Light Reading

Ericsson Buys More OSS Smarts

Ray Le Maistre
9/26/2012
50%
50%

Ericsson AB (Nasdaq: ERIC) has dipped into its M&A war-chest yet again to buy Service Provider Information Technology (SPIT) specialist ConceptWave Software Inc. for an undisclosed cash sum. (See Ericsson Acquires ConceptWave.)

The move comes nine months after the Swedish giant closed the US$1.15 billion acquisition of Telcordia, which made it one of the world's major suppliers of back office software systems and services to communications service providers (CSPs). (See Say Goodbye to Telcordia.) Toronto-based ConceptWave, which has 170 staff and a customer list that includes AT&T Inc. (NYSE: T), Belgacom SA (Euronext: BELG), Comcast Corp. (Nasdaq: CMCSA, CMCSK), Level 3 Communications Inc. (Nasdaq: LVLT), Swisscom AG (NYSE: SCM) and Time Warner Cable Inc. (NYSE: TWC), specializes in order management (handling the multiple processes involved in executing complex customer orders) and product catalog management (defining all the components of a service/application to enable new product creation, campaign management and product lifecycle management). (See The Order Management Revolution and ConceptWave Gets Certified.)

But hold on -- didn't Ericsson get order management capabilities as part of the Telcordia acquisition? Well, yes, but ConceptWave's systems are more developed and refined: Ericsson says ConceptWave will enable it to help its CSP customers develop more personalized services.

And it's worth noting that Telcordia and ConceptWave have a historical relationship, as Telcordia has, in the past at least, rebadged and resold ConceptWave's order management systems, as this press release from 2003 shows.

Why this matters
Ericsson is looking to position itself as an indispensable supplier of back office software systems and tools to CSPs as all manner of SPIT capabilities become increasingly important to CSP transformation, service development and differentiation strategies, and the ConceptWave acquisition is the latest example of how the giant vendor is investing in that focus. (See Ericsson's SPIT Vision and The SPIT Manifesto 2.0.)

And, according to one industry analyst, it's a deal that makes a lot of sense. "The acquisition of ConceptWave fills another large gap in Ericsson's OSS/BSS portfolio that wasn't entirely covered by Telcordia," notes Heavy Reading senior analyst Caroline Chappell in an email. "Telcordia was working on a service catalog capability when it was acquired by Ericsson," so this appears to be a case of buying rather than the longer process of building in-house, notes the analyst.

"Heavy Reading's 2011 study of the plans of 130 service provider respondents worldwide for cloud services highlighted the requirement for a service catalog that can help service providers manage and co-ordinate the dynamic provisioning of multiple types of (cloud-based) services. Such a capability is critical, not only to the ability to play in the fast-moving world of the cloud but also to operational improvement programs that affect customer experience, such as right first time fulfillment." Chappell adds: "This acquisition is yet another example of the large equipment players," such as NEC Corp. (Tokyo: 6701), "seeing the SPIT world as strategic, so they are assembling a complete suite of BSS/OSS assets, both for their own use as managed services providers -- managed OSS/BSS, managed M2M, managed cloud services -- and to offer to service provider customers." (See NEC to Buy Convergys Unit for $449M and NEC Shells Out $300M for NetCracker.)

She continues: "Heavy Reading is seeing growing evidence of service provider intentions to transform their current SPIT estates to support customer experience initiatives and/or moves into new market areas such as cloud and M2M.

"This represents a major opportunity for the network equipment suppliers as such transformation programs typically accompany network technology changes -- so a trigger for Ericsson's customers would be the move to LTE and EPC [evolved packet core]. As a result of this acquisition, Ericsson can boast a more extensive OSS/BSS stack, although it does face another integration exercise and the market is still waiting for firm details of its integration with Telcordia," concludes Chappell.

For more



— Ray Le Maistre, International Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Cyber Security Expert Warns: You're Doing It Wrong
Sarah Thomas, Editorial Operations Director, 2/23/2015
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
MWC: Let the Madness Begin
Ray Le Maistre, Editor-in-chief, 2/23/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.