Research report Service fulfilment market share report 2009

Research report Service fulfilment market share report 2009 Mark H. Mortensen May 2010

Service fulfilment market share report 2009 2 Contents [1] Slide no. 4. Document map – Executive summary 5. Overall service fulfilment market shares for 2009 6. Overall service fulfilment market shares, with 2008 comparison 7. Overall service fulfilment market trends 8. Service fulfilment market summary by sub-segment 9. Service fulfilment regional market summary, with 2008 comparison 10. Document map – Recommendations 11. Recommendations for CSPs 12. Recommendations for ISVs 13. Document map – Market definition 14. Telecoms software market segmentation 15. Definitions of service fulfilment and its subsegments 16. Definitions of service segments and revenue types 17. Document map: Business environment 18. Overall telecoms market growth was dampened, except in specific technological and geographical areas 19. CSPs are targeting service needs 20. Transformations and federation 21. Professional services have been expanded 22. Regional service fulfilment outlook for 2010 Slide no. 23. Document map – Market shares 24. Service fulfilment overall market shares in 2009 25. Service fulfilment product market shares in 2009 26. Service fulfilment product-related services market shares in 2009 27. Service fulfilment market 2009: ratios of product to product-related services 28. Order management overall market shares in 2009 29. Order management vendors in 2009 30. Inventory overall market shares in 2009 31. Inventory vendors in 2009 [1] 32. Inventory vendors in 2009 [2] 33. Activation overall market shares in 2009 34. Activation vendors in 2009 35. Engineering tools overall market shares in 2009 36. Document map – Vendor analysis 37. Actix 38. AIRCOM International 39. Amdocs 40. Ascom Holding 41. Comptel 42. GE Smallworld 43. Hewlett-Packard © Analysys Mason Limited 2010

Service fulfilment market share report 2009 3 Contents [2] Slide no. 44. Intergraph 45. NEC Net. Cracker 46. Oracle 47. Sigma Systems 48. Subex 49. Synchronoss 50. Telcordia 51. Visionael 52. Vendor analysis summary [1] 53. Vendor analysis summary [2] 54. Vendor analysis summary [3] 55. Document map – Annexes 56. Annexes: Sub-segment definitions and deployment architecture 57. Order management 58. Inventory 59. Activation 60. Engineering tools 61. Traditional wireline service fulfilment flow 62. Modern service fulfilment flow 63. Annexes: Mergers and acquisitions 64. Service fulfilment mergers and acquisitions [1] 65. Service fulfilment mergers and acquisitions [2] Slide no. 66. Document map – Author, copyright and key to acronyms 67. Author 68. Copyright 69. Key to acronyms [1] 70. Key to acronyms [2] 71. Document map – List of figures and tables 72. List of figures and tables [1] 73. List of figures and tables [2] 74. List of figures and tables [3] 75. List of figures and tables [4] 76. List of figures and tables [5] 77. Document map – About Analysys Mason 78. About Analysys Mason 79. Research from Analysys Mason 80. Consulting from Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 4 Document map: Executive summary Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 5 Executive summary Overall service fulfilment market shares for 2009 Figure 1: Service fulfilment market shares by revenue, worldwide, 2009 [Source: Analysys Mason, 2010] l l The service fulfilment market generated USD 2. 233 billion in revenue in 2009, up by 2. 8% from USD 2. 173 billion in 2008. This represents slightly more growth than we forecasted last year (2. 3%). Service fulfilment continues to be a very fragmented market. The top-six vendors accounted for only 44% of the market, while more than 30 other vendors achieved over USD 10 million in revenue. The service fulfilment market grew more than some other areas of BSS/OSS since it is considered to be related to revenue generation. Growth in the service fulfilment market was driven by network evolution towards optical/packet technology, the push towards instant availability for complex service bundles, the need to operate in uncertain and changing business environments, deregulation of broadband mobile in growth markets and the increasing desire to meet the needs of SMEs. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 6 Executive summary Overall service fulfilment market shares, with 2008 comparison Figure 2: Service fulfilment market shares by revenue, 2008 and 2009 [Source: Analysys Mason, 2010] l l Total revenue 2008: USD 2. 173 billion Total revenue 2009: USD 2. 233 billion l Telcordia maintained its position of global market leader on the strength of its legacy RBOC systems and the sales of next-generation systems to selected Tier-1 CSPs. Oracle now commands second place, reaping the rewards of its integration of its service fulfilment and BSS (notably Siebel CRM) products, the increase in its share of service revenue and its exploitation of its strong brand in growth markets. Amdocs experienced some growth in service fulfilment, as a result of expansion of its product line via acquisitions. The revenue of the company as a whole shrank, though, mostly because of weakness in managed services. NEC, under the Net. Cracker brand, continued to expand service fulfilment with its strategy of suites at low initial prices and long-term project expansion. It announced new deals with Deutsche Telekom, enterprises and government agencies in 2009. Comptel and Hewlett-Packard (HP) remained in the top-six list. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 7 Executive summary Overall service fulfilment market trends l l l l Service fulfilment is changing as CSPs continue to shift their emphasis from voice-focused support systems to more-modern platforms that support automated fulfilment of new residential broadband mobile data services. Leading-edge ISVs are providing service fulfilment systems that can handle the complexity of the new access arrangements, such as x. DSL and FTTH, the dependence of available services on access technology and end-user devices, and the increasingly complex bundles of services, especially in mobile. Because of the worldwide economic conditions that led to recessions in many countries, the service fulfilment market failed to achieve much of its previously projected growth in 2008 and 2009. However, it has lost less than other areas of OSS that are not considered by the CSPs to be revenue affecting. Large transformation projects have fallen out of favour. However, department-sized transformation projects, especially those that provide integrated inventory solutions, are still being sold and implemented. Service fulfilment projects are primarily driven by increased revenue opportunities, but cost reduction still remains an important consideration in project approval. Mature CSPs are implementing order management functions in their BSS stack. These are called enterprise order control functions. They manage the multi-channel nature of sales and the complexity of service bundles, which require more data sharing with service fulfilment systems than usual. Growth-market CSPs, under pressure to expand the range of their services, are increasingly turning to vendors that can provide them with total solutions to their automated service fulfilment needs. They are implementing order management and activation systems to provide automated service activation for specific services, especially for mobile services. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 8 Executive summary Service fulfilment market summary by sub-segment Order management (revenue: USD 627 million) l l Grew by 1. 1%, compared with our forecast of 2. 7% The OM market was driven by the dependence of complex services on equipment, end-user device capabilities and service bundles OM products also moved into CRM to provide overall enterprise order control functions for service bundles (revenue is included in CRM in customer care, not here) Inventory (revenue: USD 620 million) l l l New players entered OM or expanded their products Activation (revenue: USD 465 million) l l Grew by 5. 4%, compared with our forecast of 3. 4% Activation of IP-based mobile and wireline services, as well as IPTV, x. DSL and Vo. IP, continues to drive the market Grew by 3. 6%, compared with our forecast of 1. 5% Departmental-sized inventory transformation projects, focused on supporting IP-related services, but also replacing many other systems. Nearly all also implemented flow-through provisioning with OM and activation systems included Design and inventory of business services on IP infrastructure grew Engineering tools (revenue: USD 521 million) l l Grew by 1. 2% compared with our forecast of 1. 4% Mobile RF engineering systems was relatively flat as CSPs have not yet started their major LTE evolution Wireline planning systems grew, with new modules from major players IBM acquired Intelliden to expand its IT equipment configuration management offering into the telecoms sector © Analysys Mason Limited 2010

