
  • Growing “service orientation” for new and existing partners
  • Economies of scale - using excess capacity in core network 
  • Gain partnerships with leading Indian operators - Bharti, BSNL, MTNL and Tata along with successful pilot and deployments in other countries