infoTECH Feature

December 19, 2008

Report: Delivery Platform Market Growth Driven by Oracle and Alcatel-Lucent

Infonetics Research recently revealed that the worldwide service delivery platform (SDP) software and integration services market is predicted to hit $3.5 billion in 2011.
 
In 2007, the market experienced a 53 percent increase, while for 2008, it is expected to increase by 28 percent.
 
Infonetics' report, “Service Delivery Platform Software and Integration Services,” is further evidence that mobile and fixed line service providers are increasingly deploying SDPs or collaborating with integrators to simplify how they create and deliver new services.
 
According to the report, beyond shifting existing OSS and BSS systems into Web services environments using XML, Java, and BPEL, service delivery platforms are being deployed to help integrate third-party services. This is especially apparent on the mobile side.
 
These third-party services that are gaining momentum in the market include ringtones, SMS and MMS services, location-based services (GPS), mobile advertising, mobile TV services, rating and charging users based on applications or subscriber parameters, and social networking services from MySpace, Facebook (News - Alert), Bebo, Ning, and others.
 
"Operators we've spoken with believe service delivery platforms are critical elements to top-line revenue growth, especially among mobile subscribers. SDPs decrease time-to-market and drive revenue by tying new service creation and delivery to existing operational software and business processes. Because of tough economic conditions around the world, though, some operators will cut new software enhancements and have systems integrators expand on the modules they have already purchased. For these reasons, we slightly lowered our SDP forecasts," stated Jeff Heynen, directing analyst at Infonetics Research and lead analyst on the report.
 
"Telecom networks are becoming more open and accessible, and we expect many more services and applications to become available from both inside and outside of the operator domain. More services will drive additional value that should be good for the consumer and operator alike -- and the telecom SDP is a foundational technology for this evolution in services," added Dan Geiger, Infonetics' new directing analyst for next gen OSS and policy.
 
Some of the other important factors outlined in the report include:
 
-- APAC and EMEA mobile operators have propelled SDP market growth with more impressive investment and earlier adoption than other countries.
 
-- With its 2008 acquisition of BEA Systems (News - Alert), Oracle increased its lead in the worldwide SDP software market, although an interesting battle for market leadership is predicted in coming years as traditional network equipment providers increasingly pursue SDP market share dominance.
 
-- Alcatel-Lucent leads the worldwide SDP integration services market
 
The Infonetics report tracks Accenture (News - Alert), Aepona, Alcatel-Lucent, Argela, BEA Systems, Ericsson, Hewlett-Packard, Huawei, IBM, jNetX, Kabira, Microsoft, Motorola, Nokia Siemens, Oracle, Redknee, Telcordia (News - Alert), Telenity, ZTE, and others.
 
It also looks at market size, vendor market share, 2007 to 2011 forecasts, market drivers, and analysis for SDP software, SDP integration services, and the combined SDP software and integration services market, split by fixed-line vs. mobile. The regions assessed include North America, EMEA (Europe, the Middle East, and Africa), Asia Pacific, and CALA (Central and Latin America).
 
Infonetics Research (News - Alert) is an international market research and consulting firm serving the communications industry since 1990. An innovator in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

Michelle Robart is a contributing editor for TMCnet. To read more of Michelle's articles, please visit her columnist page.

Edited by Michelle Robart
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