Service fulfilment systems: worldwide market shares 2013

Research Report

Service fulfilment systems: worldwide market shares 2013 August 2014 Mark H. Mortensen and Dean Ramsay

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Service fulfilment systems: worldwide market shares 2013

Contents Slide no.

Slide no.

5.

Executive summary

26. Modern service fulfilment information flow

6.

Overall service fulfilment market summary

27. Service fulfilment service sector and revenue type definitions

7.

Summary of service fulfilment market developments in 2013

28. Business environment

8.

Overall service fulfilment market summary, 2012 and 2013

29. The business environment in 2013

9.

Long-term trends in the service fulfilment market

30. Regional outlook for 2014

10. Recent trends in the service fulfilment market [1]

31. Market shares

11. Recent trends in the service fulfilment market [2]

32. Overall service fulfilment market summary

12. Service fulfilment market summary by sub-segment

33. Service fulfilment market shares by product revenue

13. Overall service fulfilment market summary by region, 2012 and 2013

34. Service fulfilment market shares by product-related services revenue

14. Recommendations

35. Order management

15. Recommendations for CSPs

36. Order management vendors in 2013

16. Recommendations for suppliers

37. Inventory management

17. Market definition

38. Inventory management vendors in 2013

18. Definition of geographical regions

39. Activation

19. Telecoms software market segmentation

40. Activation vendors in 2013

20. Service fulfilment sub-segment definitions

41. Engineering systems

21. Order management

42. Engineering system vendors in 2013

22. Inventory management

43. Vendor analysis

23. Activation

44. AIRCOM International

24. Engineering systems

45. Amdocs

25. Traditional fixed service fulfilment information flow

46. Comarch

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Service fulfilment systems: worldwide market shares 2013

Contents Slide no.

Slide no.

47. Comptel

63. Mergers and acquisitions

48. Ericsson

64. Mergers and acquisitions [1]

49. GE Smallworld

65. Mergers and acquisitions [2]

50. Hewlett-Packard

66. About the authors and Analysys Mason

51. NEC/NetCracker

67. About the authors

52. Oracle

68. About Analysys Mason

53. Pitney Bowes

69. Research from Analysys Mason

54. Sigma Systems

70. Consulting from Analysys Mason

55. Synchronoss Technologies 56. Visionael 57. Vendor analysis summary: geography and service [1] 58. Vendor analysis summary: geography and service [2] 59. Vendor analysis summary: geography and service [3] 60. Vendor analysis summary: geography and service [4] 61. Vendor analysis summary: product segment [1] 62. Vendor analysis summary: product segment [2]

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Service fulfilment systems: worldwide market shares 2013

List of figures Figure 1: Service fulfilment market shares by revenue, worldwide, 2013

Figure 22a–d:

Figure 2: Service fulfilment market shares by revenue, worldwide, 2012 and 2013

Comparison of service fulfilment suppliers by region and service sector

Figure 23a–b:

Comparison of service fulfilment suppliers by sub-segment

Figure 3: Service fulfilment revenue by region, worldwide, 2012 and 2013

Figure 24a–b:

Mergers and acquisitions in the service fulfilment market, 2007–February 2014

Figure 4: Regional breakdown used in this report Figure 5: Telecoms software market segments Figure 6: Definitions of service fulfilment sub-segments

Figure 7: Order management system key functions Figure 8: Inventory management system key functions Figure 9: Activation system key functions Figure 10: Engineering systems key functions Figure 11: Traditional fixed service fulfilment information flow Figure 12: Modern service fulfilment information flow Figure 13: Service fulfilment service sector definitions Figure 14: Service fulfilment revenue type definitions

Figure 15: Service fulfilment market shares by revenue, worldwide, 2013 Figure 16: Service fulfilment market shares by product revenue, worldwide, 2013 Figure 17: Service fulfilment market shares by product-related services revenue, worldwide, 2013 Figure 18: Order management market shares by revenue, worldwide, 2013 Figure 19: Inventory management market shares by revenue, worldwide, 2013 Figure 20: Activation market shares by revenue, worldwide, 2013 Figure 21: Engineering systems market shares by revenue, worldwide, 2013

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Service fulfilment systems: worldwide market shares 2013

Overall service fulfilment market summary Figure 1: Service fulfilment market shares by revenue, worldwide, 2013 [Source: Analysys Mason, 2014]

Ericsson 11.3%

Oracle 10.9%

Other 48.5%

Amdocs 10.0%

NEC/ NetCracker 9.0% Synchronoss Hewlett6.1% Packard 4.3%

Total revenue: USD3.05 billion 1

Significant vendors in the ‘other’ category include: AIRCOM International, Comarch, Comptel, Evolving Systems, GE Smallworld, IBM, Sigma Systems and Visionael.

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 The service fulfilment market generated USD3.05 billion in revenue in 2013, up by 7.0% from USD2.85 billion in 2012. This is in line with our forecast from last year.  Service fulfilment has been a very fragmented market, but is consolidating following a new round of acquisitions by the larger players. The top-six vendors accounted for 51.5% of the market in 2013, up three percentage points from 2012, while 37 other vendors each generated at least USD10 million in revenue.  The market continued to grow at a higher rate than some other telecoms software areas because it is considered to be related to revenue generation – providing fast, efficient implementation of services. Investment in engineering systems market increased significantly in 2013, as communications service providers (CSPs) implemented FTTx, LTE and self-optimising network (SON) technologies.  Market growth was driven by the need to support complex new services and advanced network technology as the worldwide economic recovery leads to renewed investments in OSS/BSS; network evolution towards optical/packet technology; initiatives to meet the needs of small and medium-sized enterprises (SMEs); and departmental-sized transformation projects in inventory, outside plant and overall service fulfilment systems in CSPs of all sizes.

