Businessmodel of Netcracker Technology

Customer Segments

Netcracker provides a range of enterprise technology solutions, serving a range of commercial and institutional customers. The Company specialises in providing end-to-end software solutions to customers in the following industries:

• Media and Technology, including cable television and satellite television network providers; and
• IT and Telecommunications, comprising mobile and fixed-line communications service providers, internet service providers, mobile virtual network operators, and wholesale and wireline providers. Netcracker is the leading specialist provider of software solutions to the global telecommunications market. The Company services around 250 corporate clients, including high-profile organisations, such as Telefonica, Etisalat, O2, Sky, Maxis, and Turkcell.

Netcracker is based in the US, but serves a broad international client base, spanning 58 countries worldwide. This includes customers across the Americas, Asia Pacific, the Middle East, the Indian Subcontinent, and Europe – including Russia, Ukraine and Belarus.

Value Propositions

Netcracker provides value to its customers in the following ways:

• Its portfolio of innovative and reliable solutions, with the Company providing a range of scalable solutions tailored to the needs of entities operating within the IT and telecommunications sectors, utilising proprietary technologies and properties;
• Its international reach, with the Company providing services to customers across the world’s largest telecommunications markets, and having a direct presence across North America, Latin America, Western Europe, Eastern Europe, Asia, Africa, the Middle East, and the Pacific;
• Its specialist technical expertise and industry experience, with the Company employing teams of specialist technical and engineering staff, as well as senior executives that are experienced in dealing with the IT and telecommunications sectors; and
• Its reputation and industry standing, with the Company established as a reliable and effective service provider, serving a number of high-profile clients, and having received a number of industry awards. ###

Netcracker operates a website at www.netcracker.com, through which its provides information on its products, services, locations, and activities. While customers can browse the Company’s software solutions through its website, the Company does not operate an online sales channel.

Netcracker serves its customers through an in-house direct sales force, which is organised according to geographic region. These sales personnel operate out of the Company network of more than 40 local offices spanning North America, Latin America, Western Europe, Eastern Europe, Asia, Africa, the Middle East, and the Pacific. This includes the Company’s headquarters in the US, as well as offices in the UK, Japan, Belgium, Russia, the Philippines, India, Slovakia, Brazil, Chile, and Dubai.

Netcracker’s software solutions can be delivered as a cloud-based solutions or through on-premises installations, following which customers are able to utilise the products on a largely autonomous basis.

Customer Relationships

Netcracker does not offer any products or solutions to customers on a self-service basis. Customers, instead, must consult directly with members of the Company’s regional sales teams, with whom they are able to discuss their individual requirements and budgetary limitations. This enables the Company to provide a more persona, tailored service to its clients, encouraging ongoing communications, and establishing lasting relationships.

Netcracker provides ongoing support to its customers, offering a range of online resources, including market insights and analysis. The Company also employs sales and support personnel at each of its offices, who can be contacted directly over the phone or via an online contact form in order to receive personalised assistance.

Additionally, Netcracker is able to interact directly with its customers, keeping them up to date with company developments, through its press releases, and blog, as well as through its social media accounts with Facebook, Twitter, and LinkedIn.

Key Activities

Netcracker provides a range of end-to-end software solutions to commercial and institutional customers operating within the It and telecommunications sectors. This includes big data analytics, cloud platform, revenue management, customer and partner management, operations management, and orchestration solutions, as well as professional services such as planning and consulting, training, operations and maintenance, managed services and outsourcing, and appraisal services.

Netcracker serves a range of enterprise clients, primarily comprising mobile and fixed-line telecoms operators, mobile virtual network operators, cable operators, and wholesale and wireline providers. The Company serves a global client bases, maintaining direct operations across the Americas, Europe, the Middle East, Asia Pacific, and Africa. Netcracker currently operates as a subsidiary of NEC Corporation.

Key Partners

Netcracker works in conjunction with a range of companies and organisations in developing and delivering the best possible solutions for its clients. These partners include:

• Supplier and Vendor Partners, comprising suppliers of tools, supplies, and services that are utilised across the Company’s operating units in support of its overall activities and functionality;
• Technology and Software Partners, comprising a range of technology companies, including system integrators, communications hardware providers, and communications software providers, that assist in developing and implementing the Company’s solutions; and
• Corporate Social Responsibility Partners, comprising a range of non-profits and charitable organisations with which the Company collaborates on various joint social and community projects. Netcracker partners with a number of non-profits and charities, including the American Cancer Society, Adaptive Spirit, Sun Gate Kids Foundation, United Way, and Wireless History Foundation. The Company has also established a number of commercial partnerships in recent years, including with telecoms company O2. Software company DigitalRoute, and communications service provider EXFO.

Key Resources

Netcracker’s key resources are its proprietary solutions and technologies, its IT and communications infrastructure, its sales and service channels, its partnerships, and its personnel – notably its specialist technical staff. Netcracker owns and or leases a number of properties around the world. This principally comprises its network of offices across the Americas, Europe, the Middle East, Africa, and Asia Pacific.

Netcracker’s intellectual properties are key to its ability to provide unique and innovative solutions. Searches of records published by the US Patent and Trademark Office identified six patent applications in which Netcracker is listed as the assignee, including applications entitled ‘Architecture for a system and method for work and revenue management’, ‘System and method for device-based eCare’ and ‘Cable management and inventory enhancement’.

Cost Structure

Netcracker incurs costs in relation to the development of its unique software solutions, the maintenance of its IT and communications infrastructure, the operation of its sales and marketing channels, the management of its partnerships, and the retention of its personnel. The Company’s most substantial costs relate to the payment of salaries and benefits to its employees.

Revenue Streams

Netcracker primarily generates revenue through the sale of various end-to-end enterprise software solutions to customers operating within the telecommunications sector. The Company provides its solutions under service contracts, charging custom prices to its clients, depending on the breadth and nature of the solutions provided. The Company also derives a portion of its revenue from the provision of various professional services, such as consulting, training, planning, operations and maintenance, and managed services and outsourcing.

Netcracker is not a publicly-listed company and does not publish its financial performance figures on its website. The Company operates as a subsidiary of NEC Corporation, which generated JPY 2.82 trillion (approximately $27.16 billion in revenue for the year ended 31st March 2016.