T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
TBR EVENT PERSPECTIVE
Amdocs aims to lead the service
provider IT market
Amdocs InTouch Annual Customer Event
San Diego; Nov. 13-14, 2013
Michael Sullivan-Trainor, Networking & Mobility Practice Executive Analyst
Operating from a dominant position in OSS/BSS, Amdocs is targeting an expanded market footprint driven by
investments in customer experience management. This was the primary message of the company’s InTouch 2013
customer event held in San Diego. Amdocs’ growth is most evident in services, which provides more than 95% of
the company’s revenue. Its growth already places it among the leaders in managed services as measured by TBR’s
Telecom Infrastructure Services Benchmark — a position that is likely to expand as industry trends favor the
company’s software-led services strategy.
Ten Largest TIS Suppliers: 2Q13 Managed Services Revenue
Year-to-Year Revenue Growth
TIS Managed Services Revenue
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.
SOURCE: TBR AND COMPANY DATA
Amdocs Services has evolved from a set of offerings around its own products to a prime service contractor with
managed services supported by a global operation infrastructure in eight centers across all regions (the U.S.,
Canada, Brazil, Israel, India, Europe, Philippines and Australia). The company operates on a traditional service
model where scale and scope are required to grow revenue and profitability. Supported by investments in tools
and staff, Amdocs is expanding as the services supplier for all IT operations in the service provider market.
The company’s services growth is centered around Customer Experience Services (CES), a comprehensive suite of
OSS/BSS modules on a common execution platform. CES version 9 was released in May after a nearly $200 million
investment in product development. Earlier versions of the platform essentially run the OSS/BSS operation of
many Tier 1 service providers, with a dominant position in North America. CES 9, which was built to run on a
VMware virtualized platform, is being deployed by several customers, and the migration will continue among
Amdocs’ global customers.
The upgrade to CES 8 added policy management (based on Amdocs’ acquisition of Bridgewater), proactive services
for analytics and multichannel capabilities as well as improved scalability and resiliency to support the upgrade
cycle. CES 9 includes the ability to execute OSS/BSS transaction for more than 100 million subscribers in a single
system, contributing to Amdocs’ claim that it manages 7 billion events a day, a figure that is estimated to grow to
between 12 and 15 billion over the next few years. The company contrasts this capacity with Google’s ability to
support 8 billion searches a day.
The complexity of CES and its place in the market are a double-edged sword for Amdocs. Upgrades are slow in
Internet terms, taking six to eight months, yet CES is the primary system relied on by many Tier 1 companies —
and they trust Amdocs to remain up to date and deliver upgrades on time. The company’s 94% project success
rate, compared to the industry standard 70%, testifies to its success.
Another positive factor for Amdocs is its position at the heart of the service provider network, which places it at
the center of key trends. The company must develop solutions for new cost-saving or revenue-generating
technologies because nearly all aspects of the service provider business touch the OSS/BSS systems.
In this context, Amdocs is expanding its software and services capabilities. The company presented the following
new solutions at the event:
Pervasive Policy Ecosystem — an ecosystem of partners that leverages Amdocs’ policy and charging
capabilities and pre-integrates partner solutions for analytics, notification, deep packet inspection and
optimization to deliver end-to-end policy from the device to the OSS/BSS; closing the gap between the
network and network end points and the OSS/BSS is a major continuing direction for Amdocs, and policy
is a key element.
Amdocs Cloud Convergence — a prebuilt, self-service OSS/BSS solution for Mobile Virtual Network
Operators (MVNOs) or for MVNEs to use directly from Amdocs as a managed service; the solution
provides the key order creation, activation and billing processes in a multi-tenant hosting environment for
small subscriber bases. This solution enables Amdocs to address lower tier and MVNO service providers
that otherwise cannot take advantage of CES.
Amdocs Small Cell Solution — the small cell solution is a catalogue-driven small cell rollout service that
optimizes the location of small cells based on subscriber and network characteristics. The solution can be
extended beyond small cells but currently addresses the service provider to cost effectively deploy large
amounts of small cells (not including femto cells). The solution will incorporate Amdocs’ Actix and Cellcite
acquisitions, enhancing the ability to manage multivendor small cell deployments with the intention of
linking the solutions to OSS/BSS data for greater leverage, such as targeting small cell deployment for the
Amdocs Smart Net — using similar methods but leveraging different products, namely a Smart Connection
Manager and Controller, the solution detects subscriber activity to provide intelligent offload of traffic to
Wi-Fi to improve network efficiency and improve the customer’s network performance for data access.
Amdocs Services — among other services, the company showcased its Order to Activation solution that
leverages the company’s Order Management Center to increase service provider order efficiency and
management. The company is promoting the concept of Value Process Operations rather than Business
Process Operations. These operations are aimed at increasing the value of processes by delivering greater
efficiency or allowing faster time to revenue through process automation and speed of execution.
These solutions are entry points into areas where software extensions of IT functions begin to influence service
providers’ abilities to improve the deployment and management of the physical network. As such, they represent
new territory for Amdocs and are just the beginning of expansion, though Amdocs pledges never to get into the
Major drivers for Amdocs investments were outlined by CEO Eli Gelman. These included:
Connected devices — managing and delivering network functions in a seamless fashion across devices and
catering to network bandwidth requirements for everything from smart devices to M2M
Consumer empowerment — providing prepackaged and customized bundles of more than
communication services, including Internet, content and new value-added services such as home
SMB requirements — solutions that cater to the self-service needs of small and medium businesses, while
also providing the flexibility to allow the SMB user to switch personas to an individual user with personal
Mobile financial services — supporting mobile financial services in emerging markets with greater BSS
flexibility, while promoting the services’ adoption in mature markets
Video — multichannel video based on seamless device experiences for telecom, cable and satellite service
providers; AT&T, Comcast and DirectTV are major Amdocs customers that require flexibility in delivery of
Big Data — proactive analytics to improve the customer experience delivered across an end-to-end