TELECOMS SOFTWARE: WORLDWIDE MARKET SHARES 2014

Transcription

1 RESEARCH MARKET SHARES REPORT TELECOMS SOFTWARE: WORLDWIDE MARKET SHARES 2014 DEAN RAMSAY, DR MARK H. MORTENSEN, DANA COOPERSON, JUSTIN VAN DER LANDE, GLEN RAGOONANAN, SHANTHI RAVINDRAN, JOHN ABRAHAM, ANIL RAO, ATUL ARORA and GORKEM YIGIT analysysmason.com

2 CONTENTS EXECUTIVE SUMMARY BUSINESS ENVIRONMENT MARKET SHARES MERGERS AND ACQUISITIONS MARKET DEFINITION ABOUT THE AUTHORS AND ANALYSYS MASON 2

3 Dashboard: Telecoms software worldwide market shares KEY MARKET DEVELOPMENTS IN 2014 Figure 2: Telecoms software revenue by region, worldwide, 2014 The worldwide market for telecoms software grew by 6.6% in 2014 a slight decrease in spending compared to the same period in 2013 (7% annual growth between 2012 and 2013). Revenue in service delivery platforms (11%) and analytics (8.4%) grew at the highest rates. The lowest growth came from revenue management, a sub-segment of analytics (2.3%). The largest six vendors shares decreased as the other category grew. NA 32% Total 2014: USD29 billion 25% EMEA Figure 1: Telecoms software revenue by vendor, worldwide, 2014 LATAM 7% 36% APAC Ericsson 10.0% Huawei 9.6% Figure 3: Telecoms software revenue by sub-segment, worldwide, 2014 Other 54.1% Amdocs 9.3% Residential broadband 19% Mobile Oracle 8.0% Alcatel-Lucent 4.8% Nokia Networks 4.1% Business 14% 5% Total year-on-year growth: 6.6% 62% PSTN Source: Analysys Mason 3

4 Percentage of revenue Telecoms software: worldwide market shares versus 2014: Huawei became the second-largest telecoms software vendor in 2014 Figure 4: Telecoms software revenue by vendor, worldwide, 2013 and % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Vendor Ericsson 10.5% 10.0% Huawei 9.1% 9.6% Amdocs 9.4% 9.3% Oracle 8.1% 8.1% Alcatel-Lucent 5.0% 4.8% Nokia Networks 4.1% 4.1% Other % 54.1% Source: Analysys Mason Ericsson continued to lead the market. Its vast portfolio gives it a presence in all software segments that we track. Ericsson has maintained growth in its portfolio and continues to expand. Huawei moved into second position with strong growth in the NMS and SDP segments, and has continued to build out its OSS portfolio and win new business outside its native China. Amdocs continued to grow at the same rate as the overall market with solid core business from its CES solution sets and acquisitions that extend its OSS business. In 2014, Amdocs added many new clients outside NA its usual focus region. Oracle also grew along with the market and won new business in both OSS and BSS. The company implemented several changes to its solution portfolio in 2014 to prepare for the coming virtualisation revolution. Alcatel-Lucent experienced heavy decline in the SDP segment as it restructured its business. This brought down its overall market share to 4.8% in Nokia Networks market share grew slightly, driven by success in the NMS segment where it won several LTE mobile broadband contracts in China and the USA. 1 Significant vendors in the Other category include: AsiaInfo, Cisco, CSG International, Hewlett- Packard, IBM, NEC/NetCracker, SAP, Tektronix and ZTE. In this report, we have added market share data for the Analytics research programme for the first time. As such, we have restated the worldwide market share data for 2013, so the 2013 data will not match the previous year s numbers. 4

5 CONTENTS EXECUTIVE SUMMARY BUSINESS ENVIRONMENT MARKET SHARES MERGERS AND ACQUISITIONS MARKET DEFINITION ABOUT THE AUTHORS AND ANALYSYS MASON 104

6 About the authors NBED John Abraham Name (NBED (Senior Title) Analyst) NBED is Editor part of will the paste BSS in practice biography in Analysys from the Mason s website. Telecoms If you need Software to update Research your bio, team. please He contact leads our OCS. Revenue Management programme and contributes to mobile money research for the Digital Economy Platforms programme. John has been part of the telecoms industry since 2006, and joined Analysys Mason in early He has worked on a range of telco projects in Africa, Europe, India and the Middle East. Before joining Analysys Mason, he worked for Subex, a provider of BSS offerings. John holds a bachelor's degree in computer science from Anna University (India) and an MBA from Bradford University School of Management (UK). NBED Atul Arora Name (Analyst) (NBED is Title) a member NBED Editor of Analysys will paste Mason s in biography Telecoms from Software the website. research If you team need and to contributes update your to bio, the please Analytics, contact Customer OCS. Care and Digital Economy Platforms programmes. His areas of interest include omni-channel customer care, context-aware analytics and digital enablement. Atul has worked on a range of projects for telecoms operators and vendors, which have included building forecast models RFP preparation and vendor selection. He holds a bachelor's degree from Jaypee University (India) and a Master s degree in neuroscience from University College London. Dana Cooperson (Research Director) is the research director for Analysys Mason s network-focused software research programmes. Her area of expertise is intelligent fixed and mobile network infrastructure. Her goal is to help customers strengthen their link in the communications value chain while evolving their business operations to benefit from, rather than be threatened by, shifts in the market. The key network infrastructure trends Dana focuses on include the integration of communications and IT assets and the drive towards softwarecontrolled, virtual networking. 105

