Competitively differentiated business
Motorola Solutions (MSI) is one the larger players in the mission-critical communications business. The global company has an installed base of 12,000 private networks.
In fiscal 2016, MSI spent more than $500.0 million in research and development (or R&D) and $1.3 billion in mergers and acquisitions. MSI has more than 4,300 patents and expects its deep domain expertise and installed base to gain traction in the communications space.
Due to a wave of natural disasters in 2017, companies understood the importance and the need for MSI’s comprehensive platform in emergency response services. MSI is focusing on providing highly secure and encrypted private networks.
Demand for secure mission-critical networks
Motorola Solutions (MSI) is optimistic about long-term demand for highly secure networks in a turbulent world. Government and private spending on public safety is a non-discretionary expenditure.
MSI is likely to focus on international and emerging markets (EEM) to drive revenues, as it has become a major player in North America. The chart above shows unique customer requirements that MSI can focus on.
There has been growing demand for expanding software and SaaS (software-as-a-service) solutions in 911 Command Center adjacencies. MSI is also expecting public safety LTE to drive demand for new devices, mobile applications, and Land Mobile Radio.
During its 3Q17 earnings call, MSI’s management stated it has several multiyear contracts (five to 15 years) for new technology and upgrades.