Service fulfilment market share report 2009 9 Executive summary Service fulfilment regional market summary, with 2008 comparison Figure 3: Service fulfilment market shares by region, 2008 and 2009 [Source: Analysys Mason, 2010] l Service fulfilment revenue increased by 2. 8% w w l w Values marked on chart represent USD million. CALA was the fastest-growing market, on a small base. Many ISVs reported the closure of long-overdue deals EMEA is the largest segment, but grew half as fast as the whole. Developed Europe was the slowest-growing segment in EMEA and the Middle East the fastest APAC was the slowest-growing segment. Revenue growth will return almost to pre-2008 levels by the end of 2010 w Total revenue 2008: USD 2. 173 billion Total revenue 2009: USD 2. 233 billion NA grew slightly faster than the whole w w growth in NA will be driven by new service bundles for IPTV and mobile CALA will continue to grow through mobile and broadband services, but more slowly than in most regions spending in EMEA will increase to support new mobile services and FTTx deployments APAC will continue to grow. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 10 Document map: Recommendations Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 11 Recommendations for CSPs l l l CSPs that are still using manual procedures for service fulfilment should implement integrated service fulfilment suites from leading ISVs. This will allow them to handle the complexity of the new services and service bundles. CSPs’ projects in service fulfilment should focus primarily on supporting new service roll-outs, rather than on trying to achieve consolidation. The solution should support both the current new service and future services, since CSPs will quickly be introducing many more. CSPs must invest in multi-service activation systems to meet time-to-market demands for delivery of complex video services. Activation from the STB to the head-end or central office systems requires knowledge of the configuration of transport, service layer and application layer. CSPs should look to vendors that not only provide integrated systems, but also have predefined processes, service templates and work flows that can quickly be implemented without costly and time-consuming customisation. CSPs should hire an SI that is well-steeped in process design to address changes in organisation and business processes. This will enable them to achieve the necessary benefits from service fulfilment technology. Many CSPs have failed to get much benefit from investment in service fulfilment because they have been unable to align the goals and processes of different groups within the organisation. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 12 Recommendations for ISVs l l l If possible, provide a full service-fulfilment suite yourself, or as a preconfigured component of another’s suite. If this is not possible, seek out CSPs that are technology focused and looking for a competitive advantage from your product. Smaller, growing CSPs are looking for systems that are relatively simple to deploy, that are preconfigured for their basic use and that can solve their current problems quickly, while providing future growth opportunities. The key to these sales is to solve the known fulfilment problems quickly, with the lowest risk, while keeping costs reasonable. Transformation projects, such as consolidation of order management and inventory systems, should be targeted at the level of the department, not the enterprise, where risks of project failure are higher. Supporting dynamic and complex mobile services and service bundles is a major opportunity area. New data and content services delivered on IP networks force CSPs to be more aware of network and end-user device configurations and capabilities and to interact more dynamically with partners. Vendors with the strong ability to sell solutions should seek to get as much revenue as possible from each sale. Most of the total revenue for service fulfilment solutions comes from services. Many CSPs prefer to purchase some professional services from their software suppliers, rather than to depend entirely on systems integrators. ISVs capable of delivering both products and services can earn more revenue from each deal they win than vendors offering only products. Although the combination is hard to manage, there is a significant pay-off for vendors that succeed. Meeting industry standards, such as TMF SID compliance and harmonisation with e. TOM, can provide a marketing advantage in service fulfilment, but is very rarely mandatory. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 13 Document map: Market definition Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

14 Service fulfilment market share report 2009 Market definition Telecoms software market segmentation Figure 4: Telecoms software market segments [Source: Analysys Mason, 2010] Service delivery platforms Real-time charging Mobile content management and delivery Telecoms application servers Mobile device management 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 Middleware © Analysys Mason Limited 2010

Service fulfilment market share report 2009 15 Market definition Definitions of service fulfilment and its sub-segments Table 1: Service fulfilment and its sub-segments [Source: Analysys Mason, 2010] Segment or sub-segment Definition Service fulfilment systems plan the future capacity and technology of the network, prepare the network to provide service, and plan and implement the changes required in the network and services layer to support the services as ordered by customers. Order management systems control and report on the process of fulfilling service orders. Service orders may be requests for new service but they may also be removal of services, movement of an existing service to a new address or mobile device, or changes to an existing service. Inventory management systems track the resources used to provide service and the physical and logical configuration of the network to provide persistent services. They also control the assignment of the inventory to specific uses, and design special arrangements to provide special services for specific users. Activation systems automate the explicit commands to turn on a new service. They communicate with service layer databases, network management systems, element management systems, or directly with network elements. Engineering tools encompasses a range of applications that help engineering departments to operate more efficiently. These tools require a human interface. They include planning, equipment installation and configuration, network optimisation, outside plant inventory and design and diagnostic tools. See the Annex for fuller descriptions of the sub-segments. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 16 Market definition Definitions of service segments and revenue types Table 2: Service segments [Source: Analysys Mason, 2010] Segment Definition Mobile All mobile services, also referred to as wireless or cellular in some markets. Includes voice and data services. Mobile backhaul is included in business services when provided by another CSP. PSTN Residential and commercial switched voice services, including local and long-distance service. Business services Includes all CSP services other than PSTN phone service provided directly to businesses or other CSPs and includes frame relay, Internet access, hosting services, IP VPN, Ethernet, managed IT services and wholesale carrier services. Residential broadband High-speed data networking (primarily x. DSL , FTTx, HFC and cable) and all the services based on this network access including ISP, Vo. IP and IPTV service. Table 3: Revenue types [Source: Analysys Mason, 2010] Revenue type Definition Product Includes licence software and maintenance. We also apply a portion of Saa. S and managed services revenue to this category. Product-related services Installation and configuration of software for product software supplied. Usually, but not necessarily, supplied by the ISV. Professional services Non-product related services (e. g. bespoke development, data loading, customised software extensions, product integration with legacy systems). These are not included in this report. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 17 Document map: Business environment Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 18 Business environment Overall telecoms market growth was dampened, except in specific technological and geographical areas Economic downturn l l l Much less capital was spent on network infrastructure than before 2009. Investment in communications software related to new customer acquisition and increased ARPU rose Evolution to IP-based networks and services l l CSPs had more need to reduce operational costs, but made little investment to accomplish this The rate of deployment of new OSSs decreased in every region except CALA and MEA, but existing projects continued and were expanded l Data services growth l l New multimedia services delivered via fixed broadband, such as IPTV, Vo. IP and video conferencing, drove the need for higher-capacity NGA infrastructure, such as GPON and FTTx, and the service fulfilment functions to support them Mobile CSPs introduced video services, application stores and ecommerce sites that required new or enhanced BSS and OSS solutions Traditional voice, data and video services are all now available over IP. NGN evolution is underway in nearly all CSPs – few are attempting revolutions IP-based networks provide easier and more flexible network planning, configuration, optimisation and qualityof-service management The focus of new services has shifted from the network layer to the services layer and from management of individual services to increasingly complex service bundles Growth markets opening to mobile competition l l l India is holding a 3 G licence auction, and new mobile licences are on offer in Costa Rica and Thailand Smaller (Tier-3) CSPs are adopting turnkey solutions (‘build-operate-transfer’) to enable rapid service launches with trusted managed-service partners Larger (Tier-1 and Tier-2) CSPs are investing in growth markets – for example, Telecom Italia and Telefónica are investing in CALA and Etisalat and Vodafone in India © Analysys Mason Limited 2010

