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© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Research Report
September 2012
Patrick Kelly, Mark H. Mortensen, Glen Ragoonanan, Justin van der Lande,
Dean Ramsay, Anil Rao and John Abraham
Telecoms software: worldwide market shares 2011
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Contents
8. Executive summary
9. Worldwide telecoms software market shares in 2011
10. Worldwide telecoms software market shares in 2010 and 2011
11. Worldwide telecoms software market shares in 2011: by service sector
12. Worldwide telecoms software market shares in 2011: by region
13. Business environment
14. The business environment in 2011
15. Regional outlook for 2012
16. Market definition
17. Telecoms software taxonomy changes
18. Telecoms software market segmentation
19. Telecoms software market definitions
20. Revenue management sub-segment definitions
21. SDP sub-segment definitions
22. Customer care sub-segment definitions
23. Service fulfilment sub-segment definitions
24. Service assurance sub-segment definitions
25. NMS segment and sub-segment definitions
26. Market shares
27. Market shares: Revenue management
28. Changes to the revenue management market segmentation
29. Overall revenue management market summary
30. Overall revenue management market summary, 2010 and 2011
31. Overall revenue management market summary by region, 2010 and 2011
2
32. Revenue management market shares by product revenue
33. Revenue management market shares by product-related services revenue
34. Prepaid billing
35. Postpaid billing
36. Convergent billing
37. Partner and interconnect
38. Business optimisation
39. Mediation
40. Market shares: Service delivery platforms
41. Changes to the SDP market segmentation
42. Overall SDP market summary
43. Overall SDP market summary, 2010 and 2011
44. SDP market summary by region, 2010 and 2011
45. SDP market shares by product revenue
46. SDP market shares by product-related services revenue
47. Telecoms application servers
48. Mobile content management and delivery
49. Policy management
50. Subscriber data management
51. Market shares: Customer care
52. Overall customer care market summary
53. Overall customer care market summary, 2010 and 2011
54. Overall customer care market summary by region, 2010 and 2011
55. Customer care market shares by product revenue
Slide no. Slide no.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Contents
56. Customer care market shares by product-related services revenue
57. Customer relationship management
58. Subscriber management
59. Customer interaction
60. Device management
61. Market shares: Service fulfilment
62. Overall service fulfilment market summary
63. Overall service fulfilment market summary, 2010 and 2011
64. Overall service fulfilment market summary by region, 2010 and 2011
65. Service fulfilment market shares by product revenue
66. Service fulfilment market shares by product-related services revenue
67. Order management
68. Inventory management
69. Activation
70. Engineering tools
71. Market shares: Service assurance
72. Overall service assurance market summary
73. Overall service assurance market summary, 2010 and 2011
74. Overall service fulfilment market summary by region, 2010 and 2011
75. Service fulfilment market shares by product revenue
76. Service fulfilment market shares by product-related services revenue
77. Service management systems
78. Fault and event management systems
3
79. Performance monitoring systems
80. Workforce automation systems
81. Probe systems
82. Market shares: Network management systems
83. Overall NMS market summary
84. Overall NMS market summary, 2009–2011
85. Overall NMS market summary by region, 2009–2011
86. NMS market shares by product revenue
87. NMS market shares by product-related services revenue
88. Mobile NMS
89. Business data services NMS
90. Residential broadband NMS
91. PSTN NMS
92. Vendor analysis summaries
93. Vendor analysis summaries: Revenue management
94. Revenue management vendor analysis summary, by region and service
sector [1]
95. Revenue management vendor analysis summary, by region and service
sector [2]
96. Revenue management vendor analysis summary, by region and service
sector [3]
97. Revenue management vendor analysis summary, by region and service
sector [4]
Slide no. Slide no.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Contents
98. Revenue management vendor analysis summary, by region and service
sector [5]
99. Vendor analysis summaries: Service delivery platforms
100. SDP vendor analysis summary, by region and sub-segment [1]
101. SDP vendor analysis summary, by region and sub-segment [2]
102. SDP vendor analysis summary, by region and sub-segment [3]
103. SDP vendor analysis summary, by region and service sector [1]
104. SDP vendor analysis summary, by region and service sector [2]
105. SDP vendor analysis summary, by region and service sector [3]
106. Vendor analysis summaries: Customer care
107. Customer care vendor analysis summary, by region and service sector [1]
108. Customer care vendor analysis summary, by region and service sector [2]
109. Customer care vendor analysis summary, by region and service sector [3]
110. Customer care vendor analysis summary, by region and service sector [4]
111. Customer care vendor analysis summary, by sub-segment [1]
112. Customer care vendor analysis summary, by sub-segment [2]
113. Customer care vendor analysis summary, by sub-segment [3]
114. Vendor analysis summaries: Service fulfilment
115. Service fulfilment vendor analysis summary, by region and service
sector [1]
116. Service fulfilment vendor analysis summary, by region and service
sector [2]
117. Service fulfilment vendor analysis summary, by region and service
sector [3]
4
118. Service fulfilment vendor analysis summary, by region and service
sector [4]
119. Service fulfilment vendor analysis summary, by sub-segment [1]
120. Service fulfilment vendor analysis summary, by sub-segment [2]
121. Service fulfilment vendor analysis summary, by sub-segment [3]
122. Vendor analysis summaries: Service assurance
123. Service assurance vendor analysis summary, by region and service
sector [1]
124. Service assurance vendor analysis summary, by region and service
sector [2]
125. Service assurance vendor analysis summary, by region and service
sector [3]
126. Service assurance vendor analysis summary, by sub-segment [1]
127. Service assurance vendor analysis summary, by sub-segment [2]
128. Service assurance vendor analysis summary, by sub-segment [3]
129. Vendor analysis summaries: Network management systems
130. NMS vendor analysis summary, by region and service sector [1]
131. NMS vendor analysis summary, by region and service sector [2]
132. About the authors and Analysys Mason
133. About the authors [1]
134. About the authors [2]
135. About Analysys Mason
136. Research from Analysys Mason
137. Consulting from Analysys Mason
Slide no. Slide no.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
List of figures
Figure 1: Telecoms software market shares by revenue, worldwide, 2011
Figure 2: Telecoms software market shares by revenue, worldwide, 2010
and 2011
Figure 3a–d: Telecoms software market shares by revenue for mobile, business,
PSTN and residential broadband services, worldwide, 2011
Figure 4a–d: Telecoms software market shares by revenue for APAC, CALA,
EMEA and NA, 2011
Figure 5: A comparison of the old and new taxonomies of the revenue
management (formerly billing) and service delivery platform
segments
Figure 6: Telecoms software market segments
Figure 7: Definitions of the telecoms software market and its products and
services
Figure 8: Definitions of revenue management sub-segments
Figure 9: Definitions of SDP and its sub-segments
Figure 10: Definitions of customer care and its sub-segments
Figure 11: Definitions of service fulfilment and its sub-segments
Figure 12: Definitions of service assurance and its sub-segments
Figure 13: Definitions of NMS and its segments and sub-segments
Figure 14: Changes to Analysys Mason’s segmentation of the revenue
management market
Figure 15: Revenue management market shares by revenue, worldwide, 2011
Figure 16: Revenue management market shares by revenue, worldwide,
2010 and 2011
Figure 17: Revenue management revenue by region, worldwide, 2010 and 2011
Figure 18: Revenue management market shares by product revenue,
worldwide, 2011
5
Figure 19: Revenue management market shares by product-related services
revenue, worldwide, 2011
Figure 20: Prepaid billing market shares by revenue, worldwide, 2011
Figure 21: Postpaid billing market shares by revenue, worldwide, 2011
Figure 22: Convergent billing market shares by revenue, worldwide, 2011
Figure 23: Partner and interconnect market shares by revenue, worldwide,
2011
Figure 24: Business optimisation market shares by revenue, worldwide, 2011
Figure 25: Mediation market shares by revenue, worldwide, 2011
Figure 26: Changes to Analysys Mason’s segmentation of the SDP market
Figure 27: SDP market shares by revenue, worldwide, 2011
Figure 28: SDP market shares by revenue, worldwide, 2010 and 2011
Figure 29: SDP revenue by region, worldwide, 2010 and 2011
Figure 30: SDP market shares by product revenue, worldwide, 2011
Figure 31: SDP market shares by product-related services revenue,
worldwide, 2011
Figure 32: Telecoms application server market shares by revenue,
worldwide, 2011
Figure 33: Mobile content management and delivery market shares by
revenue, worldwide, 2011
Figure 34: Policy management market shares by revenue, worldwide, 2011
Figure 35: Subscriber data management market shares by revenue,
worldwide, 2011
Figure 36: Customer care market shares by revenue, worldwide, 2011
Figure 37: Customer care market shares by revenue, worldwide, 2010
and 2011
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
List of figures
Figure 38: Customer care revenue by region, worldwide, 2010 and 2011
Figure 39: Customer care market shares by product revenue, worldwide, 2011
Figure 40: Customer care market shares by product-related services
revenue, worldwide, 2011
Figure 41: Customer relationship management market shares by revenue,
worldwide, 2011
Figure 42: Subscriber management market shares by revenue, worldwide, 2011
Figure 43: Customer interaction market shares by revenue, worldwide, 2011
Figure 44: Device management market shares by revenue, worldwide, 2011
Figure 45: Service fulfilment market shares by revenue, worldwide, 2011
Figure 46: Service fulfilment market shares by revenue, worldwide, 2010
and 2011
Figure 47: Service fulfilment revenue by region, worldwide, 2010 and 2011
Figure 48: Service fulfilment market shares by product revenue, worldwide, 2011
Figure 49: Service fulfilment market shares by product-related services
revenue, worldwide, 2011
Figure 50: Order management market shares by revenue, worldwide, 2011
Figure 51: Inventory management market shares by revenue, worldwide,
2011
Figure 52: Activation market shares by revenue, worldwide, 2011
Figure 53: Engineering tools market shares by revenue, worldwide, 2011
Figure 54: Service assurance market shares by revenue, worldwide, 2011
Figure 55: Service assurance market shares by revenue, worldwide, 2010
and 2011
Figure 56: Service assurance revenue by region, worldwide, 2010 and 2011
6
Figure 57: Service assurance market shares by product revenue, worldwide,
2011
Figure 58: Service assurance market shares by product-related service
revenue, worldwide, 2011
Figure 59: Service management system market shares by revenue,
worldwide, 2011
Figure 60: Fault and event management system market shares by revenue,
worldwide, 2011
Figure 61: Performance monitoring system market shares by revenue,
worldwide, 2011
Figure 62: Workforce automation system market shares by revenue,
worldwide, 2011
Figure 63: Probe system market shares by revenue, worldwide, 2011
Figure 64: NMS market shares by revenue, worldwide, 2011
Figure 65: NMS market shares by revenue, worldwide, 2009–2011
Figure 66: NMS revenue by region, worldwide, 2009–2011
Figure 67: NMS market shares by product revenue, worldwide, 2011
Figure 68: NMS market shares by product-related services revenue,
worldwide, 2011
Figure 69: Mobile NMS market shares by revenue, worldwide, 2011
Figure 70: Business data services NMS market shares by revenue,
worldwide, 2011
Figure 71: Residential broadband NMS market shares by revenue,
worldwide, 2011
Figure 72: PSTN NMS market shares by revenue, worldwide, 2011
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
List of figures
Figure 73a–e: Comparison of revenue management suppliers by region and
service sector
Figure 74a–c: Comparison of SDP suppliers by region and sub-segment
Figure 75a–c: Comparison of SDP suppliers by region and service sector
Figure 76a–d: Comparison of customer care suppliers by region and service
sector
Figure 77a–c: Comparison of customer care suppliers by sub-segment
Figure 78a–d: Comparison of service fulfilment suppliers by region and
service sector
Figure 79a–c: Comparison of service fulfilment suppliers by sub-segment
Figure 80a–c: Comparison of service assurance suppliers by region and
service sector
Figure 81a–c: Comparison of service assurance suppliers by sub-segment
Figure 82a–b: Comparison of NMS suppliers by region and service sector
7
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 8
Executive summary
Business environment
Market definition
Market shares
Vendor analysis summaries
About the authors and Analysys Mason
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Worldwide telecoms software market shares in 2011
9
Figure 1: Telecoms software market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]
 The value of the worldwide telecoms software market grew
by 6.4% (or USD1.38 billion) between 2010 and 2011, from
USD21.48 billion to USD22.86 billion.
 The top-six vendors were the same as the previous year.
Amdocs continued to be the market leader, with a 10.5%
share of revenue. Ericsson came second, with a 9.4% share,
closely followed by Huawei.
 The overall market is highly fragmented:
 the top-six suppliers accounted for just 48.2% of the total
market
 no supplier had a share of more than 11.0%
 several hundred vendors accounted for the remaining
51.8% of revenue.
 Amdocs continued to be the leading supplier, but its position
is threatened by Ericsson and Huawei.
 Four of the top-six suppliers are equipment vendors that
nevertheless have a large stake in the telecoms software
market.
Amdocs
10.5%
Ericsson
9.4%
Huawei
9.1%
Oracle
7.1%
Nokia
Siemens
Networks
6.0%
Alcatel-
Lucent
6.0%
Other
51.8%
Total revenue 2011: USD22.86 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Worldwide telecoms software market shares in 2010 and 2011
 Amdocs has retained its position as the largest vendor in
terms of revenue, with an overall market share of 10.5%.
 Ericsson’s share shrank marginally, but the vendor continued
to be the second-largest player overall. Huawei’s share
remained flat at 9.1%.
 Only Amdocs and Oracle strengthened their position in 2011
as compared with 2010.
 Oracle continued to increase its share, thanks to the
integration of its service fulfilment and BSS (notably Siebel
CRM) products and the exploitation of its strong brand in
emerging markets.
 The market share attributed to the ‘Other’ category
decreased because the dominant players strengthened
their product portfolios and the delayed effects of the global
recession hit small and medium-sized enterprises (SMEs)
hardest.
10
Figure 2: Telecoms software market shares by revenue, worldwide, 2010
and 2011 [Source: Analysys Mason, 2012]
52.9% 51.8%
6.8% 6.0%
6.3% 6.0%
6.8% 7.1%
9.1% 9.1%
9.6% 9.4%
10.0% 10.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011
Market
share
of
revenue
Amdocs
Ericsson
Huawei
Oracle
Nokia Siemens Networks
Alcatel-Lucent
Other
Total revenue 2010: USD21.48 billion
Total revenue 2011: USD22.86 billion
The telecoms market share for 2010 has been restated to
take into account changes in our market segmentation
(see slide 15 for details).
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Worldwide telecoms software market shares in 2011: by service sector
11
Figure 3a–d: Telecoms software market shares by revenue for mobile, business, PSTN and residential broadband services, worldwide, 2011 [Source: Analysys
Mason, 2012]
Ericsson
14.0%
Amdocs
11.0%
Huawei
10.3%
Nokia Siemens
Networks
9.0%
Oracle
6.6%
Alcatel-Lucent
4.1%
Other
45.0%
Huawei
10.9%
Alcatel-Lucent
9.5%
Cisco Systems
7.5%
Amdocs
7.0%
NEC
5.1%
Oracle
4.2%
Other
55.9%
Amdocs
18.4%
Oracle
8.8%
Telcordia
Technologies
8.5%
Tektronix
4.4%
Alcatel-Lucent
3.6%
SAP
2.6%
Other
53.6%
Alcatel-Lucent
10.7%
Oracle
10.5%
Amdocs
8.2%
Huawei
7.2%
IBM
4.2%
Ericsson
3.5%
Other
55.7%
Mobile
Total revenue:
USD13.38 billion
Business
Total revenue:
USD3.41 billion
PSTN
Total revenue:
USD1.98 billion
Residential
broadband
Total revenue:
USD4.09 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Worldwide telecoms software market shares in 2011: by region
12
Figure 4a–d: Telecoms software market shares by revenue for APAC, CALA, EMEA and NA, 2011 [Source: Analysys Mason, 2012]
APAC
Total revenue:
USD6.16 billion
CALA
Total revenue:
USD1.68 billion
EMEA
Total revenue:
USD8.38 billion
NA
Total revenue:
USD6.64 billion
Key: APAC = Asia–Pacific; CALA = Caribbean and Latin America; EMEA = Europe, the Middle East and Africa; NA = North America.
Huawei
18.1%
Ericsson
12.5%
Nokia Siemens
Networks
7.0%
Oracle
5.6%
Amdocs
5.2%
NEC
4.4%
Other
47.2%
Ericsson
11.6%
Huawei
9.9%
Nokia Siemens
Networks
8.8%
Amdocs
8.8%
Alcatel-Lucent
7.1%
Oracle
5.9%
Other
48.0%
Huawei
9.4%
Ericsson
9.2%
Nokia Siemens
Networks
8.3%
Amdocs
8.3%
Oracle
8.0%
Alcatel-Lucent
6.1%
Other
50.6%
Amdocs
18.8%
Alcatel-Lucent
7.7%
Oracle
7.7%
Ericsson
6.1%
Telcordia
Technologies
4.7%
CSG
International
3.6%
Other
51.4%
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 13
Executive summary
Business environment
Market definition
Market shares
Vendor analysis summaries
About the authors and Analysys Mason
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
The business environment in 2011
14
Lingering economic downturn kept growth in check
 Spending on telecoms software picked up in 2011 as
investments in software related to new customer acquisition
and increased ARPU continued to grow.
 Communications service providers (CSPs) had more need
than ever to reduce operational costs, but made few
investments to accomplish this.
 Growth is continuing in the emerging markets, but has
slowed down – particularly in China and India.
Data services grew and LTE roll-outs started slowly
 Multimedia services delivered via fixed broadband, such as
IPTV, VoIP 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 launched video services, application stores and
ecommerce sites that required new or enhanced BSS/OSS
solutions. LTE implementation began in earnest in the USA
and Asia–Pacific. Most CSPs will deploy LTE tactically, but
will continue to use 3G+, and small-cell and Wi-Fi offload
technologies to support growth in data services.
Migration to IP-based networks and services continued
 Voice, data and video services are all now available over IP.
Next-generation network (NGN) development continues in all
CSPs, with moderate Class 5 switch migration. CSPs
continue to deploy FTTH, albeit slowly.
 The easier and more-flexible network planning, configuration,
optimisation and quality-of-service management of IP
networks is supporting a dramatic increase in the number
and range of new services.
 CSPs are offering service layer services (SDP, IP and Ethernet)
in increasingly complex personalised service bundles.
CSPs are beginning to enter new businesses
 Fixed-line CSPs in developed markets continue to enter the
video market, and to implement network APIs and developer
ecosystems to create new services. They are also
implementing some double-sided business models and cloud
services (particularly for SMEs).
 The priorities of mobile CSPs are to monetise the growth in
mobile data services, and explore M2M opportunities. Cable
CSPs are focusing more on SMEs, and are driving an
increase in VoIP penetration. Market experiments are
underway for LTE substitution for fixed private lines.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Regional outlook for 2012
15
APAC
 APAC will continue to provide the best opportunity for
vendors to increase revenue. However, the growth rate in
China and India is slowing, which will limit the new
opportunities.
 Maturation of the services layer will support new services,
driving growth in spending on customer care.
 CSPs in China will continue to spend on 3G networks and
LTE deployment. It continues to be a very closed market,
dominated by AsiaInfo, Huawei and ZTE.
CALA
 CALA will continue to experience growth in mobile subscriber
numbers, but this will mainly benefit prepaid platform vendors.
 Dominant CSPs, such as América Móvil/TELMEX, Cable &
Wireless, Columbus Communications, Digicel, Telefónica and
Telecom Italia, will continue to dictate the pace in this region.
 Turnkey projects for new entrants will continue to create
opportunities to deploy new software solutions.
 Regulatory pressure could restrict growth.
EMEA
 Financial difficulties in Western Europe slowed EMEA’s
recovery from the recession. However, intense competition
and the roll-out of new services will drive spending on
enhancements to established systems.
 Mobile broadband will be a key focus area, as more CSPs
explore the potential of small-cell technologies.
 LTE roll-outs by large Tier 1 CSPs will help to drive new data
services and associated software solutions throughout 2012.
NA
 We expect growth in spending to improve in 2012 as the
recovery from recession continues.
