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SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
SWOT: Oracle Communications
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SWOT: Oracle Communications

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  • 1. Gartner for Business Leaders Publication Date: 28 September 2010 ID Number: G00205796 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner's research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice. SWOT: Oracle Communications, Worldwide Norbert J. Scholz, Jean-Claude Delcroix, Martina Kurth, Kamlesh Bhatia Oracle has become a major provider of communications service provider back office solutions. Strengths outweigh weaknesses and opportunities outweigh threats. Oracle Communications can build on Oracle's strong position with CSPs and leverage solutions from other business units.
  • 2. Publication Date: 28 September 2010/ID Number: G00205796 Page 2 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. TABLE OF CONTENTS Analysis ....................................................................................................................................... 4 SWOT Analysis................................................................................................................ 4 Strengths ............................................................................................................ 6 Comprehensive Vertical Solutions' Portfolio Provides One-Stop Shop for CSPs...................................................................................................... 6 Comprehensive Horizontal and Vertical Technology Framework Supports Complex New Services ........................................................................... 7 Robust Balance Sheet and Global Presence Ensures Broad and Growing Market Share............................................................................ 7 Track Record of Integrating Acquisitions Facilitates Product Integration .. 7 Wide Range of System Integrators Using Oracle Technology Provides Customer Choice.................................................................................... 7 Geographic Diversification ...................................................................... 8 Weaknesses ....................................................................................................... 8 Limited Penetration in Legacy OSS and Tier 1 Billing Deployments for Fixed Line, Circuit-Switched Voice Services............................................ 8 Missing OSS Features In Service Assurance .......................................... 8 SOA: Modular Application Architecture Through Web Services Standardization Is Limited As Yet............................................................ 9 Reliance on Partner Pricing..................................................................... 9 Some Gaps in the Solution Portfolio Remain........................................... 9 Opportunities..................................................................................................... 10 Opportunities to Begin Selling Integrated Hardware/Software Systems, for Instance in Data Management ......................................................... 10 CSP Transformation Toward End-To-End Solution Over Time .............. 10 Combining CRM with Service Assurance .............................................. 10 New SDP Requirements ....................................................................... 10 New Services Require Better Architectures and Data Management....... 11 Oracle's Implementation Success Depends to a Large Extent on Integration Partners .............................................................................. 11 Support for New Services and Delivery Models ..................................... 11 Threats.............................................................................................................. 11 Competitors Have Similar End-To-End Solutions and Some Offer Outsourcing.......................................................................................... 11 NEPs Increasingly Offer Content- and Value-Based Charging and Billing11 Competing With Their Reselling Partners — SIs and NEP Partners Might Turn Into Competitors ........................................................................... 12 CSPs Avoiding Single Provider of Software........................................... 12 Limited Integration Success of Multiple Acquired Assets, Especially in the NG SDP Domain............................................................................. 12 Pressure on Software Prices................................................................. 12 Implication for Company Being Profiled.......................................................................... 12 Company Overview........................................................................................................ 13 Revenue Distribution and Market Share............................................................. 13 Solutions Portfolio ............................................................................................. 16 Key Verticals ..................................................................................................... 19 Key Accounts.................................................................................................... 19 Key Partners ..................................................................................................... 20 Key Competitors................................................................................................ 20 Methodology.................................................................................................................. 20
  • 3. Publication Date: 28 September 2010/ID Number: G00205796 Page 3 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Definitions...................................................................................................................... 21 Recommended Reading............................................................................................................. 22 LIST OF TABLES Table 1. Oracle Communications Solution Portfolio..................................................................... 17 LIST OF FIGURES Figure 1. Graphical Representation of SWOT: Oracle Communications, Worldwide...................... 5 Figure 2. SWOT Analysis: Oracle Communications ...................................................................... 6 Figure 3. Oracle Communications Revenue, Worldwide, 2009.................................................... 15
  • 4. Publication Date: 28 September 2010/ID Number: G00205796 Page 4 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. ANALYSIS SWOT Analysis This SWOT analyzes Oracle Communications, a business unit of Oracle which provides solutions to communications service providers (CSPs). This includes products and solutions that Oracle Communications develops and maintains, and those that it leverages from other divisions of the company. Since 2004, Oracle has made a number of strategic acquisitions, including BEA Systems, Portal Software, MetaSolv Software, PeopleSoft, TimesTen, Siebel, Net4Call, HotSip, Netsure Telecom, Convergin and eServGlobal's Universal Services Platform (USP) assets. These acquisitions position Oracle as one of the leading providers of solutions tailored specifically to CSPs; in particular, operations support systems (OSSs), business support systems (BSSs) and service delivery platforms (SDPs). Figure 1 gives a graphical representation of the strengths, weaknesses, opportunities and threats pertaining to Oracle's business, based on Gartner's SWOT rating model. To create the figure we analyzed the strengths and weaknesses that are internal to Oracle and the opportunities and threats that are external to it. For each category we define a number of characteristics, based on parameters such as company or market, product and services offering, finance and operations. Each characteristic is examined in terms of its potential impact on Oracle's position in the market if it is acted on, or ignored, in the next 12 months. These impacts are then rated as high, medium or low to determine a final numbered rating for each quadrant in the graphic. Overall, Oracle Communications' strengths outweigh its weaknesses and opportunities outweigh its threats. The chart represents a composite of four evaluation criteria: product offering, go-to- market strategy, finances and operations. It attaches high importance to Oracle Communications' product offering and low importance to its go-to-market strategy, finances and operations. While we rate the product offering as high in most areas, there are plenty of opportunities to expand its breadth, enhance the ties to other solutions in the Oracle portfolio and improve the service-oriented architecture (SOA).
