Research Report Telecoms software: worldwide market shares 2012 September 2013 Patrick Kelly, Mark H. Mortensen, Glen Ragoonanan, Justin van der Lande, Dean Ramsay, Anil Rao and John Abraham
2 Contents Slide no. Slide no. 8. Executive summary 9. Worldwide telecoms software market shares in 2012 10. Worldwide telecoms software market shares in 2011 and 2012 11. Worldwide telecoms software market shares in 2012: by service sector 12. Worldwide telecoms software market shares in 2012: by region 13. Worldwide telecoms software product revenue in 2012 14. Worldwide telecoms software product-related services revenue in 2012 15. Business environment 16. The business environment in 2012 17. Regional outlook for 2013 18. Market definition 19. Summary of changes to our segmentation of the service delivery platforms software market 20. Telecoms software market segmentation 21. Telecoms software market definitions 22. Revenue management sub-segment definitions 23. Service delivery platforms sub-segment definitions 24. Customer care sub-segment definitions 25. Service fulfilment sub-segment definitions 26. Service assurance sub-segment definitions 27. NMS segment and sub-segment definitions 28. Market shares 29. Market shares: Revenue management 30. Overall revenue management market summary 31. Overall revenue management market summary, with 2011 comparison 32. Overall revenue management market summary by region, with 2011 comparison 33. Revenue management market shares by product revenue 34. Revenue management market shares by product-related services revenue 35. Prepaid billing 36. Postpaid billing 37. Convergent billing 38. Partner and interconnect 39. Business optimisation 40. Mediation 41. Market shares: Service delivery platforms 42. Summary of changes to our segmentation of the service delivery platforms software market 43. Overall SDP market summary 44. Overall SDP market summary, with 2011 comparison 45. Overall SDP market summary by region, with 2011 comparison 46. SDP market shares by product revenue 47. SDP market shares by product-related services revenue 48. Telecoms application servers (TAS) 49. Content management and delivery (CMD) 50. Mobile content management and delivery (MCMD) 51. Fixed content management and delivery (FCMD)
3 Contents Slide no. Slide no. 52. Policy management (PM) 53. Subscriber data management (SDM) 54. Market shares: Customer care 55. Overall customer care market summary 56. Customer care market shares by product revenue 57. Customer care market shares by product-related services revenue 58. Customer interaction 59. Customer relationship management 60. Subscriber management 61. Device management 62. Market shares: Service fulfilment 63. Overall service fulfilment market summary 64. Service fulfilment market shares by product revenue 65. Service fulfilment market shares by product-related services revenue 66. Order management 67. Inventory management 68. Activation 69. Engineering systems 70. Market shares: Service assurance 71. Overall service assurance market summary 72. Overall service assurance market summary, with 2011 comparison 73. Service management systems 74. Fault and event management systems 75. Performance monitoring systems 76. Workforce automation systems 77. Probe systems 78. Market shares: Network management systems 79. Overall NMS market summary 80. Overall NMS market summary, with 2010 and 2011 comparison 81. Overall NMS market summary by region, with 2010 and 2011 comparison 82. NMS market shares by product revenue 83. NMS market shares by product-related services revenue 84. Mobile NMS 85. Business data services NMS 86. Residential broadband NMS 87. PSTN NMS 88. Vendor analysis summaries 89. Vendor analysis summaries: Revenue management 90. Revenue management vendor analysis summary, by region and service sector [1] 91. Revenue management vendor analysis summary, by region and service sector [2] 92. Revenue management vendor analysis summary, by region and service sector [3] 93. Revenue management vendor analysis summary, by region and service sector [4]
