Siemens Hits One Year Anniversary with Solid Growth Momentum

Siemens Enterprise Communications Group (SEN Group) say they have achieved solid growth momentum and recognised market leadership in its first year. The SEN Group capped off the fourth quarter with an overall 12 percent increase in sales, including a 12 percent increase in Network Infrastructure and Security (Enterasys) and an 8 percent increase in Large Enterprise.

The positive results are part of the Gores Group’s ongoing transformation of SEN Group’s global business, re-aligning the company to become more customer-centric, delivering on its commitment to the channel and tightening integration of the SEN Group operating companies. Over the last year, the SEN Group has reduced costs by 25 percent, essentially remaining debt free and in a strong cash position. The company continues to proactively develop and implement best practices to further accelerate growth in 2010.

Since the joint venture with Siemens AG was announced in October 2008, the Gores Group has taken decisive measures to ensure that the SEN Group can deliver on its vision of being a communications and infrastructure provider that delivers meaningful business value to its customers. This includes re-aligning the business units to increase focus on customer needs, building an industry-leading portfolio of products and services and building indirect channels.

Through strategic partnerships with companies such as Netlink, SEN Group has moved to an indirect model in 27 additional countries. The company has also signed agreements with Synnex and Westcon, further extending its commitment to the channel and improving customer reach.

These moves are paying dividends. The company earned a five star rating from Current Analysis for its partner strategy and an ITSMA award for its channel program, and the SEN Group expects to increase indirect revenues globally by 20 percent in fiscal 2010. With one of the largest customer bases in the industry, the company continues to deliver on its OpenPath commitment, enabling customers like CommerzBank, Guardian, Barts and London NHS Trust, Azul, and Walsall Housing Group to achieve fast ROI when moving to the latest generation of enterprise communications. This has also helped the SEN Group realise a 28 percent year-over-year increase in OpenScape Voice licenses and a 10 percent increase in global managed services revenues. Enterasys also recently received a 96 percent satisfaction rating from customers and partners.

In addition to customers, analysts have consistently given OpenScape Voice and OpenScape UC Application high marks for taking advantage of open industry standards such as SIP and Service Oriented Architecture (SOA), helping customers not only reduce costs, but also help ease integration and extend existing network investments. Leading analyst firm, Gartner, recently positioned SEN Group in the leader’s quadrants for the Corporate Telephony and Unified Communication (UC) Magic Quadrants, and Current Analysis gave OpenScape Voice a five out of five product rating. Current Analysis also issued a “positive” rating for the recently released Enterasys flagship S-Series line of high performance modular Ethernet switches.

“With today’s economic environment and highly competitive market, just having the best technology is not enough,” said Mark Stone, Chairman and CEO of SEN Group. “We have taken the time to understand our customers’ business goals, building our business around them so we can consistently deliver solutions that meaningfully impact their performance. That also means partnering with companies that can help us quickly add value and further tailor those solutions, giving customers the shortest possible route to achieving ROI. Our momentum is testimony to the fact that we have taken the right steps and brought in the right people and programs to deliver real business value for our customers. While our first year was nothing short of transformational, we’re not done and expect our second to build on this leadership with even more robust growth.”

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