Motorola 2011 Annual Report Download - page 9

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Large system integrators are seeking to move further into the state and local government market segment. We
and our competitors may serve as subcontractors to large system integrators and are selected based on a number of
competitive factors and customer requirements. Where favorable, we may partner with large system integrators or
other third parties to make available our portfolio of advanced mission-critical network infrastructure, devices,
applications and services.
Several other competitive factors may have an impact on our Government segment, including: the consolidation
among telecommunications equipment providers; evolving developments in the 700 MHz band; increasing
encroachment by broadband and IP solution providers; and new low-tier vendors. As demand for fully integrated
voice, data, and broadband systems continue, we may face additional competition from public telecommunications
carriers and telecommunications equipment providers.
Backlog
Our backlog position was approximately $2.0 billion as of December 31, 2011 and 2010. The 2011 order
backlog is believed to be generally firm and only includes received product and system installation labor orders from
customers. Service orders such as maintenance and extended warranty contracts are excluded from backlog.
Approximately 73% of that amount is expected to be recognized as revenue during 2012. The forward-looking
estimate of the firmness of such orders is subject to future events that may cause the amount recognized to change.
Enterprise segment
The Enterprise segment designs, manufactures, sells and provides services around WLAN infrastructure, rugged
and enterprise-grade advanced data capture and mobile computing devices, security products and applications.
These are sold to a wide range of enterprise customers, including those in retail and hospitality, transportation and
logistics, manufacturing, energy and utilities, education and healthcare. In 2011, this segment’s net sales represented
approximately 35% of our consolidated net sales.
Our Industry, Products and Services
Our enterprise customers are continuously looking to improve their operational efficiency as well as to increase
their sales through superior customer service. In 2011, we saw an increase in technology spend by our customers,
driven primarily by retail and transportation and logistics customers. We believe that long-term growth
opportunities exist within the Enterprise segment, as the global workforce continues to become more mobile and
enterprise customers continue to focus on improving their workforce efficiency and productivity. The segment also
provides products and systems for the advanced exchange of information at the point of business activity. Our sales
growth is driven by helping our customers to mobilize their workforce and improve customer service.
We offer an extensive portfolio of devices, infrastructure, applications and services. These include rugged and
enterprise-grade mobile computers and tablets, laser/imager/RFID based data capture devices and kiosks, WLAN
switches/controllers and access points, network and device management software, network and device security
software, voice-based devices and software, and systems based iDEN technology. Our service offerings in this
segment have been primarily related to product support. However, we are expanding our services offerings to also
include network integration and network and mobile device management, as well as mobility consulting.
Our Strategy
Our strategy in the Enterprise segment is to deliver the next generation of enterprise mobility to empower the
mobile worker, enable real-time asset visibility and engage the smart consumer. We have identified key areas of
innovation to enable successful implementation of this strategy. These include advanced devices, enhanced
information capture and analysis, adaptive networking solutions, integrated voice and data communications,
advanced applications and services. We are expanding our devices portfolio to address the needs of an increasingly
mobile workforce. Our products and services are designed to improve our customers’ operations through real-time
asset visibility and integrated/adaptive communications networking solutions. Our portfolio of infrastructure and
device products is complemented by customized applications and services, which are designed to help our customers
achieve their specific business objectives. We are seeking to further expand our services offerings over the lifecycle of
these products.