NEC transitioning to services business

Targeting aged care sector in 2011 with Cloud stack offering

NEC has successfully transitioned from being a ‘box mover’ to a services business in 2010, according to the company’s Australian managing director, Alan Hyde.

Speaking at a media event in Sydney, Hyde said NEC had successfully shaken its image as just another product provider was well on its way to becoming a services-dominated outfit.

“Many people perceive NEC as a product company, shifting boxes and physical hardware, but today we get over 50 per cent of our revenues from services,” he said.

“About 80 per cent of what we sell in Australia is local content. So we provide … a lot of IP, a lot of capability, a lot of know-how around NEC’s core technology. We will become more and more a services business.”

In the past year, the company has increasingly been working in the Cloud, having put together a combination of carriage and services specifically targeted at the aged care sector.

“We’re really putting together a whole stack, a vertical solution for an industry,” he said. “Other industry software and service providers we are inviting to join us and put their things into that stack… for the aged care sector.

“I think that is actually one of the leading examples of what the Cloud means to an industry and there is a great opportunity to replicate that for other industries.”

Hyde said NEC’s unified communications business in particular was performing strongly with “many new clients” being signed during the year, such as the University of Western Sydney, the Department of Defence and the University of Queensland.

The news follows the signing of a deal with the Royal Automobile Club of Victoria (RACV) to overhaul its existing data and voice networks in a bid to improve operational efficiency and reduce ICT costs.

The two-year upgrade, commencing early 2011 and to be carried out by NEC, will be carried out at the organisation’s operational headquarters, two club sites, six resorts in Victoria and Queensland and 40 retail outlets.

Looking back over 2010, Hyde said the year was particularly notable for the federal election being contested largely around the issue of broadband access.

“Who would have put money on that 18 to 24 months ago?” he said. “That is a very clear, indicative sign of the importance the communications and IT has in the fabric of our society.

“We obviously see the continued integration of IT and communications technologies… I’d be surprised if there aren’t any businesses out there when they are looking at their business initiatives aren’t looking in some way or form at how they can leverage the network.”

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Tags businessunified communicationsNECAlan Hyde

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