4 Contents Slide no. Slide no. 94. Revenue management vendor analysis summary, by region and service sector [5] 95. Vendor analysis summaries: Service delivery platforms 96. SDP vendor analysis summary, by region and sub-segment [1] 97. SDP vendor analysis summary, by region and sub-segment [2] 98. SDP vendor analysis summary, by region and sub-segment [3] 99. SDP vendor analysis summary, by region and sub-segment [4] 100. SDP vendor analysis summary, by region and service sector [1] 101. SDP vendor analysis summary, by region and service sector [2] 102. SDP vendor analysis summary, by region and service sector [3] 103. SDP vendor analysis summary, by region and service sector [4] 104. Vendor analysis summaries: Customer care 105. Customer care vendor analysis summary, by region and service sector [1] 106. Customer care vendor analysis summary, by region and service sector [2] 107. Customer care vendor analysis summary, by region and service sector [3] 108. Customer care vendor analysis summary, by region and service sector [4] 109. Customer care vendor analysis summary, by sub-segment [1] 110. Customer care vendor analysis summary, by sub-segment [2] 111. Customer care vendor analysis summary, by sub-segment [3] 112. Vendor analysis summaries: Service fulfilment 113. Service fulfilment vendor analysis summary, by region and service sector [1] 114. Service fulfilment vendor analysis summary, by region and service sector [2] 115. Service fulfilment vendor analysis summary, by region and service sector [3] 116. Service fulfilment vendor analysis summary, by region and service sector [4] 117. Service fulfilment vendor analysis summary, by sub-segment [1] 118. Service fulfilment vendor analysis summary, by sub-segment [2] 119. Vendor analysis summaries: Service assurance 120. Service assurance vendor analysis summary, by region and service sector [1] 121. Service assurance vendor analysis summary, by region and service sector [2] 122. Service assurance vendor analysis summary, by region and service sector [3] 123. Service assurance vendor analysis summary, by sub-segment [1] 124. Service assurance vendor analysis summary, by sub-segment [2] 125. Service assurance vendor analysis summary, by sub-segment [3] 126. Vendor analysis summaries: Network management systems 127. NMS vendor analysis summary, by region and service sector [1] 128. NMS vendor analysis summary, by region and service sector [2] 129. About the authors and Analysys Mason 130. About the authors [1] 131. About the authors [2] 132. About Analysys Mason 133. Research from Analysys Mason 134. Consulting from Analysys Mason
5 List of figures Figure 1: Telecoms software market shares by revenue, Figure 2: Telecoms software market shares by revenue, worldwide, 2011 and 2012 Figures 3a d: Telecoms software market shares by revenue for mobile, business, PSTN and residential broadband services, worldwide, 2012 Figures 4a d: Telecoms software market shares by revenue for APAC, EMEA, LATAM and NA, 2012 Figure 5: Telecoms software market shares by product revenue, worldwide, 2012 Figure 6: Telecoms software market shares by product-related services revenue, Figure 7: Changes to Analysys Mason s segmentation of the service delivery platforms market Figure 8: Telecoms software market segments Figure 9: Definitions of the telecoms software market and its products and services Figure 10: Definitions of revenue management sub-segments Figure 11: Definitions of SDP and its sub-segments Figure 12: Definitions of customer care and its sub-segments Figure 13: Definitions of service fulfilment and its sub-segments Figure 14: Definitions of service assurance and its sub-segments Figure 15: Definitions of NMS and its segments and sub-segments Figure 16: Revenue management market shares by revenue, Figure 17: Revenue management market shares by revenue, worldwide, 2011 and 2012 Figure 18: Revenue management revenue by region, worldwide, 2011 and 2012 Figure 19: Revenue management market shares by product revenue, Figure 20: Revenue management market shares by product-related services revenue, Figure 21: Prepaid billing market shares by revenue, Figure 22: Postpaid billing market shares by revenue, Figure 23: Convergent billing market shares by revenue, Figure 24: Partner and interconnect market shares by revenue, worldwide, 2012 Figure 25: Business optimisation market shares by revenue, Figure 26: Mediation market shares by revenue, Figure 27: Changes to Analysys Mason s segmentation of the service delivery platforms market Figure 28: SDP market shares by revenue, Figure 29: SDP market shares by revenue, worldwide, 2011 and 2012 Figure 30: SDP revenue by region, worldwide, 2011 and 2012 Figure 31: SDP market shares by product revenue, Figure 32: SDP market shares by product-related services revenue, Figure 33: Telecoms application servers market shares by revenue, Figure 34: Content management and delivery market shares by revenue, Figure 35: Mobile content management and delivery market shares by revenue,