  • 5. Publication Date: 28 September 2010/ID Number: G00205796 Page 5 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Figure 1. Graphical Representation of SWOT: Oracle Communications, Worldwide Source: Gartner (September 2010) Figure 2 shows the SWOT analysis of Oracle's OSS and BSS solutions.
  • 6. Publication Date: 28 September 2010/ID Number: G00205796 Page 6 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Figure 2. SWOT Analysis: Oracle Communications CSP = communications service provider; NEP = network equipment provider; NG = next-generation; OSS = operations support system; SDP = service delivery platform; SI = system integrator. Source: Gartner (September 2010) Strengths Comprehensive Vertical Solutions' Portfolio Provides One-Stop Shop for CSPs Oracle Communications offers the full gamut of front- and back-office solutions, including BSS, OSS and SDP. It also leverages solutions from other divisions of the company, such as middleware, analytics, CRM and ERP. CSPs do not have to purchase the entire stack, but can choose individual modules and add more modules later on. Oracle has pre-integrated these solutions using its Oracle application integration architecture (AIA) framework. This strategy enables CSPs to migrate away from solutions silos and mitigate migration risks in the long run. The following solutions address some of the hot topics for CSPs: Business Intelligence — Oracle has a business intelligence (BI) and performance management portfolio, to complement its deep technology stack, that includes database, middleware and applications. This allows Oracle to upsell BI capabilities and use it as a competitive weapon against other leading telecom operations management systems (TOMS) vendors. The acquisition of Netsure allows Oracle to offer BI coverage that includes network assets, in addition to operational applications and analytics. Oracle has recently introduced Oracle Exadata Intelligent Warehouse for Communications,
  • 7. Publication Date: 28 September 2010/ID Number: G00205796 Page 7 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. featuring an industry-specific data model in line with the TeleManagement Forum's (TMF's) Information Framework (SID). Adding Hardware and Services (from Sun Microsystems) to the Software Portfolio — The acquisition of Sun Microsystems allows Oracle a wider span of control over the performance, reliability and security of its applications. It will also enable Oracle to pitch a combined hardware and software portfolio that reduces the cost of integration. Reference cases for its high performance online transaction processing (OLTP) and data warehousing machine, Oracle Exadata v.2, are starting to emerge among CSPs. Marketing and Advertising for CSPs — This includes a portfolio of prebuilt user interaction applications and interfaces, such as campaign management, provisioning and monitoring of ads, predefined templates and out-of-the-box applications that enable advertisers and agencies to create and schedule campaigns. Comprehensive Horizontal and Vertical Technology Framework Supports Complex New Services Oracle is a leading database management system (DBMS) supplier and offers a real-time, in- memory database. The various solutions are integrated on the Oracle Fusion Middleware platform foundation. Oracle Fusion Middleware 11g now integrates all the assets of BEA and Oracle into a single consolidated platform. CSPs can benefit from the company's BI capabilities, that are linked to its CRM and identity management solutions. In addition to growing its footprint in the communication applications space, the company is well positioned to leverage its cross-industry knowledge in domains like retail — to help CSPs improve in-store experiences for customers. This also allows CSPs to become better informed on product availability, demand and inventory management — especially in point of sale/in-store operations. Robust Balance Sheet and Global Presence Ensures Broad and Growing Market Share Oracle is a global company with worldwide brand recognition. Almost every major CSP already uses some solutions from the Oracle portfolio. Its pricing models are flexible, to accommodate CSP requirements, and include licenses, contingency pricing, per transaction pricing and others. Recent developments include the increasing use of Oracle Consulting for integration and consulting services rather than reliance on specialized system integrators (SIs). Track Record of Integrating Acquisitions Facilitates Product Integration Since it decided to become a major player for CSP back-office solutions, Oracle has successfully integrated its acquisitions, including: PeopleSoft (2004), Siebel, including edocs, (2006), TimesTen (2005), Portal Software (2006), MetaSolv Software (2007), BEA Systems (2008), Netsure Telecom (2007) and Convergin (2010). More recently, Oracle announced the acquisition of eServGlobal's USP assets. Oracle tends to rebrand its acquisition targets' portfolios while retaining key staff under the new corporate structure. Its lifetime support policy on all products, including the acquisitions, is designed to reassure CSPs — by providing five years' premier support, three years' extended support and indefinite sustaining support. Wide Range of System Integrators Using Oracle Technology Provides Customer Choice Oracle has an extensive network of SI and network equipment provider (NEP) partners to help it sell and implement its solutions, including Accenture, Alcatel-Lucent, HP, IBM, Nokia Siemens
