Combes told the audience at Alcatel-Lucent’s 2013 Technology Symposium in Basking Ridge, NJ, that the company had not been prepared for such technology shifts as the move to 10-Gbps DWDM in optical transport and CDMA in wireless. The Shift Plan will position the company not to make a similar faux pas as communications networks adapt to eight important trends Combes enumerated:
--An explosion of devices that will see users carrying 10 or more
--A resulting demand for ultra-fast access
--A concurrent requirement for ultra-fast core IP network resources
--The likelihood that cloud services instances will scale to the billions
--The expectation that telcos and cable MSO spending will grow faster thanks to investment in the preceding three areas
--Network infrastructures must create value by enabling rapid service turn up
--Large enterprises and the private sector will invest in carrier-grade network equipment and software
--The vendor community’s value proposition will move to support of cloud networking. Therefore, software and that ability to support application resources sharing will become more important parts of vendors’ product mixes.
Combes said that Alcatel-Lucent will react to these trends by focusing on technologies that support ultra-broadband service provision, cloud networking (which includes IP routing and optical transport), and monetizing its patent portfolio.
ALU is up 4 times, from ($1 to $4) per share last year in a good agreement with this forecast: http://iknowfirst.com/ALU_forecast_chart