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July 12, 2013
Ericsson AB is further bolstering its Service Provider Information Technology (SPIT) capabilities with a deal to acquire Thailand-based systems integrator TeleOSS Consulting Ltd. for an undisclosed sum.
TeleOSS deploys OSS systems at communications service providers (CSPs) in Thailand and Malaysia. Its customers include Advanced Info Service plc (AIS), CAT Telecom Public Co. Ltd., Telekom Malaysia Berhad, True Corp. plc and TOT Public Co. Ltd.
Its OSS vendor partners currently include IBM Corp. (for its Netcool Performance Manager), Objective Systems Integrators Inc. (OSI) (for its NetExpert service assurance system), S2Net (for its inventory management system) and VSS Monitoring Inc. (for network probes), among others.
Ericsson says it will continue to offer third-party solutions through TeleOSS once the acquisition is complete. "Multi-vendor capabilities is part of the Ericsson global CSI [consulting and systems integration] strategy and a substantial part of current competencies on global and regional levels. We have no intentions to change the multi-vendor strategy," the vendor noted in an email response to questions.
Ericsson did not share any financial details concerning the proposed deal, which is expected to close before the end of September. It also declined to comment on TeleOSS's revenues, but claims the Asian firm is profitable. About 50 staff will join Ericsson upon completion.
The vendor giant, which has acquired a number of systems integrators as well as OSS vendors Telcordia and Conceptwave during the past few years to add to its telecom software-related professional services capabilities, is keen to position itself as a global leader in the telco back office. Ericsson says this latest acquisition will "strengthen its systems integration capabilities for OSS in South East Asia and Oceania." (See Ericsson Buys More OSS Smarts, Say Goodbye to Telcordia, Ericsson Buys Mobile SPIT Specialist and Ericsson Buys North American Integrator.)
Why this matters
For the major telecom vendors, having a killer network infrastructure portfolio is no longer enough for long-term survival -- they also need significant professional services capabilities and a broad SPIT offering (OSS, BSS, service brokers, cloud service platforms, policy management and enforcement and so on). (See The SPIT Manifesto 2.0.)
And as CSPs adapt to a world that will be dominated by 4G, cloud services, OTT applications and a more virtualized networking world, so they'll need to introduce new back office operations and business support systems. That's a transformation process that's going to come with a lot of pain and generate a lot of lucrative business for the large, integrated suppliers that have the relevant networks, IT and services portfolio.
Ericsson identified this some years ago and has been building its SPIT systems and related professional services portfolio with a number of strategic acquisitions across all major territories. It wants to be the number one SPIT company, even if it wouldn't likely use that exact terminology… (See Euronews: Ericsson Boasts IT Services Progress and Ericsson recognized as the worldwide leader in telecom operations management.)
TeleOSS might be a small, regional addition to the Ericsson machine but it's another important sign that the Swedish vendor knows where the future action is going to be.
Sigma Systems Snaps Up Tribold
Ericsson Completes Devoteam Acquisition
Ericsson Still Under Margin Pressure
JDSU Buys Mobile OSS Vendor for $85M
— Ray Le Maistre, Editor-in-Chief, Light Reading
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