  • 8. Publication Date: 28 September 2010/ID Number: G00205796 Page 8 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Networks, Nortel, TietoEnator and Wipro Technologies. This network benefits CSPs engaging in complex transformation projects. Geographic Diversification Oracle has a highly diversified revenue stream, from all major geographies, which should serve as risk mitigation in case of uneven economic development in different parts of the world. As shown in Figure 3, North America and Western Europe each account for around one-quarter of its total revenue, Asia/Pacific around one-sixth, and the remaining regions from 5% to 10%. Weaknesses Limited Penetration in Legacy OSS and Tier 1 Billing Deployments for Fixed Line, Circuit-Switched Voice Services The billing solution has often been implemented by Tier 1 CSPs, for Internet Protocol (IP) billing and nontraditional services, as an adjunct solution. Billing for new services is a growth market, but often remains only a fraction of Tier 1 CSPs' billing needs — which limits revenue opportunities. Tier 1 CSPs might prefer to work with their incumbent vendors for fixed line switched voice, and use them to provide billing for data on top of legacy voice billing. CSPs may not have a compelling reason to switch to MetaSolv right away, given that the process of integrating MetaSolv with the rest of the Oracle suite (through the AIA) is still ongoing. Missing OSS Features In Service Assurance Stronger penetration in next-generation (NG) than in legacy OSSs. Some CSPs prefer stand- alone and CSP-specific middleware and integration solutions, particularly for OSS. Most CSPs require complementary legacy and (NG) solution expertise to manage complex OSS transformations. Oracle's OSS assets stem from the MetaSolv acquisition, which used to cater predominantly to competitive local-exchange carriers in the U.S., but then shifted focus to increasing penetration of Tier 1 customers and mobile and IP services. There are some missing features in OSS; some CSPs think of Oracle OSS more as a highly scalable processing platform: It does not include service assurance capabilities such as network management and service and performance management. In OSS, subscriber information is managed, together with subscription and service details, in Oracle Clinical's unified inventory management (UIM). There is a need for a more coherent subscriber data management capability that cuts across network and IT repositories for customer and service data management in real time. The Oracle UIM, universal content management (UCM) and unified user profiles (UUP) repositories are steps in that direction, but there needs to be more visibility into how data in these repositories integrates and synchronizes in real time — for a dynamic view of the subscriber and service. Proactive management of real-time quality of service (QoS) and customer experience is virtually untapped in its road map. MetaSolv is strong in activation and provisioning, but lags behind competitors in stand- alone network resource management and inventory management. Oracle's acquisitions have led to some overlaps in solution functionality, especially multiple product/service catalogs across OSS, BSS and CRM. The lack of a single, shared enterprisewide catalog could lead to integrity issues and additional costs — associated with migration for clients
  • 9. Publication Date: 28 September 2010/ID Number: G00205796 Page 9 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. when Oracle introduces an enterprisewide catalog in later product releases. This may also make catalog instances contained in Siebel, Portal and MetaSolv redundant in some cases. However, Oracle product catalog and service catalog can be offered stand-alone or integrated through AIA. SOA: Modular Application Architecture Through Web Services Standardization Is Limited As Yet OSS and BSS applications are evolving to support full Web service service-oriented architecture (SOA) application programming interfaces (APIs), but most competitive solutions in the market are already component-based. Applications architecture might not meet CSPs' requirements to comply with their current and future Web service SOA needs. In addition, various modules are not yet fully integrated. The road map doesn't help CSPs that need the solution within the next year or two. In general, partners and clients need both faster availability of many functions and a strong commitment to the two-year road map, especially initiatives around AIA and new product functionality. Customer satisfaction is linked to the ability of SI partners to deliver to plan. Partners with varying degrees of experience and expertise, on various Oracle technologies, make this challenging. Oracle has powerful horizontal SOA tools as a result of its BEA acquisition, and is using its own tools to ease the integration of different applications — by providing SOA interfaces. However, very few applications are built using a set of SOA