6 List of figures Figure 36: Fixed content management and delivery market shares by revenue, Figure 37: Policy management market shares by revenue, Figure 38: Subscriber data management market shares by revenue, Figure 39: Customer care market shares by revenue, Figure 40: Customer care market shares by product revenue, Figure 41: Customer care market shares by product-related services revenue, Figure 42: Customer interaction market shares by revenue, Figure 43: Customer relationship management market shares by revenue, Figure 44: Subscriber management market shares by revenue, worldwide, 2012 Figure 45: Device management market shares by revenue, Figure 46: Service fulfilment market shares by revenue, Figure 47: Service fulfilment market shares by product revenue, worldwide, 2012 Figure 48: Service fulfilment market shares by product-related services revenue, Figure 49: Order management market shares by revenue, worldwide, 2011 Figure 50: Inventory management market shares by revenue, Figure 51: Activation market shares by revenue, Figure 52: Engineering systems market shares by revenue, Figure 53: Service assurance market shares by revenue, Figure 54: Service assurance market shares by revenue, worldwide, 2011 and 2012 Figure 55: Service management systems market shares by revenue, Figure 56: Fault and event management systems market shares by revenue, Figure 57: Performance monitoring systems market shares by revenue, Figure 58: Workforce automation systems market shares by revenue, Figure 59: Probe systems market shares by revenue, Figure 60: NMS market shares by revenue, Figure 61: NMS market shares by revenue, worldwide, 2010 2012 Figure 62: NMS revenue by region, worldwide, 2010 2012 Figure 63: NMS market shares by product revenue, Figure 64: NMS market shares by product-related services revenue, Figure 65: Mobile NMS market shares by revenue, Figure 66: Business data services NMS market shares by revenue, Figure 67: Residential broadband NMS market shares by revenue, Figure 68: PSTN NMS market shares by revenue, Figure 69a e: Comparison of revenue management suppliers by region and service sector Figure 70a d: Comparison of SDP suppliers by region and sub-segment Figure 71a d: Comparison of SDP suppliers by region and service sector Figure 72a d: Comparison of customer care suppliers by region and service sector
7 List of figures Figure 73a c: Comparison of customer care suppliers by sub-segment Figure 74a d: Comparison of service fulfilment suppliers by region and service sector Figure 75a b: Comparison of service fulfilment suppliers by sub-segment Figure 76a c: Comparison of service assurance suppliers by region and service sector Figure 77a c: Comparison of service assurance suppliers by sub-segments Figure 78a b: Comparison of NMS suppliers by region and service sector
Market share of revenue Telecoms software: worldwide market shares 2012 10 Worldwide telecoms software market shares in 2011 and 2012 Figure 2: Telecoms software market shares by revenue, worldwide, 2011 and 2012 [Source: Analysys Mason, 2013] 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 9.4% 10.9% 10.5% 9.1% 9.2% 7.1% 10.2% 7.3% 6.0% 5.5% 6.0% 5.6% 51.8% 51.2% 2011 2012 Ericsson Amdocs Huawei Oracle Nokia Siemens Networks Alcatel-Lucent Other In 2012, Ericsson took the leading market share position, following its acquisition of Telcordia Technologies. We have consolidated both companies revenue under Ericsson this year. This pushes Ericsson to the top spot, displacing Amdocs. Amdocs s share declined because we added coverage in 2012 fixed content management and fixed device management which Amdocs does not provide. Adjusting for that change, Amdocs s share would not have declined. Half of the top-six vendors (Ericsson, Huawei and Oracle) all strengthened their position in the top six in 2012 in comparison with 2011. Oracle continued to increase its share, driven by the integration of its service fulfilment and BSS (notably Siebel CRM) products and the exploitation of its strong brand in emerging markets. Nokia Siemens Networks (NSN) now Nokia Solutions and Networks and Alcatel-Lucent both lost market share following a challenging year of flat revenue in a growing market. The Other category shrank slightly because Ericsson acquired Telcordia. It would have increased year-on-year if we had included Telcordia with Ericsson s totals in 2011.
