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Van+ June July 2015 Aw Layout 1 June / July 2015 Volume 17 Issue 3 ISSN 1745-1736 ■ ANALYST REPORT Stratecast | Frost & Sullivan says BILL & the siloed billing era is ending ■ TALKING HEADS Joe Hogan warns that CSPs can’t save their way to greatness ■ REAL-TIME CHARGING CHARGE Why the BSS happy hour can Are CSPs ready for an on-demand, real-time world? last a little longer PLUS: Comverse buys Acision for digital services expertise ■ Ericsson adds CENX service orchestration product to managed services offering ■ European CSPs could realise €39 billion by re-imagining the network, says Arthur D. Little ■ NetCracker 10 launched to help redefine network economics ■ Gabon Telecom modernises wholesale billing with CSG International ■ Redknee wins EcoMobile SaaS converged billing deal ■ Sigma Systems takes new venture capital investor ■ Read the latest news, opinion, blogs and features now at www.vanillaplus.com THE GLOBAL VOICE FOR B/OSS Make it Personal! Empower your customers to personalize their experience while ƐƟŶŐLJŽƵƌƌĞǀĞŶƵĞƐǁŝƚŚƚŚĞsĞƌŝƐΡ^^ƐƵŝƚĞĨƌŽŵƐŝĂ/ŶĨŽ͘ from www.asiainfo.com CONTENTS IN THIS ISSUE 4 EDITOR’S COLUMN George Malim wonders if going large just means CSPs will get bloated with more of the same problems Joe Hogan warns that 5 MARKET NEWS Are CSPs ready for an CSPs can’t save their way Comverse to acquire Acision, Openet and NTT-AT collaborate on on-demand, real-time to greatness production-ready BSS using NFV world? 6 INDUSTRY NEWS Ericsson adds CENX service orchestration to managed services offering, Sigma Systems takes new private equity investment 13 17 7 PRODUCT NEWS Ericsson launches Adaptive Inventory 9.3, NetCracker 10 targets redefinition of network economics 32 9 CONTRACT NEWS REAL-TIME Gabon Telecom modernises wholesale billing with CSG International, LG CHARGING Uplus chooses Syniverse for LTE roaming 10 HOT LIST The latest vendor deals listed 11 PEOPLE NEWS Who’s on the move 13 WHAT’S ON VANILLAPLUS.COM The pick of this month’s online content plus new VanillaPlus Editorial 37 Advisory Board announcements DIGITAL SERVICES 15 VANILLAPLUS BILL & CHARGE INSIGHT Our VanillaPlus Bill & Charge Insight report contains 24 pages exploring how the twin disciplines of billing and charging are breaking out of their traditional siloed approaches to enable greater flexibility. The Insight contains a VanillaPlus-commissioned report from analyst firm Stratecast | Frost & Sullivan and includes features and interviews to help you gain a greater understanding of the challenges facing billing and charging as telecoms moves to an on-demand, real-time world 41 THE ROAD TO TELCO CLOUD SUPPLEMENT 39 Ten pages covering the likely journeys CSPs will make as they migrate to EXPERT OPINION telco cloud architectures start here 42 INTERVIEW Charlie Thomas, the chief executive of Razorsight, says CSPs’ opportunity to participate in the cloud era will vanish if they fail to make use of their data 45 TELCO CLOUD Nick Booth sees the cloud as a means to liberate telecoms from long-term planned IT 48 EXPERT OPINION Pablo Martinez goes in search of dynamic value constellations 50 VIRTUALISATION George Malim explores how virtualisation is a step on the road to telco cloud 52 DIARY CLOCKING OFF! Where to go and who to see 53 CLOCKING OFF! 53 Nick Booth reckons the cloud could make us all less pretentious VANILLAPLUS MAGAZINE I JUNE / JULY 2015 3 COMMENT Going large for more of the same could lead to a bloated, lethargic telecoms industry Several times in the last month I’ve heard industry insiders emphasise the need for telecoms-related companies to gain scale. The comments come both from the vendor side and from the communications service providers (CSPs) and, while each faces different pressures, there are similarities n the CSP side it’s clear that scaling make moves to accomplish a complete portfolio – appealing to a smaller CSP up is being seen as the way to as witnessed by cable companies buying mobile as a large one, there’s just generate cost savings through operators and vice-versa and CSPs such as an order of magnitude to increased purchasing power and British Telecom buying sports broadcasting rights consider. developing products and services for as well as a mobile operator. However, the market a larger market. Ultimately, that will consolidation moves seem to make less sense. The vendor sector in the O O/BSS market is also give CSPs even bigger big data that they’re still If you’re AT&T and bemoaning dwindling margins working out how to monetise. However, as – at in your core business, how does investing heavily chasing scale. The last year best – an amateur economist, I struggle with the in the same sort of assets in Mexico represent an has seen smaller BSS companies Volubill and George Malim, concept of how investing