components. Oracle offers 14 SOA components for the communications vertical, but has a way to go to cover all CSP needs. As a result, CSPs still need to develop a number of SOA components themselves if they want to benefit fully from an SOA architecture at a granular level. Reliance on Partner Pricing Oracle treads a fine line between compete versus complement with its implementation partners, especially where it leverages its consulting arm. Situations where partners intend to upsell their own high margin consulting services may create potential conflicts of interest. In addition, Oracle's reliance on partners for integration — and limited leverage over partner pricing for implementation services — makes total cost of ownership (TCO) for Oracle solutions difficult to state upfront. Moreover, involvement of integration and consulting partners might artificially inflate overall project costs as these partners could push for larger proportions of customization work. Some Gaps in the Solution Portfolio Remain We identified a number of gaps in Oracle's solution portfolio: Truly centralized, single, shared database of commercial and network-facing technical service catalog. Product and service catalog capabilities exist, but are widely dispersed across various OSS and BSS applications. Limited workforce management capabilities. As far as stand-alone network resource management transformation capabilities are concerned, Oracle may face some competitive weakness. However, it has been gaining strong traction — especially in emerging markets and with existing Oracle customers. Oracle's OSS solution is often described as a highly scalable processing platform, rather than a dedicated network resource solution for CSPs. Subscriber data management from a network perspective, as described above. Deep packet inspection (DPI). Oracle currently relies on partner solutions for this functionality.
  • 10. Publication Date: 28 September 2010/ID Number: G00205796 Page 10 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. No broad operation outsourcing model. IP television (IPTV) solutions and advertising. Opportunities Opportunities to Begin Selling Integrated Hardware/Software Systems, for Instance in Data Management CSPs that use DBMSs are more inclined to purchase CRM, BI, BSS and OSS applications. CSPs starting to use one Oracle product successfully will consider other components of the portfolio favorably. Oracle can encourage SI partners to build application plug-ins using Oracle technology — to push deeper into the partner client base. In particular, CSPs increasingly focus on customer retention instead of subscriber growth. Oracle solutions enable CSPs to extract data from various sources. Convergence will create new opportunities to segment subscriber and product data. Applying analytics as part of a BI solution will enable CSPs to realize new revenue-generating applications and services. Oracle could better leverage acquisitions like Hyperion to gain a stronger foothold in the CSP BI, data warehousing and master data management (MDM) market. CSP Transformation Toward End-To-End Solution Over Time Many CSPs are planning to phase out legacy applications and migrate toward an integrated framework on a single platform within the next three to five years. With Oracle communications solutions, there is no need to buy an entire solutions suite right now; CSPs can purchase some modules now and upgrade as they wish. This gradual transformation increases financial predictability and reduces the risk of project failure. Combining CRM with Service Assurance Few other vendors offer customer experience management based on information from their own OSS, BSS and CRM systems. However, as of today Oracle has no offering in the service assurance domain, which is one of the fastest growing OSS markets. Filling this solution gap might be worth consideration, as far as acquisitions are concerned, especially as CSPs increasingly expect their suppliers to ensure end-to-end expertise in adjacent domains to NG SDP and OSS fulfillment. New SDP Requirements Rolling out new services requires a service delivery environment; many CSPs are planning to spend on such solutions. Tier 2 and 3 CSPs that don't have enough internal resources may prefer to have all back- and front-office functionality provided by a single vendor. Oracle has pursued a number of acquisitions while building a comprehensive NG SDP offering for CSPs. These offerings are focused on its BEA acquisitions, augmented with Oracle's own non- CSP focused SOA middleware products. The latter have helped to increase Oracle's CSP and SDP customer base and widen its application partner ecosystem — with products like Oracle WebCenter Suite, for creating Web 2.0 services, and Oracle SOA Suite for composite SOA services. Oracle has now further added to its SDP portfolio, with the Sun assets; these include hosted telecom services with end-user applications for messaging, instant messaging, calendar and contacts lists. In addition to its acquisition of Convergin, Oracle recently developed a mobile marketing and advertising campaign management product to round off its NG SDP portfolio. Altogether, Oracle is now positioned as one of the leading "service enabler" companies in the market.