Service fulfilment market share report 2009 19 Business environment CSPs are targeting service needs l l l CSPs use a wide variety of methods to implement service fulfilment. Even the most sophisticated CSPs use many manual steps to manage low-volume, complex services. However, all modern CSPs implement automated fulfilment systems for high-volume services, such as residential voice, mobile voice and data, Vo. IP, x. DSL and FTTx. Large, established CSPs have a legacy of department-specific approaches to service fulfilment. These larger CSPs find it easier to implement specific best-of-breed systems from different vendors than to implement a complete change in service fulfilment processes and support systems. New CSPs and some older CSPs that are facing high growth with few support systems in place are more inclined to implement complete, integrated service fulfilment systems. These CSPs are very conscious of cost, but they make quicker decisions and depend on an SI, or, increasingly, on a full-solution ISV to solve problems and get their systems working. CSPs are putting in systems that can support multiple network technologies for converged services. Their greatest attention has been paid to inventory management systems because of the need to understand the capabilities of available resources and the configuration of these resources in serving their customers. Although there is a strategic move towards consolidation of fulfilment systems, in the near future, this consolidation will maintain four distinct environments in most CSPs: PSTN, residential broadband, mobile and business services. There were fewer new projects during 2008 and 2009 than in past years, but projects that were already ongoing were not stopped, and were often expanded. There was significant price pressure on all industry participants in 2008– 2009 and margins were tight. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 20 Business environment Transformations and federation l l The general market is showing more interest in convergent fulfilment systems that can support immediate service needs and, at the same time, provide a basis for supporting future services. There is little interest in converting or consolidating old fulfilment systems that work for the services they support. In order to deal with the need for regional consolidation and functional integration, many CSPs are turning to a federated approach. Instead of picking one system and converting the others, they are focusing on a subset of functionality and data that must be held in common. They implement a complementary, usually new, system that provides the common functionality and controls the shared data. They then migrate data to this system from the existing systems, which continue to handle their own unique needs. Over time, the common system takes over more functions, but a forced conversion is not necessary. This approach has been used in the billing arena for some time and is finding its way into the service catalogue and the inventory and order management markets. Spend on service fulfilment goes to many small ISVs. This segment is continuing slowly to consolidate, as CSPs pursue larger projects using multiple technologies. In the past few years, Amdocs has acquired Cramer and Jacobs. Rimmel, CSG Systems has bought Telution, Oracle purchased Meta. Solv and Netsure, and Subex acquired Syndesis, among others (see the list of acquisitions later in this document). In 2009, a number of vendors entered the inventory, order management, and network planning areas for the first time. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 21 Business environment Professional services have been expanded l l l A service fulfilment installation involves a significant amount of software and services. Typically, the value of the associated professional services is three to five times that of the software, when customised features, integration with other OSS and data migration are included. The CSP’s IT staff often handles many of the services. Local IT-integration firms frequently play a large role, as do the major SIs, such as Accenture and IBM. These obtain significant amounts of revenue from professional services for service fulfilment – more than do the software vendors, in many situations. However, a notable minority of ISVs , including Amdocs, Net. Cracker (a part of NEC), and several vendors in growth markets, including Clarity, Comarch, and Comptel, have also successfully sought this work. Some of the ISVs that provide service fulfilment also provide outsourced operations, often as an option. In an outsourced operation, the CSP makes a contract with the vendor to provide software and the IT systems to run the software and the operations personnel to handle orders. This mode has been popular for cable billing and mobile RF engineering for many years and shows some signs of migrating into other operational areas. The re-emergence of start-up CSPs with little existing infrastructure and limited expertise creates the greatest demand for outsourced service fulfilment or Saa. S. Synchronoss Technologies is the largest vendor of outsourced service fulfilment in the USA. Some vendors are using Saa. S as a temporary measure to provide functionality quickly, until the CSPs’ data centres are ready to implement the software. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 22 Business environment Regional service fulfilment outlook for 2010 NA l l l Telecoms spending will increase in this region IPTV will drive new service bundles that need morecomplex service fulfilment Mobile service bundles will become more complex and varied as more video services are introduced CALA l Regulatory pressure could limit growth l Telecoms spending will continue to increase slowly l l EMEA l l Telecoms spending will increase in this region Increases in mobile data speeds will drive new data services and service bundles Maturation of the services layer will support many new services, which will need to be implemented quickly and to support instant provisioning IPTV deployments are expected to increase Turnkey projects for new entrants will continue – Costa Rica’s mobile licence may be awarded in 2010 Dominant CSPs, such as América Móvil/TELMEX, Cable & Wireless, Columbus Communications, Digicel, Telefónica and Telecom Italia, will continue to dictate the pace of this region APAC l l Telecoms spending will continue to grow in this region China will remain a relatively closed service fulfilment market The Indian market will continue to grow Maturation of the services layer will support many new services, which will need to be implemented quickly and to support instant provisioning © Analysys Mason Limited 2010