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Service fulfilment systems: worldwide market shares 2013

Modern service fulfilment information flow  Modern service fulfilment architecture blurs the traditional OSS/BSS lines.

Figure 12: Modern service fulfilment information flow [Source: Analysys Mason, 2014]

 Orders from CRM or subscriber management systems are passed to customer order orchestration systems that decompose complex, multi-product orders and orchestrate the overall order.

Customer care Subscriber management

CRM

Partner CSPs, third-party vendors

Customer order orchestration

Catalogue Order management

Inventory

Inventory

Activation

SDPs Activation

Activation

NMS/EMS for technology A

NMS/EMS for technology B

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 Activation systems are directly interfaced with customer order orchestration (or OM systems) when a simple activation is required.

Service fulfilment

Engineering systems

Order management

 Sub-orders are passed to multiple service fulfilment technology stacks for further decomposition, management, design and assign, and activation. Some sub-orders go to the systems of partner CSPs or third-party vendors.

 The BSS and OSS components each need data about the products and services required to fulfil the orders. This is stored in multiple product catalogues, federated or manually synchronised.  Engineering tools have evolved into full systems, with databases integrated into inventory and other service fulfilment OSS systems and processes.

Service fulfilment systems: worldwide market shares 2013

Executive summary Recommendations Market definition Business environment Market shares

Vendor analysis Mergers and acquisitions About the authors and Analysys Mason

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Service fulfilment systems: worldwide market shares 2013

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About the authors Mark H. Mortensen (Principal Analyst) is the lead analyst for Analysys Mason’s Customer Care and Service Fulfilment research programmes, which are part of the Telecoms Software research stream. His primary areas of specialisation include customer self-care, automation of fulfilment processes, and data operations. The first 20 years of Mark’s career were spent at Bell Laboratories, where he specialised in creating software products for new markets and network technologies and in the interaction of software with the underlying network hardware. Mark was Chief Scientist of Management Systems at Bell Labs, and president of his own OSS strategy consulting company, CMO at inventory specialist Granite Systems, VP of Product Strategy at Telcordia Technologies, and SVP of Marketing at a network planning software vendor. Mark holds MPhil and a PhD degrees in physics from Yale University and has received two AT&T Architecture awards for innovative software solutions. He is also a faculty member at UMass Lowell in the Manning School of Business in Strategic Management Dean Ramsay (Analyst) is a member of Analysys Mason’s Telecoms Software research team. He leads the Telecoms Software Forecasts and Market Shares programmes, and project manages and contributes to the CSP IT Strategies and Service Fulfilment research programmes. He has 12 years’ experience in the telecoms industry, working in operations and service delivery with major Tier 1 and more niche Tier 2 carriers, focusing on order management, revenue management and service delivery systems. Dean joined Analysys Mason in 2011 following two years working as an analyst in the mobile sector. Dean holds a BA in English from Anglia Ruskin University.

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Service fulfilment systems: worldwide market shares 2013

About Analysys Mason Knowing what’s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research.

Consulting  Our focus is exclusively on TMT.  We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy.  We have developed rigorous methodologies that deliver tangible results for clients around the world. For more information, please visit www.analysysmason.com/consulting.

Research  We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services.  Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts.  Our dedicated Custom Research team undertakes specialised and bespoke projects for clients. For more information, please visit www.analysysmason.com/research. © Analysys Mason Limited 2014

Service fulfilment systems: worldwide market shares 2013

Research from Analysys Mason We provide dedicated coverage of developments in the telecoms, media and technology (TMT) sectors, through a range of research programmes that focus on different services and regions of the world.

Alongside our standardised suite of research programmes, our Custom Research team undertakes specialised, bespoke research projects for clients. The dedicated team offers tailored investigations and answers complex questions on markets, competitors and services with customised industry intelligence and insights. To find out more, please visit www.analysysmason.com/research. © Analysys Mason Limited 2014

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Service fulfilment systems: worldwide market shares 2013

Consulting from Analysys Mason For more than 25 years, our consultants have been bringing the benefits of applied intelligence to enable clients around the world to make the most of their opportunities. Our clients in the telecoms, media and technology (TMT) sectors operate in dynamic markets where change is constant. We help shape their understanding of the future so they can thrive in these demanding conditions. To do that, we have developed rigorous methodologies that deliver real results for clients around the world. Our focus is exclusively on TMT. We advise clients on regulatory matters, help shape spectrum policy and develop spectrum strategy, support multi-billion dollar investments, advise on operational performance and develop new business strategies. Such projects result in a depth of knowledge and a range of expertise that sets us apart. We help clients solve their most pressing problems, enabling them to go farther, faster and achieve their commercial objectives. To find out more, please visit www.analysysmason.com/consulting.

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Service fulfilment systems: worldwide market shares 2013

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