  • 11. Publication Date: 28 September 2010/ID Number: G00205796 Page 11 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. New Services Require Better Architectures and Data Management In the future, CSPs will provide many sorts of content and data services. The current back-office architectures cannot support these services. CSPs will need more complex and better integrated content delivery solutions. An SOA-based architecture meets CSP demands. Oracle's Implementation Success Depends to a Large Extent on Integration Partners As a software and hardware company, Oracle mainly relies on partners for overall system and network integration work in the CSP space — and how well system knowledge is transferred. Its partners include, for example, the SI arms of all the major NEPs, with the exception of Alcatel- Lucent, as well as global system integration firms such as Accenture, IBM and Wipro. Although Oracle has now started building its own consulting and services organization, it is too early to expect tangible results from this endeavor. Oracle must also strike a balance between partnership and competition, especially in the NG SDP domain, as some partners want to become enablers of Telco 2.0 and CSPs will increasingly move into this area. Support for New Services and Delivery Models Oracle can capitalize on the following opportunities in addition to the ones mentioned above: Supporting cloud-based applications for enterprises that CSPs will offer. Digital rights management (DRM) and wholesale billing of content. NG SDPs: expand into enablement of consumer applications. CSP systems to support end-user mobile and fixed applications such as advertising, location-based services and concierge services. Alternative delivery models, including outsourcing services for CSPs and software as a service (SaaS). Wholesale and enterprise billing. Threats Competitors Have Similar End-To-End Solutions and Some Offer Outsourcing Some independent software vendors (ISVs) and NEPs also offer a wide range of OSS, BSS and SDP applications, and have organizational structures in place to prime large NG IP network and IT transformation projects. SIs have partnership arrangements with multiple best-of-breed ISVs, which may include some part of an Oracle tool or application. Some SIs offer full end-to-end outsourcing or managed service. SIs and ISVs may offer their SOA framework, or components, as a more flexible alternative — with features meeting the demand better and more cost- effectively. Finally, NEPs may offer better integrated solutions for network-centric advanced services such as video. NEPs Increasingly Offer Content- and Value-Based Charging and Billing Sometimes, IPTV and video billing are incorporated into NEP solutions, or the applications themselves — not using the Oracle billing and charging solution. Leading NEPs are likely to offer both intelligent network (IN)-based charging and postpaid billing for Tier 1 CSPs in the near future. This will constitute a direct competitive challenge to Oracle.
  • 12. Publication Date: 28 September 2010/ID Number: G00205796 Page 12 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Competing With Their Reselling Partners — SIs and NEP Partners Might Turn Into Competitors Competing BSS and OSS vendors might move to other CRM suppliers as partners or acquire, or develop, their own CRM functionality. Large SIs and NEPs are building their own solutions frameworks and might bypass Oracle. In addition, some NEPs offer OSS or BSS applications at a highly discounted rate on top of equipment deals. CSPs Avoiding Single Provider of Software Growing uncertainty about new revenue and lack of funding to support "all out" transformation programs has led CSPs to consider re-using existing applications and support infrastructure for new services. This means that CSPs will continue to work with numerous incumbent vendors, with a view to rationalizing where possible. This makes the case for "best of suite" weaker than was originally perceived. In most cases, CSPs will continue to source best-of-breed solutions, and incrementally upgrade their capabilities, in addition to mitigating the risk of vendor lock-in following an all-out purchase from a single supplier. Limited Integration Success of Multiple Acquired Assets, Especially in the NG SDP Domain Oracle faces an enormous challenge to integrate and cross-sell all its acquired products from BEA, Sun and Convergin; both applications and platforms. Oracle focuses on the service layer, with connection and abstraction of the network layer. It has a strong service layer product portfolio and, with the addition of Sun, also strong credentials in the area of "cloud," that offers longer term promise for CSPs as a revenue source. The most notable omission is the user information part that CSPs need to connect, and enable, the service layer on top of the networks. The Convergin acquisition addresses part of this in taking Oracle deeper into NG IN, and online charging. Pressure on Software Prices There is a growing pressure on software prices in the communications vertical, due to the