in more of the same optimum use of capital? Isn’t that just investing in editor, VanillaPlus results in a better position. more of the same in a margin-constrained Orga Systems acquired business that faces substantial challenges? from distressed positions Admittedly, there is value in becoming a complete by CSG International and Redknee respectively service provider encompassing mobile, fixed and Scale for the sake of scale simply doesn’t work – (the full story of the Orga Systems acquisition by entertainment and we’re seeing a raft of CSPs there needs to be a reason beyond the notion of Redknee is live at www.vanillaplus.com now). potential cost saving That suggests smaller vendors have less of a role synergies. I don’t to play as their customers focus on becoming believe a massive CSP bigger and want to deal with companies that have group will be able to the scale to cope with their large and tangled achieve those across operating units – and can handle their demands 30 different operating for financing, managed services and cost companies and reductions. numerous campaigns, services and My fear is that in this march towards supersized propositions. CSPs and vendors, some things will be lost. Agility, innovation and non-standard approaches Maybe virtualisation to unusual problems seem to be most under and telco cloud threat from investment in more of the same. present opportunities to reset the cost base Enjoy the magazine! of CSPs, but the benefits seem as George Malim EDITORIAL ADVISORS Louis Hall, chief executive, David Heaps, senior vice Martin Morgan, vice Simon Muderack, senior vice Justin Paul, head of OSS Chris Yeadon, director of Dr Reinhard Zuba, CMO, Cerillion Technologies president, Strategy, CSG president of Marketing, president for Marketing and Marketing, Amdocs Product Marketing, Ericsson Vipnet (Telekom Austria) International Openet Alliances, Sigma Systems EDITOR DIGITAL SERVICES DIRECTOR DIRECTOR OF STRATEGIC PUBLISHED BY George Malim Nathalie Bisnar PLANNING WeKnow Media Ltd. Tel: +44 (0) 1225 319 566 Tel: +44 (0) 1732 808690 Charlie Bisnar Suite 138, 70 Churchill Square, [email protected] Tel: +44 (0) 1732 807411 Kings Hill, West Malling, [email protected] [email protected] Kent ME19 4YU, UK BUSINESS DEVELOPMENT Tel: +44 (0) 1732 807411 EDITORIAL DIRECTOR DIRECTOR DESIGN & PUBLISHER Cherisse Jameson Jason Appleby DISTRIBUTION Jeremy Cowan Tel: +44 (0) 1732 807410 Ark Design Consultancy Ltd UK Postings Ltd Tel: +44 (0) 1420 588638 [email protected] Tel: +44 (0) 1787 881623 Tel: +44 (0) 8456 444137 [email protected] © Prestige Media Ltd 2015 VanillaPlus is distributed free to selected named individuals worldwide who meet the Publisher's terms of Circulation Control. If All rights reserved. No part of this publication you would like to apply for a regular free copy supplied at the Publisher's discretion visit www.vanillaplus.com If you do not qualify may be copied, stored, published or in any for a free subscription, paid subscriptions can be obtained. Subscriptions for 6 issues cost £99.00 worldwide (or US$150 / EUR125) way reproduced without the prior written including post and packing. VanillaPlus magazine is published 6 times per year. consent of the Publisher 4 VANILLAPLUS MAGAZINE I JUNE / JULY 2015 MARKET NEWS Comverse to acquire Acision to strengthen digital services capability Comverse has agreed to acquire Acision, a providers (CSPs) transition to digital service quickly building scale and market privately-held provider of secure mobile providers (DSPs) and gain competitive leadership in the fast-growing digital messaging and engagement services, advantage through a portfolio of solutions services sector. This acquisition creates a based in Reading, United Kingdom. The that help them monetise the coming fourth formidable platform for innovation that is move follows the sale of Comverse’s BSS wave of digital services. The combined expected to serve our customers’ current assets to Amdocs earlier this year for company’s expanded portfolio will extend and evolving needs. Acision brings a US$272m. into new digital application areas including diverse portfolio of mobile monetisation data analytics, secure enterprise and rich enterprise messaging solutions Comverse will acquire Acision for a application-to-person (A2P) messaging, complementing Comverse’s digital services purchase price consisting of approximately credit orchestration, two-factor platform. The combined portfolio will allow US$135 million in cash, 3.13 million shares authentication, and machine-to-machine us to enable our service provider and of Comverse’s common stock, and (M2M) communication sas well as Rich enterprise customers to deliver and potential earnout payments of up to US$35 Communication Services (RCS), WebRTC monetise
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