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Research report Telecoms software professional services: worldwide market shares 2010 Glen Ragoonanan October 2011 Research report Telecoms software professional services: worldwide market shares 2010 Glen Ragoonanan October 2011

Telecoms software professional services: worldwide market shares 2010 2 Contents [1] Slide no. 5. Telecoms software professional services: worldwide market shares 2010 2 Contents [1] Slide no. 5. List of figures and tables [1] 6. List of figures and tables [2] 7. List of figures and tables [3] 8. List of figures and tables [4] 9. Document map – Executive summary 10. NEMs increased their dominant share of telecoms software professional services revenue in 2010, while others recover 11. When the USD 8. 88 billion product related services revenue is excluded, CSIs gained ground on vendors (except NEMs) 12. EMEA continued to have the largest TSPS market share, but APAC had the highest growth rate 13. CSPs’ efforts to reduce costs in response to economic challenges disrupted TSPS market trends 14. Market summary by sub segment [1] 15. Market summary by sub segment [2] 16. Document map – Recommendations 17. Recommendations for CSPs 18. Recommendations for all types of supplier 19. Recommendations for NEMs, ISVs and IT suppliers 20. Recommendations for global and regional CSIs 21. Document map – Market definition 22. Infrastructure solution categories Slide no. 23. Definitions of telecoms software professional services [1] 24. Definitions of telecoms software professional services [2] 25. Definitions of telecoms software professional services [3] 26. Definitions of telecoms software professional services [4] 27. Definitions of supplier types 28. Telecoms software market segmentation 29. Document map – Business environment 30. CSPs focused on reducing costs and staying competitive, which increased TSPS spend in 2010 31. EMEA and NA accounted for most of the TSPS revenue in 2010, but NA had the most significant growth 32. TSPS revenue in CALA and APAC grew as a result of mobile and fixed turnkey infrastructure investments 33. Regional outlook for TSPS in 2011 34. Announced outsourcing contracts that had an impact on TSPS revenue in 2010 35. Document map – Market shares 36. NEMs’ TSPS market shares in 2010 37. Global CSIs’ TSPS market shares in 2010 © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 3 Contents [2] Slide no. 38. Telecoms software professional services: worldwide market shares 2010 3 Contents [2] Slide no. 38. ISVs’ TSPS market shares in 2010 39. IT suppliers’ TSPS market shares in 2010 40. Regional CSIs’ TSPS market shares in 2010 41. Business consulting spend fell because CSPs focused on their internal businesses 42. In design consulting, the most successful players were those that can bridge business and technology requirements 43. Large ISVs and NEMs continue to dominate the product related services sub segment 44. The systems integration market continues to be one of the largest segments with transformation projects driving spend 45. Custom development revenue grew significantly because it is essential for CSP transformation projects 46. Outsourced operations grew strongly as CSPs focused on core business functions and cost reduction 47. Vendors led the way in providing hosted managed services and solutions to CSPs in order to reduce capex and opex 48. Document map – Supplier analysis 49. Accenture 50. Alcatel Lucent 51. Amdocs Slide no. 52. Atos Origin 53. Capgemini 54. Convergys 55. CSG Systems 56. Ericsson 57. Hewlett Packard 58. Huawei Technologies 59. IBM 60. Infosys Technologies 61. NEC/Net. Cracker Technology 62. Nokia Siemens Networks 63. Oracle 64. SAP 65. Tata Consultancy Services 66. Tech Mahindra 67. Tieto 68. Wipro Technologies 69. Supplier analysis summary [1] 70. Supplier analysis summary [2] 71. Supplier analysis summary [3] 72. Document map – Annexes 73. Annexes: Supplementary data 74. Telecoms software professional services breakdown by region and supplier type © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 4 Contents [3] Slide no. 75. Telecoms software professional services: worldwide market shares 2010 4 Contents [3] Slide no. 75. Telecoms software professional services breakdown by vendor type and sub segment 76. Telecoms software professional services breakdown by CSI type and sub segment 77. Telecoms software professional services revenue breakdown by supplier type and sub segment 78. Annexes: Mergers and acquisitions 79. Mergers and acquisitions [1] 80. Mergers and acquisitions [2] 81. Annexes: Exchange rates 82. Exchange rates 83. Document map – About the author and Analysys Mason 84. About the author 85. Disclaimer 86. About Analysys Mason 87. Research from Analysys Mason 88. Consulting from Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 5 Contents List of tables and Telecoms software professional services: worldwide market shares 2010 5 Contents List of tables and figures [1] Slide no. 10. Figure 1: TSPS market shares by supplier type, worldwide, 2010 10. Figure 2: TSPS market shares by supplier, worldwide, 2010 11. Figure 3: TSPS market shares excluding product related services revenue by supplier type, worldwide, 2010 11. Figure 4: TSPS market shares excluding product related services revenue by supplier, worldwide, 2010 12. Figure 5: TSPS revenue by region, worldwide, 2010 14. Figure 6 a: TSPS revenue by sub segment, worldwide, 2010 – with market summaries 15. Figure 6 b: TSPS revenue by sub segment, worldwide, 2010 – with market summaries 22. Figure 7: Infrastructure solution categories 23. Table 1 a: Definitions of telecoms software professional services and its sub segments 24. Table 1 b: Definitions of telecoms software professional services and its sub segments 25. Table 1 c: Definitions of telecoms software professional services and its sub segments 26. Table 1 d: Definitions of telecoms software professional services and its sub segments 27. Table 2: Definitions of telecoms software professional service supplier types Slide no. 28. Figure 8: Telecoms software market segments 31. Figure 9: TSPS market shares by supplier, NA, 2010 31. Figure 10: TSPS market shares by supplier, EMEA, 2010 32. Figure 11: TSPS market shares by supplier, CALA, 2010 32. Figure 12: TSPS market shares by supplier, APAC, 2010 34. Table 3: Sample of announced outsourcing contracts that had an impact on TSPS revenue in 2010 36. Figure 13: NEMs’ TSPS revenue by supplier, worldwide, 2010 37. Figure 14: Global CSIs’ TSPS revenue by supplier, worldwide, 2010 38. Figure 15: ISVs’ TSPS revenue by supplier, worldwide, 2010 39. Figure 16: IT suppliers’ TSPS revenue by supplier, worldwide, 2010 40. Figure 17: Regional CSIs’ TSPS revenue by supplier, worldwide, 2010 41. Figure 18: Business consulting revenue by supplier type, worldwide, 2010 41. Figure 19: Business consulting revenue by supplier, worldwide, 2010 42. Figure 20: Design consulting revenue by supplier type, worldwide, 2010 © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 6 Contents List of tables and Telecoms software professional services: worldwide market shares 2010 6 Contents List of tables and figures [2] Slide no. 42. Figure 21: Design consulting revenue by supplier, worldwide, 2010 43. Figure 22: Product related services revenue by supplier type, worldwide, 2010 43. Figure 23: Product related services revenue by supplier, worldwide, 2010 44. Figure 24: Systems integration revenue by supplier type, worldwide, 2010 44. Figure 25: Systems integration revenue by supplier, worldwide, 2010 45. Figure 26: Custom development revenue by supplier type, worldwide, 2010 45. Figure 27: Custom development revenue by supplier, worldwide, 2010 46. Figure 28: Outsourced operations revenue by supplier type, worldwide, 2010 46. Figure 29: Outsourced operations revenue by supplier, worldwide, 2010 47. Figure 30: Hosted managed services revenue by supplier type, worldwide, 2010 47. Figure 31: Hosted managed services revenue by supplier, worldwide, 2010 49. Figure 32: Accenture’s TSPS revenue by sub segment, worldwide, 2010 49. Figure 33: Accenture’s TSPS revenue by region, worldwide, 2010 Slide no. 49. Table 4: Accenture analysis 50. Figure 34: Alcatel Lucent’s TSPS revenue by sub segment, worldwide, 2010 50. Figure 35: Alcatel Lucent’s TSPS revenue by region, worldwide, 2010 50. Table 5: Alcatel Lucent analysis 51. Figure 36: Amdocs’ TSPS revenue by sub segment, worldwide, 2010 51. Figure 37: Amdocs’ TSPS revenue by region, worldwide, 2010 51. Table 6: Amdocs analysis 52. Figure 38: Atos Origin’s TSPS revenue by sub segment, worldwide, 2010 52. Figure 39: Atos Origin’s TSPS revenue by region, worldwide, 2010 52. Table 7: Atos Origin analysis 53. Figure 40: Capgemini’s TSPS revenue by sub segment, worldwide, 2010 53. Figure 41: Capgemini’s TSPS revenue by region, worldwide, 2010 53. Table 8: Capgemini analysis 54. Figure 42: Convergys’s TSPS revenue by sub segment, worldwide, 2010 54. Figure 43: Convergys’s TSPS revenue by region, worldwide, 2010 © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 7 Contents List of tables and Telecoms software professional services: worldwide market shares 2010 7 Contents List of tables and figures [3] Slide no. 54. Table 9: Convergys analysis 55. Figure 44: CSG Systems’ TSPS revenue by sub segment, worldwide, 2010 55. Figure 45: CSG Systems’ TSPS revenue by region, worldwide, 2010 55. Table 10: CSG Systems analysis 56. Figure 46: Ericsson’s TSPS revenue by sub segment, worldwide, 2010 56. Figure 47: Ericsson’s TSPS revenue by region, worldwide, 2010 56. Table 11: Ericsson analysis 57. Figure 48: Hewlett Packard’s TSPS revenue by sub segment, worldwide, 2010 57. Figure 49: Hewlett Packard’s TSPS revenue by region, worldwide, 2010 57. Table 12: Hewlett Packard analysis 58. Figure 50: Huawei Technologies’ TSPS revenue by sub segment, worldwide, 2010 58. Figure 51: Huawei Technologies’ TSPS revenue by region, worldwide, 2010 58. Table 13: Huawei Technologies analysis 59. Figure 52: IBM’s TSPS revenue by sub segment, worldwide, 2010 59. Figure 53: IBM’s TSPS revenue by region, worldwide, 2010 59. Table 14: IBM analysis Slide no. 60. Figure 54: Infosys Technologies’ TSPS revenue by sub segment, worldwide, 2010 60. Figure 55: Infosys Technologies’ TSPS revenue by region, worldwide, 2010 60. Table 15: Infosys Technologies analysis 61. Figure 56: NEC/Net. Cracker Technology’s TSPS revenue by sub segment, worldwide, 2010 61. Figure 57: NEC/Net. Cracker Technology’s TSPS revenue by region, worldwide, 2010 61. Table 16: NEC/Net. Cracker Technology analysis 62. Figure 58: Nokia Siemens Networks’ TSPS revenue by sub segment, worldwide, 2010 62. Figure 59: Nokia Siemens Networks’ TSPS revenue by region, worldwide, 2010 62. Table 17: Nokia Siemens Networks analysis 63. Figure 60: Oracle’s TSPS revenue by sub segment, worldwide, 2010 63. Figure 61: Oracle’s TSPS revenue by region, worldwide, 2010 63. Table 18: Oracle analysis 64. Figure 62: SAP’s TSPS revenue by sub segment, worldwide, 2010 64. Figure 63: SAP’s TSPS revenue by region, worldwide, 2010 64. Table 19: SAP analysis © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 8 Contents List of tables and Telecoms software professional services: worldwide market shares 2010 8 Contents List of tables and figures [4] Slide no. 65. Figure 64: Tata Consultancy Services’ TSPS revenue by sub segment, worldwide, 2010 65. Figure 65: Tata Consultancy Services’ TSPS revenue by region, worldwide, 2010 65. Table 20: Tata Consultancy Services analysis 66. Figure 66: Tech Mahindra’s TSPS revenue by sub segment, worldwide, 2010 66. Figure 67: Tech Mahindra’s TSPS revenue by region, worldwide, 2010 66. Table 21: Tech Mahindra analysis 67. Figure 68: Tieto’s TSPS revenue by sub segment, worldwide, 2010 67. Figure 69: Tieto’s TSPS revenue by region, worldwide, 2010 67. Table 22: Tieto analysis 68. Figure 70: Wipro Technologies’ TSPS revenue by sub segment, worldwide, 2010 68. Figure 71: Wipro Technologies’ TSPS revenue by region, worldwide, 2010 68. Table 23: Wipro Technologies analysis 69. Table 24 a: Comparison of telecoms software professional service suppliers 70. Table 24 b: Comparison of telecoms software professional service suppliers 71. Table 24 c: Comparison of telecoms software professional service suppliers Slide no. 74. Figure 72: TSPS market shares by supplier type, NA, 2010 74. Figure 73: TSPS market shares by supplier type, EMEA, 2010 74. Figure 74: TSPS market shares by supplier type, CALA, 2010 74. Figure 75: TSPS market shares by supplier type, APAC, 2010 75. Figure 76: NEMs’ TSPS market shares by sub segment, worldwide, 2010 75. Figure 77: ISVs’ TSPS market shares by sub segment, worldwide, 2010 75. Figure 78: IT suppliers’ TSPS market shares by sub segment, worldwide, 2010 76. Figure 79: Global CSIs’ TSPS market shares by sub segment, worldwide, 2010 76. Figure 80: Regional CSIs’ TSPS market shares by sub segment, worldwide, 2010 77. Figure 81: TSPS revenue by supplier type and region, worldwide, 2010 77. Figure 82: TSPS revenue by sub segment and supplier type, worldwide, 2010 79. Table 25 a: Mergers and acquisitions in the telecoms software professional services market, 2007–June 2011 80. Table 25 b: Mergers and acquisitions in the telecoms software professional services market, 2007–June 2011 © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 9 Document map: Executive summary Document Telecoms software professional services: worldwide market shares 2010 9 Document map: Executive summary Document map Executive summary Recommendations Market definition Business environment Market shares Supplier analysis Annexes About the author and Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 10 Executive summary NEMs increased their Telecoms software professional services: worldwide market shares 2010 10 Executive summary NEMs increased their dominant share of telecoms software professional services revenue in 2010, while others recover The telecoms software professional services (TSPS) market continues to be fragmented. The top six suppliers accounted for 41. 