following: Revenue from mature CSPs are stable or decreasing (not including inflation), resulting in strong pressure on IT spending and software prices. Profitability in emerging countries can be challenged by strong competition. Several CSPs opt for open source, or remotely managed, solutions. Focus moves from traditional billing to supporting new applications and services, but spending is more conservative than on billing. Some vendors focus on services, offering software at low prices. This may hit Oracle more than other vendors who have a strong service arm. Moreover, this threat may limit, or postpone, Oracle's transformation and upgrading of its software portfolio. Implication for Company Being Profiled Oracle has evolved into a major powerhouse for CSP back-office solutions through a series of acquisitions and internal software development. The company has one of the most comprehensive solutions portfolios in the industry. Oracle Communications, a business unit of Oracle, can capitalize on Oracle's incumbent position with CSPs to sell more TOMS solutions. At
  • 13. Publication Date: 28 September 2010/ID Number: G00205796 Page 13 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. the same time, Oracle Communications can leverage software and hardware solutions from other business units to supplement the TOMS solutions portfolio. Oracle's competitors should consider the following actions: Vendors must either offer end-to-end solutions with a clear migration path themselves, or be part of an "ecosystem" that offers end-to-end solutions through an agreed standard architecture. All vendors will need to look not only at the price of their individual packages, but also at the TCO end-to-end. To compete with, or complement, Oracle's offerings in the broad BSS and OSS arena (which also includes CRM, data management and billing), other vendors need to broaden their offerings and improve their features. They must add BI, customer experience management and marketing management to their offerings. They must at least match, and preferably surpass, the flexibility and vertical richness of Oracle's SOA offerings. They must offer superior application functionalities and flexibility, combined with ease of programming. Company Overview Established in 1977 — Oracle became a major player in OSS and BSS through the acquisition of Portal Software and MetaSolv Software in 2006. Oracle Communications is a global business unit with its own marketing, product development and sales. Revenue for OSS, BSS and SDP was around $820 million in 2009, according to Gartner estimates. Ranked No. 4 worldwide for license sales, with revenue of around $490 million. Among the top 15 vendors for software and services in customer billing management, online care, mediation, provisioning and activation, inventory management and NG SDP. Strategy — License sales in cooperation with professional services partners. Solutions portfolio — CRM, billing and revenue management, order management, inventory management, service activation, network intelligence, ERP and enterprise management, BI and analytics, data/service/process/user interface integration, MDM, application infrastructure and middleware; also, CSP-grade framework, retail, communications suite, data warehousing, servers, storage, etc. Revenue Distribution and Market Share Ranked among the world's leading TOMS vendors in 2009 (see " Market Share: Telecom Operations Management Systems (BSS, OSS and SDP), Worldwide, 2007- 2009") All license sales — ranked No. 4, with $489 million revenue worldwide.
  • 14. Publication Date: 28 September 2010/ID Number: G00205796 Page 14 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. NG SDP (software licenses and services) — ranked No. 6, with $253 million revenue worldwide. Inventory management (software licenses and services) — ranked No. 7, with $75 million revenue worldwide. Overall TOMS revenue (software licenses and services) — ranked No. 11, with $820 million revenue worldwide. Provisioning and activation (software licenses and services) — ranked No. 11, with $114 million revenue worldwide. Customer billing management (software licenses and services) — ranked No. 12, with $307 million revenue worldwide. Online care and self-service (software licenses and services) — ranked No. 13, with $26 million revenue worldwide. Mediation (software licenses and services) — ranked No. 14, with $26 million revenue worldwide.
  • 15. Publication Date: 28 September 2010/ID Number: G00205796 Page 15 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Figure 3. Oracle Communications Revenue, Worldwide, 2009 CSP = communications service provider; MSO = multiple service operator; NG = next-generation. Source: Gartner (September 2010)
  • 16. Publication Date: 28 September 2010/ID Number: G00205796 Page 16 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Solutions Portfolio Oracle has a comprehensive solutions portfolio for CSPs. Table 2 provides an overview of these solutions. Some of them are native to the communications division and others come from different divisions of the company.