Service fulfilment market share report 2009 23 Document map: Market shares Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 24 Market shares Service fulfilment overall market shares in 2009 Figure 5: Service fulfilment market shares by revenue, worldwide, 20091 [Source: Analysys Mason, 2010] l l 1 The overall market revenue for service fulfilment was USD 2. 23 billion in 2009. The top-six suppliers accounted for 44% of the market, which is about the same as last year. Generally speaking, the leading vendors that maintained or gained market share did so by taking on more services work and by expanding existing projects, with some new projects in growth markets. Some vendors reaped the rewards of their earlier acquisitions to fill holes in their product sites and of efforts to integrate these acquisitions more fully into their product lines. This report does not include the fulfilment software products offered by NEMs, even if those systems have limited multi-vendor capabilities. An assessment of these vendors’ offerings is underway. The ‘other’ category includes: Actix, AIRCOM International, Ascom, Clarity, Comarch, GE Smallworld, Sigma Systems, Subex, Synchronoss and Visionael, with an aggregate market share of 21%, and many other small vendors, with an aggregate market share of 35%. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 25 Market shares Service fulfilment product market shares in 2009 Figure 6: Service fulfilment product market shares by revenue, worldwide, 20091 [Source: Analysys Mason, 2010] l l 1 The overall market revenue for service fulfilment products was USD 1. 362 billion in 2009. The topsix suppliers accounted for 45% of the market, which is about the same as last year. Oracle and Amdocs swapped market share positions in 2009. The rest of the top-six vendors maintained the same market share position as last year. ‘Product’ includes licence software, maintenance and a portion of managed services and Saa. S revenue attributed to products. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 26 Market shares Service fulfilment product-related services market shares in 2009 Figure 7: Service fulfilment product-related services market shares by revenue, worldwide, 20091 [Source: Analysys Mason, 2010] l l l 1 The overall market revenue for service fulfilment product-related services was USD 869 million in 2009. The top-six suppliers accounted for 47% of the market, up from 45% in 2008. Oracle and Amdocs both increased their market shares in service fulfilment services. NEC continued its movement towards moreproductised offerings that require less services, offering preconfigured suites to solve targeted problems. ‘Product-related services’ includes installation and basic configuration of software for product software supplied. Examples are the service templates in an order management system and the equipment models in an inventory system. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 27 Market shares Service fulfilment market 2009: ratios of product to productrelated services Figure 8: Service fulfilment product versus product-related service revenue for ISVs, worldwide, 2009 [Source: Analysys Mason, 2010] l l l Vendors differ significantly in their ratios of product to product-related services revenue. The variation comes from the extent to which products are shrink-wrapped and preconfigured and from the amount of work on product-related services that the ISV chooses to pursue. As well as software, CSPs increasingly look to their major suppliers for product-related services (installation, training and configuration, which are included here) and professional services (consulting, data loading, systems integration, etc. , which are not included here). We believe that a combination of strong products, strong product-related services and strong professional services is the best overall value proposition in service fulfilment for large ISVs. Values listed in individual bars on the chart are USD million. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 28 Market shares Order management overall market shares in 2009 Figure 9: Service fulfilment order management market shares by revenue, worldwide, 20091 [Source: Analysys Mason, 2010] l l l 1 The global order management (OM) market revenue was USD 627 million in 2009. The top-six suppliers accounted for 40% of the commercial OM market. This market is highly fragmented; a large number of vendors fall into in the category of ‘Other’, each with USD 5 million or less in revenue. Acquisitions and OEM deals in this area have boosted the share of OM revenue of several vendors. Some vendors have successfully positioned their OM systems into the customer relationship management (CRM) space to provide an enterprise order control function for complex, bundled orders that depend on an intricate network of factors. We include this revenue under CRM in the customer care area, suppressing the apparent growth of OM. The ‘other’ category includes: Clarity, Comarch, Comptel, Concept. Wave, CSG Systems, Evolving Systems, HP, Sonus Networks, TANDBERG Television and Visionael. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 29 Market shares Order management vendors in 2009 l l l Amdocs has created its own OM portfolio by building on the technology of its acquisition Cramer Systems. Much of Telcordia’s OM revenue is from legacy business with North American wireline incumbent operators; Telcordia’s Service Order Activation and Control (SOAC) product continues to handle the majority of PSTN orders in the USA. Telcordia’s Expediter and Exception Manager Systems are built on Concept. Wave’s Order Management offering. Sigma Systems is the leading supplier of OM for cable MSOs. Sigma Systems continues to benefit from the broader converged residential broadband services business, handling orders for Vo. D, gaming and other value-added services. OM is an important part of NEC’s (Net. Cracker) overall service fulfilment solution. Although many vendors sell OM separately from other fulfilment, NEC’s Net. Cracker OM is nearly always integrated into its inventory product. Oracle’s overall OM business includes Oracle-developed products, Siebel-based OM and Oracle Communications Order and Service Management (OSM), originally developed by Meta. Solv, which has been enhanced to address the enterprise order management space. Synchronoss is an outsourced fulfilment supplier in NA for mobile CSPs. We count a portion of Synchronoss’s revenue, which accounts for the product and professional services value, and subtract the fulfilment operations value. Most of Synchronoss’s customers use it to handle orders for business services, but Synchronoss also handles mobile and Vo. IP services. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 30 Market shares Inventory overall market shares in 2009 Figure 10: Service fulfilment inventory market shares by revenue, worldwide, 20091 [Source: Analysys Mason, 2010] l l l 1 The overall inventory market revenue rose from USD 598 million in 2008 to USD 627 million in 2009. The top-six suppliers account for 70% of the inventory management market, having gone through substantial merger and acquisition activity over the last five years. This segment continues to consolidate, but there are still many smaller suppliers, some new to the inventory market. The ‘other’ category includes: Aktavara, Clarity, Comarch, Comm. Solv, Dorado, HP, Netformx, Subex, Synchronoss and Tier. One OSS. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 31 Market shares Inventory vendors in 2009 [1] l l Telcordia maintained its leadership position on the strength of its legacy TIRKS, LFACS and SWITCH systems, as well as that of its modern Telcordia Granite Inventory system and the Telcordia Network Engineer systems when it used to provide physical inventory of inside equipment (the majority of the revenue from Network Engineer is included under engineering tools, however). These two systems have also been integrated to provide full logical and physical inventory functions. Amdocs continues to sell its overall service fulfilment solution, which was expanded in 2009 to include new capacity planning functions. Amdocs’ major strength is in the European market, which has traditionally been the strongest geographical segment, but suffered from the economic downturn in 2009. The acquisition of cable inventory, OM and activation specialist Jacobs. Rimmel and the integration of its products into the Amdocs OSS product line has brought Amdocs greater presence in the cable MSO CSP space. Net. Cracker, now a part of NEC, was able to continue to grow as it expanded earlier service fulfilment installations, extending them to new services and technologies. Net. Cracker also closed about six new service fulfilment deals in 2009. In 2010, NEC announced that all of the NEC OSS and BSS software had been consolidated into the Net. Cracker unit (this consolidation is not included in this report). This will create a new BSS/OSS powerhouse with revenue of over USD 1 billion. Oracle has two principal inventory solutions: UIM for inventory of IT and network-based services, and MSS for network resource management with regulated ordering support. These are usually purchased by CSPs, together with OSM and Activation, to enable the fulfilment of IT and network-based services. Much of Oracle’s business comes from growth markets that are deploying broadband mobile services, as well as from continued expansion of MSS for business-to-business services, primarily in the Americas. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 32 Market shares Inventory vendors in 2009 [2] l l Comptel is Finland’s public OSS provider. Its inventory customers include América Móvil, Bharti Airtel, China Mobile, O 2, Saudi Telecom, T-Mobile, Telefónica and Vodafone. These solid, convergent inventory deployments are a part of the overall Comptel Dynamic OSS fulfilment solution. Visionael has been up and down, and in and out of the CSP market, over the past five years. It is still focused primarily on enterprises and government, but gets about one-third of its business from CSPs. In the past three years, its IP-focused inventory management system has been successful in many CSPs, including cable MSOs and business service groups of major CSPs, keeping it among the leaders in the telecoms market. Other companies with stronger inventory are those that are focused especially on activation. Notable in that category are HP and Subex (via its Syndesis acquisition). Also, Australia’s Clarity and Poland’s Comarch, which offer complete OSS solutions, mostly in growth markets, have experienced significant growth in their inventory businesses. New to the list of the top-sixteen suppliers is Netformx. It provides an assign and design solution for business services, as well as a repository for the logical configuration of the IP network to support business users. We expect many new entrants from the enterprise market to come into the inventory market, as the CSP infrastructure looks increasingly like an enterprise IT shop. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 33 Market shares Activation overall market shares in 2009 Figure 11: Service fulfilment activation market shares by revenue, worldwide, 20091 [Source: Analysys Mason, 2010] l l 1 The global activation market revenue was USD 465 million in 2009, 5. 4% more than in the previous year. The top-six suppliers accounted for 63% of the market, down from 65% in 2008. The order of the market leaders was the same in 2009 as in 2008. This market again grew significantly in 2009, as mobile, Vo. IP, IPTV, IP VPNs and growth markets all became more important, but the PSTN market continued to fall. The ‘other’ category includes: Clarity, CMS, Evolving Systems, IEL, Intec, Kabira, NEC, Sigma Systems, Sonus Networks, Vero Systems and Visionael. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 34 Market shares Activation vendors in 2009 l l l Oracle continues to be the leading activation supplier, with a system that traces its technological lineage to the well-deployed ASAP system. Its customers range from Tier-1 operators in North America and Europe to competitive CSPs in growth markets. HP focuses on activating IP-based services, including VPNs, metro Ethernet, DSL, Wi-Fi and data centre automation. HP’s largest activation customer is Telefónica in Europe and Latin America. It also does business with other European and Asian CSPs. HP’s services organisation is a big factor in the strength and growth of its activation business. Comptel’s activation business focuses on mobile services in growth markets where CSPs need complex activation for the increasingly complex service bundles. Comptel capitalises upon its strong position in mediation to gain business in mobile growth markets. It usually provides products, as well as the necessary professional services, to maximise its revenue opportunity from each sale. Subex integrated the Syndesis activation product it acquired and offers it with its integrated service fulfilment suite. Its business is driven by activation of new complex IP-based services and service bundles. Amdocs has a traditional business in mobile voice activation, which gives it a significant position in activation. It has added to that position with the service activation capabilities of the Amdocs OSS portfolio and the creation of preconfigured service packs for targeted services and technologies. Telcordia has a strong set of legacy systems for service activation, as well as its next-generation Activator product, which is sold in conjunction with the Telcordia Granite Inventory system. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 35 Market shares Engineering tools overall market shares in 2009 Figure 12: Service fulfilment engineering tools market shares by revenue, worldwide, 20091 [Source: Analysys Mason, 2010] l l l 1 The overall engineering tools market revenue was USD 521 million in 2009, representing a modest 1. 2% increase over 2008. Three of the top-six vendors are primarily mobile RF engineering and optimisation systems (AIRCOM International, Ascom Holding and Actix), while the other three are GIS-based outside plant engineering and planning systems (GE Smallworld, Telcordia Network Engineer and Intergraph). The engineering tools market traditionally grows slowly, but should experience more activity as LTE and FTTx implementations begin in earnest. Growth in product revenue, however, will be limited by the worldwide trend of outsourcing the engineering function to specialised vendors and NEMs. The ‘other’ category includes: Airwide Solutions, Bentley Systems, HP, Intelliden, Map. Info, Mentum, NEC, OPNET Technologies, Schema and VPIsystems. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 36 Document map: Vendor analysis Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 37 Vendor analysis Actix Figure 13: Actix’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 4: Actix analysis [Source: Analysys Mason, 2010] Strengths l l Private company focusing on mobile network planning and optimisation software Strong RF planning and centralised optimisation software products Announced a self-organising network solution in 2009. Is forming a partnership with Nokia Siemens to bring it to market Good exposure to growth markets Weaknesses Figure 14: Actix’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] l Is a product company in what is becoming a more outsourced engineering services business Strategic direction l Become the leader in self-organising network (SON) solutions © Analysys Mason Limited 2010

Service fulfilment market share report 2009 38 Vendor analysis AIRCOM International Figure 15: AIRCOM International’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 5: AIRCOM International analysis [Source: Analysys Mason, 2010] Strengths l Largest vendor of network planning in mobile, providing mobile network engineering tools and outsourced services l Extensive installed base l Had wins at Zain and Telecoms Network Malawi in 2009 l l Figure 16: AIRCOM International’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] l Has strategic relationships with Telcordia and Tango Telecom Has partnering arrangements with Huawei, Cincinnati Bell and Nokia Siemens Networks Is incorporating Aria Networks’ software into its backhaul planning module Weaknesses l l Mainly an outsourced engineering company, not a software technology company Vast majority of its revenue comes from EMEA; has minor exposure to growth markets Strategic direction l l Become the leader in LTE support Provide integrated RF and wireline infrastructure planning for mobile CSPs © Analysys Mason Limited 2010