 Mobile data network roll-outs will stimulate spending on
billing systems, as CSPs launch LTE-based services.
 We expect partner management revenue to grow strongly,
driven by settlement partnerships within service offerings.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 16
Executive summary
Business environment
Market definition
Market shares
Vendor analysis summaries
About the authors and Analysys Mason
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Telecoms software taxonomy changes
17
Figure 5: A comparison of the old and new taxonomies of the revenue management (formerly billing) and service delivery platform segments [Source: Analysys
Mason, 2012]
Revenue
management
Partner and interconnect
Business optimisation
Mediation
Service delivery
platforms
Mobile content
management and delivery
Telecoms application
servers
Policy management
Subscriber data
management
Billing
Prepaid
Postpaid
Convergent
New taxonomy Old taxonomy
Billing
Partner and
interconnect
Business optimisation
Mediation
Rating and pricing
Service delivery
platforms
Real-time charging
Mobile content
management and
delivery
Telecoms application
servers
Mobile device
management
The telecoms market share for 2010 has been restated to take into account changes in our market segmentation.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Telecoms software market segmentation
18
Figure 6: Telecoms software market segments [Source: Analysys Mason, 2012]
Professional services
Business
consulting
Design
consulting
Product-related
services
Systems
integration
Custom
development
Outsourced
operations
Hosted managed
services
Revenue
management
Partner and interconnect
Business optimisation
Mediation
Service delivery
platforms
Mobile content
management and delivery
Telecoms application
servers
Policy management
Subscriber data
management
Customer care
Customer interaction
Customer relationship
management
Subscriber
management
Service fulfilment
Order management
Inventory
management
Activation
Engineering tools
Service assurance
Service management
Fault and event
management
Performance
monitoring
Workforce
automation
Probe systems
Network management systems
Mobile Residential broadband Business data services PSTN
Device management
Billing
Prepaid
Postpaid
Convergent
Key: Segments covered in this report
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 19
Market Definition
Telecoms software Telecoms software is commercially supplied software that is unique to the telecoms business and that CSPs use in running their
business. It includes billing, customer care, service assurance, service fulfilment, NMS/EMS, SDPs and middleware. It excludes
software that is common across all industries, such as financials, HR and ERP. It includes commercially provided licensed
software, licensed software support services and product-related services. It excludes systems integration services, internal IT
spending and other work for purely custom development.
Product or service Definition
Licensed software The core products of telecoms software are the licensed products offered by commercial suppliers, such as ISVs, NEMs and other
IT suppliers. Licensed software is included in our forecast.
Licensed software support All vendors that provide licensed software offer support services for the software they sell. Support services provide bug fixes and,
in most cases, regular updates to keep up with changing IT environments. They may include some degree of product
enhancement, depending on the vendor. For some vendors, revenue from support services may exceed revenue from licensed
software. We include licensed software support in our forecast.
Product-related services Product-related services are those services offered by the product supplier that directly support use of the product, including
configuration and installation support services. These are included in our forecast.
Other professional services We exclude other professional services, such as systems integration, custom development, design consulting and outsourced
operations, from our forecast of the telecoms software market. However, these are covered in Analysys Mason’s Infrastructure
Solutions programme.
Telecoms software market definitions
Figure 7: Definitions of the telecoms software market and its products and services [Source: Analysys Mason, 2012]
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 20
Sub-segment Definition
Billing – Prepaid Prepaid billing deployments support only retail subscribers who credit their accounts before using a service. The credit is debited in
real time as the service is used, and service is denied if the balance falls to zero. Subscribers have various means of ‘topping up’
their balances. Prepaid billing systems must be able to rate service usage in real time and to maintain a real-time account balance.
They must also be able to interact with the network to enable redirection of subscribers to top-up servers, if the account balance
drops to zero.
Billing – Postpaid Postpaid billing deployments support only retail subscribers who are billed each month for the service they have used.
Traditionally, postpaid billing systems work offline, using a monthly billing cycle. Modern postpaid billing systems include the ability
to rate usage in near-real time and have enhanced capabilities, such as advice of charge. Postpaid billing includes rating events,
and combining the rated events with other aspects of the bill, which include recurring charges, taxes, fees and other items that are
independent of rated usage.
Billing – Convergent Convergent billing deployments support both prepaid and postpaid subscribers. They may also support hybrid accounts in which,
for example, a family has a single account and some members of the family use prepaid, while others use postpaid accounts.
Partner and interconnect Partner and interconnect revenue management solutions concern payments to and collections from service providers that co-
operate with a CSP to provide service to its customers. This includes: traditional voice termination, both fixed and mobile; roaming
interconnection and interfaces (but not roaming service bureaux per se); and international route optimisation and settlements with
traditional network operator partners and content providers.
Business optimisation Business optimisation revenue management includes fraud management, revenue assurance, analytics, cost management and
credit risk management. None of these factors generate revenue directly, but they maximise profit from the business by ensuring
that as much revenue as possible is collected, and that the least cost is incurred.
Mediation Mediation systems collect data from the network, format it and store it for specific uses, generally for billing systems, but also for
various types of service assurance. Despite this, we include all mediation in this segment. The mediation sub-segment now
includes active mediation, which previously was included in the real-time charging (RTC) sub-segment of our Service delivery
platforms segment.
Revenue management sub-segment definitions
Figure 8: Definitions of revenue management sub-segments [Source: Analysys Mason, 2012]
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 21
Segment or sub-segment Definition
Service delivery platforms
(SDP)
The deployment of an SDP requires integration with network enablers, portals, BSS and OSS. It sometimes involves new
business models and new strategic partners. We have focused our definition of SDP on software components that increase the
speed of developing, delivering and managing new and established services and charging models.
Telecoms application
servers (TAS)
TAS support telecoms service creation, execution and exposure, and network interfaces for call control, messaging, location, presence
and other telecoms services. They can be deployed in an IMS, SIP, VoIP, legacy or hybrid environment. The TAS is at the core of
creating and executing real-time, session-based services. Approaches include: SIP Servlets, JAIN SLEE, evolved IN, next-generation
feature servers, network and service gateways, and proprietary solutions. Network gateways provide a common API to access the
control layer. OSA/Parlay is the leading network gateway standard. Our market definition excludes legacy IN platforms.
Mobile content
management and delivery
(MCMD)
MCMD supports the lifecycle of digital media, from the collection of content from the content provider to its delivery to the end
customer. Typical media include: mobile applications, music, ringtones, games, video clips and real-time sports information.
MCMD includes the content provider portal, the customer portal, the transcoding and adaptation of content for different device
types and digital rights management. Analysys Mason may extend this sub-segment in future to include fixed content
management, including IPTV and CATV. However, this report focuses only on mobile content platforms.
Policy management (PM) Policy management is the practice of applying traffic management techniques using rules based on subscriber profiles. Profiles
and rules are defined centrally and distributed to the policy enforcement points in the network to control a subscriber’s traffic. In
3GPP standards, policy management is implemented by the policy and charging rules function (PCRF) and policy enforcement by
the policy and charging enforcement function (PCEF). We exclude policy enforcement products from our definition of policy
management, which focuses on the PCRF and various proprietary enhancements to it.
Subscriber data
management (SDM)
SDM is defined as the software product that supports real-time and near real-time access to subscriber data to support the
execution of services. The real-time requirement is driven by services such as voice that have a tight latency budget of the order of
250 milliseconds. The look up to the subscriber database should take less than 50 milliseconds of that budget. Other less sensitive
services can be supported with near real-time performance of up to a few seconds. The subscriber data that is managed includes
identity information such as IMSI and IMISDN, authentication information, personalization information, policy settings and settings
for specific services. A cache of the main SDM supports the PCRF to deliver personalised policies with low latency.
SDP sub-segment definitions
Figure 9: Definitions of SDP and its sub-segments [Source: Analysys Mason, 2012]
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 22
Segment or sub-segment Definition
Customer care systems Customer care systems allow CSPs to offer services, take orders and provide a full range of support, both human and automated,
to their customers. They decrease call centre costs and expensive customer churn and increase revenue and are critical to high
customer satisfaction.
Customer relationship
management (CRM)
CRM encompasses outbound marketing and customer support functions, allowing CSPs to assemble large sets of data to
manage their customer relationships more efficiently. It also helps customer service agents and self-care systems to provide the
best product and service offers for customers. It allows marketing departments to understand purchasing patterns and the
effectiveness of new product and service campaigns. CRM is the central repository of customer data that is utilised by sales,
marketing, customer service and finance groups. CRM includes independent product catalogue offers and order orchestration.
Subscriber management
systems
Subscriber management encompasses the inbound customer support function that comes with billing software. Subscriber
management software is service-specific in the process of establishing customer set-up and handling customer enquiries.
Customer interaction
systems
Customer interaction software automates the initial point of contact between the customer and the CSP. This sub-segment
includes systems for IVR, Web self-service, contact centres, points of sale, SMS and USSD support and retail management.
Customer interaction software consists of machine-to-machine, person-to-person and person-to-machine communication.
Device management
systems
Device management systems ensure that the configuration and settings on a device are optimal for the subscribed services. They
also support remote troubleshooting. Standards such as those of the Open Mobile Alliance (OMA) are important for mobile
services as DOCSYS and TR-069 are for fixed. Smartphones have their own, but usually few, open-architecture capabilities for
device management systems to use. This report includes only mobile device management, but will be expanded in the future.
Customer care sub-segment definitions
Figure 10: Definitions of customer care and its sub-segments [Source: Analysys Mason, 2012]
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 23
Segment or sub-segment Definition
Order management (OM) OM 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 established service to a new address or mobile device, or changes to an
established service. OM overlaps somewhat with customer order orchestration – a part of CRM within the customer care market
segment – but there is no double-counting in our market numbers. OM systems may also have an associated catalogue that
contains products, services and network elements, along with process fragments associated with these.
Inventory management (IM) IM systems track the resources used to provide service, as well as 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 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 Engineering tools encompass a range of applications that help engineering departments to operate more efficiently. These tools
often require a human interface. They include planning, equipment installation and configuration, network optimisation, outside
plant inventory, and design and diagnostic tools.
Service fulfilment sub-segment definitions
Figure 11: Definitions of service fulfilment and its sub-segments [Source: Analysys Mason, 2012]
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 24
Sub-segment Definition
Service management Service management is best defined as the software systems that link customers with their own individual services. Service
management systems enable CSPs to generate granular reports by customer and service to validate service-level commitments.
Fault and event
management
Fault and event management systems interface with the network elements and element management systems supplied by
equipment manufacturers. They process millions of events per day, filtering downstream events in order to isolate and attempt to
pinpoint the cause of a problem.
Performance monitoring Performance monitoring systems collect a continuous set of circuit-switched and packet data from the network elements and
element management systems supplied by equipment manufacturers. They use SNMP polling, TL1 and other protocols to
communicate with network elements or domain-specific applications to collect real-time or historical data.
Workforce automation Workforce automation software helps CSPs to track incidents resulting from service disruption and to dispatch field resources
effectively. CSPs use centralised workforce automation software for complex problems that require them to dispatch technicians.
The software manages the process of opening job tickets, matching skill sets, and co-ordinating the dispatch of technicians for
planning and problem resolution.
Probe systems Probe systems are a combination of hardware and software. Hardware devices will be put into the network to either passively
monitor signalling and data sessions or remotely test specific types of technology.
Service assurance sub-segment definitions
Figure 12: Definitions of service assurance and its sub-segments [Source: Analysys Mason, 2012]
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 25
Segment or sub-segment Definition
Network management
systems (NMS)
NMS enable basic element management and network management for the NEMs’ equipment and support northbound interfaces
(NBI) to multi-vendor service assurance and service fulfilment systems.
Mobile NMS Mobile NMS solutions can manage circuit-switched, packet-switched and radio technology infrastructure. They provide the core
OSS infrastructure for operating and managing mobile network switching and network elements. This includes domain managers
and EMS for packet technology. Femtocell deployments that aim to increase mobile coverage are covered in this segment.
Business data services
NMS
Business data services NMS provide high service-level metrics to large enterprise customers with complex network service
configurations and customisations. These are typically IP network services, such as Internet access, hosting services, IP VPN,
Ethernet, managed IT services and wholesale carrier services. These NMS solutions include both GUI and CLI management,
which can be managed either centrally or distributed.
Residential broadband NMS Residential broadband NMS manage residential network infrastructure. They provide an NBI, and service assurance and service
fulfilment systems for automating service activation and configuration processes. These NMS are evolving to support the new
residential broadband (IP) service offerings that are becoming mainstream propositions, such as IPTV and residential VoIP.
Femtocell deployments that compete with fixed broadband, and are not intended to improve mobile coverage, are covered in this
segment.
PSTN NMS Legacy systems from equipment vendors meet the network management requirements for legacy PSTN equipment and fixed
circuit-switching technology. Most CSPs will keep them until they retire their PSTN equipment and move to convergent NGN as a
natural network evolution.
Product-related services Product-related services are the bundled installation, configuration and customisation services that are required as part of the
deployment of the network elements (hardware) and NMS solutions (software).
NMS segment and sub-segment definitions
Figure 13: Definitions of NMS and its segments and sub-segments [Source: Analysys Mason, 2012]
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 26
Executive summary
Business environment
Market definition
Market shares
Vendor analysis summaries
About the authors and Analysys Mason
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 27
Market shares
Revenue management
Service delivery platforms
Customer care
Service fulfilment
Service assurance
Network management systems
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Changes to the revenue management market segmentation
 In 2012, the Billing research programme’s name changed to
Revenue Management to reflect some underlying changes
that have taken place.
 Our reporting is now further segmented, as described in
Figure 14.
 Convergent billing reflects the growing number of charging,
rating and pricing systems that are used to support both
real-time and postpaid services. This sub-segment includes
market shares that were reported last year in the ‘real-time
charging (RTC)’ and ‘postpaid – rating and pricing’sub-segments.
 RTC market shares were previously reported in the ‘service
delivery platforms’ segment.
 Active mediation market shares were previously reported as
part of RTC, but now market shares from all mediation, both
active and passive (also described as online and offline,
respectively), are reported under the ‘mediation’ sub-segment.
 The ‘business optimisation’ and ‘partner and interconnect’
sub-segments remain unaltered.
 Where possible, year-on-year comparisons will include RTC
market shares from the previous year’s reports.
28
Figure 14: Changes to Analysys Mason’s segmentation of the revenue
management market [Source: Analysys Mason, 2012]
Segment definition updated
New segment
Unchanged from Billing
programme segmentation
Revenue
management
Partner and interconnect
Business optimisation
Mediation
Billing
Prepaid
Postpaid
Convergent
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall revenue management market summary
 The revenue management market generated revenue of
USD6.46 billion in 2011, up by 5.4% from 2010.2 This is higher
than our forecast of 4.6%, largely because of increased
spending in emerging markets, which was driven by the rise in
subscriber numbers and the growing need to support mobile
data services.
 Economic concerns continued, but a slight improvement led
CSPs that had delayed spending in 2010 cautiously to increase
their spend in 2011.
 Revenue growth continued in the emerging markets of APAC,
although more slowly. Vendors relying heavily on revenue from
China, for example, saw growth rates fall to single digits.
 Revenue from EMEA declined for most of the leading vendors,
dragged down by falling revenue in Western Europe.
 The business optimisation sub-segment enjoyed significant
(11.4%) year-on-year growth, bolstered by considerable interest
in ‘big-data’ and analytics. Vendors of revenue assurance and
fraud management solutions with presence in CSPs were able
to provide new use cases.
 Mediation vendors benefited from some significant projects
driven by mobile data and by replacement of in-house and older
systems, as subscriber numbers rose in emerging markets.
29
Figure 15: Revenue management market shares by revenue, worldwide,
2011 [Source: Analysys Mason, 2012]1
2 Compared with the 2010 figures for Billing and RTC.
1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, Convergys, Hewlett-
Packard (HP), IBM, Nokia Siemens Networks (NSN), Openet, Orga Systems and Subex.
Amdocs
23.8%
Huawei
8.8%
Ericsson
6.6%
CSG
International
(Intec)
6.0%
Oracle
5.8%
Comverse
5.3%
Other
43.7%
Total revenue: USD6.46 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall revenue management market summary, 2010 and 2011
 Amdocs retained its dominant position in the revenue
management market, achieving growth at about the market
rate. Although its revenue was still dominated by that from
NA, that from Europe and other markets also rose.
 Huawei’s continued revenue growth in the APAC region
resulted in it gaining a single percentage point, in terms of
worldwide market share.
 Ericsson’s modest revenue growth increased its market
share, which is expected to rise further in 2012, when
revenue from the Telcordia acquisition is included.
 CSG International experienced overall growth in revenue; this
is not entirely reflected here, as some came from managed
services.
 Oracle’s market share rose again from its considerable
efforts in marketing and products for telecoms, with growing
capability in analytics and related infrastructure.
 Comverse’s market share grew, as it posted 12 new
customer wins in 2011 as a result of a focused integrated
product set and being less hampered by financial concerns.
30
Figure 16: Revenue management market shares by revenue, worldwide,
2010 and 2011 [Source: Analysys Mason, 2012]1
1 Ericsson revenue excludes that from Telcordia Technologies, acquired by Ericsson in May
2011.
45.3% 41%
4.6% 5.3%
5.3% 5.8%
6.5% 6.0%
6.4% 7%
8.3% 8.8%
23.7% 23.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011
Market
share
of
revenue
Amdocs
Huawei
Ericsson
CSG
International
(Intec)
Oracle
Comverse
Other
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall revenue management market summary by region, 2010 and 2011
Summary for 2011
 NA’s share of the worldwide revenue management market
rose slightly, in line with market growth.
 CALA’s market share rose by a single percentage point as a
result of high subscriber growth rates.
 EMEA’s market share declined by a further two percentage
points, largely as a result of the economic climate in Western
Europe.
 APAC’s revenue continued to show significant growth –
enough to gain one percentage point of the worldwide
revenue management market.
Outlook for 2012
 Continued issues in the eurozone will cause contraction of
spend in Western Europe and the wider EMEA region.
 Emerging markets, particularly in CALA, will continue to
increase their market shares.
 The prepaid market in NA will continue to expand, helping to
drive up revenue.
 Growth in spending will slow in APAC’s emerging markets, as
the rate of growth in subscriber numbers declines.
31
Figure 17: Revenue management revenue by region, worldwide, 2010 and
2011 [Source: Analysys Mason, 2012]1
1 Includes year-on-year comparison with 2010 billing and RTC data.
26.3% 26.5%
39.8% 37.7%
7.6% 8.5%
26.3% 27.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011
Share
of
revenue
APAC
CALA
EMEA
NA
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Revenue management market shares by product revenue
 The top-six vendors accounted for 49% of the revenue in
2011. Product revenue as a percentage of total sales fell by
one percentage point in 2011, compared with 2010, as
vendors increased their share of the services market. We
expect this trend to continue in 2012.
 Oracle increased its market share to just behind that of
Ericsson, as a result of greater product sales, which were
driven through its strong indirect sales channel.
 Ericsson’s product revenue does not account for the
acquisition of Telcordia, which we expect will push it into a
leadership position in 2012.
 Huawei aggressively priced its software products, in order to
increase its revenue in 2011.
 Comverse, Amdocs and CSG International all maintained
their shares of product and maintenance revenue.
32
Figure 18: Revenue management market shares by product revenue,
worldwide, 2011 [Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, Convergys (acquired by
NEC) NSN, Openet, Orga Systems, SAP, SAS and Subex.
Ericsson
10.4%
Oracle
10.3%
Huawei
9.6%
Comverse
7.5%
Amdocs
6.8%
CSG
International
(Intec)
5.0%
Other
50.5%
Total revenue: USD2.40 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Revenue management market shares by product-related services revenue
 Many suppliers assumed greater responsibility for solution
delivery in 2010, and this trend continued in 2011. Overall
revenue rose by nearly 10%, compared with last year’s
numbers, to maintain growth in services revenue and overall
growth in revenue management.
 Amdocs’ recovery in 2011 was largely a result of its focus on
services, which enabled it to increase its already dominant
market share. It also won major projects in NA.
 Huawei continued to increase its share of the services
business, often helped by the related supply of hardware as
new networks were rolled out.