11 Worldwide telecoms software market shares in 2012: by service sector Figures 3a d: Telecoms software market shares by revenue for mobile, business, PSTN and residential broadband services, [Source: Analysys Mason, 2013] Ericsson 13.9% Amdocs 17.7% Other 43.9% Huawei 11.3% Amdocs 10.7% Mobile Total revenue: USD14.2 billion Other 52.7% Ericsson 9.8% Oracle 8.8% PSTN Total revenue: USD2.14 billion Alcatel-Lucent 5.1% Oracle 6.8% Nokia Siemens Networks 8.2% Alcatel-Lucent 3.0% Tektronix CA 4.6% 3.5% Alcatel-Lucent 8.9% Huawei 8.2% Oracle 10.2% Amdocs 7.4% Other 58.0% NEC 5.4% Oracle 4.5% Cisco Systems 7.8% Amdocs 7.2% Business Total revenue: USD3.32 billion Other 58.5% Ericsson 7.2% Huawei 6.6% Alcatel-Lucent 5.9% IBM 4.2% Residential broadband Total revenue: USD4.43 billion
129 Executive summary Business environment Market definition Market shares Vendor analysis summaries About the authors and Analysys Mason
130 About the authors [1] Patrick Kelly (Research Director) sets the direction of Analysys Mason s Telecoms Software research stream, which focuses on identifying the rapidly growing segments in the telecoms software market and providing forecast and market share data by region and service type. He has produced research on policy management, cloud computing, LTE and mobile backhaul, IP next-generation service assurance, and customer experience management. Patrick is a frequent speaker at industry and user group conferences. He holds a BSc from the University of Vermont, and an MBA from Plymouth College. Mark H. Mortensen (Principal Analyst) is the lead analyst for Analysys Mason s Customer Care, Service Fulfilment and Digital Economy Software Strategies research programmes. The first 20 years of Mark's career were spent at Bell Laboratories, where he developed software products for new markets and network technologies, and designed the interaction of operations and business support systems (OSS/BSS) with the underlying network hardware. Mark was Chief Scientist of Management Systems at Bell Labs, and has also been president of his own OSS strategy consulting company, CMO at the inventory specialist Granite Systems, VP of Product Strategy at Telcordia Technologies, and SVP of Marketing at a network planning software vendor. Mark holds an MPhil and a PhD in physics from Yale University and has received two AT&T Architecture awards for innovative software solutions. Glen Ragoonanan (Senior Analyst) is the lead analyst for Analysys Mason s Infrastructure Solutions, 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 OSS/BSS solution architecture and integration for business process re-engineering, business process optimisation, business continuity planning, procurement and outsourcing operations and strategies. Before joining Analysys Mason, Glen worked for Fujitsu, designing, delivering and managing integrated solutions. Glen is a Chartered Engineer and project management professional with an MSc from Coventry University.
131 About the authors [2] Justin van der Lande (Senior Analyst) leads the Revenue Management, Analytics 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. Justin holds a BSc in Management Science and Computer Studies from the University of Wales. Dean Ramsay (Analyst) consolidates output across the seven telecoms software 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. He holds a BA in English from Anglia Ruskin University. Anil Rao (Research Analyst) focuses on the Service Assurance, Infrastructure Solutions and Service Delivery Platforms programmes. He has more than 10 years experience in the telecoms industry, working in systems integration and service delivery with major Tier 1 mobile and fixed-line operators, and independent software vendors. Anil joined Analysys Mason in early 2012. He holds a BEng in Computer Science from the University of Mysore, and an MBA from Lancaster University Management School. John Abraham (Research Analyst) contributes to the Revenue Management and Service Fulfilment programmes. He has more than five years experience in the telecoms industry. He has worked for a global OSS vendor and implemented revenue management solutions for Tier 1 telcos in Europe, India and the Middle East. John joined Analysys Mason in early 2012. He holds a bachelors degree in computer science from Anna University (India) and an MBA from Bradford University School of Management (UK).
132 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.
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