Service fulfilment market share report 2009 39 Vendor analysis Amdocs Figure 17: Amdocs’ service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 6: Amdocs analysis [Source: Analysys Mason, 2010] Strengths l Public company with strong integrated BSS and OSS product suites focused on the CSP market l Preconfigured solutions for targeted problems l History of successful acquisitions l Strong services extract the most revenue from a project Weaknesses l Figure 18: Amdocs’ service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] Overall, Amdocs orientation is towards serving a limited number of customers, not acquiring new ones l Excels at large transformation projects, which are few l Overall company performance has not met expectations Strategic direction l l Continue to integrate BSS and OSS areas Preconfigured product suites and solutions for faster implementation l Managed OSS services l Evolve integrated network planning, build and roll-out © Analysys Mason Limited 2010

Service fulfilment market share report 2009 40 Vendor analysis Ascom Holding Figure 19: Ascom Holding’s service fulfilment, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 7: Ascom Holding analysis [Source: Analysys Mason, 2010] Strengths l l l Figure 20: Ascom Holding’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] Ascom is a USD 478 million company providing a number of specialised wireless communications solutions to many industries For CSPs, Ascom provides mobile planning, testing, and optimisation systems TEMS Cell. Planner and TEMS Link. Planner are well-regarded RF engineering products with a long history and an excellent pedigree Weaknesses l Little focus on the CSP market Strategic direction l Selling TEMS Cell. Planner and Link. Planner products to Mentum in 2010, leaving the CSP network planning tools market after having integrated the TEMS mobile measurements organisation into its network testing division © Analysys Mason Limited 2010

Service fulfilment market share report 2009 41 Vendor analysis Comptel Figure 21: Comptel’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 8: Comptel analysis [Source: Analysys Mason, 2010] Strengths l l Comptel is a public company providing fulfilment and resource management, catalogue and mediation and charging products for the CSP market Axiom acquisition formed the basis of its service fulfilment platform. OM and service activation is strong in most non-US markets l IP orientation l Strong in MEA, a growing market Weaknesses Figure 22: Comptel’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] l Little exposure to NA market l Inventory system is not a major player in the market Strategic direction l l Building end-to-end solutions for service fulfilment automation used in fixed broadband networks Closer partnerships with major suppliers, such as Alcatel. Lucent, Cisco and IBM © Analysys Mason Limited 2010

Service fulfilment market share report 2009 42 Vendor analysis GE Smallworld Figure 23: GE Smallworld’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 9: GE Smallworld analysis [Source: Analysys Mason, 2010] Strengths l l l Smallworld is a product of GE Energy, a subsidiary focused on outside plant engineering and field force management for utilities and CSPs Well-regarded GIS system for physical layer of outside plant engineering Strong worldwide GE brand Weaknesses l Figure 24: GE Smallworld’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] Lack of focus on CSP market l Logical inventory module is not widely deployed Strategic direction l Continue to serve existing customers l Utelco market © Analysys Mason Limited 2010

Service fulfilment market share report 2009 43 Vendor analysis Hewlett-Packard Figure 25: HP’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 10: HP analysis [Source: Analysys Mason, 2010] Strengths l l l Figure 26: HP’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] Division of a strong well-known public technology company HP NGOSS is a strong contender in both service assurance and service fulfilment Strong activation product in integrated service fulfilment suite HP product and consulting presence in growth markets provides sales leads Renewed HP focus on the CSP market through the new Communications, Media and Entertainment (CME) organisation Weaknesses l l Resell two key pieces of service fulfilment architecture as a part of their service fulfilment suite, order management (Concept. Wave) and inventory (Net. Cracker) Weak presence in customer care, which is being integrated with service fulfilment by other vendors Strategic direction l Consulting-led solutions approach l Introducing IT technology into CSP market (e. g. UCMDB) l Helping CSPs get into new businesses via joint go-to-market initiatives and outsourcing (e. g. Alcatel-Lucent deal) © Analysys Mason Limited 2010

Service fulfilment market share report 2009 44 Vendor analysis Intergraph Figure 27: Intergraph’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 11: Intergraph analysis [Source: Analysys Mason, 2010] Strengths l l Intergraph is a large private company that provides engineering and geospatial software to a wide range of industries. Overall 2009 revenue was USD 770. 4 million Major users include Bell Canada and Shanghai Telecom Weaknesses l Little focus on the CSP market Strategic direction l Figure 28: Intergraph’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] Maintain current customers in telecoms l Expand in other areas © Analysys Mason Limited 2010

Service fulfilment market share report 2009 45 Vendor analysis NEC Net. Cracker Figure 29: NEC’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 12: NEC analysis [Source: Analysys Mason, 2010] Strengths l l Aggressive sales posture in growth markets with low initial prices Ability to expand footprint of initial projects, obtaining continuing revenue Doing all the services itself captures maximum revenue and gives control of the CSPs’ experience with the product IP orientation of products Weaknesses l Figure 30: NEC’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] l No billing system to integrate with service fulfilment to provide a full order-to-bill process No partner SIs Strategic direction l l Become the communications software arm of NEC, taking all of the NEC OSS and BSS products under the Net. Cracker brand Be the ‘transformation’ leader in OSS © Analysys Mason Limited 2010

Service fulfilment market share report 2009 46 Vendor analysis Oracle Figure 31: Oracle’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 13: Oracle analysis [Source: Analysys Mason, 2010] Strengths l l Ubiquitous brand sales presence in telecoms from Oracle database and BEA middleware products Popular activation product integrated with OM and updated inventory, all within comprehensive overall software and data architecture Strong SI relationships provide excellent sales reach Core competency in acquiring and integrating technology companies Weaknesses Figure 32: Oracle’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] l l Dependence on SIs for sales and successful implementations Supporting both stand-alone and tightly integrated architecture increases costs UIM is a relatively recent inventory product No announced migration path for current Meta. Solv customers Strategic direction l Pre-integrated, preconfigured suites l Introduce IT technology products into CSP market © Analysys Mason Limited 2010

Service fulfilment market share report 2009 47 Vendor analysis Sigma Systems Figure 33: Sigma Systems’ service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 14: Sigma Systems analysis [Source: Analysys Mason, 2010] Strengths l Private ISV focused on CSP service management, service catalogue and device provisioning l Leader in service fulfilment for cable MSO market l Strong resellers: Ericsson, Fujitsu, others Weaknesses l Figure 34: Sigma Systems’ service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] l Little connection to customer care functionality, being integrated by other vendors Little physical inventory and fulfilment functionality – focus is only on logical provisioning Strategic direction l Geographical expansion l Additional resellers l Wireline triple-play CSPs l Advanced advertising © Analysys Mason Limited 2010

Service fulfilment market share report 2009 48 Vendor analysis Subex Figure 35: Subex’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 15: Subex analysis [Source: Analysys Mason, 2010] Strengths l l Part of large public information services and cross-industry software technology company that grew from a telecoms background Strong product lines in revenue assurance and activation Weaknesses l Company focus is more on revenue assurance than service fulfilment Strategic direction Figure 36: Subex’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] l Service fulfilment in a box © Analysys Mason Limited 2010

Service fulfilment market share report 2009 49 Vendor analysis Synchronoss Figure 37: Synchronoss’s service fulfilment revenue, worldwide, 2008 and 20091 [Source: Analysys Mason, 2010] Table 16: Synchronoss analysis [Source: Analysys Mason, 2010] Strengths l l Service activation platform, sold as a service to Tier-1 mobile and cable MSO CSPs in the USA Impressive list of Tier-1 customers Weaknesses l Nearly two-thirds of its revenue is from one customer, AT&T l Very little revenue from outside the USA Strategic direction Figure 38: Synchronoss’s revenue by region, 20091 [Source: Analysys Mason, 2010] 1 l Broaden customer base The majority of Synchronoss’s revenue is from outsourced fulfilment operations. We count a portion of Synchronoss’s 2009 revenue of USD 128 million, which accounts for the product and professional services value and subtract the fulfilment operations value. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 50 Vendor analysis Telcordia Figure 39: Telcordia’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 17: Telcordia analysis [Source: Analysys Mason, 2010] Strengths l US RBOC legacy systems provide a revenue base l Tier 1 orientation with very scalable software systems l l Telcordia Granite Inventory (logical inventory) and Network Engineer (physical inventory and outside plant) are individually strong technical products that work together Recent partner programme has increased sales reach Weaknesses l Figure 40: Telcordia’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] l l Minor presence in growing mobile and growth markets Little functionality in customer care, which is an area integrating with service fulfilment Depends on a partner, Concept. Wave, for OM Strategic direction l Maintenance, configuration and customisation of in-place systems for current customers l Solution selling l Increasing use of partners for sales reach © Analysys Mason Limited 2010