 CSG International continued to expand its services capability,
some of which is business gained as a result of the former
Intec business being able to take advantage of CSG’s
capabilities.
 Ericsson, Comverse and Convergys each increased its
revenue slightly to maintain its market position.
 Oracle’s revenue increased, but it was not one of the top six
vendors.
33
Figure 19: Revenue management market shares by product-related services
revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1
Amdocs
33.9%
Huawei
8.3%
CSG
International
(Intec)
6.6%
Ericsson
4.3%
Comverse
4.0%
Convergys
3.7%
Other
39.2%
Total revenue: USD4.06 billion
1 Significant vendors in the ‘Other’ category include: AsiaInfo, Alcatel-Lucent, HP, NSN,
Openet and Orga Systems.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Ericsson
11.2%
Comverse
10.2%
Nokia
Siemens
Networks
9.2%
Huawei
9.1%
Alcatel
Lucent
6.7%
Oracle
5.3%
Other
48.2%
Total revenue: USD978 million
Prepaid billing
 Revenue management systems now includes prepaid or RTC.
Active mediation is no longer included in this sub-segment, nor
is revenue associated with convergent charging.
 The top-six suppliers accounted for 52% of prepaid billing
revenue in 2011.
 Growth in the market has slowed because CSPs are now
completing roll-outs in large, high-growth emerging markets.
New systems tend to be convergent billing systems, rather than
prepaid, which means that sales in prepaid are of upgrades and
a decreasing number of new implementations.
 Ericsson continued to lead the prepaid market, but growth rates
are low.
 NSN lost some market share as CSPs turned to lower-cost
solutions and convergent systems.
 Huawei increased its market share by a percentage point
compared with 2010.
 Alcatel-Lucent’s revenue grew in line with the market to
maintain its positioning against other vendors.
 Oracle’s acquisition of eServGlobal software assets helped to
increase its market share.
34
Figure 20: Prepaid billing market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Acision, Amdocs, Comptel, Convergys,
CSG International, HP, Openet, Oracle, Orga Systems, Telcordia and Redknee.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Postpaid billing
 The postpaid billing market experienced modest growth.
However, year-on-year comparisons with 2010 values show a
decline, as some revenue is now accounted for within our
new convergent billing sub-segment.
 In this highly mature sub-segment, the top six suppliers
accounted for 81% of global revenue.
 Amdocs’ market share grew by three percentage points,
mainly due to the re-classification of other vendors into
convergent billing. It increased its business overall and
expanded its business outside North America by 2.4%.
 Huawei gained one percentage point as a result of continued
growth in China and in other emerging markets.
 CSG International’s market share grew through taking its
core CSG managed services offerings into international
markets to secure new product wins.
 Oracle gained market position and sales channels, helped by
a growing services capability to support its implementations.
 Convergys’s share fell by one percentage point because of
the slowdown in spending in its core North American market.
 Comverse’s market share remained unaltered from 2010.
35
Figure 21: Postpaid billing market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: AsiaInfo, CBOSS, CHR Solutions (Martin
Group), Comarch, Comverse, Ericsson, MDS, MetraTech, Orga Systems and Redknee.
Amdocs
44.5%
Huawei
10.3%
CSG
International
(Intec)
7.5%
Oracle
7.3%
Convergys
6.5%
Comverse
4.7%
Other
19.1%
Total revenue: USD2.86 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Amdocs
18.4%
Ericsson
12.4%
Comverse
11.7%
Orga
Systems
9.0%
Nokia
Siemens
Networks
4.7%
Convergys
4.6%
Other
39.2%
Total revenue: USD556 million
Convergent billing
 Convergent billing systems represent a new section in this
report this year. This comprises revenue from systems that
support both prepaid and postpaid services on a single
system entity, sometimes including convergent services such
as family plans in which there are both prepaid and postpaid
customers.
 Convergent billing accounts for about 14% of the total billing
market and is growing as new service types require the
provision of both prepaid and postpaid services. Cost savings
have not been the main driver for this, although there may be
a significant benefit when convergent billing is implemented.
 Growth rates are difficult to assess because vendors’
products that have convergent capability are not necessarily
implemented to support them. After years of very slow
growth, a combination of factors, including the maturing of
product offerings, new service requirements and cost
reductions, have seen surge in convergent system sales.
 Emerging markets, less hampered by established complex
systems than developed markets, have moved more swiftly
to adopt convergent billing solutions.
36
Figure 22: Convergent billing market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, Huawei, Oracle and
Redknee.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Partner and interconnect
 Partner and interconnect is a highly fragmented market: the
top-six vendors account for only 45% of revenue.
 The market is set to experience growth from partner
settlement outside the core business of interconnect and
roaming settlements.
 CSG International maintained its leading market share,
showing growth in line with that of the overall market.
 Amdocs lost one percentage point in market share, but
maintained its second-place position.
 Huawei maintained its market share, as did Ericsson.
 Oracle’s revenue grew faster than the market as a whole to
gain one percentage point in market share.
 A significant proportion of the partner and interconnect
market is accounted for by managed service providers, such
as MACH and Syniverse Technologies. These providers’
service revenue is not accounted for in this report’s figures,
but we have included an approximation in equivalent
software revenue for providing their services.
37
Figure 23: Partner and interconnect market shares by revenue, worldwide,
2011 [Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: AsiaInfo, Aepona, Convergys, Comptel,
Comverse, SAP, SITRONICS, Subex, Tango Telecom and TelArix.
CSG
International
(Intec)
14.7%
Amdocs
8.6%
Huawei
7.8%
Ericsson
5.0%
Oracle
4.6%
Syniverse
Technologies
4.5%
Other
54.8%
Total revenue: USD485 million
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Subex
8.1%
SAS
6.8% IBM
(Netezza,
SPSS,
Cognos)
6.5%
WeDo
technologies
6.1%
Hewlett-
Packard
(HP)
5.9%
cVidya
Networks
5.9%
Other
60.7%
Total revenue: USD843 million
Business optimisation
 The business optimisation market is highly fragmented: the
top-six vendors accounted for only 39% of revenue in 2011.
Specialist vendors, such as Subex and cVidya compete with
generalist analytics providers, such as Oracle, IBM , SAP
and SAS. Fragmentation will continue, as vendors new to the
market launch products.
 The core micro-segments in this area are revenue assurance
and fraud management, which are dominated by a few
significant vendors, all of which expanded their businesses
significantly in 2011.
 Subex has maintained its market leadership as a result of
continued growth in 2011, despite challenging financial
conditions in the company.
 The top-six vendors have similar market shares. WeDo
technologies’ revenue grew enough to give it a similar share
of the market as cVidya, HP and IBM.
 General-purpose analytics vendors, such as SAS, IBM,
Oracle and SAP will appear increasingly often in this sector,
as they extend their telecoms-specific developments and
support.
38
Figure 24: Business optimisation market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Oracle Amdocs, AsiaInfo, Basset, EMC,
Fair Isaac (FICO), Razorsight, SAP, and TEOCO.
Where vendors have the same percentage market share, we determine rankings according to
our internal revenue estimates.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Mediation
 The mediation market is mature and consolidated.2 The top-
six suppliers accounted for 67% of revenue in 2011.
 Growth in active mediation was driven mainly by growth in
subscriber numbers and associated networks in emerging
markets, but also by mobile data, including new infrastructure
roll-outs in mature markets.
 Mediation systems are also converging to provide a
consolidated platform.
 Huawei’s combined active and passive mediation revenue
gave it a larger market share than it had last year, when only
passive mediation was included.
 NSN’s revenue fell by one percentage point, but combined
mediation sales gave it a higher market share than HP.
 HPs overall market share was reduced, compared with 2010
mediation figures.
 CSG International lost two percentage points in market share
by combining the two mediation sectors.
 Openet’s market share fell, but its revenue grew overall in the
larger market segment.
39
Ericsson
17.4%
Huawei
10.1%
Nokia
Siemens
Networks
8.8%
Hewlett-
Packard
(HP)
8.2%
CSG
International
(Intec)
6.5%
Openet
6.2%
Other
42.7%
Total revenue: USD740 million
Figure 25: Mediation market shares by revenue, worldwide, 2011 [Source:
Analysys Mason, 2012]1
2 Last year, we reported passive (offline or batch) mediation revenue in this segment. We now
include active mediation which was included in the real-time charging sub-segment in our
Service delivery platforms: worldwide market shares 2010 report.
1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, Amdocs, Aricent, Comptel,
Convergys, Digital Route, NEC, nTels Co, Oracle and Ventraq.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 40
Market shares
Revenue management
Service delivery platforms
Customer care
Service fulfilment
Service assurance
Network management systems
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Changes to the SDP market segmentation
 Analysys Mason has changed the sub-segments covered
by the Service Delivery Platforms programme to reflect
developments in the OSS/BSS market (see Figure 26). The
new segmentation reflects the growing theme of delivering
personalised services – an area of increasing interest for CSPs.
 To summarise these changes:
 ‘RTC’ is now covered as part of the ‘revenue management’
segment, formerly ‘billing’
 ‘mobile device management’ is now covered in the ‘customer
care’ segment
 ‘policy management’ has been added to the ‘SDP’ segment
 ‘subscriber data management’ has been added to the ‘SDP’
segment, and is not the ‘subscriber management’ that is
covered in the ‘customer care’ segment.
 As a result of these changes, this year’s market share report
for SDPs will not match last year’s. For example, the leading
vendors for the SDP segment and its sub-segments may not
match those in previous reports. In addition, the 2010 and 2011
revenue figures quotes in this report will not match those from
last year’s five-year forecast report.
41
Figure 26: Changes to Analysys Mason’s segmentation of the SDP market
[Source: Analysys Mason, 2012]
unchanged sub-segments
added sub-segments
sub-segments moved
into other segments of
our taxonomy
Customer care
Revenue
management
Service delivery
platforms
Telecoms application servers
Mobile content management
and delivery
Policy management
Subscriber
data management
Real-time charging (RTC) Mobile device management
Key:
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall SDP market summary
 The SDP market generated USD3.84 billion in revenue in 2011,
up from USD3.73 billion in 2010.
 The addition of the SDM sub-segment increased the market
shares of the NEMs and led to higher market consolidation with
our new SDP sub-segments. The ‘big four’ NEMs led the
market, with strong product offerings in all our SDP market
sub-segments and global professional services teams that can
provide turnkey SDP deployments for CSPs.
 Ericsson and Alcatel-Lucent experienced marginal year-on-year
decline in SDP revenue of 2% and 3%, respectively. Ericsson’s
market share will increase inorganically in 2012 from its
acquisition of Telcordia in the first quarter.
 NSN was second with 4% year-on-year growth in SDP
revenue, coupled with its leading position in the SDM market.
 Huawei and Oracle achieved high year-on-year growth of 8%
and 7%, respectively, in SDP revenue. For Huawei, this again
came primarily from China, and to a lesser extent from Europe.
Oracle’s converged application server was the main contributor
to its growth in 2011.
 Amdocs acquisition of Bridgewater Systems in the second half
of 2010 contributed the majority of its market share in the PM
and SDM sub-segments, resulting in its 63% year-on-year
overall growth in SDP revenue.
42
Ericsson
16.6%
Nokia
Siemens
Networks
14.3%
Huawei
12.3%
Alcatel-
Lucent
11.1%
Oracle
7.1%
Amdocs
5.8%
Other
32.8%
Total revenue: USD3.84 billion
Figure 27: SDP market shares by revenue, worldwide, 2011 [Source:
Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Aepona, BroadSoft, Cisco, Comverse, HP,
IBM, Motricity, Openet, Tekelec and Telcordia.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
34.4% 32.8%
3.7% 5.8%
6.8% 7.1%
11.8% 11.1%
11.7% 12.3%
14.1% 14.3%
17.4% 16.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011
Market
share
of
revenue
Ericsson
Nokia Siemens Networks
Huawei
Alcatel-Lucent
Oracle
Amdocs
Other
Total revenue 2010: USD3.73 billion
Total revenue 2011: USD3.84 billion
Overall SDP market summary, 2010 and 2011
 Despite the changes in our market segmentation, the top-six
vendors have remained the same, as has their ranking order.
Of these, Amdocs achieved the highest growth rate (at 63%
year-on-year) for SDP revenue because of its acquisition of
Bridgewater Systems in the second half of 2010. This
contributed the majority of its market share in the newly
included sub-segments of policy management and SDM.
Thus, its 63% SDP revenue growth in 2011 was largely
inorganic.
 Alcatel-Lucent lost one percentage point in market share as
the overall SDP market grew by 3% from 2010 to 2011.
 Ericsson’s market share was constant at 17%, and will
increase inorganically in 2012 as a result of its acquisition
of Telcordia in the first quarter of 2012.
 NSN retained its second position, primarily because it leads
the SDM market with its One-NDS solution.
 Huawei and Oracle maintained their market shares of 12%
and 7%, respectively, in 2011. Huawei’s growth again came
primarily from China, and to a lesser extent from Europe.
Oracle’s converged application server was the main
contributor to its growth in 2011.
43
Figure 28: SDP market shares by revenue, worldwide, 2010 and 2011
[Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Aepona, BroadSoft, Cisco, Comverse, HP,
IBM, Motricity, Openet, Tekelec and Telcordia.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
SDP market summary by region, 2010 and 2011
Summary for 2011
 CALA showed the highest growth in revenue (at 11%), driven
by strong activity in Brazil and Mexico. Telefónica Brasil
(Vivo) has accelerated competition in Brazil, causing Oi and
TIM Brasil to spend to stay competitive.
 NA showed the second-highest growth (at 9%), as CSPs
employed PM solutions on their LTE and HSPA networks for
new mobile data services.
 Revenue growth in APAC was only 1%, as CSPs restricted
spend on SDP by using software as a service (SaaS) and
low-cost solutions.
 Revenue in EMEA fell by 1%, as spend on SDP in Western
Europe continued to be restricted and low-cost SDP solutions
were used in the Middle East and Africa.
Outlook for 2012
 CALA will continue to be a high-growth region as competition
increases.
 We anticipate a slow recovery in SDP spending across
Europe, given the current uncertainty in the eurozone.
44
Figure 29: SDP revenue by region, worldwide, 2010 and 2011 [Source:
Analysys Mason, 2012]
 Revenue in NA and APAC will grow at a rate higher than that
of the overall SDP market.
 The success of prepaid in NA may encourage smaller CSPs
to move to low-cost next-generation IN and TAS platforms.
24.2% 25.6%
41.2% 39.6%
7.9% 8.5%
26.7% 26.3%
0%
20%
40%
60%
80%
100%
2010 2011
Market
share
of
revenue
Total revenue 2010: USD3.73 billion
Total revenue 2011: USD3.84 billion
APAC
CALA
EMEA
NA
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Ericsson
14.6%
Huawei
13.8%
Nokia
Siemens
Networks
13.8%
Alcatel-
Lucent
11.6%
Oracle
7.8%
Amdocs
6.1%
Other
32.3%
Total revenue: USD2.13 billion
SDP market shares by product revenue
 The SDP product market became more consolidated with the
introduction of our new SDP sub-segments. The top-six
vendors accounted for 68% of revenue in 2011.
 The major changes in product revenue leadership are as a
result of the introduction of the large SDM market sub-
segment, in which the NEMs are very strong.
 The top-six vendors were the same as for the overall SDP
market, but the positions of Huawei and NSN were reversed.
 Huawei overtook NSN with product revenue from its
aggressive business growth in China and Europe, while NSN
struggled with financial uncertainties surrounding its parent
company (Nokia).
 Oracle, which continued to be strongly product focused, held
fifth position.
 Amdocs used its acquisition of Bridgewater Systems to enter
the top-six of our new SDP software segment.
45
Figure 30: SDP market shares by product revenue, worldwide, 2011 [Source:
Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Aepona, BroadSoft, Cisco, Comverse, HP,
IBM, Motricity, Openet, Tekelec and Telcordia.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
SDP market shares by product-related services revenue
 The SDP product-related services market also became
more consolidated with the introduction of our new SDP
sub-segments. The top-six vendors accounted for 67%
of revenue in 2011.
 The top-six vendors were the same as for the overall SDP
market, but the positions of Alcatel-Lucent and Huawei
reversed.
 Huawei’s immaturity in the area of professional services, and
its low pricing to enter the Tier 1 European CSP market
aggressively, have resulted in its product-related revenue
being weaker than that of Alcatel-Lucent in 2011.
 Oracle’s introduction of its Oracle Communications
Consulting (OCC) made no significant impact on SDP
product-related services in 2011, compared with the
traditional Oracle telecoms software areas of BSS and
service fulfilment.
 Amdocs’ emphasis on professional services suggests that its
SDP product-related services revenue could overtake that of
Oracle in 2012.
46
Figure 31: SDP market shares by product-related services revenue,
worldwide, 2011 [Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Aepona, Broadsoft, Cisco, Comverse, HP,
IBM, Motricity, Openet, Tekelec and Telcordia.
Ericsson
19.1%
Nokia
Siemens
Networks
14.9%
Alcatel-
Lucent
10.5%
Huawei
10.3%
Oracle
6.3%
Amdocs
5.5%
Other
33.4%
Total revenue: USD1.71 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Oracle
15.5%
Ericsson
13.2%
Nokia
Siemens
Networks
12.2%
Alcatel-
Lucent
11.8%
Huawei
11.7%
BroadSoft
7.0%
Other
28.6%
Total revenue: USD1.65 billion
Telecoms application servers
 The TAS market is more consolidated, as the top-six
suppliers accounted for 71% of the commercial TAS market.
 Oracle, with its focus on its converged application server and
on providing product-related services with its OCC team,
overtook Ericsson to lead the TAS market. It has successfully
replace Ericsson’s legacy IN in T-Mobile Hungary.
 Ericsson slipped to second place, as its legacy IN was replaced
by other vendors’ next-generation IN (NG-IN) platforms at a
lower price point and with lower ongoing support and
maintenance costs. Its acquisition of Telcordia may return
Ericsson to the market leadership position in 2012.
 NSN’s ability to provide evolved IN and NG-IN to simplify
CSPs migration to NG-IN supported its third position.
 Alcatel-Lucent fell to fourth place following its restructuring,
but continued to focus on API exposure with its Application
Enablement platform.
 Huawei’s revenue growth continued, adding 1 percentage
point to its market share, compared with 2010, through
legacy IN upgrades and replacements.
 BroadSoft had the highest year-on-year growth of 20%,
compared with the other five top vendors in 2011. This came
from its BroadWorks solution, as IMS investments increased
and CSPs deployed more enhanced VoIP services.
47
Figure 32: Telecoms application server market shares by revenue,
worldwide, 2011 [Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Aepona, Amdocs, Comverse, GENBAND,
HP, IBM, Metaswitch Networks, OpenCloud, Telcordia and Telenity.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Amdocs
14.0%
Ericsson
11.3%
Huawei
9.0%
Motricity
7.9%
Alcatel-
Lucent
6.5%
Mobixell
Networks
4.0%
Other
47.2%
Total revenue: USD0.50 billion
Mobile content management and delivery
 The MCMD market is fragmented: the top-six vendors
accounted for 53% of revenue in 2011. The sub-segment
grew as some CSPs continued to invest in application stores
and mobile advertising.1
 Globe Telecom, Mobilink, Omnitel, Reliance Communications
(Reliance), SK Telecom, Telecom New Zealand, Türkcell and
Vodacom all launched their own application stores in 2011.
 SaaS deployments reduced spend on MCMD in 2011 and will
continue the trend in this sub-segment.
 Amdocs maintained its market-leading position with its Amdocs
Interactive solution.
 Ericsson’s MSDP and eStore products and SaaS offerings
sustained its 11% market share in 2011.
 Huawei’s Digital Shopping Mall gained traction, mainly in China.
 Motricity’s SaaS-only offering sustained its business in the USA
and won deals in APAC with Reliance and the Axiata Group.
 Alcatel-Lucent maintained its market share with application
store deployments on its Digital Media Store platform.
 Mobixell Networks acquired 724 Solutions Software in January
2010, which helped it to increase its market share.
48
Figure 33: Mobile content management and delivery market shares by
revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Acision, Antenna Software, Mavenir
Systems, MobileAware, NEC, Nokia Siemens Networks, Openwave Mobility, Oracle and
Telenity.