5% of the USD 47. 85 billion market in 2010. Communications service providers (CSPs) focused on reducing costs – primarily through job cuts – which led to an 11% year on year growth in TSPS revenue. Network equipment manufacturers (NEMs) benefited the most, thanks to the increase in network management outsourcing deals. Global consulting and systems integrators (CSIs) and independent software vendors (ISVs) recognised the surge in network and OSS management outsourcing as an opportunity. However, this increase in demand may not last, and this service market is well served by NEMs. Figure 1: TSPS market shares by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 11% Figure 2: TSPS market shares by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] CSPs’ efforts to remain competitive – through roll outs of new technologies (such as 3 G, LTE and optical NGA), as well as upgrades and transformation projects (particularly for billing) – drove growth in TSPS spending. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 11 Executive summary When the USD Telecoms software professional services: worldwide market shares 2010 11 Executive summary When the USD 8. 88 billion product-related services revenue is excluded, CSIs gained ground on vendors (except NEMs) Product related services are key to the ISVs’ and IT suppliers’ market share, because they own the intellectual property rights (IPR) and are in the best position to deploy and maintain their products. Figure 3: TSPS market shares excluding product-related services revenue by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] The market leader and ranking remains the same. Accenture continues to be the only non vendor in the top six, demonstrating the value of a balanced product and services business model. TSPS suppliers began to recover from the 2009 recession. Total revenue grew by 12% year on year. CSPs have invested in network management outsourcing and technology upgrades in order to reduce costs and improve service quality. Year on year growth rate: 12% Figure 4: TSPS market shares excluding product-related services revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] Ericsson and CSG Systems (Intec Telecom Systems) had the highest inorganic growth rate, while Huawei and ZTE had the highest organic growth rate. Tata Consultancy Services (TCS) and Tech Mahindra were the global CSIs with the highest year on year growth rate. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 12 Executive summary EMEA continued to Telecoms software professional services: worldwide market shares 2010 12 Executive summary EMEA continued to have the largest TSPS market share, but APAC had the highest growth rate Figure 5: TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Key: APAC = Asia–Pacific; CALA = Central and Latin America; EMEA = Europe, the Middle East and Africa; NA = North America. EMEA accounted for the largest share of TSPS revenue, mostly because CSPs in this region continue to use TSPS to reduce opex, particularly by cutting jobs. Emerging market CSPs engaged in turnkey projects that included post implementation TSPS for rapid market entry. NEMs, Accenture and Tieto were big winners. In NA, CSPs rolled out new mobile technologies (such as femtocells, LTE and Wi Fi). Departmental transformation projects supported new technology deployments, while the Sprint–Ericsson managed services deal will allow Sprint to reduce costs. ISVs were the big winners, followed by NEMs. In APAC, aggressive mobile and national broadband infrastructure projects are driving TSPS spend. In spite of price pressure, NEMs continue to be the most successful TSPS supplier type in this region thanks to end (turnkey) services. In CALA, increasing competition in the mobile market is driving CSPs to undertake infrastructure development, transformation projects and managed services. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 13 Executive summary CSPs’ efforts to Telecoms software professional services: worldwide market shares 2010 13 Executive summary CSPs’ efforts to reduce costs in response to economic challenges disrupted TSPS market trends CSPs are continuing to consolidate suppliers into a handful of primary (Tier 1) suppliers, as trusted managed service partners (MSPs), in order to optimise procurement and supplier management. This has been more gradual than previously because CSPs focused on reducing costs in 2010 and will continue to do so in 2011. The future for network management outsourcing spend for cost reduction by CSPs is uncertain. In 2010, most deals were short – typically 3– 5 years. When CSPs’ financial strength returns and they acquire more network assets, outsourcing spend may decline. On the other hand, CSPs may consider network ownership no longer a competitive differentiator, which would further increase outsourcing spend. CSPs are continuing to engage in M&A due to low revenue growth: Vimple. Com acquired Wind (USD 6. 6 billion); France Telecom is aiming to sell Orange Switzerland (estimated EUR 1. 5 billion); AT&T merger with T Mobile USA (USD 39 billion); and Bharti Airtel acquired Telecom Seychelles (USD 62 million). CSPs have engaged in TSPS with MSPs for assured management and quality of service with minimal risk. All suppliers increased TSPS revenue from this surge of TSPS spend in 2010. NEMs and global CSIs were the MSPs with the highest growth in revenue in 2010. CSPs’ focus on reducing costs has further increased the pressure on TSPS prices. NEMs, global CSIs and regional CSIs have been forced to adjust their models, particularly in emerging APAC and CALA. Spend on business consulting services decreased in 2010 as CSPs focused on internal restructuring and core business functions such as sales, marketing, customer retention and competitive differentiation. However, CSPs will venture into new areas and verticals (such as the cloud computing, machine to machine (M 2 M), m payment, m health, ecommerce, utilities, transport and security markets), which will require strategic consulting investments. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 14 Executive summary Market summary by Telecoms software professional services: worldwide market shares 2010 14 Executive summary Market summary by sub-segment [1] Figure 6 a: TSPS revenue by sub-segment, worldwide, 2010 – with market summaries [Source: Analysys Mason, 2011] Systems integration (revenue: USD 12. 3 billion) SI projects to enable new technologies, upgrades and transformation to reduce opex drove this sub segment. Global CSIs continue to lead this sub segment, followed by NEMs. Hewlett Packard and IBM offer SI services, based on their multi vendor skills, partnerships and certifications. Outsourced operations (revenue: USD 12. 3 billion) Only marginally behind the SI sub segment in 2010 (~USD 64 million difference). CSPs’ focus on reducing opex significantly increased the size of this sub segment. NEMs continued to lead this sub segment, followed by global CSIs. CSPs will always have multi vendor environments, owing to organic evolution leading to silos. Hosted managed services (revenue: USD 5. 3 billion) Product-related services (revenue: USD 8. 9 billion) Vendors win these high value specialist product related projects owing to their IPR. ISVs led this market, with product based professional services offerings (their core business model). Amdocs was again the most successful vendor in terms of combining its product and service portfolios. Oracle is the only other ISV that is aggressively pushing into the TSPS market with ‘pre integrated’ solutions. The significant increase in spend in this sub segment is attracting other suppliers. Growth in this sub segment was low as forecast because CSPs regard outsourcing as lower risk than hosting. Hosted app stores, Saa. S (billing, interconnect) and cloud storage require no initial capital. They drove growth by reducing CSPs’ costs. NEMs again led this segment, followed by global CSIs and ISVs. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 15 Executive summary Market summary by Telecoms software professional services: worldwide market shares 2010 15 Executive summary Market summary by sub-segment [2] Figure 6 b: TSPS revenue by sub-segment, worldwide, 2010 – with market summaries [Source: Analysys Mason, 2011] Design consulting (revenue: USD 3. 9 billion) NEMs again led this sub segment, followed by global CSIs. Design consulting is typically bundled into the project management framework of technology projects. Suppliers are devaluing this service in order to attain larger SI and managed services contracts. ISVs perform product focused design consulting. Business consulting (revenue: USD 2. 5 billion) Global CSIs again led this sub segment, with their independence and technology neutral approach to business transformation. This sub segment declined as CSPs focused on internal restructuring in order to reduce costs. This service is visible to senior CSP decision makers and influences CSP strategic planning and investments. Custom development (revenue: USD 2. 6 billion) This sub segment had a boost in 2010 from customisation and legacy integration in a number of departmental COTS transformation projects. Global CSIs again led this sub segment, performing custom development for risk averse CSPs and gaining significant revenue with application development management (ADM) services. Low cost resources are typically used. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 16 Document map: Recommendations Document map Telecoms software professional services: worldwide market shares 2010 16 Document map: Recommendations Document map Executive summary Recommendations Market definition Business environment Market shares Supplier analysis Annexes About the author and Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 17 Recommendations for CSPs should: continue Telecoms software professional services: worldwide market shares 2010 17 Recommendations for CSPs should: continue separating core (competitive differentiations), and non core (commodity), business and operations functions, even after they have recovered from the economic recession outsource non core functions that are unlikely to serve as a basis for future external businesses capitalise on suppliers’ knowledge, skills and resource availability to drive transformation projects, implement new technologies and optimise operations replace home grown or bespoke systems with COTS solutions to reduce go to market time and operational complexities place greater emphasis on the ability of a supplier (and its solutions) to simplify and streamline the CSP’s operations environment when evaluating suppliers. continue rationalising preferred (Tier 1) and auxiliary (Tier 2) suppliers and MSPs to streamline supplier management, procurement and operations (management, support and maintenance) use TSPS that maximises the suppliers’ economy of scale and minimises costs identify the individual strengths and weaknesses of TSPS suppliers’ services develop their own quantitative KPIs for inclusion in managed service contracts (as SLAs) that can be benchmarked and monitored, as well as embedding improved year on year KPIs in long term contracts establish risk sharing partnerships (e. g. hosted and revenue sharing models) with suppliers for strategic ventures such as offering cloud, M 2 M, mpayment and mhealth services. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 18 Recommendations for all types of Telecoms software professional services: worldwide market shares 2010 18 Recommendations for all types of supplier Suppliers should: develop TSPS offerings that focus on cost reduction (highest priority), and new services and new business models (such as cloud storage, e commerce, M 2 M, mpayment and mhealth services) in developed markets focus on time to market and managing growth in emerging markets, particularly APAC and CALA aim for long term outsourced operations and hosted managed services because they provide predictable revenue streams regardless of economic instability perform evaluations at the end of projects and managed service contracts in order to learn valuable lessons and help improve service offerings and performance KPIs provide TSPS that transfer CSPs’ perceived risks to the supplier aim to penetrate global Tier 1 CSPs to provide a means of entry into emerging markets, as such CSPs expand their operations in these regions aim to be trusted MSPs rather than just suppliers increase localisation of resources and assets in order to reduce cost and counter increasing price pressure from competing suppliers (particularly suppliers such as Huawei, Infosys, TCS, Tech Mahindra, Wipro and ZTE), as they attempt to accommodate CSPs’ cost reduction objectives consider strategic acquisitions in order to absorb competitors and gain a competitive advantage consider strategic partnerships with other suppliers that do not compete with their core skills. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 19 Recommendations for NEMs, ISVs and Telecoms software professional services: worldwide market shares 2010 19 Recommendations for NEMs, ISVs and IT suppliers should consider: cross certification with other vendor products (from ISVs, IT suppliers and NEMs) becoming MSPs with CSPs (Tier 1 suppliers) strategic M&A to increase the number of CSP customers, geographic reach, and skills and capacity in weaker TSPS portfolio areas. NEMs should consider: ISVs should consider: providing end to end products and services – from network roll out and transformation to operations – as a competitive differentiator acquiring CSI resources or companies to increase multi vendor TSPS skills, credibility and the number of CSP customers. acquiring multi vendor SI skills to enable them to support lucrative systems integrations in CSPs’ multi vendor environments developing a complementary service model to protect themselves from the increasing commoditisation of their products developing products and services that will allow CSPs to get to market quickly in new areas such as cloud, M 2 M, mpayments and mhealth. IT suppliers should consider: maximising their enterprise IT knowledge and capacity in order to support CSPs entering industry verticals such as healthcare, manufacturing, retail, utilities and transport. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 20 Recommendations for global and regional Telecoms software professional services: worldwide market shares 2010 20 Recommendations for global and regional CSIs Global CSIs should consider: M&A with regional CSIs to strengthen their regional presence and increase their ability to price TSPS aggressively, as vendors increase their TSPS capabilities through M&A becoming MSPs for smaller (Tier 2 and 3) CSPs as well as Tier 1 CSPs using their enterprise IT experience to support developed market CSPs enter new industry verticals. Regional CSIs should consider: merging with global vendors or CSIs for global growth providing outsourced custom development for larger suppliers as well as CSPs, and striving to dominate this sub segment, because custom development is critical in transforming legacy systems to COTS becoming MSPs for Tier 3 CSPs because the deals are typically less lucrative for larger suppliers creating differentiators other than price, because larger suppliers provide better economies of scale of resources, systems and infrastructure, which can nullify price as a differentiator for TSPS forming partnerships and performing product certification with dominant regional vendors, to enhance regional growth and penetration diversifying into enterprise IT services (not TSPS) because this would provide revenue diversity and is becoming more attractive to CSPs as a new area of potential revenue growth that they could serve over their telecoms infrastructure. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 21 Document map: Market definition Document Telecoms software professional services: worldwide market shares 2010 21 Document map: Market definition Document map Executive summary Recommendations Market definition Business environment Market shares Supplier analysis Annexes About the author and Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 22 Market definition Infrastructure solution categories Telecoms software professional services: worldwide market shares 2010 22 Market definition Infrastructure solution categories Figure 7: Infrastructure solution categories [Source: Analysys Mason, 2011] Professional services Service fulfilment Service assurance Inventory management Service activation Discovery Network operations centre (NOC) Fault management Performance management Service management Network management system (NMS) EMS EMS Software EMS Mobile Business services Residential broadband Business consulting Design consulting Product related services Systems integration Custom development Outsourced operations Hosted managed services CLI management Network data aggregation Configuration Multiple interfaces Product-related services as part of a software or hardware deployment PSTN NGA GSM, CDMA, UMTS, LTE IP VPN, Ethernet x. DSL, cable DWDM, GPON, FTTx Legacy, circuit switching Hardware and equipment End users Installation Configuration Customisation Lifecycle management Switching and routing Evolved packet core Mobile RAN Optical transport © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 23 Market definition Definitions of telecoms Telecoms software professional services: worldwide market shares 2010 23 Market definition Definitions of telecoms software professional services [1] Table 1 a: Definitions of telecoms software professional services and its sub-segments [Source: Analysys Mason, 2011] Segment or sub-segment Telecoms software professional services Definition Specialist services that CSPs use for transformation projects (such as optimisation, re engineering and restructuring), and for operations and support. Our definition of telecoms software professional services includes only those services that support telecoms specific software (such as OSS, BSS and SDPs). It excludes: services that are not telecoms specific, such as network integration and outsourced IT (enterprise IT), or relate to non telecoms specific software (such as ERP or financials). services supplied from equipment manufacturers, such as product engineering and testing. the installation, training and lifecycle management services related to telecoms equipment deployments (also known as network roll outs), including post implementation support services We exclude such hardware specific services because they are specific to NEMs and do not apply to ISVs or CSIs. We sub divide telecoms software professional services into the following seven categories. We acknowledge that in turnkey projects several of these service sub segments can be consolidated in a single transformation project or managed service contract. Business consulting provides advisory services in the areas of business process, workflows, organisation issues and strategic planning, such as how to enter a market or how to package a service. This includes, but is not limited to: transformational strategy; business case development and ROI modelling; business process re engineering and optimisation; organisation restructuring and optimisation, as well as change management; assisting CSPs to develop new products and services to deliver to their subscribers, ranging from tariffs to value added services; go to market strategies; regulatory compliance review and reporting requirements; and marketing and campaign strategies. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 24 Market definition Definitions of telecoms Telecoms software professional services: worldwide market shares 2010 24 Market definition Definitions of telecoms software professional services [2] Table 1 b: Definitions of telecoms software professional services and its sub-segments [Source: Analysys Mason, 2011] Sub-segment Definition Design consulting provides advisory design services prior to a telecoms network, software and/or systems implementation in the areas of OSS, BSS and SDP architecture, network planning and optimisation and data or information models. These services typically contribute developing requirements for procuring the systems and software needed. This category includes, but is not limited to: network planning and optimisation designs for both fixed and mobile networks; OSS, BSS and SDP, and integrated architectural design; developing technical requirement for tender documents; high level migration plans and roadmapping; analysis of established systems; data modelling; high level interface definitions and designs. Productrelated services Product related services are the installation, training and lifecycle management services related to a specific telecoms software deployment. This category also includes professional services related specifically to a supplier’s own product and is the exact product related services definition we use in other telecoms software reports. Services related to third party products are part of the systems integration sub segment. We exclude support services for hardware products, to ensures that only telecoms software professional services are compared for all suppliers. Custom development refers to telecoms software that is written specifically for an individual CSP, typically as a result of their ownership of legacy and proprietary systems, software or interfaces. It includes any development that requires coding to meet an unusual requirement, such as the development of a customised application store on an SDP or Microsoft. NET platform, an API for interfacing with legacy or proprietary systems, and data migration scripts. This is internal development that is typically performed by large CSPs – a market that we will quantify separately from the market in which suppliers currently participate. This includes some ADM. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 25 Market definition Definitions of telecoms Telecoms software professional services: worldwide market shares 2010 25 Market definition Definitions of telecoms software professional services [3] Table 1 c: Definitions of telecoms software professional services and its sub-segments [Source: Analysys Mason, 2011] Sub-segment Definition Systems integration concerns the services required to manage and deliver major telecoms software projects in the OSS, BSS and applications areas to meet CSPs’ specific requirements. These are services that are beyond the boundaries of a single product or suite (which is covered in the product related services segment), and involve other systems in the CSP environment in order to meet the project’s requirements. This category includes, but is not limited to: integration with third party (other vendor or proprietary) data sources, systems and interfaces. data loading and migration. customisation and configurations of software extensions and modules (without coding) to provide customised software features and capabilities, such as network equipment adapters, point to point interfaces and EAI Integration. detailed requirements, technical specification and detailed design. integration testing, not normal unit and functional system testing. project management services. Services related to third party products (not owned by the supplier) are included in this systems integration sub segment. Systems integrations continue to drive coherent system architecture across the various telecoms software segments (OSS, BSS and SDP). We will separate the systems integration services into the various software segments in a separate report. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 26 Market definition Definitions of telecoms Telecoms software professional services: worldwide market shares 2010 26 Market definition Definitions of telecoms software professional services [4] Table 1 d: Definitions of telecoms software professional services and its sub-segments [Source: Analysys Mason, 2011] Sub-segment Definition Outsourced operations are the professional or specialist services provided by external suppliers’ human resources to operate and maintain a CSP’s assets, which can include all related operational responsibilities. This involves the transfer of operations from a CSP to external suppliers. In this scenario, the assets (systems and software) are owned and reside in the CSP’s environment and the supplier manages the network from a CSP co located site or other local or regional (for example, regional NOC) site. This includes business process outsourcing (BPO). Such services typically include responsibility for onsite operations and related activities in a particular country or region. Billing and customer care outsourcing services are included, where the CSP owns the systems. Planning, optimisation and design elements of managed service contracts are considered in the respective other categories. Hosted managed services are managed and provided by the supplier using its own infrastructure in its NOCs. The NOCs will typically provide multi vendor and multi domain (mobile, fixed and content or media) management. This differs from outsourced operations, whereby the supplier is responsible for the systems and software in addition to the human resources that are performing the remote management from the supplier’s NOC. This sub segment excludes field and onsite operations, which form part of the outsourced operations sub segment. This category includes billing, customer care, network management and SDPs and services (including software as a service (Saa. S)). © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 27 Market definition Definitions of supplier Telecoms software professional services: worldwide market shares 2010 27 Market definition Definitions of supplier types Table 2: Definitions of telecoms software professional service supplier types [Source: Analysys Mason, 2011] Supplier type Definition Network equipment NEMs are vendors that develop and implement core and access telecoms network equipment, as well as manufacturers devices such as routers, switches, CPE, MPLS switches, DSLAMs, multiplexers, optical devices, mobile (NEMs) switches and base stations. NEMs also develop telecoms software for all of the equipment that they develop. Independent software vendors (ISVs) ISVs are vendors that develop telecoms software independent of the network and IT equipment. ISVs’ businesses are focused on providing licences for their software products and additional services, such as maintenance. IT suppliers are manufacturers of IT equipment (such as PCs, laptops, servers, SANs and NASs), which also develop telecoms software independent of network and IT equipment, like ISVs. Global consulting and systems integrators (CSIs) Global CSIs do not develop any hardware or software for commercial resale, and have a notable presence in all major geographical regions. ‘Pure play’ systems integrators (such as Accenture) account for the majority of suppliers in this category, but it also includes pure play consultants (such as KPMG). Regional consulting Regional CSIs do not develop any hardware or software for commercial resale, lack a notable presence in and systems all major geographical regions, and generate less than USD 800 million in annual revenue from telecoms integrators (CSIs) software professional services. Such suppliers also tend to have a low regional price point. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 28 Market definition Telecoms software market Telecoms software professional services: worldwide market shares 2010 28 Market definition Telecoms software market segmentation Figure 8: Telecoms software market segments [Source: Analysys Mason, 2011] Business consulting Design consulting Service delivery platforms Real time charging Mobile content management and delivery Telecoms application servers Mobile device management Professional services Product related Systems Custom services integration development Outsourced operations Hosted managed services Billing Customer care Service fulfilment Service assurance Rating and pricing Customer interaction Order management Service management Partner and interconnect Business optimisation Mediation Customer relationship management Subscriber management Inventory management Activation Engineering tools Fault and event management Performance monitoring Workforce automation Probe systems Network management systems Mobile Residential broadband Business data services PSTN © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 29 Document map: Business environment Document Telecoms software professional services: worldwide market shares 2010 29 Document map: Business environment Document map Executive summary Recommendations Market definition Business environment Market shares Supplier analysis Annexes About the author and Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 30 Business environment CSPs focused on Telecoms software professional services: worldwide market shares 2010 30 Business environment CSPs focused on reducing costs and staying competitive, which increased TSPS spend in 2010 Economic uncertainty CSPs spent tactically on services such as billing consolidation in order to increase efficiency. Increase in M&A activity CSPs continued to focus on opex reduction, which increased outsourced network management contracts. TSPS is under price pressure to accommodate CSPs’ need to reduce costs. Headcount reduction in CSPs drove TSPS in developed markets, particularly in Europe. Accenture was the biggest winners in Europe in 2010. New technology deployments CSPs invested in competitive mobile (3 G/HSPA and LTE) and residential (optical NGA: GPON, FTTx) broadband infrastructure. This boosted TSPS, particularly SI. New technology deployment and management provided outsourced network management TSPS opportunities. CSPs accelerated the delivery of mobile broadband data services with hosted app stores and SDP in order to acquire subscribers, increase revenue and recover spectrum licence investments (e. g. India: 3 G, USA: LTE). Vendors’ M&A activity focused on increasing customer numbers, TSPS capabilities and local presence. For example, Ericsson acquired Telcordia, increasing its products and services in NA, and Tridge Group and Optimi, increasing its presence and capacity in Europe. High margins in the TSPS market are driving vendors’ M&A activity, gradually leading to industry consolidation Atos acquired Siemens IT Solutions and is launching a new cloud service offering from this acquisition. Core versus non-core CSP business functions CSPs are using TSPS for non core processes and operations providing the TSPS are low cost and comply with CSPs’ SLAs. Network management became a non core activity in 2010. CSPs are restructuring their business to differentiate their core business functions from those that are non core. Core business functions and strategic targets benefit from outsourcing non core activities. Small new entrants identify few core functions. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 31 Business environment EMEA and NA Telecoms software professional services: worldwide market shares 2010 31 Business environment EMEA and NA accounted for most of the TSPS revenue in 2010, but NA had the most significant growth In NA, new mobile (LTE) and fixed (optical NGA, DOCSIS 3. 0) broadband technology deployments were the main drivers of TSPS spend. Figure 9: TSPS market shares by supplier, NA, 2010 [Source: Analysys Mason, 2011] CSPs in NA are undertaking departmental transformation projects, which enabled ISVs to be the most successful TSPS suppliers. Ericsson’s acquisition of Nortel Networks’ managed services contracts and its managed services contract with Sprint increased its market share in NA. In Europe, CSPs are outsourcing their network operations to reduce opex, which benefited NEMs. CSP groups outsourced operational functions of many of their operating companies, which involved transferring CSP staff, allowing CSPs to reduce headcount and cost. In Western Europe, TSPS spend focused on cost reduction restricted other TSPS spend in EMEA. Accenture was one of the few suppliers that had a significant increase in TSPS in Europe in 2010. Year on year growth rate: 11% Figure 10: TSPS market shares by supplier, EMEA, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 1% © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 32 Business environment TSPS revenue in Telecoms software professional services: worldwide market shares 2010 32 Business environment TSPS revenue in CALA and APAC grew as a result of mobile and fixed turnkey infrastructure investments CSPs in CALA are still focusing on developing their infrastructure to increase coverage, and NEMs provide the best option for infrastructure deployment and TSPS. Mobile infrastructure spend was higher than in 2009 because of increased competition in the mobile market. APAC was the region with the highest TSPS revenue growth in 2010 due to infrastructure roll outs and managed services in both the developed and emerging markets in the region. The major infrastructure projects that drove TSPS spend in APAC in 2010 are: LTE trials in developed APAC; femtocells in Japan; the national broadband projects in Australia, China, South Korea and Singapore; 3 G roll out in India and China; and IPTV upgrades in China. Huawei continues to displace CSIs. It became the leading player in APAC and one of the top six players in CALA in 2010, owing to aggressive pricing and broad TSPS offerings. Figure 11: TSPS market shares by supplier, CALA, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 12% Figure 12: TSPS market shares by supplier, APAC, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 30% © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 33 Business environment Regional outlook for Telecoms software professional services: worldwide market shares 2010 33 Business environment Regional outlook for TSPS in 2011 NA CALA TSPS spend will increase more slowly than in 2010. Departmental transformation projects and supporting new technology deployments will be the focus of spend. Ericsson’s TSPS market share will increase following its acquisition of Telcordia. Suppliers will target CSPs in NA because of their large spending capacity and high spend in 2010. The five year Sprint Network Vision transformation contract will boost Ericsson and Alcatel Lucent’s revenue. EMEA TSPS spending will increase very slowly, because of Western Europe’s economic volatility. CSPs will focus on cost reduction, with outsourcing and managed services options. CSP groups may sell struggling subsidiaries in order to increase investment in stronger ones. For example, France Telecom plans to sell Orange Switzerland, and Deutsche Telekom plans to sell T Mobile USA. EMEA will continue to be a stable market for TSPS spending will increase slowly in CALA, led by Argentina, Brazil and Mexico. ICE (Costa Rica’s incumbent) is spending on TSPS in preparation for mobile competition – expected in 2012. Group CSPs, such as Telmex (Claro), Cable and Wireless, Columbus Communications, Digicel, Telefónica and Telecom Italia, continues to dictate the region’s pace. Telefónica will continue to focus on its cloud agenda to reduce the opex of Vivo, its Brazilian company. APAC TSPS spending will continue to grow in APAC, primarily from infrastructure and new technology deployments. Australia, China, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, Singapore, Taiwan and Thailand will continue to be the major spenders in the region. CSIs with low cost propositions will continue to be successful, but will find it difficult to displace NEMs in network management and OSS (NOC) services. IBM will continue to be strong in BSS TSPS in this region. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 34 Business environment Announced outsourcing contracts Telecoms software professional services: worldwide market shares 2010 34 Business environment Announced outsourcing contracts that had an impact on TSPS revenue in 2010 Table 3: Sample of announced outsourcing contracts that had an impact on TSPS revenue in 2010 [Source: Analysys Mason, 2011] Announced Estimated percentage Contract type CSP Supplier contract value of contract value duration 1 (USD million) attributable to TSPS 2 (years) Network management Sprint Ericsson Network management Bharti (Africa) Ericsson, Huawei and Nokia Siemens Networks LTE network professional services Verizon Wireless Alcatel Lucent Network management Vodafone Hutchison Nokia Siemens Networks Australia 5000 65% 7 3000 (total shared deal) 50% 5 4000 35% 4 910 65% 7 Network management Bharti Airtel (India) Nokia Siemens Networks 700 65% 3 Network management Cell C ZTE 384 40% 3 Network management Viva Kuwait Huawei 270 75% 5 BSS & IT outsourcing Bharti (Africa) IBM 1500 45% 10 Billing platform outsourcing Telefónica Group Ericsson 640 85% 7 OSS/BSS BPO Etisalat DB (India) Tech Mahindra 400 95% 10 OSS/BSS BPO Vodafone Hutchison Tech Mahindra Australia 250 95% 5 1 2 Publicly reported or estimated contract values. Analysys Mason estimates. Includes all seven sub segments of TSPS, but excludes telecoms and enterprise IT hardware/equipment and product supply and maintenance, as per our definition of TSPS. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 35 Document map: Market shares Document Telecoms software professional services: worldwide market shares 2010 35 Document map: Market shares Document map Executive summary Recommendations Market definition Business environment Market shares Supplier analysis Annexes About the author and Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 36 Market shares NEMs’ TSPS market Telecoms software professional services: worldwide market shares 2010 36 Market shares NEMs’ TSPS market shares in 2010 Figure 13: NEMs’ TSPS revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] The NEMs TSPS market grew by 18%, driven by large network outsourcing contracts as well as roll outs of new technologies (such as LTE and optical NGA). NEMs generated USD 17. 33 billion in TSPS revenue in 2010; 36% of the total market. The top six suppliers accounted for 91% of the revenue. Alcatel Lucent, Ericsson and NSN retained the top three positions. NEMs’ services revenue grew by 18% in 2010, more than that of any other supplier type. Managed network services were the main reason for growth; operators are outsourcing NOC services in order to reduce opex. Ericsson had the highest growth, particularly in NA from the Sprint contract and the acquisition of Nortel Networks’ managed services contracts. Alcatel Lucent and NSN increased market share by deploying turnkey network solutions in APAC. Huawei leapt to fourth place thanks to aggressive pricing, which won large greenfield projects and network outsourcing contracts. NEC/Net. Cracker continues to strengthen its TSPS offerings and revenue. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 37 Market shares Global CSIs’ TSPS Telecoms software professional services: worldwide market shares 2010 37 Market shares Global CSIs’ TSPS market shares in 2010 Figure 14: Global CSIs’ TSPS revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] The global CSIs’ TSPS market grew by 8%, as a result of CSPs’ focus on cost reduction and new technology in 2010. Global CSIs secured USD 11. 57 billion, or 24%, of the total TSPS market in 2010. The top six suppliers accounted for 58. 4% of this market, which is dominated by pure play SIs. In 2010, CSPs have focused on reducing costs, which is the value proposition of all global CSIs. Accenture continued to lead the market. It made a good recovery from the economic downturn in BSS and OSS projects and contracts in Europe as existing CSP customers seek to reduce costs. Tata Consultancy Services (TCS) and Tech Mahindra’s also had strong TSPS revenue recovery from new business with existing Tier 1 customers, primarily in NA and India. Atos Origin, Capgemini and Wipro Technologies’ TSPS businesses struggled to recover in 2010. Atos suffered most because it largely depends on Europe. ADM, BPO and SI services boosted global CSI revenue in 2010. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 38 Market shares ISVs’ TSPS market Telecoms software professional services: worldwide market shares 2010 38 Market shares ISVs’ TSPS market shares in 2010 Figure 15: ISVs’ TSPS revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] The ISV TSPS market grew by 7%, as a result of CSPs’ focus on cost reduction and new technology in 2010. ISVs generated USD 9. 31 billion in TSPS revenue in 2010, which was 20% of the total market. This is a fragmented market, in which the top six suppliers account for 48. 7% of the revenue. The market leaders increased revenue as a result of acquisitions. Amdocs continues to lead this market, thanks to its managed services contracts with Tier 1 CSPs, particularly in NA. CSG was in second place following its acquisition of Intec, which bolstered its reach and capabilities worldwide. Oracle moved up to third place thanks to the success of its project management and implementation services. Convergys fell to fourth place, but it continues to have a strong multi tenant (bureau) hosted managed services billing platform for smaller CSP customers in NA. SAP’s acquisition of Sybase moved it up to fifth place; Sybase is more services oriented than SAP. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 39 Market shares IT suppliers’ TSPS Telecoms software professional services: worldwide market shares 2010 39 Market shares IT suppliers’ TSPS market shares in 2010 Figure 16: IT suppliers’ TSPS revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] IT suppliers’ TSPS revenue grew by only 3%, because of lasting effects of the recession and IBM and HP’s internal restructuring programmes. IT suppliers generated USD 4. 98 billion of TSPS revenue in 2010, or 10% of the total market. This market includes only IBM, HP and Dell. IBM continues to lead the market despite having no revenue growth in 2010; it has struggled to consistently win new business. The ten year Bharti Airtel (Africa) managed service contract and other existing long term outsourced operations and managed service contracts will sustain its revenue for several years. This reflects some instability of IBM’s recent reorganisation. HP Solution Consulting Services (SCS) and HP Enterprise Services increased their share of the market in 2010 with consulting, systems transformation projects and BSS outsourcing projects worldwide. HP services organisation has been more focused since its last reorganisation. Dell’s acquisition of Perot Systems (an SI) provided it with a 2% share of this market. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 40 Market shares Regional CSIs’ TSPS Telecoms software professional services: worldwide market shares 2010 40 Market shares Regional CSIs’ TSPS market shares in 2010 Figure 17: Regional CSIs’ TSPS revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] The regional CSIs’ TSPS market grew by 10%, because CSPs focused on cost reduction in 2010. Regional CSIs secured USD 4. 66 billion, or 10%, of the global TSPS market in 2010. This is a dynamic market, in which the top five suppliers account for 58% of revenue. This is because regional CSIs emerge and disappear frequently, either as a result of M&A or an inability to compete with larger suppliers. Infosys continued to lead this market in spite of marginal TSPS growth. This revenue came from existing CSP customers. Tieto moved to second place owing to outsourcing contracts that included rebadging Telia. Sonera’s staff to rationalise Telia. Sonera Group costs across its operating companies. HCL was in third place, thanks to its success with SI and BPO services. BPO and custom development were the services that were most successful in this market in 2010. Regional CSIs’ primary differentiators continue to be on site presence and aggressively low prices, which met CSPs’ cost reduction objectives. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 41 Market shares Business consulting spend Telecoms software professional services: worldwide market shares 2010 41 Market shares Business consulting spend fell because CSPs focused on their internal businesses Figure 18: Business consulting revenue by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year – 5% growth rate: Figure 19: Business consulting revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] Business consulting generated USD 2. 52 billion, or 5% of total TSPS revenue in 2010. It is a highly fragmented market; the top six suppliers accounted for 41. 2% of this revenue. Business consulting spend declined in 2010 because CSPs did their own internal restructuring in order to reduce costs. KPMG and Deloitte stayed in the top six by only just sustaining telecoms consulting revenue. Global CSIs dominated this sub segment, thanks to their independence and technology neutral approach to business transformation. IBM and Accenture led the market with their strong consulting business and understanding of CSPs’ businesses from their outsourcing experience. HP SCS successfully engaged new and existing CSP customers in cost reduction transformation programmes. Alcatel Lucent displaced Ericsson in the top six, because Ericsson focused on delivering larger value TSPS – SI and managed services. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 42 Market shares In design consulting, Telecoms software professional services: worldwide market shares 2010 42 Market shares In design consulting, the most successful players were those that can bridge business and technology requirements Figure 20: Design consulting revenue by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 2% Figure 21: Design consulting revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] Design consulting generated USD 3. 94 billion, or 8% of total TSPS revenue in 2010. The top six suppliers accounted for 47. 1% of this revenue. This is a somewhat fragmented market, in which the top three players took 31. 2% of revenue. NEMs and global CSIs again dominated this sub segment thanks to new network technology and systems transformation projects to increase revenue and reduce cost. Ericsson fell to third place because it focused on delivering large managed services deals. Radio planning (3 G, LTE) was bundled into larger turnkey network roll out and management deals. IBM and Alcatel Lucent sustained their revenue in this segment to take the top two positions. Accenture and HP remain in the top six, thanks to their ability to provide a balance of IT and telecoms consulting to CSPs. NEC/Net. Cracker continues to develop its services, with strategic focus on cloud computing. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 43 Market shares Large ISVs and Telecoms software professional services: worldwide market shares 2010 43 Market shares Large ISVs and NEMs continue to dominate the productrelated services sub-segment Figure 22: Product-related services revenue by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 4% Figure 23: Product-related services revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] In 2010, product related services generated USD 8. 88 billion, or 19% of total TSPS revenue. The top six suppliers accounted for 49. 9% of the revenue in this fragmented market that features only vendors. Growth is tied to the telecoms software market. CSPs spent an increased amount on automation, upgrades and new technologies. Amdocs continued to lead the market, thanks to its product based professional services offering, which it uses to create innovative licence offers. Oracle is focusing on integrated hardware and software products. In spite of potential conflict with channel partners, both Oracle and its major partners increased their revenue in the TSPS market in 2010. The four major NEMs appear among the top six. Ericsson added to its OSS/BSS portfolio with the acquisition of Telcordia. Huawei’s software business grew organically, moving it up to third place. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 44 Market shares The systems integration Telecoms software professional services: worldwide market shares 2010 44 Market shares The systems integration market continues to be one of the largest segments with transformation projects driving spend Figure 24: Systems integration revenue by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 7% Figure 25: Systems integration revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] Systems integration generated USD 12. 33 billion, or 26% of total TSPS revenue in 2010. The top six suppliers accounted for 32. 7% of the revenue in this highly fragmented sub segment. Each supplier had a share of less than 7. 1%. Global CSIs again led this sub segment, thanks to their multi vendor skills, partnerships and certifications. Accenture was in third place and TCS was sixth. Large transformation and deployment projects that transitioned into managed services contracts rearranged the leader board. Ericsson moved ahead of Alcatel Lucent, and NSN and TCS displaced Infosys and HP from the top six. IBM increased its SI revenue mainly from transformation commitments in larger managed services contracts. Regional CSIs are a popular choice for delivering solutions at low cost, but deals are typically relatively small. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 45 Market shares Custom development revenue Telecoms software professional services: worldwide market shares 2010 45 Market shares Custom development revenue grew significantly because it is essential for CSP transformation projects Figure 26: Custom development revenue by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 34% Figure 27: Custom development revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] Custom development accounted for USD 2. 62 billion, or 5% of total TSPS revenue. The top six suppliers generated 37. 8% of the revenue in this sub segment. Custom development spend increased in 2010; suppliers took on these low margin services in order to increase revenue. CSPs are increasingly adopting COTS solutions, but custom development is essential for transitioning and retiring legacy systems. Transformation projects in 2010 included significant custom development for risk adverse CSPs, particularly in emerging countries in APAC and CALA. Huawei and TCS’s low resource costs provided good margins for custom development services. Alcatel Lucent entered the top six because its emerging application enablement business requires high levels of SI and custom development. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 46 Market shares Outsourced operations grew Telecoms software professional services: worldwide market shares 2010 46 Market shares Outsourced operations grew strongly as CSPs focused on core business functions and cost reduction Figure 28: Outsourced operations revenue by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 28% Figure 29: Outsourced operations revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] Outsourced operations generated USD 12. 27 billion, or 26% of total TSPS revenue in 2010. The top six suppliers took 57. 2% of this. This sub segment is the largest and dominated by NEMs because CSPs have signed outsourced network management contracts in order to reduce costs and refocus on core business functions. Ericsson remained in first place. Alcatel Lucent and NSN increased their share of the market. Huawei won several network management deals, displacing Amdocs from the top six. All market leading NEMs expanded their global NOC thanks to growing outsourcing business. IBM’s only notable win in 2010 was with Bharti Africa, whereas HP’s Enterprise Services division grew significantly when it was selected to manage Nextel’s BSS operations in Latin America. ADM and BPO services targeting CSPs’ need to reduce costs increased CSIs’ revenue, contributing to growth in this sub segment. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 47 Market shares Vendors led the Telecoms software professional services: worldwide market shares 2010 47 Market shares Vendors led the way in providing hosted managed services and solutions to CSPs in order to reduce capex and opex Figure 30: Hosted managed services revenue by supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 4% Figure 31: Hosted managed services revenue by supplier, worldwide, 2010 [Source: Analysys Mason, 2011] Hosted managed services generated USD 5. 30 billion, or 11% of total TSPS revenue. The top six suppliers remained the same and accounted for 62. 2% of this sub segment. Ericsson’s market share was boosted because CSPs were increasingly confident about delivering new mobile services on hosted platforms to reduce time to market and risk (for example, Ericsson hosts Idea Cellular’s app store). Alcatel Lucent, Amdocs, HP, IBM and NSN increased their revenue in 2010 roughly in line with the 4% growth in the sub segment as a whole. Saa. S offerings particularly for SDP services continue to drive hosted managed services. Amdocs continues to focus on Saa. S managed service contracts in billing. IBM and HP largely sustained their existing Saa. S managed service contracts, while HP increased its share with its app storefront solution. Global CSIs’ streamlined BPO by moving CSPs processes onto their hosted automated platform. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 48 Document map: Supplier analysis Document Telecoms software professional services: worldwide market shares 2010 48 Document map: Supplier analysis Document map Executive summary Recommendations Market definition Business environment Market shares Supplier analysis Annexes About the author and Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 49 Supplier analysis Accenture Figure 32: Telecoms software professional services: worldwide market shares 2010 49 Supplier analysis Accenture Figure 32: Accenture’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 4: Accenture analysis [Source: Analysys Mason, 2011] Strengths Figure 33: Accenture’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 4. 4% of the TSPS market, excluding product related services; retains fifth position as in 2009. Strong in EMEA and NA, particularly developed countries. Was stronger than other TSPS suppliers in the weak economic environment in Europe. BSS, then OSS services were strongest in 2010. Capitalises on its multi vendor SI, custom development and BPO skills and ability to support CSP transformations. Notable CSP customers include: Deutsche Telekom, KPN, Telstra, Telecom Italia, Telefónica, Vodafone and Wind. Weaknesses Price pressure from NEMs and other SIs. Product maturity is eroding SI opportunities. Strategic direction Continue to build on its ADM and BPO strengths. Evolve OSS, BSS and SDP practices to utilise AMOS as a managed service platform and operations centre. Support CSPs to become cloud services provider in other verticals (for example, utilities, health, education, media, banking/payments) with its SDP strategy. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 50 Supplier analysis Alcatel-Lucent Figure 34: Telecoms software professional services: worldwide market shares 2010 50 Supplier analysis Alcatel-Lucent Figure 34: Alcatel-Lucent’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 5: Alcatel-Lucent analysis [Source: Analysys Mason, 2011] Strengths Figure 35: Alcatel-Lucent’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 8. 3% of the TSPS market, second only to Ericsson. Strong presence in all regions and relationships with most Tier 1 CSPs worldwide. Increased its business in NA and APAC. Strong MSP with numerous large outsourced operations and hosted managed services. Won notable service contracts with BT, China Mobile, KPN, Sprint, Sistema Shyam Tele. Services (SSTL), TELUS, Verizon Wireless, and NBN Co in 2010. Weaknesses Year on year growth (5%) is behind other top NEMs. Terminated services contract with Sunrise in Switzerland. Recent reorganisation might adversely affect growth. Strategic direction Continue to develop its TSPS business worldwide, particularly in APAC and NA. Focus on multi vendor support and SI using telecoms application enablers. Advance product maturity across all domains. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 51 Supplier analysis Amdocs Figure 36: Telecoms software professional services: worldwide market shares 2010 51 Supplier analysis Amdocs Figure 36: Amdocs’ TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 6: Amdocs analysis [Source: Analysys Mason, 2011] Strengths Figure 37: Amdocs’ TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 5. 3% of the total TSPS market; is fifth overall. Strong and broad range of integrated BSS, OSS and SDP products and services developed for the CSP market. Offers effective model for BSS outsourced operations and hosted services for legacy and transformed CSPs. The most successful ISV, it developed its services business by enhancing its solution testing, integration and management (product related services) and leads the product related service sub segment. Notable managed service contracts with AT&T, Bell Canada, Cellcom, Mobilicity, Sensis (Telstra subsidiary), and Vonage in 2010. Weaknesses Most of its revenue is from NA, and from a small number of Tier 1 CSPs. Largely technology and product focused, like other ISVs. Strategic direction Continue developing its managed services business in emerging countries, particularly in APAC. Continue to integrate BSS, OSS and SDP areas. Increase its managed OSS business. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 52 Supplier analysis Atos Origin Figure Telecoms software professional services: worldwide market shares 2010 52 Supplier analysis Atos Origin Figure 38: Atos Origin’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 7: Atos Origin analysis [Source: Analysys Mason, 2011] Strengths Holds 7. 8% of TSPS market in the global CSI category. Very strong in its native Europe in 2010. Managed to sustain competitive prices and win business in spite of the poor economic climate in Europe. Well balanced multi vendor consulting, SI, outsourced operations and hosted management skills, capacity and offerings. Weaknesses Figure 39: Atos Origin’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Most of its revenue comes from Western Europe, which led to its – 9% year on year decline in 2010. Second year of decline – little new business won in 2010. Product maturity is eroding SI opportunities. Strategic direction Restore growth in Europe. Leverage the acquisition of Siemens IT Solutions and Services to grow its TSPS business. Introduce IT technology solutions into the CSP market, specifically with cloud computing and Saa. S. Build business by cross selling between other Atos Origin subsidiaries. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 53 Supplier analysis Capgemini Figure 40: Telecoms software professional services: worldwide market shares 2010 53 Supplier analysis Capgemini Figure 40: Capgemini’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 8: Capgemini analysis [Source: Analysys Mason, 2011] Strengths Figure 41: Capgemini’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 8. 2% of TSPS market in the global CSI category, where it holds the fifth position. Strong in EMEA; is in the top six in this region, weathering the recession better than Atos Origin in this region. Has a wide telecoms software service offering in business and technology consulting, as well as outsourcing services that exploit its expertise in Atlanta, Europe and Bangalore. Strong multi vendor SI, outsourced operations and hosted management skills and capacity. Weaknesses Most of its revenue comes from Western Europe and faced challenges as most other suppliers in this region in 2010. Little new business won in 2010. Product maturity is eroding SI opportunities. Strategic direction Recover business stability and growth in Europe. Focus on new technology (LTE) in NA and ongoing telecoms network and systems upgrades. Introduce IT technology solutions into CSP market, specifically with cloud computing and Saa. S. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 54 Supplier analysis Convergys Figure 42: Telecoms software professional services: worldwide market shares 2010 54 Supplier analysis Convergys Figure 42: Convergys’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 9: Convergys analysis [Source: Analysys Mason, 2011] Strengths Figure 43: Convergys’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 3. 9% of the TSPS market in the ISV category, where it is in fourth position, behind Amdocs, CSG and Oracle. Very strong in NA, and successful in APAC and EMEA. Has its own professional services organisation and works with various SIs on a project and regional basis. Strong technology consulting and hosted (multi tenant bureau) managed service capabilities for billing and customer care solutions. Notable major service CSP customers include AIS (Thailand), AT&T, Comcast, Sing. Tel, and Telefónica. Weaknesses Supports many legacy billing systems and is losing revenue as a result of consolidation and migration to competitors. Most of its revenue is from NA and Europe. Convergys’s revenue has declined. Strategic direction Become a preferred next generation solution provider. Continue to increase business in emerging markets. Consider billing for cloud services as the next opportunity. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 55 Supplier analysis CSG Systems Figure Telecoms software professional services: worldwide market shares 2010 55 Supplier analysis CSG Systems Figure 44: CSG Systems’ TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 10: CSG Systems analysis [Source: Analysys Mason, 2011] Strengths Figure 45: CSG Systems’ TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 6. 1% of the TSPS market in the ISV category, where it holds second position, behind Amdocs. Acquiring Intec increased its global reach and existing professional services organisation and capabilities. Very strong in NA, and Intec increased its strength in EMEA and APAC. Strong in technology consulting and outsourced BSS. Notable CSP customers include AT&T, Charter, Comcast, DISH, France Telecom, Time Warner, Vodafone and Vivo. Weaknesses Most of its revenue is from NA. Its top four CSP customers (Charter, Comcast, DISH and Time Warner) generated 64% of total revenue in 2010. Intec boosted revenue in 2010, however integrating the companies will have an impact on the business in 2011. Strategic direction Continue to focus on BSS only, integrating and leveraging Intec’s products and services. Explore new verticals such as utilities, healthcare, home security, financial services and content distribution. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 56 Supplier analysis Ericsson Figure 46: Telecoms software professional services: worldwide market shares 2010 56 Supplier analysis Ericsson Figure 46: Ericsson’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 11: Ericsson analysis [Source: Analysys Mason, 2011] Strengths Figure 47: Ericsson’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 11. 3% of the TSPS market and leads the systems integration, outsourced operations and hosted managed services sub segments. Strong 18% year on year growth primarily from managed services particularly in NA, due to service contracts with Sprint and from the acquisition of Nortel Networks. Acquired Telcordia Technologies and will further increase its TSPS market share and strength, especially in NA. Notable new managed service contracts: H 3 G (Italy), AXIS (Indonesia), Bharti Airtel, China Mobile, China Unicom, DNA, MBNL, Telefónica, Wind (Greece), and Australia’s NBN (USD 1. 2 billion build and operate for 10 years). Weaknesses Will take time and money to sanitise and integrate Telcordia business. Strategic direction Combine technology leadership and business understanding to become the prime supplier/integrator of choice for all CSPs. Lead in guiding CSPs in emerging service areas such as cloud, M 2 M and mcommerce. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 57 Supplier analysis Hewlett-Packard Figure 48: Telecoms software professional services: worldwide market shares 2010 57 Supplier analysis Hewlett-Packard Figure 48: Hewlett-Packard’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 12: Hewlett-Packard analysis [Source: Analysys Mason, 2011] Strengths Figure 49: Hewlett-Packard’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 4. 1% of the total TSPS market, excluding product related services; is sixth overall. Strong in NA and EMEA; growing presence elsewhere. Its Enterprise Services (formerly EDS) and Solution Consulting Services units compliment each other, providing business and technology consulting, SI and managed services – end to end services and solutions. Only IT supplier to have year on year TSPS revenue growth. Notable managed service contracts with NII Holdings (Nextel in Latin America) and 15 other undisclosed deals across EMEA and APAC. Weaknesses Reorganisation slowed its drive to strengthen credibility against main competitors – NEMs, ISVs and global SIs. Strategic direction Consulting led solutions approach. Develop its strengths in consulting (SCS) and outsourcing (BPO, ADM). Support CSPs with cloud computing and Saa. S initiatives. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 58 Supplier analysis Huawei Technologies Figure Telecoms software professional services: worldwide market shares 2010 58 Supplier analysis Huawei Technologies Figure 50: Huawei Technologies’ TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 13: Huawei Technologies analysis [Source: Analysys Mason, 2011] Strengths Figure 51: Huawei Technologies’ TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 4. 7% of the TSPS market; is sixth overall, having displaced HP. Strong in APAC and growing presence in EMEA and CALA, in both developed and emerging markets. Offers products and services at competitive prices, and is aggressively offering all services provided by both vendors and pure play SIs. Increased its outsourced operations with its Global Technical Service (GTS) business unit, and hosted managed services with Huawei software. Won notable managed service contracts with Cell C, Jazztel, O 2, and ONO in 2010 and KPN in 2011. Weaknesses Challenges penetrating the NA market. Reorganisation has caused some instability. Has much ground to gain compared with other CSP managed service partners. Strategic direction Increase all of its professional service offerings worldwide. Gain new customers and retain existing ones. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 59 Supplier analysis IBM Figure 52: Telecoms software professional services: worldwide market shares 2010 59 Supplier analysis IBM Figure 52: IBM’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 14: IBM analysis [Source: Analysys Mason, 2011] Strengths Figure 53: IBM’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 6. 