Service fulfilment market share report 2009 51 Vendor analysis Visionael Figure 41: Visionael’s service fulfilment revenue, worldwide, 2008 and 2009 [Source: Analysys Mason, 2010] Table 18: Visionael analysis [Source: Analysys Mason, 2010] Strengths l l Traditionally strong in IP network inventory Products span the enterprise (one-third of revenue) and CSP markets l Large IP equipment model library l Low implementation and integration costs Weaknesses l l Figure 42: Visionael’s service fulfilment revenue by region, 2009 [Source: Analysys Mason, 2010] Only basic OM functionality Speciality inventory company in a market that is increasingly rewarding service fulfilment suites Strategic direction l New release incorporates novel software technology and architecture l Refocus attention onto the CSP market l Partner-centric sales and support model © Analysys Mason Limited 2010

52 Service fulfilment market share report 2009 Vendor analysis summary [1] Table 19 a: Comparison of service fulfilment ISVs 1 [Source: Analysys Mason, 2010] Region Vendor Overall NA CALA EMEA APAC Mobile Market segment Business Residential broadband ™ ™ ˜ ˜ ™ ™ ™ » ˜ ™ ™ Acision ™ ™ ™ Actix » ™ ™ » » ˜ AIRCOM International » ™ ™ ˜ » ˜ Airwide Solutions ™ ™ ™ Aktavara ™ Amdocs ˜ ˜ Andrew (Comm. Scope) ™ Aria PSTN » » ˜ ˜ ˜ ™ ™ ™ » ™ ™ ™ Ascom Holding » » Asia. Info Holdings ™ Bentley Systems ™ ™ CADTEL ™ ™ Cell. Vision ™ ™ Clarity » CMS ™ ™ Comarch » ™ Comm. Solv ™ ™ 1 » ™ ™ » ™ ™ ˜ ™ ™ ™ ™ » ™ ˜ ™ » ™ ™ ™ Key: ™ = has a presence in the market » = has a notable presence in the market = market leader. © Analysys Mason Limited 2010

53 Service fulfilment market share report 2009 Vendor analysis summary [2] Table 19 b: Comparison of service fulfilment ISVs 1 [Source: Analysys Mason, 2010] Region Vendor Overall NA CALA EMEA APAC Mobile Market segment ™ ˜ » » Residential broadband » » ™ ™ ™ ™ ™ » CSG Systems ™ » » Computer Support Services, Inc. (CSSI) ™ ™ Dorado ™ » ECI Telecom ™ ETI Software ™ ™ Evolving Systems » » Fastwire Group ™ ™ GE Smallworld » » Hewlett-Packard ˜ ™ IEL ™ ™ Intec Telecom Systems ™ Intelliden ™ ™ Intergraph » IPVALUE Kabira Comptel ˜ Concept. Wave » Convergys PSTN Business ™ ™ ™ » » ™ » ™ ™ ™ » » ˜ ˜ ™ ™ ™ » 1 ™ ™ » ™ ™ ™ » » » ™ ™ ˜ ™ ™ » Key: ™ = has a presence in the market » = has a notable presence in the market = market leader. © Analysys Mason Limited 2010

54 Service fulfilment market share report 2009 Vendor analysis summary [3] Table 19 c: Comparison of service fulfilment ISVs 1 [Source: Analysys Mason, 2010] Region Vendor Overall NA CALA EMEA APAC Mobile Market segment PSTN Business ™ ™ ˜ ˜ Residential broadband » Map. Info » » ™ ™ Mentum ™ ™ ™ » NEC ˜ ˜ ™ ˜ ˜ » Netformx ™ ™ ™ » OPNET Technologies ™ ™ ™ » ™ Oracle ˜ ˜ ˜ ˜ Objective Systems Integrators (OSI) ™ ™ Schema ™ Service. SPAN ™ Sigma Systems » ˜ ™ ™ ™ Sonus Networks » » ™ ™ ™ Sterling Commerce ™ ™ Subex » » Synchronica ™ ™ Synchronoss Technologies » ˜ TANDBERG Television ™ ™ ™ Telcordia ˜ ˜ ˜ » » 1 ˜ » ™ ™ ™ » ˜ ™ » ™ ™ ˜ » ™ ™ » » » ™ » » ˜ ˜ ˜ Key: ™ = has a presence in the market » = has a notable presence in the market = market leader. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 55 Document map: Annexes Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 56 Annexes: Sub-segment definitions and deployment architecture Document map Annexes Sub-segment definitions and deployment architecture Mergers and acquisitions © Analysys Mason Limited 2010

57 Service fulfilment market share report 2009 Annexes: Sub-segment definitions and deployment architecture Order management Figure 43: Order management system key functions [Source: Analysys Mason, 2010] l Order management Service design Interfaces • Service/Product catalogue • Service definition • • Order process handler • • • l l Workflow system Exception handler Status monitor Reporting Order modification handler Order entry Activation systems Billing Work order LNP Wholesale access lines OSS/J – Order API The value of an order management (OM) system is measured by its ability to reduce delays, mistakes and costs in turning on new services. OM systems differentiate themselves from generic business process management software in their preconfiguration for telecoms services and the ease of adapting them to new services and technologies. l l OM systems control and report on the process of fulfilling service orders. Service orders may be requests for: new service, removal of service, moving an existing service to a new address or mobile device, or making changes to an existing service or an existing order. OM systems break orders into the many steps involved in turning up service, sequence these steps and monitor them to verify that they are all completed. The process may involve changes to central office switches, porting of numbers from another CSP, shipment of customer premises equipment, installation of cables, HLR updates, access point activation, back-haul circuit configuration, changes in a policy server, circuit test and many other such steps. As services and service bundles become much more complex, OM has an additional function of determining ability to support a particular requested service before the order is activated. © Analysys Mason Limited 2010

58 Service fulfilment market share report 2009 Annexes: Sub-segment definitions and deployment architecture Inventory Figure 44: Inventory system key functions [Source: Analysys Mason, 2010] l Inventory management Inventory • • Physical equipment Transport connections Services Logical addresses Resource assignment • • • TDM transport links ATM/Frame relay IP VPN, MPLS, Ethernet Vo. IP, IPTV Content and IT Discovery and reconciliation • Equipment discovery • Logical connections discovery • Reconciliation of network and inventory • Reconciliation of diverse inventory Federation and interfaces l l l Benefits of inventory systems include provisioning services without errors due to mismatch of equipment or capabilities and quickly finding faults that affect many services by providing a good ‘map’ of the network. Modern inventory systems can handle many types of equipment, have interfaces to other functions and synchronise with the network. Inventory management systems track the resources used to provide service and the physical and logical configuration of the network to provide persistent services. Resources may be physical assets, such as routers or cables, or may be logical resources, such as IP addresses or telephone numbers. These systems were traditionally static inventory. Modern systems both track the inventory, and control the assignment of the inventory with systems that understand how to consume, allocate and combine resources to support complex connections and services. Recently, IT-centric configuration and change management (CCM) has been used to manage the configuration of telecoms services supported on IT systems. These systems generally support messaging or content, but are extending into more functions as SDPs become common. A few CSPs have used their CCM systems to configure these new service platforms. © Analysys Mason Limited 2010

59 Service fulfilment market share report 2009 Annexes: Sub-segment definitions and deployment architecture Activation Figure 45: Activation system key functions [Source: Analysys Mason, 2010] l Activation controls • • • Inventory management • Order management • Engineering systems Equipment interfaces • Developer kits • Test tools l Scheduling Sequencing Retry management Error handling Developer tools l OSS interfaces • • • Equipment CLIs TLI CMISE SNMP EMS Benefits of activation systems centre around speedy, error-free service provisioning. l Activation systems automate the explicit commands to turn on a new service. They communicate with service-layer databases, network management systems, element management systems, or communicate directly to network elements. Usually, activation systems map connection requests that come through other systems (such as OM or inventory) to the specific commands that control the network. There are two general categories of activation systems: those that configure IT-based resources and those that configure network equipment. Activation systems are closely tied to specific types and models of hardware and equipment manufacturers provide much of this software. Modern activation systems differentiate themselves by their ability to activate wide varieties of equipment and by their error-handling capabilities. © Analysys Mason Limited 2010

