Ericsson, Google Cloud Launch New Tool To Help Telecoms Build Faster, Smarter Networks

Ericsson (NASDAQ:ERIC) on Thursday announced the launch of Ericsson On-Demand, a new solution delivering core network services as a true software-as-a-service (SaaS) platform to communications service providers (CSPs).

The platform is designed with Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Cloud, leveraging AI infrastructure and Google Kubernetes Engine (GKE), and is managed end-to-end by Ericsson.

The solution will help CSPs to quickly set up and grow core network services, cut operating costs, and gain business flexibility with a fully managed, cloud-native platform.

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At a time when CSPs are under growing pressure to innovate at speed and scale while managing increasing operational complexity, Ericsson’s On-Demand platform deploys full core in minutes, scales up or down as needed, and allows CSPs to pay only for what they use and need not worry about managing the underlying infrastructure.

Ericsson On-Demand combines telecom-grade reliability with public cloud flexibility. The platform leverages GKE to simplify and improve network availability, in addition to Google Cloud’s full-stack AI infrastructure, globally across 42 cloud regions and more than two million miles of terrestrial and subsea fiber.

Ericsson On-Demand also helps CSPs add new features to their current systems bit-by-bit without causing any downtime.

Ericsson stock surged over 38% in the last 12 months.

Ericsson’s first-quarter fiscal 2025 sales grew 3% to 55.0 billion Swedish Krona ($5.15 billion), driven by 20% growth in the Americas market. The revenue beat the consensus of $5.10 billion.

Ericsson reported an EPS of SEK 1.24 (12 cents), topping the consensus of 9 cents.

Bloomberg’s Matthew Bloxham expects Ericsson to outperform analysts’ expectations in the face of global tariff storms through cost-cutting tailwinds, preemptive U.S. inventory restocking, and limited exposure to China-sourced components.

Morgan Stanley’s Sandeep Deshpande told Bloomberg that Ericsson’s U.S. business strength was partially driven by customers “buying products in anticipation of tariffs.

Price Action: ERIC stock closed lower by 0.35% at $8.44 on Wednesday.

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