1 For more information on the MCMD market in 2011, see Analysys Mason’s Report Mobile
content management and delivery: third-generation platforms, third time lucky?.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Policy management
 The PM market remains fragmented, with the top-six vendors
accounting for 63% of the revenue in 2011. The sub-segment
grew as mobile CSPs’ invested in network protection policy
use cases and a few mobile data services.
 The large mobile NEMs (Ericsson, Huawei and NSN) can
deliver a full policy management solution as part of a larger
network deployment. Ericsson has deployed its Service-
Aware Policy Controller solution with its packet core.1
 Huawei was in second place thanks to deployments of its
packet core, but is weak in mature markets and there are
some gaps in overlap between its Unified Policy and Charging
Controller and its Mobile Broadband Value Growth Solution,
which was used to launch MegaFon’s Turbo Button in 2009.
 Tekelec increased the scale of its acquired Camiant PCRF in
its Policy Server, which meets the needs of Tier 1 CSPs, such
as Verizon Wireless, and emerging market CSPs, such as
TIM Brasil. Tekelec is also a market leader in diameter signalling
routing, which is rapidly becoming essential for policy control.
 Openet’s major sources of revenue are its product-related
services and its primary customer – AT&T.
 Amdocs acquired Bridgewater Systems’ market share in 2011.
49
Figure 34: Policy management market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 For more information on Ericsson’s Service Aware Policy Controller (SAPC) see Analysys
Mason’s Ericsson: policy management profile.
1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, BroadHop, ComAbility,
Comptel, Comverse, Convergys, Flash Networks, HP, Redknee Solutions and Volubill.
Ericsson
20.6%
Huawei
11.5%
Tekelec
9.4%
Openet
8.5%
Amdocs
7.2%
Nokia
Siemens
Networks
5.9%
Other
36.8%
Total revenue: USD0.42 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Nokia
Siemens
Networks
23.9%
Ericsson
21.8%
Alcatel-
Lucent
14.5%
Huawei
14.4%
Cisco
Systems
5.1%
Amdocs
4.9%
Other
15.3%
Total revenue: USD1.27 billion
Subscriber data management
 Like other NEMs-dominated markets, such as the NMS market,
the SDM market is highly consolidated, with the top-six vendors
accounting for 85% of the revenue in 2011.
 The sub-segment grew as a result of mobile adjunct policy
subscriber profile repository (SPR) and home subscriber server
(HSS) deployments.
 NSN led this market with its One-NDS product and has done so
since its acquisition of Apertio, in 2008, which undermined
Ericsson’s and Motorola’s strategies, as they used Apertio’s
One-NDS.
 Ericsson is second with deployments of home location register
(HLR) and HSS in its extensive worldwide CSP customer base.
 Alcatel-Lucent’s 8650 Subscriber Data Manager continues to
be its main SDM product.
 Huawei uses its single subscriber database (SingleSDB) for
HSS and SPR in its policy management solution.
 Cisco’s 2009 acquistion of Starent Networks boosted its SDM
market share, thanks to the combination of Starent’s HSS
deployments worldwide and its traditonal fixed broadband SDM
with Cisco’s Identity Services Engine (ISE).
 Amdocs gained additional SDM market share from deployments
of Bridgewater Systems’ adjunct SPR with its PCRF.
50
Figure 35: Subscriber data management market shares by revenue,
worldwide, 2011 [Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: ComAbility, Elitecore Technologies, HP,
IBM, Juniper Networks, Openet, Oracle, Tekelec, Xeround and ZTE.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 51
Market shares
Revenue management
Service delivery platforms
Customer care
Service fulfilment
Service assurance
Network management systems
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall customer care market summary
 The overall market revenue for customer care systems was
USD2.78 billion worldwide in 2011. The top-six suppliers
accounted for 57% of the market.
 Nearly all vendors benefited from the market growth in 2011.
 Huawei’s revenue grew in China, but at a reduced rate
compared to recent years, because of the economic
slowdown in China. Huawei also continued its expansion into
the Western hemisphere.
52
Oracle
24.7%
Amdocs
15.2%
Huawei
7.9%
SAP
3.9%
Convergys
3.1%
Avaya
2.3%
Other
42.8%
Total revenue: USD2.78 billion
Figure 36: Customer care market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent (Genesys), Avaya,
BroadVision, CBOSS, Comverse, CSG International, Infor, Microsoft, Pegasystems and
salesforce.com with an aggregate market share of 16.3%, and many other smaller vendors
with an aggregate market share of 27.5%.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall customer care market summary, 2010 and 2011
 Among the top-six vendors, only Oracle increased its
customer care market share between 2010 and 2011.
 Amdocs’ share dropped slightly, while Huawei, SAP,
Convergys and Avaya maintained their market share
year-on-year.
53
Figure 37: Customer care market shares by revenue, worldwide, 2010 and
2011 [Source: Analysys Mason, 2012]1
43% 43%
2% 2%
3% 3%
4% 4%
8% 8%
16% 15%
24% 25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011
Market
share
of
revenue
Oracle
Amdocs
Huawei
SAP
Convergys
Avaya
Other
Total revenue 2010: USD2.60 billion
Total revenue 2011: USD2.78 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall customer care market summary by region, 2010 and 2011
 The largest growth came in CALA (13%), but from a small
base, because revenue was recognised in 2011 for deals that
were closed in 2010 and 2011 after a long hiatus in the
market.
 CSPs in developed markets increased spending slightly on
customer care systems in NA and EMEA, but at a much
lower rate than those in emerging markets.
 CSPs in emerging markets in APAC and EMEA increased
spending on customer care systems, as mobile markets
approached saturation in some countries, and as new
carriers entered the market in others.
 Spending in China and the Middle East, which are less
sensitive to free market pressures, continued again in 2011 at
close to previous levels. Two vendors, AsiaInfo-Linkage and
Huawei, benefited most from growth in the Chinese market.
54
Figure 38: Customer care revenue by region, worldwide, 2010 and 2011
[Source: Analysys Mason, 2012]1
33.1% 33.3%
39.1% 37.4%
6.1% 6.4%
21.7% 22.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011
Share
of
revenue
APAC
CALA
EMEA
NA
Total revenue 2010: USD2.60 billion
Total revenue 2011: USD2.78 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Customer care market shares by product revenue
 The overall product revenue for customer care software was
USD1.72 billion in 2011. The top-six suppliers accounted for
59% of the market. Oracle retained its position as the leading
product supplier, thanks to its product-focused strategy.
 Huawei moved continued its move into software, maintaining
its second place in product revenue.
 Amdocs continues to command a prominent position (third
place) in terms of product revenue, despite its increasing
focus on services in the customer care market.
 SAP maintained its position as the number of subscribers in
its embedded base grew.
 Avaya continues to focus on its IVR and web-enabled
systems, taking fifth place in terms of product market share.
 Alcatel-Lucent took sixth place this year because it expanded
its Genesys product line. Alcatel-Lucent sold the Genesys
unit to private equity company Permira for USD1.5 billion in
2012.
55
Figure 39: Customer care market shares by product revenue, worldwide,
2011 [Source: Analysys Mason, 2012]1
1 ‘Product’ includes licence software, maintenance and the portion of managed services and
SaaS revenue attributed to products.
Oracle
34.7%
Huawei
6.4%
Amdocs
5.8%
SAP
5.6%
Avaya
3.8%
Alcatel-
Lucent
(Genesys)
3.0%
Other
40.7%
Total revenue: USD1.72 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Customer care market shares by product-related services revenue
 The overall market revenue for customer care product-
related services was USD1.05 billion in 2011. The top-six
suppliers accounted for 59% of the market.
 Amdocs’ loss of services market share is not indicative of a
change of its focus on services, but of an overall decline in
revenue.
 Huawei took second place.
 Oracle continues to seek an increase in revenue in product
related services. It continued in third place.
 NetCracker purchased Convergys in 2012 following several
years of Convergys’ declining market share.
 Ericsson and CSG International took fifth and sixth places,
respectively.
56
Figure 40: Customer care market shares by product-related services
revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1
1 ‘Product-related services’ includes installation and basic configuration of product software
supplied. Examples are loading the product templates in a CRM system, the basic process
definitions for an order orchestration system and loading the various product and service
catalogues with CSP-specific information. It excludes data loading of network or customer
information, integration with legacy OSSs, and other SI-like services.
Amdocs
30.6%
Huawei
10.3%
Oracle
8.5%
Convergys
3.6%
Ericsson
2.8%
CSG
International
2.8%
Other
41.4%
Total revenue: USD1.05 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Customer relationship management
 The CRM market generated USD1.16 billion in revenue
worldwide in 2011. This represents 9.4% growth from 2010,
about 2% more than forecasted.
 The top-six suppliers accounted for 77% of the commercial
CRM market – the same as in 2009. This market is much
more consolidated than most other BSS or OSS markets.
 Oracle maintained its number one position based on the
market strength of its Siebel CRM system and the integration
of multi-channel marketing and sales features gained when it
acquired the Art Technology Group (ATG) in November 2010.
 Amdocs maintained its number two position through several
CRM deals, including a number of order orchestration and
retail store software implementations.
 The ecosystem that Microsoft has built around its Microsoft
Dynamics CRM system continued its growth in the telecoms
market.
57
Figure 41: Customer relationship management market shares by revenue,
worldwide, 2011 [Source: Analysys Mason, 2012]1
1 The ‘Other’ category includes: AsiaInfo-Linkage, Comverse, Convergys, eGain
Communications, FrontRange Solutions, IBM, NetSuite, Pegasystems, salesforce.com and
Tribold which account for 13% of the revenue, with many other smaller vendors accounting
for the remaining 10%.
Oracle
37.9%
Amdocs
13.1%
Huawei
10.2%
SAP
8.7%
Microsoft
3.9%
Infor
2.8%
Other
23.4%
Total revenue: USD1.16 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Subscriber management
 The subscriber management market generated USD640 million
in 2011, up slightly from USD625 million in 2010.
 Subscriber management systems are usually bundled with
billing systems, providing basic customer care functions.
 The growth of subscriber management systems primarily
depends upon the growth of the associated billing systems,
as the number of subscribers in established billing
installations grows. This is supplemented by some new sales
of billing systems for new services offered by established
CSPs and for new-entrant mobile CSPs in emerging markets.
 Amdocs continued as the leader of this sub-segment, with a
30% market share. It reported a number of deals where
CSPs upgraded service management systems in order to
make them easier for customer care agents to use.
 Convergys and Oracle also maintained their positions
(second and third, respectively).
 Huawei moved from fifth to fourth place.
 Others maintained their positions.
58
Figure 42: Subscriber management market shares by revenue, worldwide,
2011 [Source: Analysys Mason, 2012]1
1 The ‘Other’ category includes: AsiaInfo-Linkage, CBOSS, Cerillion, CGI Group, Comarch,
Ericsson, Enhanced Telecommunications (ETI Software Solutions), Orga Systems, Redknee
and Redtech Network India (Ushacomm) with an aggregate market share of 19%, and many
smaller vendors accounting for the rest.
Amdocs
29.5%
Convergys
11.4%
Oracle
9.7%
Huawei
7.3%
CSG
International
6.3%
Comverse
3.9%
Other
31.9%
Total revenue: USD0.64 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Customer interaction
 The worldwide revenue from customer interaction systems
reached USD693 million, which is 9.9% more than last year’s
USD631 million and considerably more than projections.
Customer self-care came to the forefront in 2011, with web-
based interfaces and mobile-optimised self-care systems
experiencing significant growth.
 The customer interaction market continues to grow as CSPs
increasingly move towards self-service, which has been
proven to reduce customer care centre costs by as much as
20% and increase ARPU by up to 18%. Consumers are also
becoming more adept at using web interfaces, social
networking resources and other automated customer
interaction methods.
 The top-six suppliers accounted for 68% of the market, about
the same as in 2010.
 Many of the leading vendors maintained their revenue market
share rankings in this sub-segment. Some of their shares are
separated by only a few million dollars.
 Oracle maintained its number one position based on the
strong market presence of its Siebel CRM system and the
acquisition of cloud-based customer interaction vendor
RightNow Technologies.
59
Figure 43: Customer interaction market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 The ‘other’ category includes: AsiaInfo-Linkage, Comverse, CSG International, Enabil
Solutions, Ericsson, iisy – intelligente informationssysteme, Irdeto, Kana Software,
RightNow Technologies and SAP accounting for 13% and many smaller vendors accounting
for the rest.
Oracle
26.7%
Amdocs
11.8%
Avaya
9.4%
Alcatel-
Lucent
(Genesys)
9.2%
Huawei
7.9%
BroadVision
3.4%
Other
31.6%
Total revenue: USD0.69 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Device management
 Device management, previously classified by Analysys
Mason as a part of service delivery platforms, is a new
sub-segment of the customer care segment. We did this
because most of the device management systems now
offered are multi-vendor in nature, not tied to a particular
vendor or equipment type. We have included mobile device
management (MDM) systems this year and will include fixed
device management systems from next year onwards.
 A few telecoms specialists continue to dominate the MDM
market. The top-six suppliers accounted for 68% of revenue
in this sub-segment in 2011.
 Revenue growth was low in the market overall because
mobile device management is not essential to generating
revenue. Furthermore, vendors are offering many aspects of
MDM to enterprise and retail customers, which provides
direct competition for services offered by CSPs. Meanwhile,
smartphone manufacturers are not adhering to standards,
offering only low-functionality APIs that severely limit the
capabilities of MDM systems.
 NSN has invested heavily in its MDM product and its revenue
grew faster than the overall market.
 Ericsson obtains much of its revenue by reselling Synapse
Mobile Networks’ solution.
60
Figure 44: Device management market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘Other’ category include: Hewlett Packard (HP), Invigo, Mobilethink,
Motorola Solutions, Pervacio, Qualcomm, Giesecke & Devrient (SmartTrust) and Telcordia
Technologies, which account for 15% of the market and several other smaller vendors
accounting for the rest.
Nokia
Siemens
Networks
18.7%
Ericsson
12.7%
Mformation
Technologies
10.6%
Synapse
Mobile
Networks
10.6%
innoPath
9.2%
Sicap
6.0%
Other
32.4%
Total revenue: USD0.28 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011 61
Market shares
Revenue management
Service delivery platforms
Customer care
Service fulfilment
Service assurance
Network management systems
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall service fulfilment market summary
 The overall market revenue for service fulfilment was
USD2.56 billion in 2011.2 The top six suppliers accounted for
47% of the market, up 1 percentage point from 2010.
 Oracle continued its accumulation of market share, building
on its strong architecture and reputation in and major
exposure to emerging markets. Major transformation
programmes by large CSPs such as KT fuelled growth.
 Telcordia grew, but suffered the usual disruptions that occur
when a company is acquired.
 NEC/NetCracker gained market share both organically and
by acquiring other software products from NEC.
 Amdocs grew, but slower than the market. It announced
some substantial enhancements to its service fulfilment
offerings in 2011.
 Generally speaking, the leading vendors that maintained or
gained market share did so by winning new projects in
emerging markets, transformation projects in developed
markets, executing on more services work and expanding
established projects to support new services.
62
Oracle
10.8%
Telcordia
Technologies
10.2%
NEC/
NetCracker
9.3%
Amdocs
8.1%
Hewlett-
Packard
4.3%
Comptel
4.1%
Other
53.1%
Total revenue: USD2.56 billion
Figure 45: Service fulfilment market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
2 This report does not include the fulfilment software products offered by NEMs, unless such
products are developed by a separate division and sold under separate branding, even if
those systems have some multi-vendor capabilities.
1 Significant vendors in the ‘other’ category include: Actix, AIRCOM International, Comarch,
ConceptWave, Evolving Systems, GE Smallworld, IBM, Sigma Systems, Synchronoss
Technologies and Visionael with an aggregate market share of 17%, and many other small
vendors, with an aggregate market share of 36%.
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall service fulfilment market summary, 2010 and 2011
 The top-six vendors gained market share at the expense of
the middle tier of companies (that is, the next ten in the
‘Other’ category).
 Oracle commanded the top spot for the first time, continuing
to reap the rewards of the integration of its service fulfilment
and BSS (notably Siebel CRM) products, its focus on priming
systems integration projects involving its products and the
exploitation of its strong brand in emerging markets.
 Telcordia dropped to second place for the first time.1 It
maintains strength in its legacy RBOC systems and sales of
next-generation systems to Tier 1 CSPs. However, it has not
enjoyed enough exposure to emerging markets required to
maintain share.
 NEC, under the NetCracker Technology brand, continued to
increase its share, taking third place as it consolidated other
NEC software products under the brand and took advantage
of the NEC sales force and Japanese relationships.
 Amdocs lost market share, but has announced a strong set
of innovations in service fulfilment in 2011 and 2012.
 HP and Comptel remained in the top six.
63
Figure 46: Service fulfilment market shares by revenue, worldwide, 2010 and
2011 [Source: Analysys Mason, 2012]
1 Telcordia became a part of Ericsson in 2012 and so features separately in this year’s report
on 2011 market shares. If reported on a consolidated basis with the rest of Ericsson, Ericsson
would still command first place in multi-vendor service fulfilment.
52.5% 53.1%
4.2% 4.1%
4.4% 4.3%
8.9% 8.1%
9.4% 9.3%
10.4% 10.2%
10.2% 10.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011
Market
share
of
revenue
Oracle
Telcordia Technologies
NEC/NetCracker
Amdocs
Hewlett-Packard
Comptel
Other
Total revenue 2010: USD2.31 billion
Total revenue 2011: USD2.56 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Overall service fulfilment market summary by region, 2010 and 2011
 Service fulfilment revenue increased by 10.8%.
 The NA market grew at a slightly higher rate than the
worldwide average, at 11%. Spending in this region
increased significantly in the fourth quarter of 2011 as CSPs
used up their budgets that were held in reserve for much of
the year.
 CALA was the fastest-growing market: revenue grew by
13.5% in 2011, from a small base. Many ISVs reported the
expansion of earlier projects as well as new projects in 2011.
 EMEA accounted for the largest share of revenue, but its
share decreased overall by one percentage point year-on-
year. Growth in the Middle East did not offset the declines in
developed European countries.
 APAC returned to growth (at a rate of 15.6%). Most of this
growth came from China and the other emerging markets
that needed automated service fulfilment to meet their
growth.
64
Figure 47: Service fulfilment revenue by region, worldwide, 2010 and 2011
[Source: Analysys Mason, 2012]
37.7% 37.9%
39.4% 38.2%
5.6% 5.7%
17.4% 18.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011
Share
of
revenue
APAC
CALA
EMEA
NA
Total revenue 2010: USD2.31 billion
Total revenue 2011: USD2.56 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Service fulfilment market shares by product revenue
 The overall market revenue for service fulfilment products
was USD1.51 billion in 2011.1
 The market share positions remained the same as 2010.
65
Figure 48: Service fulfilment market shares by product revenue, worldwide,
2011 [Source: Analysys Mason, 2012]1
1 Our definition of product revenue includes revenue from software licences, maintenance and
a portion of managed services and SaaS revenue that is attributable to products.
Telcordia
Technologies
13.2%
Oracle
9.9%
NEC/
NetCracker
9.0%
Amdocs
6.2%
Comptel
4.6%
Hewlett-
Packard
3.1%
Other
54.0%
Total revenue: USD1.51 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Service fulfilment market shares by product-related services revenue
 The overall market revenue for service fulfilment product-
related services was USD1.05 billion in 2011.1
 Oracle gained the number one position by providing more
product-related services, both as prime contractor and as
sub-contractor to other SIs.
 Amdocs, which is primarily a services company overall, has a
more product-oriented strategy for its service fulfilment
products, in keeping with the former Cramer philosophy.
 Sigma Systems took the number six spot.
66
Figure 49: Service fulfilment market shares by product-related services
revenue, worldwide, 2011 [Source: Analysys Mason, 2012]
1 Our definition of product-related services includes installation and basic configuration of
software for software products supplied.
