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SDP – The SOA-enabled Path to Integrate Legacy and IMS Networks: Market Analysis & Forecasts 2012 - 2016

Service Delivery Platform (SDP) can be loosely defined as a standards based framework that facilitates the design, development, implementation and management of services required to run the operations of network services providers. The services could range from the basic voice connectivity to the state-of-the-art rich multimedia services. The most critical value-addition offered by the SDP methodology lies in its ability to abstract controlling parameters such as location, media control, integration and others. SDP interface with the network elements, OSS/BSS, telco IT infrastructure and partners such as application developers and content providers. Projected to grow at a CAGR of 19 % over the next five years, the SDP industry is set for healthy growth. Mind Commerce estimates SDP revenues will reach USD 7.6 at the end of 2016.

With research starting in 2006, this report evaluates the potential for SDP as a dependable, scalable and flexible platform for core business functions, next generation applications, and independent services. SDP is examined within the context of its relationship to the Service Oriented Architecture (SOA) and the objectives to respond more rapidly to shifts in market conditions, customer demands, new revenue opportunities, and competitive threats.

The report and its associated XLS database include revenue forecasts by geography, function, vendor and media type from 2006 through 2016. Along with updated forecast, company analysis, SDP vendor and operator case studies, and SOA maturity model.

Key Findings:

  • The downturn and the subsequent recovery have augured well for SDP prospects. Operators are now able to more clearly able to visualize the importance of quick roll out and thus early monetization of their investments and the handiness of SDP in achieving that objective. However the technology will face increasing challenges to its relevance in the latter half of the duration 2012-2016.
  • Although, there are contrasting opinions about the value of SDP in the context of IMS, the overwhelming view is that at the very least, SDP does provide a framework for smooth transition from legacy to IMS.
  • In the context of the pressures faced by telcos in the 2008-2009 aftermath, the relevance of SDP is amplified as SDP promises quick monetization.
  • SOA and SDP have gained significant traction in the overall IT and telco environments respectively. SOA and SDP share considerable synergy as the architectural framework of SOA can help in achieving the end-result desired by SDP.
  • APAC and CALA constitute the most promising markets for the SOA and SDP solutions respectively. The promise is directly attributable to the gap between the existing level of technology sophistication and the potential optimal level of technology sophistication. APAC region has demonstrated that it does constitute the largest market for telecommunications while the CALA region is the least tapped among all regions.
SDPs find greater appeal among wireless telcos because of the following reasons:
  • Wireless technology has already overtaken Fixed Line technology in terms of subscriber numbers
  • The relationship between the telcos and the subscribers is closer in the wireless domain wherein the telco has a decisive say in the character and extent of services deployed.
  • SI is an important component of the SDP solution. SOA specialists as well as Network infrastructure specialists maintain expertise in implementation methodologies and often tout this expertise as the differentiator with respect to competition. The importance of this component is reflected in its increased market share. The SI component feeds on the non-uniformity of SDP solutions.
  • From a vendor perspective Huawei is presently leading that market with a market share of 18 %, followed by Ericsson at a close 17 %.
Target Audience:
  • Wireless and fixed line telcos will gain insights into the value provided by SDPs and how its implications to their business
  • Telecom network infrastructure vendors will assess the importance of establishing or maintaining their presence among SDP stakeholders
  • SOA specialists will get an idea of the drivers and challenges for the SOA paradigm in the telecom domain in addition to accessing the market size and distribution for SDPs
  • SDP specialists can map the size of their target market and the importance of services and product components in their portfolios
  • System integrators will be able to ascertain the value of the installation and upgrade market size for SDP solutions

General Methodology

Mind Commerce Publishing's research methodology encompasses input from a wide variety of sources.

We rely heavily upon our Subject Matter Experts (SME) in terms of their market knowledge, unique perspective, and vision. We utilize SME industry contacts as well as previous customers and participants in our market surveys and interactive interviews.

In addition, we rely upon our extensive internal database, which contains modeling, qualitative analysis, and quantitative data. We review secondary sources and compare to our primary sources to update previous findings (for prior version reports) and/or compile baseline information for technology and market modeling.

We share preliminary models with industry contacts (select previous clients, experts, and thought leaders) to verify the veracity of initial modeling. Prior to final report production (analysis, findings, and conclusions), we engage in an internal review with internal SMEs as well as cross-expertise, senior staff members to challenge results.

We believe that forecasts should be prepared as part of an integrated process which involves both quantitative as well as qualitative factors. We follow the following 3-step process for forecasting.

Forecasting Methodology

Step 1 - Forecasts Input: The inputs for the present and historical revenues are derived from industry players. Financial and other quantitative data for individual sub-market categories are derived from original research and tested with interviews with major industry constituents.

Step 2 - Forecasting of Future Years: Mind Commerce extends forecasts based on a variety of factors including demand drivers as well as supply side data. Key success factors and assumptions are considered.

Step 3 - Validation of Data: The final step is to validate projections, which is accomplished in consultation with both internal and external industry experts, including both topic and regional experts. Adjustments are made to the forecasts based on factors identified throughout this process.