  • 17. Publication Date: 28 September 2010/ID Number: G00205796 Page 17 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Table 1. Oracle Communications Solution Portfolio Solution Name Oracle Division Solution Functionality Billing & Revenue Management (BRM) Communications Activation platform of consumer-oriented services, supporting broadband, multiplay and mobile technologies. Network Charging & Control Communications Formerly eServGlobal ChargingMax. Online charging and control solution. Provides service control, online mediation, prepaid rating, balance management, real-time promotions and voucher management. Siebel CRM Applications Sales, marketing and loyalty, product and service bundling, order capture and pricing, multichannel and cross- channel, integrated operations through OSS service fulfillment and billing. Order and Service Management Communications Key component of the Rapid Offer Design and Order Delivery solution. Extends order and service management from back-office service fulfillment to the front-office customer order management, complementing CRM and BRM. ASAP Communications Activation platform of consumer-oriented services. IPSA Communications Enables rapid and efficient provisioning of complex IP services, including Layer 2 and Layer 3 MPLS-based, VPNs, Ethernet VLANs, virtual private LAN service (VPLS), traffic engineering paths and IP quality of service over large- scale, multivendor, and multi-operating system IP networks. Unified Inventory Management Communications A standards-based software application using communications and software best practices to provide an intelligent inventory of customer services and resources. MetaSolv Solution Communications A next-generation (NG) inventory and order management platform. Network and service intelligent, the solution automates and optimizes key business processes across the enterprise, including network inventory design and assign, service modeling, work management, order provisioning, trouble management and customer care. Design Studio Communications Simplifies the creation of order management workflows and rule logic, inventory assign and design metadata and of activation service and network actions. Enables packaging, versioning, collaboration and deployment with reduced time to market for new services. Network Integrity Communications Provides automated discovery of the network (including network elements, physical resources, logical resources, and provisioned services), comparison of the discovery results with inventory, automated reporting of discrepancies and GUI-based updating of inventory. Network Intelligence Communications Enables CSPs to manage, optimize, and plan their network capacity. Policy Services Communications Provides automated centralized IP address management (IPAM), dynamic host configuration protocol (DHCP) servers, and domain name service (DNS) servers. Converged Application Server Communications A converged Java EE-SIP-IMS application server, delivering a carrier-grade, open, standards-based development and deployment platform for NG communications applications. Services Broker Communications Component of the Communications Service Delivery product family. Enables CSPs to manage service interactions and composition between the services and evolving network layers.
  • 18. Publication Date: 28 September 2010/ID Number: G00205796 Page 18 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Solution Name Oracle Division Solution Functionality Services Gatekeeper Communications An open, standards-based service exposure and policy enforcement platform, designed to enhance the CSP's SDP to better monetize unique network assets by leveraging third-party developers and content partners. Data Model Communications A standards-based data model designed and pre-tuned for Oracle data warehouses, including the Sun Oracle Database Machine. POS, Back Office, Central Office and Store Inventory Management Retail Enables CSPs to manage all aspects of retail store operations, including customer service, store inventory management, sales and analytical reporting, and cost containment. CSP = communications service provider; EE = Enterprise Edition; GUI = graphical user interface; IP = Internet Protocol; IMS = IP Multimedia Subsystem; MPLS = Multiprotocol Label Switching; OSS = operations support system; POS = point of sale; SDP = service delivery platform; SIP = Session Initiation Protocol; VLAN = virtual LAN; VPN = virtual private network. Source: Gartner (September 2010)
  • 19. Publication Date: 28 September 2010/ID Number: G00205796 Page 19 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Key Verticals Cable/satellite Fixed/wireline IP/data Media and entertainment Telecommunications Wireless/mobile Key Accounts Aircell AT&T Bharti Brasil Telecom BT Group Cable & Wireless China Telecom KPN NTT Orange/France Telecom PCCW SingTel Swisscom Telecom Italia Telekom Malaysia Telefónica Telenor Telstra T-Mobile Verizon Vivendi Vodafone Group
  • 20. Publication Date: 28 September 2010/ID Number: G00205796 Page 20 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Key Partners Accenture Alcatel-Lucent Capgemini Deloitte HP Huawei IBM Infosys Nokia Siemens Networks Tech Mahindra Wipro Key Competitors Alcatel-Lucent Amdocs Convergys Comverse Ericsson IBM HP Huawei NetCracker Nokia Siemens Networks Telcordia Methodology The vendor analyzed in this SWOT was selected as it is a leading software vendor that has moved aggressively into the OSS and BSS areas through acquisitions since 2004. The selection of topics was done on the basis of: Oracle strategy and product portfolio, and Gartner analysis of the OSS and BSS markets. The Gartner Vendor SWOT analysis is designed for the use of vendors as a supplement to their planning processes. Its primary value is as an independent analysis of the vendor's competitive situation. The SWOT analysis provides a unique independent view of the strengths, weaknesses, opportunities and threats for a specific vendor in a specific market and geography. The specific