Oracle
12.1%
Amdocs
10.9%
NEC/
NetCracker
9.7%
Hewlett-
Packard
6.2%
Telcordia
Technologies
5.9%
Sigma
Systems
3.4%
Other
51.8%
Total revenue: USD1.05 billion
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Order management
 The OM market generated USD636 million in revenue in
2011, up from USD586 million in 2010. This is less than that
in the order orchestration space, but represents a return to
growth for this area – mostly coming from the sales of OM
systems as part of an overall service fulfilment ‘stack.’
 The top-six suppliers accounted for 42% of the commercial
OM market, down from 43% in 2010. This came mostly from
the significant other vendors who entered the order
management space. The market is still highly fragmented.
The ‘Other’ category comprises 30 vendors, of which about a
dozen generated USD5 million or less in revenue from the
OM market.
 NetCracker made significant market share gains in OM
during 2010, taking the second position. Amdocs, Oracle and
Telcordia also increased their market shares.
67
Figure 50: Order management market shares by revenue, worldwide, 2011
[Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘other’ category include: Comarch, ConceptWave, CSG Systems,
Ericsson TANDBERG Television, Evolving Systems, HP, IBM, Sigma Systems, TIBCO
Software and Visionael.
Amdocs
9.7%
NEC/
NetCracker
9.0%
Oracle
7.9%
Telcordia
Technologies
5.7%
Comptel
5.4%
Synchronoss
Technologies
4.7%
Other
57.5%
Total revenue: USD636 million
© Analysys Mason Limited 2012
Telecoms software: worldwide market shares 2011
Telcordia
Technologies
19.9%
NEC/
NetCracker
16.7%
Amdocs
15.5%
Oracle
13.8%
Visionael
3.7%
Comptel
2.8%
Other
27.6%
Total revenue: USD725 million
Inventory management
 IM revenue increased from USD663 million in 2010 to
USD725 million in 2011.
 Inventory management has gone through substantial
mergers and acquisitions during the past five years.
 The top-six suppliers account for 73% of the IM market,
continuing the consolidation trend.
 Many smaller suppliers remain, some of which are new to the
IM market, serving those CSPs who still desire best-in-class
solutions.
68
Figure 51: Inventory management market shares by revenue, worldwide,
2011 [Source: Analysys Mason, 2012]1
1 Significant vendors in the ‘other’ category include: Aktavara, Clarity International, Comarch,
Commsolv, Corelogic, HP, Netformx, Synchronoss, TierOne OSS and TIBCO Software.
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market_shares.ppt

  • 1. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Research Report September 2012 Patrick Kelly, Mark H. Mortensen, Glen Ragoonanan, Justin van der Lande, Dean Ramsay, Anil Rao and John Abraham Telecoms software: worldwide market shares 2011
  • 2. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Contents 8. Executive summary 9. Worldwide telecoms software market shares in 2011 10. Worldwide telecoms software market shares in 2010 and 2011 11. Worldwide telecoms software market shares in 2011: by service sector 12. Worldwide telecoms software market shares in 2011: by region 13. Business environment 14. The business environment in 2011 15. Regional outlook for 2012 16. Market definition 17. Telecoms software taxonomy changes 18. Telecoms software market segmentation 19. Telecoms software market definitions 20. Revenue management sub-segment definitions 21. SDP sub-segment definitions 22. Customer care sub-segment definitions 23. Service fulfilment sub-segment definitions 24. Service assurance sub-segment definitions 25. NMS segment and sub-segment definitions 26. Market shares 27. Market shares: Revenue management 28. Changes to the revenue management market segmentation 29. Overall revenue management market summary 30. Overall revenue management market summary, 2010 and 2011 31. Overall revenue management market summary by region, 2010 and 2011 2 32. Revenue management market shares by product revenue 33. Revenue management market shares by product-related services revenue 34. Prepaid billing 35. Postpaid billing 36. Convergent billing 37. Partner and interconnect 38. Business optimisation 39. Mediation 40. Market shares: Service delivery platforms 41. Changes to the SDP market segmentation 42. Overall SDP market summary 43. Overall SDP market summary, 2010 and 2011 44. SDP market summary by region, 2010 and 2011 45. SDP market shares by product revenue 46. SDP market shares by product-related services revenue 47. Telecoms application servers 48. Mobile content management and delivery 49. Policy management 50. Subscriber data management 51. Market shares: Customer care 52. Overall customer care market summary 53. Overall customer care market summary, 2010 and 2011 54. Overall customer care market summary by region, 2010 and 2011 55. Customer care market shares by product revenue Slide no. Slide no.
  • 3. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Contents 56. Customer care market shares by product-related services revenue 57. Customer relationship management 58. Subscriber management 59. Customer interaction 60. Device management 61. Market shares: Service fulfilment 62. Overall service fulfilment market summary 63. Overall service fulfilment market summary, 2010 and 2011 64. Overall service fulfilment market summary by region, 2010 and 2011 65. Service fulfilment market shares by product revenue 66. Service fulfilment market shares by product-related services revenue 67. Order management 68. Inventory management 69. Activation 70. Engineering tools 71. Market shares: Service assurance 72. Overall service assurance market summary 73. Overall service assurance market summary, 2010 and 2011 74. Overall service fulfilment market summary by region, 2010 and 2011 75. Service fulfilment market shares by product revenue 76. Service fulfilment market shares by product-related services revenue 77. Service management systems 78. Fault and event management systems 3 79. Performance monitoring systems 80. Workforce automation systems 81. Probe systems 82. Market shares: Network management systems 83. Overall NMS market summary 84. Overall NMS market summary, 2009–2011 85. Overall NMS market summary by region, 2009–2011 86. NMS market shares by product revenue 87. NMS market shares by product-related services revenue 88. Mobile NMS 89. Business data services NMS 90. Residential broadband NMS 91. PSTN NMS 92. Vendor analysis summaries 93. Vendor analysis summaries: Revenue management 94. Revenue management vendor analysis summary, by region and service sector [1] 95. Revenue management vendor analysis summary, by region and service sector [2] 96. Revenue management vendor analysis summary, by region and service sector [3] 97. Revenue management vendor analysis summary, by region and service sector [4] Slide no. Slide no.
  • 4. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Contents 98. Revenue management vendor analysis summary, by region and service sector [5] 99. Vendor analysis summaries: Service delivery platforms 100. SDP vendor analysis summary, by region and sub-segment [1] 101. SDP vendor analysis summary, by region and sub-segment [2] 102. SDP vendor analysis summary, by region and sub-segment [3] 103. SDP vendor analysis summary, by region and service sector [1] 104. SDP vendor analysis summary, by region and service sector [2] 105. SDP vendor analysis summary, by region and service sector [3] 106. Vendor analysis summaries: Customer care 107. Customer care vendor analysis summary, by region and service sector [1] 108. Customer care vendor analysis summary, by region and service sector [2] 109. Customer care vendor analysis summary, by region and service sector [3] 110. Customer care vendor analysis summary, by region and service sector [4] 111. Customer care vendor analysis summary, by sub-segment [1] 112. Customer care vendor analysis summary, by sub-segment [2] 113. Customer care vendor analysis summary, by sub-segment [3] 114. Vendor analysis summaries: Service fulfilment 115. Service fulfilment vendor analysis summary, by region and service sector [1] 116. Service fulfilment vendor analysis summary, by region and service sector [2] 117. Service fulfilment vendor analysis summary, by region and service sector [3] 4 118. Service fulfilment vendor analysis summary, by region and service sector [4] 119. Service fulfilment vendor analysis summary, by sub-segment [1] 120. Service fulfilment vendor analysis summary, by sub-segment [2] 121. Service fulfilment vendor analysis summary, by sub-segment [3] 122. Vendor analysis summaries: Service assurance 123. Service assurance vendor analysis summary, by region and service sector [1] 124. Service assurance vendor analysis summary, by region and service sector [2] 125. Service assurance vendor analysis summary, by region and service sector [3] 126. Service assurance vendor analysis summary, by sub-segment [1] 127. Service assurance vendor analysis summary, by sub-segment [2] 128. Service assurance vendor analysis summary, by sub-segment [3] 129. Vendor analysis summaries: Network management systems 130. NMS vendor analysis summary, by region and service sector [1] 131. NMS vendor analysis summary, by region and service sector [2] 132. About the authors and Analysys Mason 133. About the authors [1] 134. About the authors [2] 135. About Analysys Mason 136. Research from Analysys Mason 137. Consulting from Analysys Mason Slide no. Slide no.
  • 5. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 List of figures Figure 1: Telecoms software market shares by revenue, worldwide, 2011 Figure 2: Telecoms software market shares by revenue, worldwide, 2010 and 2011 Figure 3a–d: Telecoms software market shares by revenue for mobile, business, PSTN and residential broadband services, worldwide, 2011 Figure 4a–d: Telecoms software market shares by revenue for APAC, CALA, EMEA and NA, 2011 Figure 5: A comparison of the old and new taxonomies of the revenue management (formerly billing) and service delivery platform segments Figure 6: Telecoms software market segments Figure 7: Definitions of the telecoms software market and its products and services Figure 8: Definitions of revenue management sub-segments Figure 9: Definitions of SDP and its sub-segments Figure 10: Definitions of customer care and its sub-segments Figure 11: Definitions of service fulfilment and its sub-segments Figure 12: Definitions of service assurance and its sub-segments Figure 13: Definitions of NMS and its segments and sub-segments Figure 14: Changes to Analysys Mason’s segmentation of the revenue management market Figure 15: Revenue management market shares by revenue, worldwide, 2011 Figure 16: Revenue management market shares by revenue, worldwide, 2010 and 2011 Figure 17: Revenue management revenue by region, worldwide, 2010 and 2011 Figure 18: Revenue management market shares by product revenue, worldwide, 2011 5 Figure 19: Revenue management market shares by product-related services revenue, worldwide, 2011 Figure 20: Prepaid billing market shares by revenue, worldwide, 2011 Figure 21: Postpaid billing market shares by revenue, worldwide, 2011 Figure 22: Convergent billing market shares by revenue, worldwide, 2011 Figure 23: Partner and interconnect market shares by revenue, worldwide, 2011 Figure 24: Business optimisation market shares by revenue, worldwide, 2011 Figure 25: Mediation market shares by revenue, worldwide, 2011 Figure 26: Changes to Analysys Mason’s segmentation of the SDP market Figure 27: SDP market shares by revenue, worldwide, 2011 Figure 28: SDP market shares by revenue, worldwide, 2010 and 2011 Figure 29: SDP revenue by region, worldwide, 2010 and 2011 Figure 30: SDP market shares by product revenue, worldwide, 2011 Figure 31: SDP market shares by product-related services revenue, worldwide, 2011 Figure 32: Telecoms application server market shares by revenue, worldwide, 2011 Figure 33: Mobile content management and delivery market shares by revenue, worldwide, 2011 Figure 34: Policy management market shares by revenue, worldwide, 2011 Figure 35: Subscriber data management market shares by revenue, worldwide, 2011 Figure 36: Customer care market shares by revenue, worldwide, 2011 Figure 37: Customer care market shares by revenue, worldwide, 2010 and 2011
  • 6. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 List of figures Figure 38: Customer care revenue by region, worldwide, 2010 and 2011 Figure 39: Customer care market shares by product revenue, worldwide, 2011 Figure 40: Customer care market shares by product-related services revenue, worldwide, 2011 Figure 41: Customer relationship management market shares by revenue, worldwide, 2011 Figure 42: Subscriber management market shares by revenue, worldwide, 2011 Figure 43: Customer interaction market shares by revenue, worldwide, 2011 Figure 44: Device management market shares by revenue, worldwide, 2011 Figure 45: Service fulfilment market shares by revenue, worldwide, 2011 Figure 46: Service fulfilment market shares by revenue, worldwide, 2010 and 2011 Figure 47: Service fulfilment revenue by region, worldwide, 2010 and 2011 Figure 48: Service fulfilment market shares by product revenue, worldwide, 2011 Figure 49: Service fulfilment market shares by product-related services revenue, worldwide, 2011 Figure 50: Order management market shares by revenue, worldwide, 2011 Figure 51: Inventory management market shares by revenue, worldwide, 2011 Figure 52: Activation market shares by revenue, worldwide, 2011 Figure 53: Engineering tools market shares by revenue, worldwide, 2011 Figure 54: Service assurance market shares by revenue, worldwide, 2011 Figure 55: Service assurance market shares by revenue, worldwide, 2010 and 2011 Figure 56: Service assurance revenue by region, worldwide, 2010 and 2011 6 Figure 57: Service assurance market shares by product revenue, worldwide, 2011 Figure 58: Service assurance market shares by product-related service revenue, worldwide, 2011 Figure 59: Service management system market shares by revenue, worldwide, 2011 Figure 60: Fault and event management system market shares by revenue, worldwide, 2011 Figure 61: Performance monitoring system market shares by revenue, worldwide, 2011 Figure 62: Workforce automation system market shares by revenue, worldwide, 2011 Figure 63: Probe system market shares by revenue, worldwide, 2011 Figure 64: NMS market shares by revenue, worldwide, 2011 Figure 65: NMS market shares by revenue, worldwide, 2009–2011 Figure 66: NMS revenue by region, worldwide, 2009–2011 Figure 67: NMS market shares by product revenue, worldwide, 2011 Figure 68: NMS market shares by product-related services revenue, worldwide, 2011 Figure 69: Mobile NMS market shares by revenue, worldwide, 2011 Figure 70: Business data services NMS market shares by revenue, worldwide, 2011 Figure 71: Residential broadband NMS market shares by revenue, worldwide, 2011 Figure 72: PSTN NMS market shares by revenue, worldwide, 2011
  • 7. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 List of figures Figure 73a–e: Comparison of revenue management suppliers by region and service sector Figure 74a–c: Comparison of SDP suppliers by region and sub-segment Figure 75a–c: Comparison of SDP suppliers by region and service sector Figure 76a–d: Comparison of customer care suppliers by region and service sector Figure 77a–c: Comparison of customer care suppliers by sub-segment Figure 78a–d: Comparison of service fulfilment suppliers by region and service sector Figure 79a–c: Comparison of service fulfilment suppliers by sub-segment Figure 80a–c: Comparison of service assurance suppliers by region and service sector Figure 81a–c: Comparison of service assurance suppliers by sub-segment Figure 82a–b: Comparison of NMS suppliers by region and service sector 7
  • 8. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 8 Executive summary Business environment Market definition Market shares Vendor analysis summaries About the authors and Analysys Mason
  • 9. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Worldwide telecoms software market shares in 2011 9 Figure 1: Telecoms software market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]  The value of the worldwide telecoms software market grew by 6.4% (or USD1.38 billion) between 2010 and 2011, from USD21.48 billion to USD22.86 billion.  The top-six vendors were the same as the previous year. Amdocs continued to be the market leader, with a 10.5% share of revenue. Ericsson came second, with a 9.4% share, closely followed by Huawei.  The overall market is highly fragmented:  the top-six suppliers accounted for just 48.2% of the total market  no supplier had a share of more than 11.0%  several hundred vendors accounted for the remaining 51.8% of revenue.  Amdocs continued to be the leading supplier, but its position is threatened by Ericsson and Huawei.  Four of the top-six suppliers are equipment vendors that nevertheless have a large stake in the telecoms software market. Amdocs 10.5% Ericsson 9.4% Huawei 9.1% Oracle 7.1% Nokia Siemens Networks 6.0% Alcatel- Lucent 6.0% Other 51.8% Total revenue 2011: USD22.86 billion
  • 10. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Worldwide telecoms software market shares in 2010 and 2011  Amdocs has retained its position as the largest vendor in terms of revenue, with an overall market share of 10.5%.  Ericsson’s share shrank marginally, but the vendor continued to be the second-largest player overall. Huawei’s share remained flat at 9.1%.  Only Amdocs and Oracle strengthened their position in 2011 as compared with 2010.  Oracle continued to increase its share, thanks to the integration of its service fulfilment and BSS (notably Siebel CRM) products and the exploitation of its strong brand in emerging markets.  The market share attributed to the ‘Other’ category decreased because the dominant players strengthened their product portfolios and the delayed effects of the global recession hit small and medium-sized enterprises (SMEs) hardest. 10 Figure 2: Telecoms software market shares by revenue, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012] 52.9% 51.8% 6.8% 6.0% 6.3% 6.0% 6.8% 7.1% 9.1% 9.1% 9.6% 9.4% 10.0% 10.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 Market share of revenue Amdocs Ericsson Huawei Oracle Nokia Siemens Networks Alcatel-Lucent Other Total revenue 2010: USD21.48 billion Total revenue 2011: USD22.86 billion The telecoms market share for 2010 has been restated to take into account changes in our market segmentation (see slide 15 for details).
  • 11. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Worldwide telecoms software market shares in 2011: by service sector 11 Figure 3a–d: Telecoms software market shares by revenue for mobile, business, PSTN and residential broadband services, worldwide, 2011 [Source: Analysys Mason, 2012] Ericsson 14.0% Amdocs 11.0% Huawei 10.3% Nokia Siemens Networks 9.0% Oracle 6.6% Alcatel-Lucent 4.1% Other 45.0% Huawei 10.9% Alcatel-Lucent 9.5% Cisco Systems 7.5% Amdocs 7.0% NEC 5.1% Oracle 4.2% Other 55.9% Amdocs 18.4% Oracle 8.8% Telcordia Technologies 8.5% Tektronix 4.4% Alcatel-Lucent 3.6% SAP 2.6% Other 53.6% Alcatel-Lucent 10.7% Oracle 10.5% Amdocs 8.2% Huawei 7.2% IBM 4.2% Ericsson 3.5% Other 55.7% Mobile Total revenue: USD13.38 billion Business Total revenue: USD3.41 billion PSTN Total revenue: USD1.98 billion Residential broadband Total revenue: USD4.09 billion
  • 12. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Worldwide telecoms software market shares in 2011: by region 12 Figure 4a–d: Telecoms software market shares by revenue for APAC, CALA, EMEA and NA, 2011 [Source: Analysys Mason, 2012] APAC Total revenue: USD6.16 billion CALA Total revenue: USD1.68 billion EMEA Total revenue: USD8.38 billion NA Total revenue: USD6.64 billion Key: APAC = Asia–Pacific; CALA = Caribbean and Latin America; EMEA = Europe, the Middle East and Africa; NA = North America. Huawei 18.1% Ericsson 12.5% Nokia Siemens Networks 7.0% Oracle 5.6% Amdocs 5.2% NEC 4.4% Other 47.2% Ericsson 11.6% Huawei 9.9% Nokia Siemens Networks 8.8% Amdocs 8.8% Alcatel-Lucent 7.1% Oracle 5.9% Other 48.0% Huawei 9.4% Ericsson 9.2% Nokia Siemens Networks 8.3% Amdocs 8.3% Oracle 8.0% Alcatel-Lucent 6.1% Other 50.6% Amdocs 18.8% Alcatel-Lucent 7.7% Oracle 7.7% Ericsson 6.1% Telcordia Technologies 4.7% CSG International 3.6% Other 51.4%
  • 13. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 13 Executive summary Business environment Market definition Market shares Vendor analysis summaries About the authors and Analysys Mason
  • 14. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 The business environment in 2011 14 Lingering economic downturn kept growth in check  Spending on telecoms software picked up in 2011 as investments in software related to new customer acquisition and increased ARPU continued to grow.  Communications service providers (CSPs) had more need than ever to reduce operational costs, but made few investments to accomplish this.  Growth is continuing in the emerging markets, but has slowed down – particularly in China and India. Data services grew and LTE roll-outs started slowly  Multimedia services delivered via fixed broadband, such as IPTV, VoIP 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 launched video services, application stores and ecommerce sites that required new or enhanced BSS/OSS solutions. LTE implementation began in earnest in the USA and Asia–Pacific. Most CSPs will deploy LTE tactically, but will continue to use 3G+, and small-cell and Wi-Fi offload technologies to support growth in data services. Migration to IP-based networks and services continued  Voice, data and video services are all now available over IP. Next-generation network (NGN) development continues in all CSPs, with moderate Class 5 switch migration. CSPs continue to deploy FTTH, albeit slowly.  The easier and more-flexible network planning, configuration, optimisation and quality-of-service management of IP networks is supporting a dramatic increase in the number and range of new services.  CSPs are offering service layer services (SDP, IP and Ethernet) in increasingly complex personalised service bundles. CSPs are beginning to enter new businesses  Fixed-line CSPs in developed markets continue to enter the video market, and to implement network APIs and developer ecosystems to create new services. They are also implementing some double-sided business models and cloud services (particularly for SMEs).  The priorities of mobile CSPs are to monetise the growth in mobile data services, and explore M2M opportunities. Cable CSPs are focusing more on SMEs, and are driving an increase in VoIP penetration. Market experiments are underway for LTE substitution for fixed private lines.