60 Service fulfilment market share report 2009 Annexes: Sub-segment definitions and deployment architecture Engineering tools Figure 46: Engineering tools key functions [Source: Analysys Mason, 2010] l Engineering tools Network installation and configuration Network design and optimisation • • • Cable throw Trunk re-homing IP network growth Mobile radio tuning Configuration control Outside plant • Facilities design • GIS • Physical plant layout l l Fibre and TDM ATM/FR IP/Ethernet networks Fixed and mobile radio planning • Mobile cell optimisation • VPNs and private networks Engineering systems benefit CSPs by providing the right equipment at the right time in the right place and properly configured to be ready for service activation. Modern engineering tools differentiate themselves by their ease of use, the accuracy of their output and, increasingly, by their integration with other tools and systems. l l Engineering tools encompass a range of applications that help engineering departments to operate more efficiently. These tools require a human interface. They include planning, equipment installation and configuration, mobile device management, outside plant inventory, technician dispatch and diagnostic tools. Many of these tools are developed in-house by CSPs. NEMs always provide a range of tools to support their own hardware. These may be developed in-house or customised by ISVs for resale by the NEM. Neither tools developed by CSPs nor NEMs’ tools are included in the engineering tools market share. Engineering tools are slowly being replaced by software systems that automate the processes formerly carried out by the engineering experts. They are also being integrated into other systems, such as ERP, logistics and project management systems to provide much more efficient operation. © Analysys Mason Limited 2010

61 Service fulfilment market share report 2009 Annexes: Sub-segment definitions and deployment architecture Traditional wireline service fulfilment flow Figure 47: Interfaces supported by NMS [Source: Analysys Mason, 2010] l Order entry Customer care Traditionally, each major service had its own stack of service fulfilment systems and its own order entry system. Order management Inventory/NRM Activation Service assurance Engineering tools Service fulfilment l Traditional service fulfilment generally handled orders for single services that depended upon a new circuit in a wireline network. Manual steps were often required and engineers depended heavily upon discrete tools to do their specialised jobs. Network © Analysys Mason Limited 2010

62 Service fulfilment market share report 2009 Annexes: Sub-segment definitions and deployment architecture Modern service fulfilment flow Figure 48: Modern service fulfilment information flow [Source: Analysys Mason, 2010] Customer care l Billing Order management Inventory/NRM Vo. IP IPTV Email Gaming Conferencing Content Activation Network Activation IMS Service delivery platform Partner CSPs Service assurance Engineering tools Master catalogue l CSPs are changing how they use service fulfilment. New orders may still require a new network circuit or connection to an end user, but the connection, if it is IP VPN or IPTV, may be more complex than ever before. The order is likely to include a number of services that require no new connections, but are instead additional applications that use and share an existing connection. The connection is more likely to be to a mobile device. On these, a new path is established through the network each time a user makes use of a service instead of one preconfigured by engineering the network. Also, the ability to provide a particular service may depend upon the network configuration, the capabilities of the enduser device and prerequisite services. These requirements are blurring the lines of traditional service fulfilment and customer care, as complex bundles of services with even more complex dependencies are offered to consumers. These bundles must be validated before an order is placed, requiring much more complex interactions between customer care, OM and partners’ systems. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 63 Annexes: Mergers and acquisitions Document map Annexes Sub-segmentdefinitions and deployment architecture Mergers and acquisitions © Analysys Mason Limited 2010

64 Service fulfilment market share report 2009 Annexes: Mergers and acquisitions Service fulfilment mergers and acquisitions Table 20 a: Service fulfilment mergers and acquisitions, 2005 to May 2010 [Source: Analysys Mason, 2010] Transaction value Annual revenue Price revenue (USD million)1 multiple Date Buyer Seller May 2010 TIBCO Software Kabira N/a N/a May 2010 Mentum Ascom Holding’s TEMS Cell. Planner and Link. Planner 2. 2 5* 0. 4 Apr 2010 VPIsystems Elanti 1* 1* 1. 0 Feb 2010 IBM Intelliden N/a 10* N/a Jun 2009 Ascom Holding Ericsson TEMS unit 168 146 1. 2 Dec 2008 Convergys Ceon 18* 7* 2. 2 June 2008 NEC Net. Cracker 300* 60 1. 1 Apr 2008 Comptel Axiom 12 15 0. 8 Apr 2008 Sonus Atreus 20* 15* 1. 3 Dec 2007 ARRIS C-Cor 730 270* 2. 7 1 Revenue figures are either publicly reported or Analysys Mason estimates (marked as *). N/a = no data available. © Analysys Mason Limited 2010

65 Service fulfilment market share report 2009 Annexes: Mergers and acquisitions Service fulfilment mergers and acquisitions Table 20 b: Service fulfilment mergers and acquisitions, 2005 to May 2010 [Source: Analysys Mason, 2010] Date Buyer Seller Dec 2007 ARRIS C-Cor Sep 2007 Oracle Jun 2007 Transaction value Annual revenue Price revenue (USD million)1 multiple 730 270* 2. 7 Netsure 5* 5* 1. 0 Comm. Scope Andrew 2600 2200 1. 2 Mar 2007 Subex Syndesis 165 48* 3. 4 Feb 2007 Ericsson TANDBERG Television 1400 500* 1. 4 Oct 2006 SYS Ai. Metrix 7 8 1. 1 Oct 2006 Oracle Meta. Solv 219 140* 1. 6 Jul 2006 Amdocs Cramer 375 129 2. 9 Mar 2006 CSG Telution 22 12* 1. 8 Jan 2005 TANDBERG Television N 2 Broadband 120 45* 2. 7 1 Revenue figures are either publicly reported or Analysys Mason estimates (marked as *). N/a = no data available. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 66 Document map: Authors, copyright and key to acronyms Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 67 Authors, copyright and key to acronyms Author Mark H. Mortensen (Principal Analyst) is the lead analyst for Analysys Mason’s Customer Care and Service Fulfilment research programmes, which are part of the Telecoms Software research stream. His primary areas of specialisation include customer self-care, IT asset management and CMDBs and enterprise order control and master catalogues. The first 20 years of Mark's career were spent at Bell Laboratories, where he specialised in starting software products for new markets and network technologies and in the interaction of software with the underlying network hardware. Mark was Chief Scientist of Management Systems at Bell Labs, and has also been president of his own OSS strategy consulting company, CMO at the inventory specialist Granite Systems, VP of Product Strategy at Telcordia Technologies, and SVP of Marketing at the network planning software vendor VPIsystems. Mark holds an MPhil and a Ph. D in physics from Yale University and has received two AT&T Architecture awards for innovative software solutions. He is also an adjunct faculty member of UMass Lowell in the College of Management. © Analysys Mason Limited 2010

Service fulfilment market share report 2009 68 Authors, copyright and key to acronyms Copyright Published by Analysys Mason Limited, Bush House, North West Wing, Aldwych, London WC 2 B 4 PJ, UK Tel: +44 (0)20 7395 9000; Fax: +44 (0)20 7395 9001; Email: research@analysysmason. com; Web: www. analysysmason. com/research Registered in England No. 5177472 © Analysys Mason Limited 2010 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 22 1. 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 2010

Service fulfilment market share report 2009 69 Authors, copyright and key to acronyms Key to acronyms [1] 3 G Third generation ERP Enterprise resource planning APAC Asia–Pacific region e. TOM Enhanced Telecom Operations Map API Application programme interface FTTH Fibre to the home ARPU Average revenue per user FTTx Fibre to the x ATM Asynchronous transfer mode GIS Geographical information system BPM Business process management GPON Gigabit Passive Optical Network BSS Business support system HFC Hybrid fibre coax(ial) CALA Central and Latin America HLR Home location register CCM Configuration and change management IMS IP Multimedia Subsystem CLI Calling line identification IP Internet Protocol CMISE Common management information service element IPTV Internet Protocol TV ISV Independent software vendor IT Information technology LNP Local number portability LTE Long Term Evolution CRM Customer relationship management CSP Communications service provider EMEA Europe, the Middle East and Africa EMS Element management system © Analysys Mason Limited 2010

