Light Reading

Ericsson Buys More OSS Smarts

Ray Le Maistre

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. (NYSE: 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        ADD A COMMENT
From The Founder
Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Wagner’s Ring
How Might Open Source Fail?

11|24|15   |     |   (3) comments

Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
LRTV Custom TV
NFV Lifecycle Orchestration – a Fresh Vision for Telco

11|23|15   |   6.40   |   (0) comments

Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
Between the CEOs
Cisco's Virtual Role in Saudi

11|20|15   |   12:15   |   (1) comment

Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
LRTV Huawei Video Resource Center
Huawei Leads With Kubernetes for Cloud PaaS

11|19|15   |   08:26   |   (0) comments

Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
Women in Comms Introduction Videos
WiC in London: The Highlight Reel

11|19|15   |   5:33   |   (1) comment

NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
LRTV Documentaries
Why Saudi's So Hot for New Tech

11|19|15   |   05:07   |   (0) comments

Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
LRTV Custom TV
Why Data Models Deliver More Value Than Information Models

11|19|15   |   5.08   |   (0) comments

Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
Telecom Innovators Video Showcase
SDN Management & Orchestration in the WAN

11|17|15   |   7.20   |   (0) comments

Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
LRTV Custom TV
Flash Networks: Optimizing for Radio Spectral Efficiency

11|17|15   |   3:34   |   (0) comments

Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
LRTV Custom TV
Making Pay-TV User Experiences Millennial-Friendly

11|16|15   |   6:42   |   (0) comments

The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
LRTV Huawei Video Resource Center
Huawei Electric Power Summit 2015 – Addis Ababa, Ethiopia

11|16|15   |   1:28   |   (0) comments

Huawei, together with Ethiopia's Ministry of Water, Irrigation and Electricity, hosted the Huawei Electric Power Summit 2015 in Addis Ababa, Ethiopia. The event gathered industry experts and senior executives of global electric power companies to discuss emerging industry trends including: improvements in new energy conversion efficiency, reduction of line losses ...
Between the CEOs
Mobily on Bringing Innovation to Saudi Arabia

11|13|15   |     |   (2) comments

Mobily CEO Ahmad Farroukh talks to Steve Saunders about the realities of being a mobile operator in Saudi Arabia.
Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
Hot Topics
Samsung to Sell Wireless Networking Unit?
Dan Jones, Mobile Editor, 11/23/2015
Sprint Undercuts Rivals With Half-Price Offers
Dan Jones, Mobile Editor, 11/18/2015
Routers Are Facing Extinction: Let’s Not Save Them
Scott Sumner, VP solutions marketing, Accedian Networks, 11/18/2015
Sprint, Verizon Face Reorganization, Job Cuts
Dan Jones, Mobile Editor, 11/20/2015
Sprint to Get $1.2B From New Leasing Venture
Dan Jones, Mobile Editor, 11/23/2015
Like Us on Facebook
Twitter Feed
December 15, 2015
Virtualizing Cable Services
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
Mobily CEO Ahmad Farroukh talks to Steve Saunders about the realities of being a mobile operator in Saudi Arabia.
Cats with Phones
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.