  • 15. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Regional outlook for 2012 15 APAC  APAC will continue to provide the best opportunity for vendors to increase revenue. However, the growth rate in China and India is slowing, which will limit the new opportunities.  Maturation of the services layer will support new services, driving growth in spending on customer care.  CSPs in China will continue to spend on 3G networks and LTE deployment. It continues to be a very closed market, dominated by AsiaInfo, Huawei and ZTE. CALA  CALA will continue to experience growth in mobile subscriber numbers, but this will mainly benefit prepaid platform vendors.  Dominant CSPs, such as América Móvil/TELMEX, Cable & Wireless, Columbus Communications, Digicel, Telefónica and Telecom Italia, will continue to dictate the pace in this region.  Turnkey projects for new entrants will continue to create opportunities to deploy new software solutions.  Regulatory pressure could restrict growth. EMEA  Financial difficulties in Western Europe slowed EMEA’s recovery from the recession. However, intense competition and the roll-out of new services will drive spending on enhancements to established systems.  Mobile broadband will be a key focus area, as more CSPs explore the potential of small-cell technologies.  LTE roll-outs by large Tier 1 CSPs will help to drive new data services and associated software solutions throughout 2012. NA  We expect growth in spending to improve in 2012 as the recovery from recession continues.  Mobile data network roll-outs will stimulate spending on billing systems, as CSPs launch LTE-based services.  We expect partner management revenue to grow strongly, driven by settlement partnerships within service offerings.
  • 16. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 16 Executive summary Business environment Market definition Market shares Vendor analysis summaries About the authors and Analysys Mason
  • 17. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Telecoms software taxonomy changes 17 Figure 5: A comparison of the old and new taxonomies of the revenue management (formerly billing) and service delivery platform segments [Source: Analysys Mason, 2012] Revenue management Partner and interconnect Business optimisation Mediation Service delivery platforms Mobile content management and delivery Telecoms application servers Policy management Subscriber data management Billing Prepaid Postpaid Convergent New taxonomy Old taxonomy Billing Partner and interconnect Business optimisation Mediation Rating and pricing Service delivery platforms Real-time charging Mobile content management and delivery Telecoms application servers Mobile device management The telecoms market share for 2010 has been restated to take into account changes in our market segmentation.
  • 18. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Telecoms software market segmentation 18 Figure 6: Telecoms software market segments [Source: Analysys Mason, 2012] Professional services Business consulting Design consulting Product-related services Systems integration Custom development Outsourced operations Hosted managed services Revenue management Partner and interconnect Business optimisation Mediation Service delivery platforms Mobile content management and delivery Telecoms application servers Policy management Subscriber data management Customer care Customer interaction Customer relationship management Subscriber management Service fulfilment Order management Inventory management Activation Engineering tools Service assurance Service management Fault and event management Performance monitoring Workforce automation Probe systems Network management systems Mobile Residential broadband Business data services PSTN Device management Billing Prepaid Postpaid Convergent Key: Segments covered in this report
  • 19. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 19 Market Definition Telecoms software Telecoms software is commercially supplied software that is unique to the telecoms business and that CSPs use in running their business. It includes billing, customer care, service assurance, service fulfilment, NMS/EMS, SDPs and middleware. It excludes software that is common across all industries, such as financials, HR and ERP. It includes commercially provided licensed software, licensed software support services and product-related services. It excludes systems integration services, internal IT spending and other work for purely custom development. Product or service Definition Licensed software The core products of telecoms software are the licensed products offered by commercial suppliers, such as ISVs, NEMs and other IT suppliers. Licensed software is included in our forecast. Licensed software support All vendors that provide licensed software offer support services for the software they sell. Support services provide bug fixes and, in most cases, regular updates to keep up with changing IT environments. They may include some degree of product enhancement, depending on the vendor. For some vendors, revenue from support services may exceed revenue from licensed software. We include licensed software support in our forecast. Product-related services Product-related services are those services offered by the product supplier that directly support use of the product, including configuration and installation support services. These are included in our forecast. Other professional services We exclude other professional services, such as systems integration, custom development, design consulting and outsourced operations, from our forecast of the telecoms software market. However, these are covered in Analysys Mason’s Infrastructure Solutions programme. Telecoms software market definitions Figure 7: Definitions of the telecoms software market and its products and services [Source: Analysys Mason, 2012]
  • 20. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 20 Sub-segment Definition Billing – Prepaid Prepaid billing deployments support only retail subscribers who credit their accounts before using a service. The credit is debited in real time as the service is used, and service is denied if the balance falls to zero. Subscribers have various means of ‘topping up’ their balances. Prepaid billing systems must be able to rate service usage in real time and to maintain a real-time account balance. They must also be able to interact with the network to enable redirection of subscribers to top-up servers, if the account balance drops to zero. Billing – Postpaid Postpaid billing deployments support only retail subscribers who are billed each month for the service they have used. Traditionally, postpaid billing systems work offline, using a monthly billing cycle. Modern postpaid billing systems include the ability to rate usage in near-real time and have enhanced capabilities, such as advice of charge. Postpaid billing includes rating events, and combining the rated events with other aspects of the bill, which include recurring charges, taxes, fees and other items that are independent of rated usage. Billing – Convergent Convergent billing deployments support both prepaid and postpaid subscribers. They may also support hybrid accounts in which, for example, a family has a single account and some members of the family use prepaid, while others use postpaid accounts. Partner and interconnect Partner and interconnect revenue management solutions concern payments to and collections from service providers that co- operate with a CSP to provide service to its customers. This includes: traditional voice termination, both fixed and mobile; roaming interconnection and interfaces (but not roaming service bureaux per se); and international route optimisation and settlements with traditional network operator partners and content providers. Business optimisation Business optimisation revenue management includes fraud management, revenue assurance, analytics, cost management and credit risk management. None of these factors generate revenue directly, but they maximise profit from the business by ensuring that as much revenue as possible is collected, and that the least cost is incurred. Mediation Mediation systems collect data from the network, format it and store it for specific uses, generally for billing systems, but also for various types of service assurance. Despite this, we include all mediation in this segment. The mediation sub-segment now includes active mediation, which previously was included in the real-time charging (RTC) sub-segment of our Service delivery platforms segment. Revenue management sub-segment definitions Figure 8: Definitions of revenue management sub-segments [Source: Analysys Mason, 2012]
  • 21. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 21 Segment or sub-segment Definition Service delivery platforms (SDP) The deployment of an SDP requires integration with network enablers, portals, BSS and OSS. It sometimes involves new business models and new strategic partners. We have focused our definition of SDP on software components that increase the speed of developing, delivering and managing new and established services and charging models. Telecoms application servers (TAS) TAS support telecoms service creation, execution and exposure, and network interfaces for call control, messaging, location, presence and other telecoms services. They can be deployed in an IMS, SIP, VoIP, legacy or hybrid environment. The TAS is at the core of creating and executing real-time, session-based services. Approaches include: SIP Servlets, JAIN SLEE, evolved IN, next-generation feature servers, network and service gateways, and proprietary solutions. Network gateways provide a common API to access the control layer. OSA/Parlay is the leading network gateway standard. Our market definition excludes legacy IN platforms. Mobile content management and delivery (MCMD) MCMD supports the lifecycle of digital media, from the collection of content from the content provider to its delivery to the end customer. Typical media include: mobile applications, music, ringtones, games, video clips and real-time sports information. MCMD includes the content provider portal, the customer portal, the transcoding and adaptation of content for different device types and digital rights management. Analysys Mason may extend this sub-segment in future to include fixed content management, including IPTV and CATV. However, this report focuses only on mobile content platforms. Policy management (PM) Policy management is the practice of applying traffic management techniques using rules based on subscriber profiles. Profiles and rules are defined centrally and distributed to the policy enforcement points in the network to control a subscriber’s traffic. In 3GPP standards, policy management is implemented by the policy and charging rules function (PCRF) and policy enforcement by the policy and charging enforcement function (PCEF). We exclude policy enforcement products from our definition of policy management, which focuses on the PCRF and various proprietary enhancements to it. Subscriber data management (SDM) SDM is defined as the software product that supports real-time and near real-time access to subscriber data to support the execution of services. The real-time requirement is driven by services such as voice that have a tight latency budget of the order of 250 milliseconds. The look up to the subscriber database should take less than 50 milliseconds of that budget. Other less sensitive services can be supported with near real-time performance of up to a few seconds. The subscriber data that is managed includes identity information such as IMSI and IMISDN, authentication information, personalization information, policy settings and settings for specific services. A cache of the main SDM supports the PCRF to deliver personalised policies with low latency. SDP sub-segment definitions Figure 9: Definitions of SDP and its sub-segments [Source: Analysys Mason, 2012]
  • 22. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 22 Segment or sub-segment Definition Customer care systems Customer care systems allow CSPs to offer services, take orders and provide a full range of support, both human and automated, to their customers. They decrease call centre costs and expensive customer churn and increase revenue and are critical to high customer satisfaction. Customer relationship management (CRM) CRM encompasses outbound marketing and customer support functions, allowing CSPs to assemble large sets of data to manage their customer relationships more efficiently. It also helps customer service agents and self-care systems to provide the best product and service offers for customers. It allows marketing departments to understand purchasing patterns and the effectiveness of new product and service campaigns. CRM is the central repository of customer data that is utilised by sales, marketing, customer service and finance groups. CRM includes independent product catalogue offers and order orchestration. Subscriber management systems Subscriber management encompasses the inbound customer support function that comes with billing software. Subscriber management software is service-specific in the process of establishing customer set-up and handling customer enquiries. Customer interaction systems Customer interaction software automates the initial point of contact between the customer and the CSP. This sub-segment includes systems for IVR, Web self-service, contact centres, points of sale, SMS and USSD support and retail management. Customer interaction software consists of machine-to-machine, person-to-person and person-to-machine communication. Device management systems Device management systems ensure that the configuration and settings on a device are optimal for the subscribed services. They also support remote troubleshooting. Standards such as those of the Open Mobile Alliance (OMA) are important for mobile services as DOCSYS and TR-069 are for fixed. Smartphones have their own, but usually few, open-architecture capabilities for device management systems to use. This report includes only mobile device management, but will be expanded in the future. Customer care sub-segment definitions Figure 10: Definitions of customer care and its sub-segments [Source: Analysys Mason, 2012]
  • 23. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 23 Segment or sub-segment Definition Order management (OM) OM 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 established service to a new address or mobile device, or changes to an established service. OM overlaps somewhat with customer order orchestration – a part of CRM within the customer care market segment – but there is no double-counting in our market numbers. OM systems may also have an associated catalogue that contains products, services and network elements, along with process fragments associated with these. Inventory management (IM) IM systems track the resources used to provide service, as well as 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 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 Engineering tools encompass a range of applications that help engineering departments to operate more efficiently. These tools often require a human interface. They include planning, equipment installation and configuration, network optimisation, outside plant inventory, and design and diagnostic tools. Service fulfilment sub-segment definitions Figure 11: Definitions of service fulfilment and its sub-segments [Source: Analysys Mason, 2012]
  • 24. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 24 Sub-segment Definition Service management Service management is best defined as the software systems that link customers with their own individual services. Service management systems enable CSPs to generate granular reports by customer and service to validate service-level commitments. Fault and event management Fault and event management systems interface with the network elements and element management systems supplied by equipment manufacturers. They process millions of events per day, filtering downstream events in order to isolate and attempt to pinpoint the cause of a problem. Performance monitoring Performance monitoring systems collect a continuous set of circuit-switched and packet data from the network elements and element management systems supplied by equipment manufacturers. They use SNMP polling, TL1 and other protocols to communicate with network elements or domain-specific applications to collect real-time or historical data. Workforce automation Workforce automation software helps CSPs to track incidents resulting from service disruption and to dispatch field resources effectively. CSPs use centralised workforce automation software for complex problems that require them to dispatch technicians. The software manages the process of opening job tickets, matching skill sets, and co-ordinating the dispatch of technicians for planning and problem resolution. Probe systems Probe systems are a combination of hardware and software. Hardware devices will be put into the network to either passively monitor signalling and data sessions or remotely test specific types of technology. Service assurance sub-segment definitions Figure 12: Definitions of service assurance and its sub-segments [Source: Analysys Mason, 2012]
  • 25. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 25 Segment or sub-segment Definition Network management systems (NMS) NMS enable basic element management and network management for the NEMs’ equipment and support northbound interfaces (NBI) to multi-vendor service assurance and service fulfilment systems. Mobile NMS Mobile NMS solutions can manage circuit-switched, packet-switched and radio technology infrastructure. They provide the core OSS infrastructure for operating and managing mobile network switching and network elements. This includes domain managers and EMS for packet technology. Femtocell deployments that aim to increase mobile coverage are covered in this segment. Business data services NMS Business data services NMS provide high service-level metrics to large enterprise customers with complex network service configurations and customisations. These are typically IP network services, such as Internet access, hosting services, IP VPN, Ethernet, managed IT services and wholesale carrier services. These NMS solutions include both GUI and CLI management, which can be managed either centrally or distributed. Residential broadband NMS Residential broadband NMS manage residential network infrastructure. They provide an NBI, and service assurance and service fulfilment systems for automating service activation and configuration processes. These NMS are evolving to support the new residential broadband (IP) service offerings that are becoming mainstream propositions, such as IPTV and residential VoIP. Femtocell deployments that compete with fixed broadband, and are not intended to improve mobile coverage, are covered in this segment. PSTN NMS Legacy systems from equipment vendors meet the network management requirements for legacy PSTN equipment and fixed circuit-switching technology. Most CSPs will keep them until they retire their PSTN equipment and move to convergent NGN as a natural network evolution. Product-related services Product-related services are the bundled installation, configuration and customisation services that are required as part of the deployment of the network elements (hardware) and NMS solutions (software). NMS segment and sub-segment definitions Figure 13: Definitions of NMS and its segments and sub-segments [Source: Analysys Mason, 2012]
  • 26. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 26 Executive summary Business environment Market definition Market shares Vendor analysis summaries About the authors and Analysys Mason
  • 27. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 27 Market shares Revenue management Service delivery platforms Customer care Service fulfilment Service assurance Network management systems
  • 28. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Changes to the revenue management market segmentation  In 2012, the Billing research programme’s name changed to Revenue Management to reflect some underlying changes that have taken place.  Our reporting is now further segmented, as described in Figure 14.  Convergent billing reflects the growing number of charging, rating and pricing systems that are used to support both real-time and postpaid services. This sub-segment includes market shares that were reported last year in the ‘real-time charging (RTC)’ and ‘postpaid – rating and pricing’sub-segments.  RTC market shares were previously reported in the ‘service delivery platforms’ segment.  Active mediation market shares were previously reported as part of RTC, but now market shares from all mediation, both active and passive (also described as online and offline, respectively), are reported under the ‘mediation’ sub-segment.  The ‘business optimisation’ and ‘partner and interconnect’ sub-segments remain unaltered.  Where possible, year-on-year comparisons will include RTC market shares from the previous year’s reports. 28 Figure 14: Changes to Analysys Mason’s segmentation of the revenue management market [Source: Analysys Mason, 2012] Segment definition updated New segment Unchanged from Billing programme segmentation Revenue management Partner and interconnect Business optimisation Mediation Billing Prepaid Postpaid Convergent
  • 29. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall revenue management market summary  The revenue management market generated revenue of USD6.46 billion in 2011, up by 5.4% from 2010.2 This is higher than our forecast of 4.6%, largely because of increased spending in emerging markets, which was driven by the rise in subscriber numbers and the growing need to support mobile data services.  Economic concerns continued, but a slight improvement led CSPs that had delayed spending in 2010 cautiously to increase their spend in 2011.  Revenue growth continued in the emerging markets of APAC, although more slowly. Vendors relying heavily on revenue from China, for example, saw growth rates fall to single digits.  Revenue from EMEA declined for most of the leading vendors, dragged down by falling revenue in Western Europe.  The business optimisation sub-segment enjoyed significant (11.4%) year-on-year growth, bolstered by considerable interest in ‘big-data’ and analytics. Vendors of revenue assurance and fraud management solutions with presence in CSPs were able to provide new use cases.  Mediation vendors benefited from some significant projects driven by mobile data and by replacement of in-house and older systems, as subscriber numbers rose in emerging markets. 29 Figure 15: Revenue management market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 2 Compared with the 2010 figures for Billing and RTC. 1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, Convergys, Hewlett- Packard (HP), IBM, Nokia Siemens Networks (NSN), Openet, Orga Systems and Subex. Amdocs 23.8% Huawei 8.8% Ericsson 6.6% CSG International (Intec) 6.0% Oracle 5.8% Comverse 5.3% Other 43.7% Total revenue: USD6.46 billion
  • 30. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall revenue management market summary, 2010 and 2011  Amdocs retained its dominant position in the revenue management market, achieving growth at about the market rate. Although its revenue was still dominated by that from NA, that from Europe and other markets also rose.  Huawei’s continued revenue growth in the APAC region resulted in it gaining a single percentage point, in terms of worldwide market share.  Ericsson’s modest revenue growth increased its market share, which is expected to rise further in 2012, when revenue from the Telcordia acquisition is included.  CSG International experienced overall growth in revenue; this is not entirely reflected here, as some came from managed services.  Oracle’s market share rose again from its considerable efforts in marketing and products for telecoms, with growing capability in analytics and related infrastructure.  Comverse’s market share grew, as it posted 12 new customer wins in 2011 as a result of a focused integrated product set and being less hampered by financial concerns. 30 Figure 16: Revenue management market shares by revenue, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012]1 1 Ericsson revenue excludes that from Telcordia Technologies, acquired by Ericsson in May 2011. 45.3% 41% 4.6% 5.3% 5.3% 5.8% 6.5% 6.0% 6.4% 7% 8.3% 8.8% 23.7% 23.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 Market share of revenue Amdocs Huawei Ericsson CSG International (Intec) Oracle Comverse Other
  • 31. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall revenue management market summary by region, 2010 and 2011 Summary for 2011  NA’s share of the worldwide revenue management market rose slightly, in line with market growth.  CALA’s market share rose by a single percentage point as a result of high subscriber growth rates.  EMEA’s market share declined by a further two percentage points, largely as a result of the economic climate in Western Europe.  APAC’s revenue continued to show significant growth – enough to gain one percentage point of the worldwide revenue management market. Outlook for 2012  Continued issues in the eurozone will cause contraction of spend in Western Europe and the wider EMEA region.  Emerging markets, particularly in CALA, will continue to increase their market shares.  The prepaid market in NA will continue to expand, helping to drive up revenue.  Growth in spending will slow in APAC’s emerging markets, as the rate of growth in subscriber numbers declines. 31 Figure 17: Revenue management revenue by region, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012]1 1 Includes year-on-year comparison with 2010 billing and RTC data. 26.3% 26.5% 39.8% 37.7% 7.6% 8.5% 26.3% 27.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 Share of revenue APAC CALA EMEA NA
  • 32. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Revenue management market shares by product revenue  The top-six vendors accounted for 49% of the revenue in 2011. Product revenue as a percentage of total sales fell by one percentage point in 2011, compared with 2010, as vendors increased their share of the services market. We expect this trend to continue in 2012.  Oracle increased its market share to just behind that of Ericsson, as a result of greater product sales, which were driven through its strong indirect sales channel.  Ericsson’s product revenue does not account for the acquisition of Telcordia, which we expect will push it into a leadership position in 2012.  Huawei aggressively priced its software products, in order to increase its revenue in 2011.  Comverse, Amdocs and CSG International all maintained their shares of product and maintenance revenue. 32 Figure 18: Revenue management market shares by product revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, Convergys (acquired by NEC) NSN, Openet, Orga Systems, SAP, SAS and Subex. Ericsson 10.4% Oracle 10.3% Huawei 9.6% Comverse 7.5% Amdocs 6.8% CSG International (Intec) 5.0% Other 50.5% Total revenue: USD2.40 billion
  • 33. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Revenue management market shares by product-related services revenue  Many suppliers assumed greater responsibility for solution delivery in 2010, and this trend continued in 2011. Overall revenue rose by nearly 10%, compared with last year’s numbers, to maintain growth in services revenue and overall growth in revenue management.  Amdocs’ recovery in 2011 was largely a result of its focus on services, which enabled it to increase its already dominant market share. It also won major projects in NA.  Huawei continued to increase its share of the services business, often helped by the related supply of hardware as new networks were rolled out.  CSG International continued to expand its services capability, some of which is business gained as a result of the former Intec business being able to take advantage of CSG’s capabilities.  Ericsson, Comverse and Convergys each increased its revenue slightly to maintain its market position.  Oracle’s revenue increased, but it was not one of the top six vendors. 33 Figure 19: Revenue management market shares by product-related services revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 Amdocs 33.9% Huawei 8.3% CSG International (Intec) 6.6% Ericsson 4.3% Comverse 4.0% Convergys 3.7% Other 39.2% Total revenue: USD4.06 billion 1 Significant vendors in the ‘Other’ category include: AsiaInfo, Alcatel-Lucent, HP, NSN, Openet and Orga Systems.