Service fulfilment market share report 2009 70 Author , copyright and key to acronyms Key to acronyms [2] MEA Middle East and Africa RF Radio frequency MPLS Multi-Protocol Label Switching Saa. S Software as a service MSO Multiple system operator SDP Service delivery platform NA North America SI Systems integrator NEM Network equipment manufacturer SME Small or medium-sized enterprise NGA Next-generation access network SNMP Simple Network Management Protocol NGN Next-generation network STB Set-top box NRM Network resource management TDM Time-division multiplexing OEM Original equipment manufacturer TLI Transport Layer Interface OM Order management Vo. IP Voice over Internet Protocol OSS Operations support system VPN Virtual private network PSTN Public switched telephone network Wi-Fi Wireless Fidelity RBOC Regional Bell operating company x. DSL Generic digital subscriber line © Analysys Mason Limited 2010

Service fulfilment market share report 2009 71 Document map: List of figures and tables Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 72 List of figures and tables [1] Figure 1: Service fulfilment market shares by revenue, worldwide, 2009 Figure 2: Service fulfilment market shares by revenue, 2008 and 2009 Figure 3: Service fulfilment market shares by region, 2008 and 2009 Figure 4: Telecoms software market segments Figure 5: Service fulfilment market shares by revenue, worldwide, 2009 Figure 6: Service fulfilment product market shares by revenue, worldwide, 2009 Figure 7: Service fulfilment product-related services market shares by revenue, worldwide, 2009 Figure 8: Service fulfilment product versus product-related service revenue for ISVs, worldwide, 2009 Figure 9: Service fulfilment order management market shares by revenue, worldwide, 2009 Figure 10: Service fulfilment inventory market shares by revenue, worldwide, 2009 Figure 11: Service fulfilment activation market shares by revenue, worldwide, 2009 Figure 12: Service fulfilment engineering tools market shares by revenue, worldwide, 2009 Figure 13: Actix’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 14: Actix’s service fulfilment revenue by region, 2009 Figure 15: AIRCOM International’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 16: AIRCOM International’s service fulfilment revenue by region, 2009 © Analysys Mason Limited 2010

Service fulfilment market share report 2009 73 List of figures and tables [2] Figure 17: Amdocs’ service fulfilment revenue, worldwide, 2008 and 2009 Figure 18: Amdocs’ service fulfilment revenue by region, 2009 Figure 19: Ascom Holding’s service fulfilment, worldwide, 2008 and 2009 Figure 20: Ascom Holding’s service fulfilment revenue by region, 2009 Figure 21: Comptel’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 22: Comptel’s service fulfilment revenue by region, 2009 Figure 23: GE Smallworld’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 24: GE Smallworld’s service fulfilment revenue by region, 2009 Figure 25: HP’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 26: HP’s service fulfilment revenue by region, 2009 Figure 27: Intergraph’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 28: Intergraph’s service fulfilment revenue by region, 2009 Figure 29: NEC’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 30: NEC’s service fulfilment revenue by region, 2009 Figure 31: Oracle’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 32: Oracle’s service fulfilment revenue by region, 2009 © Analysys Mason Limited 2010

Service fulfilment market share report 2009 74 List of figures and tables [3] Figure 33: Sigma Systems’ service fulfilment revenue, worldwide, 2008 and 2009 Figure 34: Sigma Systems’ service fulfilment revenue by region, 2009 Figure 35: Subex’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 36: Subex’s service fulfilment revenue by region, 2009 Figure 37: Synchronoss’s service fulfilment revenue, worldwide, 2008 and 20091 Figure 38: Synchronoss’s revenue by region, 20091 Figure 39: Telcordia’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 40: Telcordia’s service fulfilment revenue by region, 2009 Figure 41: Visionael’s service fulfilment revenue, worldwide, 2008 and 2009 Figure 42: Visionael’s service fulfilment revenue by region, 2009 Figure 43: Order management system key functions Figure 44: Inventory system key functions Figure 45: Activation system key functions Figure 46: Engineering tools key functions Figure 47: Interfaces supported by NMS Figure 48: Modern service fulfilment information flow © Analysys Mason Limited 2010

Service fulfilment market share report 2009 75 List of figures and tables [4] Table 1: Service fulfilment and its applications Table 2: Service segments Table 3: Revenue types Table 4: Actix analysis Table 5: AIRCOM International analysis Table 6: Amdocs analysis Table 7: Ascom Holding analysis Table 8: Comptel analysis Table 9: GE Smallworld analysis Table 10: HP analysis Table 11: Intergraph analysis Table 12: NEC analysis Table 13: Oracle analysis Table 14: Sigma Systems analysis Table 15: Subex analysis © Analysys Mason Limited 2010

Service fulfilment market share report 2009 76 List of figures and tables [5] Table 16: Synchronoss analysis Table 17: Telcordia analysis Table 18: Visionael analysis Table 19 a–c: Comparison of service fulfilment ISVs 1 Table 20 a–b: Service fulfilment mergers and acquisitions, 2005 to May 2010 © Analysys Mason Limited 2010

Service fulfilment market share report 2009 77 Document map: About Analysys Mason Document map Executive summary Recommendations Market definition Business environment Market shares Vendor analysis Annexes Authors, copyright and key to acronyms List of figures and tables About Analysys Mason © Analysys Mason Limited 2010

Service fulfilment market share report 2009 78 About Analysys Mason is the preferred partner of telecoms, IT and media organisations worldwide. Through our global presence, we deliver strategy advice, operations support and market intelligence to leading commercial and public sector organisations in more than 80 countries. Our clients rely on our consulting and research services to make better business decisions. The intellectual rigour, operational experience and insight of our people have helped our clients to meet some of the toughest challenges they face within the industry. We have consistently delivered significant and sustainable business benefits to our clients during the past 20 years on issues ranging from advising on operator strategy and tactics, development of national sector regulation, through execution of major financial transactions, to the deployment of public and private network infrastructure. We are respected worldwide for the exceptional quality of our work, our independence and the flexibility of our teams in responding to client needs. We are passionate about what we do and are committed to delivering excellence to our clients. Analysys Mason offers two types of service: l l Consulting: We work with our clients to provide customised advice and support throughout the business cycle, helping major players to set strategy, plan for change and implement that change. We have worked on a wide range of projects that support our partners and help them to increase revenue, reduce costs, plan for the future and minimise risk. Research: We offer research programmes and custom research to help our clients to identify key strategic issues, formulate strategies, identify trends and opportunities, and measure performance. For more information visit our website at www. analysysmason. com. © Analysys Mason Limited 2010

79 Service fulfilment market share report 2009 About Analysys Mason Research from Analysys Mason provides a portfolio of research services that help organisations to understand major strategic shifts, as well as country- and region-specific trends, in the global telecoms industry. Through a combination of granular market data and forecasts, and independent qualitative analysis and insight, we enable clients to make informed strategic and tactical decisions, reduce risk and benchmark their business performance. Analysys Mason’s research portfolio Research streams Operators, Services and Markets Telecoms Software Research programmes Voice Mobile Broadband Mobile Content and Applications Telecoms Market Matrix Service Assurance Billing Fixed Broadband Enterprise Core Forecasts Customer Care Service Fulfilment Global Growth Markets Country Reports SDP Strategies Telecoms Software Strategies Infrastructure Solutions Telecoms Software Market Shares Telecoms Networks Telecoms Software Forecasts Wireless Networks Fixed Networks For more information about our research programmes and custom research services, please visit www. analysysmason. com/research. © Analysys Mason Limited 2010

80 Service fulfilment market share report 2009 About Analysys Mason Consulting from Analysys Mason offers consulting services that span the entire business development cycle from strategy development, through planning and implementation, to review. We help clients in the public and private sectors to make the best possible business decisions on many key issues, including investment, strategy, policy, procurement, network roll-out and market entry. Analysys Mason advises clients in many industry sectors Mobile operators Media companies Delivering value through strategy planning and implementation Helping to maximise revenue in converging markets Public sector organisations Providing ICT and procurement advice for emergency services and public bodies Enterprise users Financial institutions Helping to maximise returns from investment in ICT Supporting vendors, sellers and financiers of industry transactions Regulators Establishing and implementing policy frameworks in telecoms and media markets Fixed operators Defining new strategies, optimising service portfolios and supporting policy development For more information about our consulting services, please visit www. analysysmason. com/consulting. © Analysys Mason Limited 2010