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

Companies in Report
 
3 Italia
Accenture
AEC
Aircel
Amdocs
Anaeko
Andrew Corporation
AT&T Wireless
Avea
Azercell
BEA Systems
Bell Canada
BH Telecom
Bharti Airtel
BITE Group
BlackBerry Partners Fund
Bridge Mobile AllianceBT
Casema
Celcom MalaysiaCOLTContec Innovations
Cricket
Datatronics
Eircom
E-Plus
Ericsson
ESRI
ETRI
ExodusFiorano
France Telecom/Orange
Geocell
Homisco
Inteltek
InterCall
Italtel
jNetX
KKTCELL
Korea Telecom
KPN
life:)
Madacom
Magticom
Meteor
Microsoft
MobileOne
mobilkom Austria
Mobiltel Bulgaria
Mobinil
Moldcell
MTN
Nawras
Nayana Communications
NetCracker
Nokia
Nokia Siemens Network
Nortel
O2 UK
Orascom
Providence Equity Partners
Qualcomm
Qwest Communications
SaskTel
SBC
SFR
SingTel
Software AG
Sprint
SUN Microsystems
Swisscom MobileTelcel
Telcordia Technologies
Telecom Italia
TeleDNA
Telefonica Moviles
Telefonica Moviles Espana
Telenity
Teligent
TeliaSonera
Telstra
TelstraClear
TELUS
Tibco
Time Warner
TMN Portugal
TSTT
Turk Telekom
Turk.Net
Turkcell
UTStarcom (Telos)
Vantrix.
Verizon
VimpelCom
Vitria
Vodafone
Vodafone Hutchison Australia
Vodafone Netherlands
Warburg Pincus
Wataniya Telecom
webMethods
w-Ha
Wireless Matrix
Xiam
Yahoo
ZTE

Table of Contents
 
1 Executive Summary  5

2 Introduction to SOA and SDP 7
2.1 IMS: Definition and Evolution 7
2.2 Business and Technology Drivers for IMS 9
2.2.1 Value-Added Services  9
2.2.2 Transparency in Access 9
2.2.3 Scalability 9
2.3 Business and Technology Challenges for IMS 10
2.3.1 Supporting Legacy Framework  10
2.3.2 Unmet Expectations 11
2.4 SDP and its Appeal 11
2.4.1 Definition 12
2.4.2 Evolution  13
2.4.3 Benefits of SDP 14
2.5 SOA 16
2.5.1 Definition 16
2.5.2 Evolution  17
2.6 Conclusion 18

3 Value Propositions of SDP and SOA 19
3.1 Functional Modules of OSS/BSS  19
3.1.1 OSS  19
3.1.2 BSS 20
3.2 Middleware - The Glue that Binds the SDP with Enterprise Applications  21
3.3 The Structure of SDP 22
3.3.1 SDP Architecture 22
3.3.2 Java and JAVA EE - The SDP Fabric  23
3.3.3 OMA Service Environment (OSE) - The Quest for the Elusive SDP Standardization  24
3.4 SOA - Enabler for SDP  25
3.4.1 SOA Drivers  25
3.4.2 SOA Workflow and Concepts 27
3.4.3 SOA Implementation Methodologies 33
3.4.4 SOA implementation methodology - the HP way 34
3.5 SOA in Telco Environments 42
3.6 Challenges Confronting SOA 43
3.7 Piecing together SDP 46
3.7.1 The SOA-SDP Interplay 46
3.7.2 SDP Case Studies  46
3.7.3 SDP as a Progression to IMS  50
3.7.4 Challenges Confronting SDP  50
3.8 Conclusions  51

4 Vendor Analysis 54
4.1 Telecom Network Infrastructure Vendors 54
4.1.1 Key Players and their Strategies  55
4.2 Software SOA Specialists 56
4.2.1 Key Players and their Strategies  56
4.3 SDP Focused Start-ups and and Telecom Software Specialists 58
4.3.1 Key Players and their Strategies  58
4.4 Summary of Key Facts of Selected Vendors 60
4.4.1 Accenture  60
4.4.2 AePona  62
4.4.3 Amdocs  64
4.4.4 Anaeko  65
4.4.5 Ericsson  66
4.4.6 Fiorano 67
4.4.7 Hewlett Packard 69
4.4.8 Huawei 69
4.4.9 IBM  70
4.4.10 NetCracker 72
4.4.11 Nokia Siemens Networks (NSN)  72
4.4.12 Oracle  74
4.4.13 Software AG 74
4.4.14 Telcordia 75
4.4.15 TeleDNA 76
4.4.16 Telenity  77
4.4.17 Teligent Telecom  79
4.4.18 Tibco 79
4.4.19 Vitria 80
4.4.20 ZTE 81
4.5 Conclusions  82

5 Numerical Analysis and Forecasts  83
5.1 Methodology 83
5.2 Markets for SDP Solutions  83
5.3 Functional Break-up of SDP Solutions Revenue 84
5.4 Mediawise Break-up of SDP Solutions Revenue 85
5.5 Geographical Break-up of Mediawise SDP Solutions Revenues  86
5.6 Vendor Share Break-up of SDP Solutions Revenues 89
5.7 Conclusions  90
 
List of Figures
 
Figure 2 1: IMS Components 7
Figure 2 2: The Position of SDP in Telco Environment 12
Figure 2 3: The network simplification achieved by SDP 14
Figure 3 1: SDP Block Diagram 22
Figure 3 2: OSE Schematic  24
Figure 3 3: Web service protocol stack 29
Figure 3 4: IBM SOA foundation 33
Figure 3 5: SOA maturity - Top Level 37
Figure 3 6: Computation of Assertion Score 38
Figure 3 7: Enterprise Target Maturity Profile 39
Figure 3 8: HP SOA Agility Assessment Analysis  39
Figure 3 9: HP SOA Maturity Model After Consolidation 41
Figure 3 10: SOA in Telco Environment 43
Figure 3 11: Oracle SDP 47
Figure 3 12: SDP Scope  52
Figure 4 1: Position of SDP in the Telco Infrastructure 61
Figure 4 2: AePona Universal Service Platform suite 62
Figure 4 3: AePona Universal Service Platform components 64
Figure 4 4: Fiorano SOA 68
Figure 4 5: IBM SPDE 70
Figure 4 8: NSN Service Core and Applications 73
Figure 4 9: Schematic of TeleDNA's SDP 76
Figure 4 10: Canvas CSP 78
Figure 5 1: SDP Solution Revenues  83
Figure 5 2: Functional (Services vs Software) Break-up of SDP Solution Revenues 84
Figure 5 4: Mediawise (Wireless vs Fixed Line) Break-up of SDP Solutions Revenues 85
Figure 5 6: Geography wise Distribution of Fixed Line SDP Solutions Revenues 86
Figure 5 8: Geographical Distribution of Wireless SDP Solution Revenues 87
Figure 5 10: Geographical Distribution of SDP Solution Revenues 88
Figure 5 6: SDP Solutions Revenues by Vendor  89