  • 34. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Ericsson 11.2% Comverse 10.2% Nokia Siemens Networks 9.2% Huawei 9.1% Alcatel Lucent 6.7% Oracle 5.3% Other 48.2% Total revenue: USD978 million Prepaid billing  Revenue management systems now includes prepaid or RTC. Active mediation is no longer included in this sub-segment, nor is revenue associated with convergent charging.  The top-six suppliers accounted for 52% of prepaid billing revenue in 2011.  Growth in the market has slowed because CSPs are now completing roll-outs in large, high-growth emerging markets. New systems tend to be convergent billing systems, rather than prepaid, which means that sales in prepaid are of upgrades and a decreasing number of new implementations.  Ericsson continued to lead the prepaid market, but growth rates are low.  NSN lost some market share as CSPs turned to lower-cost solutions and convergent systems.  Huawei increased its market share by a percentage point compared with 2010.  Alcatel-Lucent’s revenue grew in line with the market to maintain its positioning against other vendors.  Oracle’s acquisition of eServGlobal software assets helped to increase its market share. 34 Figure 20: Prepaid billing market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Acision, Amdocs, Comptel, Convergys, CSG International, HP, Openet, Oracle, Orga Systems, Telcordia and Redknee.
  • 35. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Postpaid billing  The postpaid billing market experienced modest growth. However, year-on-year comparisons with 2010 values show a decline, as some revenue is now accounted for within our new convergent billing sub-segment.  In this highly mature sub-segment, the top six suppliers accounted for 81% of global revenue.  Amdocs’ market share grew by three percentage points, mainly due to the re-classification of other vendors into convergent billing. It increased its business overall and expanded its business outside North America by 2.4%.  Huawei gained one percentage point as a result of continued growth in China and in other emerging markets.  CSG International’s market share grew through taking its core CSG managed services offerings into international markets to secure new product wins.  Oracle gained market position and sales channels, helped by a growing services capability to support its implementations.  Convergys’s share fell by one percentage point because of the slowdown in spending in its core North American market.  Comverse’s market share remained unaltered from 2010. 35 Figure 21: Postpaid billing market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: AsiaInfo, CBOSS, CHR Solutions (Martin Group), Comarch, Comverse, Ericsson, MDS, MetraTech, Orga Systems and Redknee. Amdocs 44.5% Huawei 10.3% CSG International (Intec) 7.5% Oracle 7.3% Convergys 6.5% Comverse 4.7% Other 19.1% Total revenue: USD2.86 billion
  • 36. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Amdocs 18.4% Ericsson 12.4% Comverse 11.7% Orga Systems 9.0% Nokia Siemens Networks 4.7% Convergys 4.6% Other 39.2% Total revenue: USD556 million Convergent billing  Convergent billing systems represent a new section in this report this year. This comprises revenue from systems that support both prepaid and postpaid services on a single system entity, sometimes including convergent services such as family plans in which there are both prepaid and postpaid customers.  Convergent billing accounts for about 14% of the total billing market and is growing as new service types require the provision of both prepaid and postpaid services. Cost savings have not been the main driver for this, although there may be a significant benefit when convergent billing is implemented.  Growth rates are difficult to assess because vendors’ products that have convergent capability are not necessarily implemented to support them. After years of very slow growth, a combination of factors, including the maturing of product offerings, new service requirements and cost reductions, have seen surge in convergent system sales.  Emerging markets, less hampered by established complex systems than developed markets, have moved more swiftly to adopt convergent billing solutions. 36 Figure 22: Convergent billing market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, Huawei, Oracle and Redknee.
  • 37. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Partner and interconnect  Partner and interconnect is a highly fragmented market: the top-six vendors account for only 45% of revenue.  The market is set to experience growth from partner settlement outside the core business of interconnect and roaming settlements.  CSG International maintained its leading market share, showing growth in line with that of the overall market.  Amdocs lost one percentage point in market share, but maintained its second-place position.  Huawei maintained its market share, as did Ericsson.  Oracle’s revenue grew faster than the market as a whole to gain one percentage point in market share.  A significant proportion of the partner and interconnect market is accounted for by managed service providers, such as MACH and Syniverse Technologies. These providers’ service revenue is not accounted for in this report’s figures, but we have included an approximation in equivalent software revenue for providing their services. 37 Figure 23: Partner and interconnect market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: AsiaInfo, Aepona, Convergys, Comptel, Comverse, SAP, SITRONICS, Subex, Tango Telecom and TelArix. CSG International (Intec) 14.7% Amdocs 8.6% Huawei 7.8% Ericsson 5.0% Oracle 4.6% Syniverse Technologies 4.5% Other 54.8% Total revenue: USD485 million
  • 38. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Subex 8.1% SAS 6.8% IBM (Netezza, SPSS, Cognos) 6.5% WeDo technologies 6.1% Hewlett- Packard (HP) 5.9% cVidya Networks 5.9% Other 60.7% Total revenue: USD843 million Business optimisation  The business optimisation market is highly fragmented: the top-six vendors accounted for only 39% of revenue in 2011. Specialist vendors, such as Subex and cVidya compete with generalist analytics providers, such as Oracle, IBM , SAP and SAS. Fragmentation will continue, as vendors new to the market launch products.  The core micro-segments in this area are revenue assurance and fraud management, which are dominated by a few significant vendors, all of which expanded their businesses significantly in 2011.  Subex has maintained its market leadership as a result of continued growth in 2011, despite challenging financial conditions in the company.  The top-six vendors have similar market shares. WeDo technologies’ revenue grew enough to give it a similar share of the market as cVidya, HP and IBM.  General-purpose analytics vendors, such as SAS, IBM, Oracle and SAP will appear increasingly often in this sector, as they extend their telecoms-specific developments and support. 38 Figure 24: Business optimisation market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Oracle Amdocs, AsiaInfo, Basset, EMC, Fair Isaac (FICO), Razorsight, SAP, and TEOCO. Where vendors have the same percentage market share, we determine rankings according to our internal revenue estimates.
  • 39. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Mediation  The mediation market is mature and consolidated.2 The top- six suppliers accounted for 67% of revenue in 2011.  Growth in active mediation was driven mainly by growth in subscriber numbers and associated networks in emerging markets, but also by mobile data, including new infrastructure roll-outs in mature markets.  Mediation systems are also converging to provide a consolidated platform.  Huawei’s combined active and passive mediation revenue gave it a larger market share than it had last year, when only passive mediation was included.  NSN’s revenue fell by one percentage point, but combined mediation sales gave it a higher market share than HP.  HPs overall market share was reduced, compared with 2010 mediation figures.  CSG International lost two percentage points in market share by combining the two mediation sectors.  Openet’s market share fell, but its revenue grew overall in the larger market segment. 39 Ericsson 17.4% Huawei 10.1% Nokia Siemens Networks 8.8% Hewlett- Packard (HP) 8.2% CSG International (Intec) 6.5% Openet 6.2% Other 42.7% Total revenue: USD740 million Figure 25: Mediation market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 2 Last year, we reported passive (offline or batch) mediation revenue in this segment. We now include active mediation which was included in the real-time charging sub-segment in our Service delivery platforms: worldwide market shares 2010 report. 1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, Amdocs, Aricent, Comptel, Convergys, Digital Route, NEC, nTels Co, Oracle and Ventraq.
  • 40. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 40 Market shares Revenue management Service delivery platforms Customer care Service fulfilment Service assurance Network management systems
  • 41. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Changes to the SDP market segmentation  Analysys Mason has changed the sub-segments covered by the Service Delivery Platforms programme to reflect developments in the OSS/BSS market (see Figure 26). The new segmentation reflects the growing theme of delivering personalised services – an area of increasing interest for CSPs.  To summarise these changes:  ‘RTC’ is now covered as part of the ‘revenue management’ segment, formerly ‘billing’  ‘mobile device management’ is now covered in the ‘customer care’ segment  ‘policy management’ has been added to the ‘SDP’ segment  ‘subscriber data management’ has been added to the ‘SDP’ segment, and is not the ‘subscriber management’ that is covered in the ‘customer care’ segment.  As a result of these changes, this year’s market share report for SDPs will not match last year’s. For example, the leading vendors for the SDP segment and its sub-segments may not match those in previous reports. In addition, the 2010 and 2011 revenue figures quotes in this report will not match those from last year’s five-year forecast report. 41 Figure 26: Changes to Analysys Mason’s segmentation of the SDP market [Source: Analysys Mason, 2012] unchanged sub-segments added sub-segments sub-segments moved into other segments of our taxonomy Customer care Revenue management Service delivery platforms Telecoms application servers Mobile content management and delivery Policy management Subscriber data management Real-time charging (RTC) Mobile device management Key:
  • 42. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall SDP market summary  The SDP market generated USD3.84 billion in revenue in 2011, up from USD3.73 billion in 2010.  The addition of the SDM sub-segment increased the market shares of the NEMs and led to higher market consolidation with our new SDP sub-segments. The ‘big four’ NEMs led the market, with strong product offerings in all our SDP market sub-segments and global professional services teams that can provide turnkey SDP deployments for CSPs.  Ericsson and Alcatel-Lucent experienced marginal year-on-year decline in SDP revenue of 2% and 3%, respectively. Ericsson’s market share will increase inorganically in 2012 from its acquisition of Telcordia in the first quarter.  NSN was second with 4% year-on-year growth in SDP revenue, coupled with its leading position in the SDM market.  Huawei and Oracle achieved high year-on-year growth of 8% and 7%, respectively, in SDP revenue. For Huawei, this again came primarily from China, and to a lesser extent from Europe. Oracle’s converged application server was the main contributor to its growth in 2011.  Amdocs acquisition of Bridgewater Systems in the second half of 2010 contributed the majority of its market share in the PM and SDM sub-segments, resulting in its 63% year-on-year overall growth in SDP revenue. 42 Ericsson 16.6% Nokia Siemens Networks 14.3% Huawei 12.3% Alcatel- Lucent 11.1% Oracle 7.1% Amdocs 5.8% Other 32.8% Total revenue: USD3.84 billion Figure 27: SDP market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Aepona, BroadSoft, Cisco, Comverse, HP, IBM, Motricity, Openet, Tekelec and Telcordia.
  • 43. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 34.4% 32.8% 3.7% 5.8% 6.8% 7.1% 11.8% 11.1% 11.7% 12.3% 14.1% 14.3% 17.4% 16.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 Market share of revenue Ericsson Nokia Siemens Networks Huawei Alcatel-Lucent Oracle Amdocs Other Total revenue 2010: USD3.73 billion Total revenue 2011: USD3.84 billion Overall SDP market summary, 2010 and 2011  Despite the changes in our market segmentation, the top-six vendors have remained the same, as has their ranking order. Of these, Amdocs achieved the highest growth rate (at 63% year-on-year) for SDP revenue because of its acquisition of Bridgewater Systems in the second half of 2010. This contributed the majority of its market share in the newly included sub-segments of policy management and SDM. Thus, its 63% SDP revenue growth in 2011 was largely inorganic.  Alcatel-Lucent lost one percentage point in market share as the overall SDP market grew by 3% from 2010 to 2011.  Ericsson’s market share was constant at 17%, and will increase inorganically in 2012 as a result of its acquisition of Telcordia in the first quarter of 2012.  NSN retained its second position, primarily because it leads the SDM market with its One-NDS solution.  Huawei and Oracle maintained their market shares of 12% and 7%, respectively, in 2011. Huawei’s growth again came primarily from China, and to a lesser extent from Europe. Oracle’s converged application server was the main contributor to its growth in 2011. 43 Figure 28: SDP market shares by revenue, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Aepona, BroadSoft, Cisco, Comverse, HP, IBM, Motricity, Openet, Tekelec and Telcordia.
  • 44. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 SDP market summary by region, 2010 and 2011 Summary for 2011  CALA showed the highest growth in revenue (at 11%), driven by strong activity in Brazil and Mexico. Telefónica Brasil (Vivo) has accelerated competition in Brazil, causing Oi and TIM Brasil to spend to stay competitive.  NA showed the second-highest growth (at 9%), as CSPs employed PM solutions on their LTE and HSPA networks for new mobile data services.  Revenue growth in APAC was only 1%, as CSPs restricted spend on SDP by using software as a service (SaaS) and low-cost solutions.  Revenue in EMEA fell by 1%, as spend on SDP in Western Europe continued to be restricted and low-cost SDP solutions were used in the Middle East and Africa. Outlook for 2012  CALA will continue to be a high-growth region as competition increases.  We anticipate a slow recovery in SDP spending across Europe, given the current uncertainty in the eurozone. 44 Figure 29: SDP revenue by region, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012]  Revenue in NA and APAC will grow at a rate higher than that of the overall SDP market.  The success of prepaid in NA may encourage smaller CSPs to move to low-cost next-generation IN and TAS platforms. 24.2% 25.6% 41.2% 39.6% 7.9% 8.5% 26.7% 26.3% 0% 20% 40% 60% 80% 100% 2010 2011 Market share of revenue Total revenue 2010: USD3.73 billion Total revenue 2011: USD3.84 billion APAC CALA EMEA NA
  • 45. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Ericsson 14.6% Huawei 13.8% Nokia Siemens Networks 13.8% Alcatel- Lucent 11.6% Oracle 7.8% Amdocs 6.1% Other 32.3% Total revenue: USD2.13 billion SDP market shares by product revenue  The SDP product market became more consolidated with the introduction of our new SDP sub-segments. The top-six vendors accounted for 68% of revenue in 2011.  The major changes in product revenue leadership are as a result of the introduction of the large SDM market sub- segment, in which the NEMs are very strong.  The top-six vendors were the same as for the overall SDP market, but the positions of Huawei and NSN were reversed.  Huawei overtook NSN with product revenue from its aggressive business growth in China and Europe, while NSN struggled with financial uncertainties surrounding its parent company (Nokia).  Oracle, which continued to be strongly product focused, held fifth position.  Amdocs used its acquisition of Bridgewater Systems to enter the top-six of our new SDP software segment. 45 Figure 30: SDP market shares by product revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Aepona, BroadSoft, Cisco, Comverse, HP, IBM, Motricity, Openet, Tekelec and Telcordia.
  • 46. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 SDP market shares by product-related services revenue  The SDP product-related services market also became more consolidated with the introduction of our new SDP sub-segments. The top-six vendors accounted for 67% of revenue in 2011.  The top-six vendors were the same as for the overall SDP market, but the positions of Alcatel-Lucent and Huawei reversed.  Huawei’s immaturity in the area of professional services, and its low pricing to enter the Tier 1 European CSP market aggressively, have resulted in its product-related revenue being weaker than that of Alcatel-Lucent in 2011.  Oracle’s introduction of its Oracle Communications Consulting (OCC) made no significant impact on SDP product-related services in 2011, compared with the traditional Oracle telecoms software areas of BSS and service fulfilment.  Amdocs’ emphasis on professional services suggests that its SDP product-related services revenue could overtake that of Oracle in 2012. 46 Figure 31: SDP market shares by product-related services revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Aepona, Broadsoft, Cisco, Comverse, HP, IBM, Motricity, Openet, Tekelec and Telcordia. Ericsson 19.1% Nokia Siemens Networks 14.9% Alcatel- Lucent 10.5% Huawei 10.3% Oracle 6.3% Amdocs 5.5% Other 33.4% Total revenue: USD1.71 billion
  • 47. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Oracle 15.5% Ericsson 13.2% Nokia Siemens Networks 12.2% Alcatel- Lucent 11.8% Huawei 11.7% BroadSoft 7.0% Other 28.6% Total revenue: USD1.65 billion Telecoms application servers  The TAS market is more consolidated, as the top-six suppliers accounted for 71% of the commercial TAS market.  Oracle, with its focus on its converged application server and on providing product-related services with its OCC team, overtook Ericsson to lead the TAS market. It has successfully replace Ericsson’s legacy IN in T-Mobile Hungary.  Ericsson slipped to second place, as its legacy IN was replaced by other vendors’ next-generation IN (NG-IN) platforms at a lower price point and with lower ongoing support and maintenance costs. Its acquisition of Telcordia may return Ericsson to the market leadership position in 2012.  NSN’s ability to provide evolved IN and NG-IN to simplify CSPs migration to NG-IN supported its third position.  Alcatel-Lucent fell to fourth place following its restructuring, but continued to focus on API exposure with its Application Enablement platform.  Huawei’s revenue growth continued, adding 1 percentage point to its market share, compared with 2010, through legacy IN upgrades and replacements.  BroadSoft had the highest year-on-year growth of 20%, compared with the other five top vendors in 2011. This came from its BroadWorks solution, as IMS investments increased and CSPs deployed more enhanced VoIP services. 47 Figure 32: Telecoms application server market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Aepona, Amdocs, Comverse, GENBAND, HP, IBM, Metaswitch Networks, OpenCloud, Telcordia and Telenity.
  • 48. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Amdocs 14.0% Ericsson 11.3% Huawei 9.0% Motricity 7.9% Alcatel- Lucent 6.5% Mobixell Networks 4.0% Other 47.2% Total revenue: USD0.50 billion Mobile content management and delivery  The MCMD market is fragmented: the top-six vendors accounted for 53% of revenue in 2011. The sub-segment grew as some CSPs continued to invest in application stores and mobile advertising.1  Globe Telecom, Mobilink, Omnitel, Reliance Communications (Reliance), SK Telecom, Telecom New Zealand, Türkcell and Vodacom all launched their own application stores in 2011.  SaaS deployments reduced spend on MCMD in 2011 and will continue the trend in this sub-segment.  Amdocs maintained its market-leading position with its Amdocs Interactive solution.  Ericsson’s MSDP and eStore products and SaaS offerings sustained its 11% market share in 2011.  Huawei’s Digital Shopping Mall gained traction, mainly in China.  Motricity’s SaaS-only offering sustained its business in the USA and won deals in APAC with Reliance and the Axiata Group.  Alcatel-Lucent maintained its market share with application store deployments on its Digital Media Store platform.  Mobixell Networks acquired 724 Solutions Software in January 2010, which helped it to increase its market share. 48 Figure 33: Mobile content management and delivery market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Acision, Antenna Software, Mavenir Systems, MobileAware, NEC, Nokia Siemens Networks, Openwave Mobility, Oracle and Telenity. 1 For more information on the MCMD market in 2011, see Analysys Mason’s Report Mobile content management and delivery: third-generation platforms, third time lucky?.