7 About the authors Dr Mark H. Mortensen (Practice Head, BSS) is the lead analyst for Analysys Mason s Customer Care, Service Fulfilment and Digital Economy Platforms research programmes, which are part of the Telecoms Software research stream. His interest areas include customer selfservice, new telco businesses entering the digital economy value chain, and network planning and optimisation. The first 20 years of Mark's career were at Bell Laboratories, where he distinguished himself by starting software products for new markets and network technologies and designing the interaction of BSS/OSSs with the underlying network hardware. Glen Ragoonanan (Principal Analyst) is the lead analyst for Analysys Mason s Service Delivery Platforms and Software-Controlled Networking research programmes. He joined Analysys Mason in 2008 and has worked as a consultant on projects on next-generation IT and telecoms networks, systems and technologies for incumbents, new entrants, private companies, regulators and public-sector clients. His primary areas of specialisation include operations and business support systems (OSS/BSS) solution architecture and integration for business process re-engineering, business process optimisation, business continuity planning, procurement and outsourcing operations and strategies. Dean Ramsay (Senior Analyst) is a member of Analysys Mason s Telecoms Software research team. He leads the Service Fulfilment, Telecoms Software Forecasts and Market Shares programmes, and project manages and contributes to the CSP IT Strategies programme. He has 15 years experience in the telecoms industry, working initially in network and inventory management with a major Tier 1 carrier and, subsequently, as a service delivery manager with 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. He holds a BA in English from Anglia Ruskin University. 106

8 About the authors Anil Rao (Senior Analyst) is a member of Analysys Mason s Telecoms Software research team and is the lead analyst for the Service Assurance programme, focusing on producing market share, forecast and research collateral for the programme. He has published research on IP probes, real-time network analytics and the importance of service assurance in reducing churn and improving customer experience. He holds a BEng in Computer Science from the University of Mysore and an MBA from Lancaster University Management School, UK. Shanthi Ravindran (Senior Analyst) is a member of Analysys Mason s Telecoms Software research team, focusing on OSS, BSS and SDP for Asia Pacific customers. She leads the Network Orchestration programme. Shanthi has more than 20 years of experience at Tier 1 infrastructure vendors, working on design, deployment and operations of wireless and broadband networks for operators across the Asia Pacific region, starting with the first GSM and CDMA networks in Malaysia and Singapore, and continuing on through to 3G and 4G networks. Justin van der Lande (Principal Analyst) leads the Analytics Software Strategies, Customer Experience Management Software Strategies and CSP IT Strategies research programmes, which are part of Analysys Mason s Telecoms Software research stream. He specialises in business intelligence and analytics tools, the functionality of which cuts across all of the research programmes in this area. He also provides project management for large-scale projects within our Telecoms Software research. Justin has more than 20 years experience in the communications industry in software development, marketing and research. He has held senior positions at NCR/AT&T, Micromuse (IBM), Granite Systems (Telcordia) and at the TM Forum. 107

9 About the authors Gorkem Yigit (Analyst) is part of the Telecoms Software research team, contributing to the Service Assurance, Network Orchestration, Service Delivery Platforms and Customer Experience Management programmes. He started his career in the telecoms industry with a graduate role at a leading telecoms operator, before joining Analysys Mason in late He has also written an academic paper about market acceptance of cloud enterprise resource planning (ERP) software and he earned a cum laude MSc degree in Economics and Management of Innovation and Technology from Bocconi University (Milan, Italy). 108

10 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. 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 Consumer and SME services Digital economy Regional markets Network technologies Telecoms software Strategy and planning Regulation and policy Performance improvement Transaction support 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 109

11 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. PROGRAMMES PROGRAMMES Research portfolio PROGRAMMES Service Assurance Customer Experience Management Customer Care Revenue Management Analytics Network Orchestration Software-Controlled Networking Service Delivery Platforms Service Fulfilment Telecoms Software Market Shares Telecoms Software Forecasts Fixed Networks Wireless Networks Spectrum Network technologies Telecoms software Consumer and SME services Regional markets Mobile Services Mobile Devices Fixed Broadband and Multi-Play SME Strategies Digital economy PROGRAMMES PROGRAMMES Global Telecoms Forecasts Asia Pacific The Middle East and Africa European Country Reports European Core Forecasts European Telecoms Market Matrix Digital Economy Strategies Digital Economy Platforms Future Comms and Media IoT and M2M Solutions To find out more, please visit 110

12 Consulting from Analysys Mason For 30 years, our consultants have been bringing the benefits of applied intelligence to enable clients around the world to make the most of their opportunities. Consulting portfolio EXPERTISE Performance analysis Technology optimisation Commercial excellence Transformation services Performance improvement EXPERTISE Radio spectrum auction support Radio spectrum management EXPERTISE Policy development and response Margin squeeze tests Analysing regulatory accounts Expert legal support Media regulation Postal sector costing, pricing and regulation Regulatory economic costing Net cost of universal service Regulation EXPERTISE Transaction support Commercial due diligence Regulatory due diligence Technical due diligence Spectrum policy and auction support Strategy and planning EXPERTISE Market research Market analysis Business strategy and planning Market sizing and forecasting Benchmarking and best practice National and regional broadband strategy and implementation To find out more, please visit 111

13 PUBLISHED BY ANALYSYS MASON LIMITED IN OCTOBER 2015 Bush House North West Wing Aldwych London WC2B 4PJ UK Tel: +44 (0) Fax: +44 (0) Registered in England No All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any client-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only. Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party.