Companies in Report
3 Italia
Andrew Corporation
AT&T Wireless
BEA Systems
Bell Canada
BH Telecom
Bharti Airtel
BITE Group
BlackBerry Partners Fund
Bridge Mobile AllianceBT
Celcom MalaysiaCOLTContec Innovations
France Telecom/Orange
Korea Telecom
mobilkom Austria
Mobiltel Bulgaria
Nayana Communications
Nokia Siemens Network
Providence Equity Partners
Qwest Communications
Software AG
SUN Microsystems
Swisscom MobileTelcel
Telcordia Technologies
Telecom Italia
Telefonica Moviles
Telefonica Moviles Espana
Time Warner
TMN Portugal
Turk Telekom
UTStarcom (Telos)
Vodafone Hutchison Australia
Vodafone Netherlands
Warburg Pincus
Wataniya Telecom
Wireless Matrix

1 Executive Summary
2 Introduction to SOA and SDP
2.1 IMS: Definition and Evolution
2.2 Business and Technology Drivers for IMS
2.2.1 Value-Added Services
2.2.2 Transparency in Access
2.2.3 Scalability
2.3 Business and Technology Challenges for IMS
2.3.1 Supporting Legacy Framework
2.3.2 Unmet Expectations
2.4 SDP and its Appeal
2.4.1 Definition
2.4.2 Evolution
2.4.3 Benefits of SDP
2.5 SOA
2.5.1 Definition
2.5.2 Evolution
2.6 Conclusion
3 Value Propositions of SDP and SOA
3.1 Functional Modules of OSS/BSS
3.1.1 OSS
3.1.2 BSS
3.2 Middleware – The Glue that Binds the SDP with Enterprise Applications
3.3 The Structure of SDP
3.3.1 SDP Architecture
3.3.2 Java and JAVA EE – The SDP Fabric
3.3.3 OMA Service Environment (OSE) – The Quest for the Elusive SDP Standardization
3.4 SOA – Enabler for SDP
3.4.1 SOA Drivers
3.4.2 SOA Workflow and Concepts
3.4.3 SOA Implementation Methodologies
3.4.4 SOA implementation methodology – the HP way
3.5 SOA in Telco Environments
3.6 Challenges Confronting SOA
3.7 Piecing together SDP
3.7.1 The SOA-SDP Interplay
3.7.2 SDP Case Studies
3.7.3 SDP as a Progression to IMS
3.7.4 Challenges Confronting SDP
3.8 Conclusions
4 Vendor Analysis
4.1 Telecom Network Infrastructure Vendors
4.1.1 Key Players and their Strategies
4.2 Software SOA Specialists
4.2.1 Key Players and their Strategies
4.3 SDP Focused Start-ups and and Telecom Software Specialists
4.3.1 Key Players and their Strategies
4.4 Summary of Key Facts of Selected Vendors
4.4.1 Accenture
4.4.2 AePona
4.4.3 Amdocs
4.4.4 Anaeko
4.4.5 Ericsson
4.4.6 Fiorano
4.4.7 Hewlett Packard
4.4.8 Huawei
4.4.9 IBM
4.4.10 NetCracker
4.4.11 Nokia Siemens Networks (NSN)
4.4.12 Oracle
4.4.13 Software AG
4.4.14 Telcordia
4.4.15 TeleDNA
4.4.16 Telenity
4.4.17 Teligent Telecom
4.4.18 Tibco
4.4.19 Vitria
4.4.20 ZTE
4.5 Conclusions
5 Numerical Analysis and Forecasts
5.1 Methodology
5.2 Markets for SDP Solutions
5.3 Functional Break-up of SDP Solutions Revenue
5.4 Mediawise Break-up of SDP Solutions Revenue
5.5 Geographical Break-up of Mediawise SDP Solutions Revenues
5.6 Vendor Share Break-up of SDP Solutions Revenues
5.7 Conclusions
List of Figures
Figure ‎2 1: IMS Components
Figure ‎2 2: The Position of SDP in Telco Environment
Figure ‎2 3: The network simplification achieved by SDP
Figure ‎3 1: SDP Block Diagram
Figure ‎3 2: OSE Schematic
Figure ‎3 3: Web service protocol stack
Figure ‎3 4: IBM SOA foundation
Figure ‎3 5: SOA maturity – Top Level
Figure ‎3 6: Computation of Assertion Score
Figure ‎3 7: Enterprise Target Maturity Profile
Figure ‎3 8: HP SOA Agility Assessment Analysis
Figure ‎3 9: HP SOA Maturity Model After Consolidation
Figure ‎3 10: SOA in Telco Environment
Figure ‎3 11: Oracle SDP
Figure ‎3 12: SDP Scope
Figure ‎4 1: Position of SDP in the Telco Infrastructure
Figure ‎4 2: AePona Universal Service Platform suite
Figure ‎4 3: AePona Universal Service Platform components
Figure ‎4 4: Fiorano SOA
Figure ‎4 5: IBM SPDE
Figure ‎4 8: NSN Service Core and Applications
Figure ‎4 9: Schematic of TeleDNA’s SDP
Figure ‎4 10: Canvas CSP
Figure ‎5 1: SDP Solution Revenues
Figure ‎5 2: Functional (Services vs Software) Break-up of SDP Solution Revenues
Figure ‎5 4: Mediawise (Wireless vs Fixed Line) Break-up of SDP Solutions Revenues
Figure ‎5 6: Geography wise Distribution of Fixed Line SDP Solutions Revenues
Figure ‎5 8: Geographical Distribution of Wireless SDP Solution Revenues
Figure ‎5 10: Geographical Distribution of SDP Solution Revenues
Figure ‎5 6: SDP Solutions Revenues by Vendor

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