  • 49. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Policy management  The PM market remains fragmented, with the top-six vendors accounting for 63% of the revenue in 2011. The sub-segment grew as mobile CSPs’ invested in network protection policy use cases and a few mobile data services.  The large mobile NEMs (Ericsson, Huawei and NSN) can deliver a full policy management solution as part of a larger network deployment. Ericsson has deployed its Service- Aware Policy Controller solution with its packet core.1  Huawei was in second place thanks to deployments of its packet core, but is weak in mature markets and there are some gaps in overlap between its Unified Policy and Charging Controller and its Mobile Broadband Value Growth Solution, which was used to launch MegaFon’s Turbo Button in 2009.  Tekelec increased the scale of its acquired Camiant PCRF in its Policy Server, which meets the needs of Tier 1 CSPs, such as Verizon Wireless, and emerging market CSPs, such as TIM Brasil. Tekelec is also a market leader in diameter signalling routing, which is rapidly becoming essential for policy control.  Openet’s major sources of revenue are its product-related services and its primary customer – AT&T.  Amdocs acquired Bridgewater Systems’ market share in 2011. 49 Figure 34: Policy management market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 For more information on Ericsson’s Service Aware Policy Controller (SAPC) see Analysys Mason’s Ericsson: policy management profile. 1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent, BroadHop, ComAbility, Comptel, Comverse, Convergys, Flash Networks, HP, Redknee Solutions and Volubill. Ericsson 20.6% Huawei 11.5% Tekelec 9.4% Openet 8.5% Amdocs 7.2% Nokia Siemens Networks 5.9% Other 36.8% Total revenue: USD0.42 billion
  • 50. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Nokia Siemens Networks 23.9% Ericsson 21.8% Alcatel- Lucent 14.5% Huawei 14.4% Cisco Systems 5.1% Amdocs 4.9% Other 15.3% Total revenue: USD1.27 billion Subscriber data management  Like other NEMs-dominated markets, such as the NMS market, the SDM market is highly consolidated, with the top-six vendors accounting for 85% of the revenue in 2011.  The sub-segment grew as a result of mobile adjunct policy subscriber profile repository (SPR) and home subscriber server (HSS) deployments.  NSN led this market with its One-NDS product and has done so since its acquisition of Apertio, in 2008, which undermined Ericsson’s and Motorola’s strategies, as they used Apertio’s One-NDS.  Ericsson is second with deployments of home location register (HLR) and HSS in its extensive worldwide CSP customer base.  Alcatel-Lucent’s 8650 Subscriber Data Manager continues to be its main SDM product.  Huawei uses its single subscriber database (SingleSDB) for HSS and SPR in its policy management solution.  Cisco’s 2009 acquistion of Starent Networks boosted its SDM market share, thanks to the combination of Starent’s HSS deployments worldwide and its traditonal fixed broadband SDM with Cisco’s Identity Services Engine (ISE).  Amdocs gained additional SDM market share from deployments of Bridgewater Systems’ adjunct SPR with its PCRF. 50 Figure 35: Subscriber data management market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: ComAbility, Elitecore Technologies, HP, IBM, Juniper Networks, Openet, Oracle, Tekelec, Xeround and ZTE.
  • 51. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 51 Market shares Revenue management Service delivery platforms Customer care Service fulfilment Service assurance Network management systems
  • 52. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall customer care market summary  The overall market revenue for customer care systems was USD2.78 billion worldwide in 2011. The top-six suppliers accounted for 57% of the market.  Nearly all vendors benefited from the market growth in 2011.  Huawei’s revenue grew in China, but at a reduced rate compared to recent years, because of the economic slowdown in China. Huawei also continued its expansion into the Western hemisphere. 52 Oracle 24.7% Amdocs 15.2% Huawei 7.9% SAP 3.9% Convergys 3.1% Avaya 2.3% Other 42.8% Total revenue: USD2.78 billion Figure 36: Customer care market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Alcatel-Lucent (Genesys), Avaya, BroadVision, CBOSS, Comverse, CSG International, Infor, Microsoft, Pegasystems and salesforce.com with an aggregate market share of 16.3%, and many other smaller vendors with an aggregate market share of 27.5%.
  • 53. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall customer care market summary, 2010 and 2011  Among the top-six vendors, only Oracle increased its customer care market share between 2010 and 2011.  Amdocs’ share dropped slightly, while Huawei, SAP, Convergys and Avaya maintained their market share year-on-year. 53 Figure 37: Customer care market shares by revenue, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012]1 43% 43% 2% 2% 3% 3% 4% 4% 8% 8% 16% 15% 24% 25% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 Market share of revenue Oracle Amdocs Huawei SAP Convergys Avaya Other Total revenue 2010: USD2.60 billion Total revenue 2011: USD2.78 billion
  • 54. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall customer care market summary by region, 2010 and 2011  The largest growth came in CALA (13%), but from a small base, because revenue was recognised in 2011 for deals that were closed in 2010 and 2011 after a long hiatus in the market.  CSPs in developed markets increased spending slightly on customer care systems in NA and EMEA, but at a much lower rate than those in emerging markets.  CSPs in emerging markets in APAC and EMEA increased spending on customer care systems, as mobile markets approached saturation in some countries, and as new carriers entered the market in others.  Spending in China and the Middle East, which are less sensitive to free market pressures, continued again in 2011 at close to previous levels. Two vendors, AsiaInfo-Linkage and Huawei, benefited most from growth in the Chinese market. 54 Figure 38: Customer care revenue by region, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012]1 33.1% 33.3% 39.1% 37.4% 6.1% 6.4% 21.7% 22.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 Share of revenue APAC CALA EMEA NA Total revenue 2010: USD2.60 billion Total revenue 2011: USD2.78 billion
  • 55. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Customer care market shares by product revenue  The overall product revenue for customer care software was USD1.72 billion in 2011. The top-six suppliers accounted for 59% of the market. Oracle retained its position as the leading product supplier, thanks to its product-focused strategy.  Huawei moved continued its move into software, maintaining its second place in product revenue.  Amdocs continues to command a prominent position (third place) in terms of product revenue, despite its increasing focus on services in the customer care market.  SAP maintained its position as the number of subscribers in its embedded base grew.  Avaya continues to focus on its IVR and web-enabled systems, taking fifth place in terms of product market share.  Alcatel-Lucent took sixth place this year because it expanded its Genesys product line. Alcatel-Lucent sold the Genesys unit to private equity company Permira for USD1.5 billion in 2012. 55 Figure 39: Customer care market shares by product revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 ‘Product’ includes licence software, maintenance and the portion of managed services and SaaS revenue attributed to products. Oracle 34.7% Huawei 6.4% Amdocs 5.8% SAP 5.6% Avaya 3.8% Alcatel- Lucent (Genesys) 3.0% Other 40.7% Total revenue: USD1.72 billion
  • 56. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Customer care market shares by product-related services revenue  The overall market revenue for customer care product- related services was USD1.05 billion in 2011. The top-six suppliers accounted for 59% of the market.  Amdocs’ loss of services market share is not indicative of a change of its focus on services, but of an overall decline in revenue.  Huawei took second place.  Oracle continues to seek an increase in revenue in product related services. It continued in third place.  NetCracker purchased Convergys in 2012 following several years of Convergys’ declining market share.  Ericsson and CSG International took fifth and sixth places, respectively. 56 Figure 40: Customer care market shares by product-related services revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 ‘Product-related services’ includes installation and basic configuration of product software supplied. Examples are loading the product templates in a CRM system, the basic process definitions for an order orchestration system and loading the various product and service catalogues with CSP-specific information. It excludes data loading of network or customer information, integration with legacy OSSs, and other SI-like services. Amdocs 30.6% Huawei 10.3% Oracle 8.5% Convergys 3.6% Ericsson 2.8% CSG International 2.8% Other 41.4% Total revenue: USD1.05 billion
  • 57. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Customer relationship management  The CRM market generated USD1.16 billion in revenue worldwide in 2011. This represents 9.4% growth from 2010, about 2% more than forecasted.  The top-six suppliers accounted for 77% of the commercial CRM market – the same as in 2009. This market is much more consolidated than most other BSS or OSS markets.  Oracle maintained its number one position based on the market strength of its Siebel CRM system and the integration of multi-channel marketing and sales features gained when it acquired the Art Technology Group (ATG) in November 2010.  Amdocs maintained its number two position through several CRM deals, including a number of order orchestration and retail store software implementations.  The ecosystem that Microsoft has built around its Microsoft Dynamics CRM system continued its growth in the telecoms market. 57 Figure 41: Customer relationship management market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 The ‘Other’ category includes: AsiaInfo-Linkage, Comverse, Convergys, eGain Communications, FrontRange Solutions, IBM, NetSuite, Pegasystems, salesforce.com and Tribold which account for 13% of the revenue, with many other smaller vendors accounting for the remaining 10%. Oracle 37.9% Amdocs 13.1% Huawei 10.2% SAP 8.7% Microsoft 3.9% Infor 2.8% Other 23.4% Total revenue: USD1.16 billion
  • 58. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Subscriber management  The subscriber management market generated USD640 million in 2011, up slightly from USD625 million in 2010.  Subscriber management systems are usually bundled with billing systems, providing basic customer care functions.  The growth of subscriber management systems primarily depends upon the growth of the associated billing systems, as the number of subscribers in established billing installations grows. This is supplemented by some new sales of billing systems for new services offered by established CSPs and for new-entrant mobile CSPs in emerging markets.  Amdocs continued as the leader of this sub-segment, with a 30% market share. It reported a number of deals where CSPs upgraded service management systems in order to make them easier for customer care agents to use.  Convergys and Oracle also maintained their positions (second and third, respectively).  Huawei moved from fifth to fourth place.  Others maintained their positions. 58 Figure 42: Subscriber management market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 The ‘Other’ category includes: AsiaInfo-Linkage, CBOSS, Cerillion, CGI Group, Comarch, Ericsson, Enhanced Telecommunications (ETI Software Solutions), Orga Systems, Redknee and Redtech Network India (Ushacomm) with an aggregate market share of 19%, and many smaller vendors accounting for the rest. Amdocs 29.5% Convergys 11.4% Oracle 9.7% Huawei 7.3% CSG International 6.3% Comverse 3.9% Other 31.9% Total revenue: USD0.64 billion
  • 59. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Customer interaction  The worldwide revenue from customer interaction systems reached USD693 million, which is 9.9% more than last year’s USD631 million and considerably more than projections. Customer self-care came to the forefront in 2011, with web- based interfaces and mobile-optimised self-care systems experiencing significant growth.  The customer interaction market continues to grow as CSPs increasingly move towards self-service, which has been proven to reduce customer care centre costs by as much as 20% and increase ARPU by up to 18%. Consumers are also becoming more adept at using web interfaces, social networking resources and other automated customer interaction methods.  The top-six suppliers accounted for 68% of the market, about the same as in 2010.  Many of the leading vendors maintained their revenue market share rankings in this sub-segment. Some of their shares are separated by only a few million dollars.  Oracle maintained its number one position based on the strong market presence of its Siebel CRM system and the acquisition of cloud-based customer interaction vendor RightNow Technologies. 59 Figure 43: Customer interaction market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 The ‘other’ category includes: AsiaInfo-Linkage, Comverse, CSG International, Enabil Solutions, Ericsson, iisy – intelligente informationssysteme, Irdeto, Kana Software, RightNow Technologies and SAP accounting for 13% and many smaller vendors accounting for the rest. Oracle 26.7% Amdocs 11.8% Avaya 9.4% Alcatel- Lucent (Genesys) 9.2% Huawei 7.9% BroadVision 3.4% Other 31.6% Total revenue: USD0.69 billion
  • 60. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Device management  Device management, previously classified by Analysys Mason as a part of service delivery platforms, is a new sub-segment of the customer care segment. We did this because most of the device management systems now offered are multi-vendor in nature, not tied to a particular vendor or equipment type. We have included mobile device management (MDM) systems this year and will include fixed device management systems from next year onwards.  A few telecoms specialists continue to dominate the MDM market. The top-six suppliers accounted for 68% of revenue in this sub-segment in 2011.  Revenue growth was low in the market overall because mobile device management is not essential to generating revenue. Furthermore, vendors are offering many aspects of MDM to enterprise and retail customers, which provides direct competition for services offered by CSPs. Meanwhile, smartphone manufacturers are not adhering to standards, offering only low-functionality APIs that severely limit the capabilities of MDM systems.  NSN has invested heavily in its MDM product and its revenue grew faster than the overall market.  Ericsson obtains much of its revenue by reselling Synapse Mobile Networks’ solution. 60 Figure 44: Device management market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘Other’ category include: Hewlett Packard (HP), Invigo, Mobilethink, Motorola Solutions, Pervacio, Qualcomm, Giesecke & Devrient (SmartTrust) and Telcordia Technologies, which account for 15% of the market and several other smaller vendors accounting for the rest. Nokia Siemens Networks 18.7% Ericsson 12.7% Mformation Technologies 10.6% Synapse Mobile Networks 10.6% innoPath 9.2% Sicap 6.0% Other 32.4% Total revenue: USD0.28 billion
  • 61. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 61 Market shares Revenue management Service delivery platforms Customer care Service fulfilment Service assurance Network management systems
  • 62. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall service fulfilment market summary  The overall market revenue for service fulfilment was USD2.56 billion in 2011.2 The top six suppliers accounted for 47% of the market, up 1 percentage point from 2010.  Oracle continued its accumulation of market share, building on its strong architecture and reputation in and major exposure to emerging markets. Major transformation programmes by large CSPs such as KT fuelled growth.  Telcordia grew, but suffered the usual disruptions that occur when a company is acquired.  NEC/NetCracker gained market share both organically and by acquiring other software products from NEC.  Amdocs grew, but slower than the market. It announced some substantial enhancements to its service fulfilment offerings in 2011.  Generally speaking, the leading vendors that maintained or gained market share did so by winning new projects in emerging markets, transformation projects in developed markets, executing on more services work and expanding established projects to support new services. 62 Oracle 10.8% Telcordia Technologies 10.2% NEC/ NetCracker 9.3% Amdocs 8.1% Hewlett- Packard 4.3% Comptel 4.1% Other 53.1% Total revenue: USD2.56 billion Figure 45: Service fulfilment market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 2 This report does not include the fulfilment software products offered by NEMs, unless such products are developed by a separate division and sold under separate branding, even if those systems have some multi-vendor capabilities. 1 Significant vendors in the ‘other’ category include: Actix, AIRCOM International, Comarch, ConceptWave, Evolving Systems, GE Smallworld, IBM, Sigma Systems, Synchronoss Technologies and Visionael with an aggregate market share of 17%, and many other small vendors, with an aggregate market share of 36%.
  • 63. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall service fulfilment market summary, 2010 and 2011  The top-six vendors gained market share at the expense of the middle tier of companies (that is, the next ten in the ‘Other’ category).  Oracle commanded the top spot for the first time, continuing to reap the rewards of the integration of its service fulfilment and BSS (notably Siebel CRM) products, its focus on priming systems integration projects involving its products and the exploitation of its strong brand in emerging markets.  Telcordia dropped to second place for the first time.1 It maintains strength in its legacy RBOC systems and sales of next-generation systems to Tier 1 CSPs. However, it has not enjoyed enough exposure to emerging markets required to maintain share.  NEC, under the NetCracker Technology brand, continued to increase its share, taking third place as it consolidated other NEC software products under the brand and took advantage of the NEC sales force and Japanese relationships.  Amdocs lost market share, but has announced a strong set of innovations in service fulfilment in 2011 and 2012.  HP and Comptel remained in the top six. 63 Figure 46: Service fulfilment market shares by revenue, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012] 1 Telcordia became a part of Ericsson in 2012 and so features separately in this year’s report on 2011 market shares. If reported on a consolidated basis with the rest of Ericsson, Ericsson would still command first place in multi-vendor service fulfilment. 52.5% 53.1% 4.2% 4.1% 4.4% 4.3% 8.9% 8.1% 9.4% 9.3% 10.4% 10.2% 10.2% 10.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 Market share of revenue Oracle Telcordia Technologies NEC/NetCracker Amdocs Hewlett-Packard Comptel Other Total revenue 2010: USD2.31 billion Total revenue 2011: USD2.56 billion
  • 64. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Overall service fulfilment market summary by region, 2010 and 2011  Service fulfilment revenue increased by 10.8%.  The NA market grew at a slightly higher rate than the worldwide average, at 11%. Spending in this region increased significantly in the fourth quarter of 2011 as CSPs used up their budgets that were held in reserve for much of the year.  CALA was the fastest-growing market: revenue grew by 13.5% in 2011, from a small base. Many ISVs reported the expansion of earlier projects as well as new projects in 2011.  EMEA accounted for the largest share of revenue, but its share decreased overall by one percentage point year-on- year. Growth in the Middle East did not offset the declines in developed European countries.  APAC returned to growth (at a rate of 15.6%). Most of this growth came from China and the other emerging markets that needed automated service fulfilment to meet their growth. 64 Figure 47: Service fulfilment revenue by region, worldwide, 2010 and 2011 [Source: Analysys Mason, 2012] 37.7% 37.9% 39.4% 38.2% 5.6% 5.7% 17.4% 18.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 Share of revenue APAC CALA EMEA NA Total revenue 2010: USD2.31 billion Total revenue 2011: USD2.56 billion
  • 65. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Service fulfilment market shares by product revenue  The overall market revenue for service fulfilment products was USD1.51 billion in 2011.1  The market share positions remained the same as 2010. 65 Figure 48: Service fulfilment market shares by product revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Our definition of product revenue includes revenue from software licences, maintenance and a portion of managed services and SaaS revenue that is attributable to products. Telcordia Technologies 13.2% Oracle 9.9% NEC/ NetCracker 9.0% Amdocs 6.2% Comptel 4.6% Hewlett- Packard 3.1% Other 54.0% Total revenue: USD1.51 billion
  • 66. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Service fulfilment market shares by product-related services revenue  The overall market revenue for service fulfilment product- related services was USD1.05 billion in 2011.1  Oracle gained the number one position by providing more product-related services, both as prime contractor and as sub-contractor to other SIs.  Amdocs, which is primarily a services company overall, has a more product-oriented strategy for its service fulfilment products, in keeping with the former Cramer philosophy.  Sigma Systems took the number six spot. 66 Figure 49: Service fulfilment market shares by product-related services revenue, worldwide, 2011 [Source: Analysys Mason, 2012] 1 Our definition of product-related services includes installation and basic configuration of software for software products supplied. Oracle 12.1% Amdocs 10.9% NEC/ NetCracker 9.7% Hewlett- Packard 6.2% Telcordia Technologies 5.9% Sigma Systems 3.4% Other 51.8% Total revenue: USD1.05 billion
  • 67. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Order management  The OM market generated USD636 million in revenue in 2011, up from USD586 million in 2010. This is less than that in the order orchestration space, but represents a return to growth for this area – mostly coming from the sales of OM systems as part of an overall service fulfilment ‘stack.’  The top-six suppliers accounted for 42% of the commercial OM market, down from 43% in 2010. This came mostly from the significant other vendors who entered the order management space. The market is still highly fragmented. The ‘Other’ category comprises 30 vendors, of which about a dozen generated USD5 million or less in revenue from the OM market.  NetCracker made significant market share gains in OM during 2010, taking the second position. Amdocs, Oracle and Telcordia also increased their market shares. 67 Figure 50: Order management market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘other’ category include: Comarch, ConceptWave, CSG Systems, Ericsson TANDBERG Television, Evolving Systems, HP, IBM, Sigma Systems, TIBCO Software and Visionael. Amdocs 9.7% NEC/ NetCracker 9.0% Oracle 7.9% Telcordia Technologies 5.7% Comptel 5.4% Synchronoss Technologies 4.7% Other 57.5% Total revenue: USD636 million
  • 68. © Analysys Mason Limited 2012 Telecoms software: worldwide market shares 2011 Telcordia Technologies 19.9% NEC/ NetCracker 16.7% Amdocs 15.5% Oracle 13.8% Visionael 3.7% Comptel 2.8% Other 27.6% Total revenue: USD725 million Inventory management  IM revenue increased from USD663 million in 2010 to USD725 million in 2011.  Inventory management has gone through substantial mergers and acquisitions during the past five years.  The top-six suppliers account for 73% of the IM market, continuing the consolidation trend.  Many smaller suppliers remain, some of which are new to the IM market, serving those CSPs who still desire best-in-class solutions. 68 Figure 51: Inventory management market shares by revenue, worldwide, 2011 [Source: Analysys Mason, 2012]1 1 Significant vendors in the ‘other’ category include: Aktavara, Clarity International, Comarch, Commsolv, Corelogic, HP, Netformx, Synchronoss, TierOne OSS and TIBCO Software.