Motorola 2014 Annual Report Download - page 6

4
Services Segment
The Services segment provides a full set of service offerings for government, public safety and commercial communication
networks. In 2014, the segment’s net sales were $2.1 billion, representing 35% of our consolidated net sales. The Services
segment has the following principal product lines:
Integration services Integration services includes the implementation, optimization, and integration of systems, devices, software and applications. Integration services represented 45% of the net sales of the Services
segment in 2014.
Lifecycle Support
services
Lifecycle Support services includes software and hardware maintenance, security patches and
upgrades, call center support, network monitoring and repair services. Lifecycle Support services
represented 38% of the net sales of the Services segment in 2014.
Managed services
Managed services includes management and operation of our customers’ systems and/or devices on
their behalf at defined service levels. Managed services includes the Company acting as either a hosted
or mobile virtual network operator and the management of end-user customers on a Motorola Solutions
owned system. Managed services represented 10% of the net sales of the Services segment in 2014.
Smart Public Safety
Solutions
Smart Public Safety Solutions includes servicing our customers’ "Command & Control" centers with both
software and hardware solutions. These solutions support video monitoring, data analytics, and content
management with the objective of enabling smart policing. Smart Public Safety Solutions represented
3% of the net sales of the Services segment in 2014.
iDEN services Integrated Digital Enhanced Network (“iDEN”) is a Motorola Solutions proprietary push-to-talk technology. iDEN services consists primarily of hardware and software maintenance services for our
legacy iDEN customers and represented 4% of the net sales of the Services segment in 2014.
Strategy and Focus Areas
Our strategy is to partner with our customers to enable them to efficiently deliver reliable services through our innovative
products and best-in-class services. We have a history of delivering these products and services by focusing on the following
areas:
• Building technology that is second nature to the mission-critical user;
• Building technology that improves productivity and safety;
• Driving innovation and thought leadership;
• Ensuring security and resiliency;
• Providing ongoing support for customer investments; and
• Delivering complete solutions, comprised of infrastructure, devices, system software and applications, and
services to solve complex communication needs.
This focus provides us with the leadership position we have in our core products. We define our core products as our
standards-based voice and data communication devices and systems and the related Integration and Lifecycle Support services.
We expect to demonstrate strong results from our core products and services through: (i) leading the ongoing global migration to
digital products, (ii) managing the public/private convergence of 700MHz public safety systems in the U.S. and the digital
dividend spectrum worldwide; (iii) continuing to innovate APCO P25, TETRA, and DMR standards-based voice and data
communication devices and systems; (iv) innovating new products and technologies for the future; (v) enhancing and expanding
our services offerings including Lifecycle Support and Integration services; and (vi) expanding our direct sales and channel
partner programs both geographically and across new commercial verticals.
We believe we have the scale and global presence to continue to maintain a leadership position in our core products. We
have over 12,000 systems deployed in over 180 countries around the world. These systems have a multi-year useful life to the
customer. We believe many of our government and commercial customers have yet to replace aged analog communications
networks with next-generation digital systems that enable enhanced features and more efficient use of spectrum, providing us
opportunities to help customers migrate to these digital systems. In addition, we believe government and commercial customers
are just beginning to experience the benefits of converged wireless communications and the efficiencies realized through a
connected, mobile workforce which, we believe, will provide opportunities for the implementation of new public safety
communications systems. We believe we are well-positioned to assist our customers in the deployment of new networks as
additional public safety dedicated spectrum becomes available.
In addition, we continue to innovate around our existing core products and services by finding innovative ways to improve
our products by adding features and functionality to improve the user experience. By partnering with customers and observing
how our products are used, our goal is to enhance our customers’ experience through future product enhancements and
upgrades.
In addition to focused research and development ("R&D") efforts on existing technologies, our strategy for long-term
growth and the evolution of our business includes the development of: (i) next-generation public safety solutions' including public
safety LTE systems and devices; (ii) Smart Public Safety Solutions including critical command center applications that
incorporate voice, data and video, and (iii) new product introductions for expansion into core-adjacent markets and geographic
regions.