  • 21. Publication Date: 28 September 2010/ID Number: G00205796 Page 21 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. geography (for example, globally or regionally) and market and/or submarket is based on Gartner Dataquest Market Segment definitions or market focuses (for example, small or midsize business [SMB]). Vendors are selected based on a variety of criteria such as growth rate, or major changes in positioning, channel strategy — they will not necessarily be for the companies with largest market share. Definitions TOMS covers what was traditionally included in OSS and BSS. We are combining these solution areas because in NG networks the traditional distinctions between OSS and BSS are becoming blurred. CSPs increasingly combine multiple solutions across OSS and BSS, and vendors are adding new solutions outside their traditional portfolios. The following are served by TOMS solutions: Customer Billing Management — This solution includes merchant settlement, pricing and discounting, guiding and rating, charging, balance management, interconnect billing and carrier access billing system (CABS) and order management. The following solutions are not included: CRM, contact center, bill printing and formatting. Customer care functionality, which is part of billing suites, is included. Revenue Assurance and Fraud Management — This solution includes data quality and process improvement methods that improve profits, revenue and cash flows without influencing demand. Fraud management excludes customer prequalification, credit check, and so on. Online Care/Self-Service — This solution includes account information access and account maintenance, self-registration, online access to customer service representatives (CSRs), service requests and SLA reporting, bill view and payment. Mediation — This solution includes devices that collect data from network elements and prepare them for BSSs and OSSs. Provisioning and Activation — This solution includes systems and steps related to the process of implementing orders for customers; activation systems, that map from connection requests (that come through other systems) to other commands that control network equipment; and provisioning systems, that span across the entire process of network and service provisioning. It further includes provisioning and activation in the context of service delivery platforms. It excludes order management. Inventory Management — This solution tracks and manages network assets and manages network resources. It embodies the automated processes that allocate resources, determine configuration changes and automatically invoke activation. It includes discovery and reconciliation to provide accurate data for decision support. Network Management — This solution includes network and element management; and performance monitoring and management, including QoS. It comprises software that provides operational insight into the performance and availability of services; also, systems that mediate data from network devices, servers and other operational systems, such as inventory and performance management. It further includes configuration, traffic management, fault and event management, test and measurement systems, security and SLA management. Planning and Engineering — This solution includes the steps from network planning to construction. Examples are budgeting, procurement and line and service testing.
  • 22. Publication Date: 28 September 2010/ID Number: G00205796 Page 22 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Workforce Management — This solution includes activities surrounding work assignment, coordination and tracking. It includes software that facilitates processes to ensure that personnel with the appropriate qualifications are given the correct equipment at the right time and place. Examples of IT systems and applications supporting workforce management are: dispatch, workflow management and project tracking, and workflow management and tracking. NG SDP — An NG SDP consists of well-defined set of components that provide service delivery architecture for specific types of services. Components include: network and service exposure, OSS/BSS gateways, third-party abstraction, service creation and execution environment, service orchestration, application execution, common enablers (for example, presence and location), identity management, and content management/portals. RECOMMENDED READING "Dataquest Insight: Business Support System Market Overview and Strategic Scorecard for Vendors, 2009" "Dataquest Insight: Operations Support System Market Overview and Strategic Scorecard for Vendors, 2009" "Market Insight: Next-Generation Service Delivery Platform Market Overview and Strategic Scorecard for Vendors, 2010" "Forecast Analysis: Telecom Operations Management Systems (BSS, OSS and SDP), Worldwide, 2006-2014, 3Q10 Update" "Market Share Analysis: BSS, OSS and SDP Vendors Need Nimble Strategies to Sustain Future Growth, 2010 Update" "Market Share: Telecom Operations Management Systems (BSS, OSS and SDP), EMEA, 2007- 2009" "Market Share: Telecom Operations Management Systems (BSS, OSS and SDP), Asia/Pacific and Japan, 2007-2009" "Market Share: Telecom Operations Management Systems (BSS, OSS and SDP), Americas, 2007-2009" "Market Share: Telecom Operations Management Systems (BSS, OSS and SDP), Worldwide, 2007-2009" "Market Trends: Business Support Systems, Worldwide, 2009-2013" "Market Trends: Next-Generation Service Delivery Platforms, Worldwide, 2010" "Market Trends: Operations Support Systems, Worldwide, 2009"
  • 23. Publication Date: 28 September 2010/ID Number: G00205796 Page 23 of 23 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. REGIONAL HEADQUARTERS Corporate Headquarters 56 Top Gallant Road Stamford, CT 06902-7700 U.S.A. +1 203 964 0096 European Headquarters Tamesis The Glanty Egham Surrey, TW20 9AW UNITED KINGDOM +44 1784 431611 Asia/Pacific Headquarters Gartner Australasia Pty. Ltd. Level 9, 141 Walker Street North Sydney New South Wales 2060 AUSTRALIA +61 2 9459 4600 Japan Headquarters Gartner Japan Ltd. Aobadai Hills, 6F 7-7, Aobadai, 4-chome Meguro-ku, Tokyo 153-0042 JAPAN +81 3 3481 3670 Latin America Headquarters Gartner do Brazil Av. das Nações Unidas, 12551 9° andar—World Trade Center 04578-903—São Paulo SP BRAZIL +55 11 3443 1509

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