3% of the total TSPS market; retains third place. Continues to be among the top six in all regions, and is among the top five suppliers in all sub segments except custom development and product related services. IBM’s global services provide a broad range of consulting, SI and managed services and solutions for CSPs. Has global IT infrastructure and resources to provide outsourcing operations and hosted managed services. Increased business in emerging markets. Notable wins: transformation project with Globe Telecom (Philippines) with NSN in 2009 and the ten year Bharti Airtel (Africa) outsourcing contract in 2010. Weaknesses Won little new managed service business in 2010. Year on year TSPS revenue growth was flat. Strategic direction Continue to focus on cloud services, business analytics and the ‘smart planet’ solutions and services. This includes organic and inorganic (acquisitions) development. Continue to develop its business in emerging markets. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 60 Supplier analysis Infosys Technologies Figure Telecoms software professional services: worldwide market shares 2010 60 Supplier analysis Infosys Technologies Figure 54: Infosys Technologies’ TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 15: Infosys Technologies analysis [Source: Analysys Mason, 2011] Strengths Figure 55: Infosys Technologies’ TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Continues to lead TSPS market in the regional CSI category, with a 16. 7% share. Strong in NA, EMEA and APAC, with a good balance in mature and emerging markets. Sustainable, aggressive, competitive pricing Revenue sharing service model success rate is increasing with other suppliers adopting this model. Strong custom development which grew strongly in 2010. Notable CSP customers include AT&T, Aircell, Bharti Airtel, BT, Orange, T Mobile and Telstra. Weaknesses Strong competition from global telecoms suppliers. Limited new business added in 2010. Focuses on non telecoms verticals. Strategic direction Build on the success of its Flypp platform with other CSPs. Continue to integrate revenue sharing model success into its business process outsourcing portfolio. Retain existing CSPs customers and target new ones. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 61 Supplier analysis NEC/Net. Cracker Technology Telecoms software professional services: worldwide market shares 2010 61 Supplier analysis NEC/Net. Cracker Technology Figure 56: NEC/Net. Cracker Technology’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 16: NEC/Net. Cracker Technology analysis [Source: Analysys Mason, 2011] Strengths Dominates the Japanese and developed APAC markets. Technology focused advisors and integrators. Figure 57: NEC/Net. Cracker Technology’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Balances split in services from the merger of NEC and Net. Cracker Technology resources. Primarily delivers services itself, which captures maximum revenue and gives direct relationship with CSPs. Its main CSP customers are NTT DOCOMO, KDDI and SOFTBANK. Telefónica’s cloud partnership is the NEC/Net. Cracker’s main CSP focus for TSPS. Weaknesses Revenue is concentrated in Japan, which is facing economic uncertainty following recent natural disasters. Atos, HP and IBM are its only SI partners. Immature services business compared to competitors. Strategic direction Continue evolving services portfolio to create a better proposition for CSPs worldwide. Be the ‘transformation’ leader in OSS. Focus on cloud strategy and solutions. Increase revenue outside Japan. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 62 Supplier analysis Nokia Siemens Networks Telecoms software professional services: worldwide market shares 2010 62 Supplier analysis Nokia Siemens Networks Figure 58: Nokia Siemens Networks’ TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 17: Nokia Siemens Networks analysis [Source: Analysys Mason, 2011] Strengths Figure 59: Nokia Siemens Networks’ TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 5. 6% of the total TSPS market; moved up to fourth overall. Strong business in APAC offset the poor economic climate in Europe. Strong in both developed and emerging markets. Mature TSPS portfolio with a good record in turnkey projects and long term managed services contracts. Strong and friendly partnering culture. Notable managed service contracts in 2010: Belgacom, Bharti Airtel, China Unicom, Deutsche Telekom, Elisa, MBNL (UK), Nextel, O 2, Vodafone and ZAIN. Weaknesses Most of its revenue is from Europe, but the economy is unstable. Being targeted because of parent company’s instability. Strategic direction Build relationships with Motorola’s customers: China Mobile, Clearwire, KDDI, Sprint and Verizon Wireless. Build on mobile broadband CEM opportunities. Develop cloud based solutions and services. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 63 Supplier analysis Oracle Figure 60: Telecoms software professional services: worldwide market shares 2010 63 Supplier analysis Oracle Figure 60: Oracle’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 18: Oracle analysis [Source: Analysys Mason, 2011] Strengths Figure 61: Oracle’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 5% of the TSPS market in the ISV category; retains third position. Strong in NA and other developed markets in design, implementation and project management services. Beginning to provide more hosted managed services. Strong SI relationships provide excellent sales reach, and its product touches all Tier 1 CSPs worldwide. Acquisition of Sun Microsystems boosted delivery of primed COTS products such as Exadata and Exalogic. Extensive hardware and software telecoms portfolio. Weaknesses Immature services business compared to competitors, but has at least one managed service contract. Moving to provide more implementation and integration services cannibalise SI partner relationships. Focus on Oracle products and related services only. Strategic direction Pre integrated, pre configured offers of hardware, software and services. Introduce IT technology solutions into the CSP market, building on its strength in the enterprise (IT) vertical. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 64 Supplier analysis SAP Figure 62: Telecoms software professional services: worldwide market shares 2010 64 Supplier analysis SAP Figure 62: SAP’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 19: SAP analysis [Source: Analysys Mason, 2011] Strengths Holds 3. 6% of TSPS market in the ISV category; enters the top six in fifth position. Acquiring Sybase increased its TSPS market share for outsourced operations mainly in partner interconnect. Strong in EMEA, NA and developed markets. Very strong in delivering BSS projects and services. Figure 63: SAP’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Strong in technology consulting, which fits well with its focus on Tier 1 CSPs and its scalable software systems. Strong SI relationships provide excellent sales reach, and its product touches Tier 1 CSPs worldwide. Weaknesses Most of its revenue is from EMEA. Largely technology and product focused, and less focused on services. Strategic direction Continue to focus on products rather than services. Continue to use SI channels rather than selling direct. Focus on technology consulting, implementation, analytics, transformation and cloud solutions. Propel SAP’s mobile business leveraging Sybase. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 65 Supplier analysis Tata Consultancy Services Telecoms software professional services: worldwide market shares 2010 65 Supplier analysis Tata Consultancy Services Figure 64: Tata Consultancy Services’ TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 20: Tata Consultancy Services analysis [Source: Analysys Mason, 2011] Strengths Figure 65: Tata Consultancy Services’ TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 9. 7% of the TSPS market in the global CSI category; moves up to second place, second only to Accenture. Strong recovery from revenue downturn in 2009; 27% year on year TSPS revenue growth in 2010. Good global presence with strong multi vendor SI and custom development skills and capacity. Notable CSP customers include AT&T, BT, Cable and Wireless, Hutchinson 3 G, Talk, Telenor and Verizon. Weaknesses No new CSP customers added in 2010. Product maturity is eroding SI opportunities. Requires more investment than vendors to set up data centres for managed service offerings. Strategic direction Continue to grow in core areas: ADM, BPO and SI (moving towards COTS and away from custom development). Continue recovering from the economic downturn. Focus on growth from strategic existing CSP customers. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 66 Supplier analysis Tech Mahindra Figure Telecoms software professional services: worldwide market shares 2010 66 Supplier analysis Tech Mahindra Figure 66: Tech Mahindra’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 21: Tech Mahindra analysis [Source: Analysys Mason, 2011] Strengths Figure 67: Tech Mahindra’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 9. 4% of the TSPS market in the global CSI category, moves ahead of Wipro to fourth position. Strong TSPS revenue growth in 2010 – 18% year on year. Increases its OSS and network capabilities with 3 G roll out contracts alongside NEMs in India. Aggressive approach to pricing and delivering end to end, multi vendor services streamlined from SI to outsourcing. Notable wins: BT, Cox Communications, Etisalat DB (India) and Viva Bahrain (STC subsidiary) in 2010, and a USD 250 million five year deal with Vodafone Hutchison Australia, replacing IBM and Ericsson, in 2011. Weaknesses BT remains a significant source of annual revenue. Product maturity is eroding SI opportunities. Vendors partners are rapidly becoming strong competitors. Strategic direction Develop and launch its network process outsourcing offering targeted at Tier 1 CSPs. Continue growing business in NA. Explore M 2 M opportunities with Mahindra Satyam. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 67 Supplier analysis Tieto Figure 68: Telecoms software professional services: worldwide market shares 2010 67 Supplier analysis Tieto Figure 68: Tieto’s TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 22: Tieto analysis [Source: Analysys Mason, 2011] Strengths Figure 69: Tieto’s TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Holds 15. 1% of the TSPS market in the regional CSI category, second to Infosys. Strong in EMEA, namely the Nordic region. Success in winning outsourcing projects in addition to SI projects, owing to its effective rebadging processes. Strong in multi vendor technology consulting, SI and custom development and outsourcing. Recent agreement with NSN to outsource part of the device management software development related to base stations will increase Tieto’s mobile services portfolio. Multiple outsourcing contracts with Telia. Sonera, its flagship CSP customer. Weaknesses Revenue concentrated in the Nordic region, primarily Sweden and Finland. Economic challenges in Europe are beginning to have an impact on revenue. Limited geographic reach. Strategic direction Allocate budget to develop capabilities and offerings in cloud and M 2 M services. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 68 Supplier analysis Wipro Technologies Figure Telecoms software professional services: worldwide market shares 2010 68 Supplier analysis Wipro Technologies Figure 70: Wipro Technologies’ TSPS revenue by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Table 23: Wipro Technologies analysis [Source: Analysys Mason, 2011] Strengths Holds 8. 4% of the TSPS market in the global CSI category; falls to fourth position ahead of Capgemini and Atos. Strong in NA, EMEA and APAC. Aggressive pricing has enabled it to win contracts. Figure 71: Wipro Technologies’ TSPS revenue by region, worldwide, 2010 [Source: Analysys Mason, 2011] Strong multi vendor SI, custom development and BPO skills and capacity. Won contracts with Indian CSPs in 2010 because of the 3 G technology roll out. Weaknesses Has not recovered well from the economic downturn, lagging behind Accenture, TCS and Tech Mahindra. A few small wins in 2010 and primarily with existing CSP customers. Focuses on other non telecoms verticals. Strategic direction Recover from the downturn. Focus on existing contracts and customers. Focus on cloud computing as an opportunity. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 69 Supplier analysis summary [1] Table Telecoms software professional services: worldwide market shares 2010 69 Supplier analysis summary [1] Table 24 a: Comparison of telecoms software professional service suppliers 1 [Source: Analysys Mason, 2011] Region Supplier Overall NA CALA EMEA Market sub-segment APAC Business consulting Design consulting Systems integration Custom development Accenture ™ ™ ™ AIRCOM Alcatel Lucent ™ Amdocs ™ ™ ™ Asia. Info ™ Atos Origin ™ Capgemini ™ ™ CGI Group ™ ™ ™ ™ Cisco Systems ™ ™ ™ Cognizant ™ ™ Convergys CSG Systems ™ ™ ™ (Intec Telecom Systems) ™ ™ ™ ™ Dell ™ ™ ™ Deloitte Dimension Data ™ (NTT) 1 Key to ratings: ™ = has a presence in the market = has a notable presence in the market = market leaders. Ericsson Outsourced operations Hosted Productmanaged related services ™ ™ ™ ™ ™ © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 70 Supplier analysis summary [2] Table Telecoms software professional services: worldwide market shares 2010 70 Supplier analysis summary [2] Table 24 b: Comparison of telecoms software professional service suppliers 1 [Source: Analysys Mason, 2011] Region Supplier GENBAND HCL Technologies Hewlett Packard Huawei IBM Infosys Technologies Juniper Networks KPMG (Global) Logica Motorola NEC/Net. Cracker Technology Nokia Siemens Networks Neu. Star Oracle Orga Systems 1 Overall Market sub-segment NA CALA EMEA APAC ™ ™ ™ ™ Business consulting Design consulting Systems integration ™ ™ ™ ™ ™ ™ ™ ™ ™ Custom development ™ ™ ™ Outsourced operations Hosted Productmanaged related services ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ Key to ratings: ™ = has a presence in the market = has a notable presence in the market = market leaders. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 71 Supplier analysis summary [3] Table Telecoms software professional services: worldwide market shares 2010 71 Supplier analysis summary [3] Table 24 c: Comparison of telecoms software professional service suppliers 1 [Source: Analysys Mason, 2011] Region Supplier Patni SAP Steria Subex Tata Consultancy Services Tech Mahindra Telcordia Technologies Tieto Unisys Wipro Technologies ZTE 1 Overall NA CALA Market sub-segment EMEA APAC ™ ™ ™ ™ ™ Business consulting Design consulting Systems integration ™ ™ ™ ™ ™ ™ ™ Custom development Outsourced operations Hosted Productmanaged related services ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ Key to ratings: ™ = has a presence in the market = has a notable presence in the market = market leaders. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 72 Document map: Annexes Document map Telecoms software professional services: worldwide market shares 2010 72 Document map: Annexes Document map Executive summary Recommendations Market definition Business environment Market shares Supplier analysis Annexes About the author and Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 73 Annexes: Supplementary data Document map Telecoms software professional services: worldwide market shares 2010 73 Annexes: Supplementary data Document map Annexes Supplementary data Mergers and acquisitions Exchange rates © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 74 Supplementary data Telecoms software professional Telecoms software professional services: worldwide market shares 2010 74 Supplementary data Telecoms software professional services breakdown by region and supplier type Figure 72: TSPS market shares by supplier type, NA, 2010 [Source: Analysys Mason, 2011] Figure 74: TSPS market shares by supplier type, CALA, 2010 [Source: Analysys Mason, 2011] Figure 73: TSPS market shares by supplier type, EMEA, 2010 [Source: Analysys Mason, 2011] Figure 75: TSPS market shares by supplier type, APAC, 2010 [Source: Analysys Mason, 2011] © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 75 Supplementary data Telecoms software professional Telecoms software professional services: worldwide market shares 2010 75 Supplementary data Telecoms software professional services breakdown by vendor type and sub-segment Figure 76: NEMs’ TSPS market shares by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 18% Figure 78: IT suppliers’ TSPS market shares by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 3% Figure 77: ISVs’ TSPS market shares by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 7% © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 76 Supplementary data Telecoms software professional Telecoms software professional services: worldwide market shares 2010 76 Supplementary data Telecoms software professional services breakdown by CSI type and sub-segment Figure 79: Global CSIs’ TSPS market shares by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 8% Figure 80: Regional CSIs’ TSPS market shares by sub-segment, worldwide, 2010 [Source: Analysys Mason, 2011] Year on year growth rate: 10% © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 77 Supplementary data Telecoms software professional Telecoms software professional services: worldwide market shares 2010 77 Supplementary data Telecoms software professional services revenue breakdown by supplier type and sub-segment Figure 81: TSPS revenue by supplier type and region, worldwide, 2010 [Source: Analysys Mason, 2011] Figure 82: TSPS revenue by sub-segment and supplier type, worldwide, 2010 [Source: Analysys Mason, 2011] © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 78 Annexes: Mergers and acquisitions Document Telecoms software professional services: worldwide market shares 2010 78 Annexes: Mergers and acquisitions Document map Annexes Supplementary data Mergers and acquisitions Exchange rates © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 79 Mergers and acquisitions [1] Table Telecoms software professional services: worldwide market shares 2010 79 Mergers and acquisitions [1] Table 25 a: Mergers and acquisitions in the telecoms software professional services market, 2007–June 2011 [Source: Analysys Mason, 2011] Date Buyer 14 Jun 2011 01 May 2011 01 Feb 2011 27 Jan 2011 22 Dec 2010 Ericsson Time Warner Cable Verizon Communications Ericsson Seller Transaction value Annual revenue Price revenue (USD million)1 multiple Telcordia Technologies Tridge Group Navi. Site Terremark Worldwide Optimi Siemens IT Solutions and 15 Dec 2010 Atos Origin Services 05 Nov 2010 Nokia Siemens Networks IRIS Telecom 24 Sep 2010 CSG Systems Intec Telecom Systems in. Code’s Strategy and 07 Sep 2010 Ericsson Technology Group 15 Jul 2010 NTT Dimension Data 12 Jan 2010 Ericsson Italian Pride 12 Oct 2010 Perot Systems Bearing. Point China Consulting 21 Sep 2009 Dell Perot Systems Bearing. Point’s Commercial 16 Jun 2009 Pricewaterhouse. Coopers Services unit Bearing. Point’s Public Services 1 Revenue figures are either publicly reported or Analysys Mason estimates. N/a = no data available. 01 May 2009 Deloitte unit 1150 5 230 1400 99 739 4 126 350 175 1. 6 1. 2 1. 8 4. 0 0. 6 1100 7260 0. 2 N/a 371 N/a 263 N/a 1. 4 N/a 3200 N/a 3900 3973 N/a 35 2779 0. 8 N/a 1. 4 44 100 0. 4 350 700 0. 5 © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 80 Mergers and acquisitions [2] Table Telecoms software professional services: worldwide market shares 2010 80 Mergers and acquisitions [2] Table 25 b: Mergers and acquisitions in the telecoms software professional services market, 2007–June 2011 [Source: Analysys Mason, 2011] Transaction value Annual revenue Price revenue (USD million)1 multiple Date Seller 13 Apr 2009 Tech Mahindra Satyam Computer Services 620 1600 0. 4 08 Oct 2008 Tata Consultancy Services Citigroup Global Services (transactional BPO) 505 263 1. 9 13 May 2008 Hewlett Packard Electronic Data Systems (EDS) 13 900 21 300 0. 7 06 Aug 2007 1 Buyer Wipro Technologies Infocrossing 600 232 2. 6 Revenue figures are either publicly reported or Analysys Mason estimates. N/a = no data available. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 81 Annexes: Exchange rates Document map Telecoms software professional services: worldwide market shares 2010 81 Annexes: Exchange rates Document map Annexes Supplementary data Mergers and acquisitions Exchange rates © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 82 Exchange rates Table 26: Exchange Telecoms software professional services: worldwide market shares 2010 82 Exchange rates Table 26: Exchange rates used in this report [Source: Analysys Mason, 2011] These exchange rates are: Currency: USD exchange rate Currency Chinese renminbi (CNY) 0. 152 Euro (EUR) 1. 371 Indian Rupee (IND) 0. 022 Japanese yen (JPY) 0. 012 Swedish krona (SEK) based on tracked rates that Analysys Mason uses for research on 2010 0. 156 rounded to four decimal places for consistency in calculations only used where USD converted figures were not available from the source data. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 83 Document map: About the author Telecoms software professional services: worldwide market shares 2010 83 Document map: About the author and Analysys Mason Document map Executive summary Recommendations Market definition Business environment Market shares Supplier analysis Annexes About the author and Analysys Mason © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 84 About the author and Analysys Telecoms software professional services: worldwide market shares 2010 84 About the author and Analysys Mason Author Glen Ragoonanan (Senior Analyst) is the lead analyst for Analysys Mason’s Infrastructure Solutions research programme. He joined Analysys Mason in 2008 and has worked as a consultant on projects on next generation IT and telecoms networks, systems and technologies for incumbents, new entrants, private companies, regulators and public sector clients. His primary areas of specialisation include operations and business support systems (OSS/BSS) solution architecture and integration for business process re engineering, business process optimisation, business continuity planning, procurement and outsourcing operations and strategies. Before joining Analysys Mason, Glen worked for Fujitsu, designing, delivering and managing integrated solutions. Glen is a Chartered Engineer and project management professional with an MSc from Coventry University. Copyright Published by Analysys Mason Limited, Bush House, North West Wing, Aldwych, London WC 2 B 4 PJ, UK Tel: +44 (0)845 600 5244; Fax: +44 (0)20 7395 9001; Email: [email protected] com; Web: www. analysysmason. com/research Registered in England No. 5177472 © Analysys Mason Limited 2011 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior written permission of the publisher. ISBN 978 1 906881 95 5 © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 85 About the author and Analysys Telecoms software professional services: worldwide market shares 2010 85 About the author and Analysys Mason Disclaimer Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party. Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. The opinions expressed are those of the stated author only. © Analysys Mason Limited 2011

Telecoms software professional services: worldwide market shares 2010 86 About the author and Analysys Telecoms software professional services: worldwide market shares 2010 86 About the author and Analysys Mason About Analysys Mason We’re experts in telecoms, media and technology (TMT). This know how underpins everything we do and helps our clients change their businesses for the better. Regulation Systems and infrastructure Strategy and planning Transaction support Telecoms, media and technology (TMT) Marketing and products Technical audit and assurance Procurement At the heart of our approach is a simple, but enormously powerful idea: applied intelligence. By harnessing our collective brainpower we can solve real world problems and deliver tangible benefits for our customers. As a Japanese proverb says, ‘all of us are smarter than any of us’. We’re passionate about what we do, with the focus and determination to take on and solve the toughest problems to help our clients. We’ll rise to the challenge and enjoy it. In fact when it comes to problem solving, there’s a real sense of ‘the tougher the better’. It’s this unique combination of our applied intelligence, effective problem solving and the ability to look closer and see further that makes Analysys Mason special. © Analysys Mason Limited 2011

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Telecoms software professional services: worldwide market shares 2010 88 About the author and Analysys Telecoms software professional services: worldwide market shares 2010 88 About the author and Analysys Mason Consulting from Analysys Mason For more than 25 years, our consultants have been bringing the benefits of applied intelligence to enable clients around the world to make the most of their opportunities Unlike some consultancies, our focus is exclusively on TMT. We advise clients on regulatory matters, support multi billion dollar investments, advise on network performance and recommend commercial partnering options and new business strategies. Such projects result in a depth of knowledge and a range of expertise that sets us apart. We look beyond the obvious to understand a situation from a client’s perspective. We blend our range of skills each day, every day, to solve our clients’ most complex challenges. Regulation Transaction support Technical and audit assurance We offer regulatory advice to operators, vendors, media rights owners, regulators and policy makers We provide due diligence and business planning expertise to help vendors, purchasers and lenders We help major organisations to maximise returns from investment in networks and technology Marketing and products We help operators, broadcasters and content providers to create profitable service opportunities in the consumer, enterprise and public sector markets Procurement Our procurement experience translates into highly effective vendor management for clients in both the public and private sector Strategy and planning Systems and infrastructure We’re experts in the development and critical appraisal of operational plans and strategy We advise operators, vendors, and public and private sector clients on business systems and infrastructure For more information about our consulting services, please visit www. analysysmason. com/consulting. © Analysys Mason Limited 2011