IoT & Embedded Technology Blog

Business Models: Motorola Solutions Extends into Managed Services

Seeking to unlock shareholder value through the creation of two stand-alone public companies, in January 2011, Motorola formally separated into two distinct businesses - Motorola Mobility Holdings, Inc. and Motorola Solutions, which is the $8 Billion organization that designs, manufactures, sells, installs and services analog and digital two-way radios, wireless LAN and security products, voice and data communications products and systems primarily for private networks, wireless broadband systems and end-to-end enterprise mobility solutions.

Recognizing that public safety, government, and enterprise customer requirements have evolved in recent years, so too has Motorola Solutions, and its Global Services unit's business model.  On July 14, 2011 Motorola's $2 Billion (annualized) services division announced the formal expansion of its current services portfolio to offer on a worldwide basis services and solutions designed to (a) further enable Motorola Solutions' 25,000 channel partners by expanding into higher-margin managed services, and (b) by identifying new services opportunities at each stage of the technology lifecycle.

With this formal announcement, Motorola Solutions' Global Services lifecycle approach now includes a more comprehensive blend of services - from traditional break-fix product support to managed instrastructure and devices, to advanced video security, as outlined in the table below:

Today, VDC sees the evolution of Motorola Solutions and its 6,100 Global Services professionals as representing a cohesive entity with the capacity to deliver highly-reliable, mission-critical solutions on a worldwide scale. However, in managing its delivery operations both directly with its largest customers and through a large partner network for mid-tier customers, the execution challenge becomes ensuring service delivery is consistent across regions, across customers types, and across customer classes (e.g., local government, national government, large enterprise, etc.).  


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