After the dust settled… Amdocs and Oracle’s aggressive, grow-through-acquisition strategy collectively cost over $18 billion dollars and removed 10 key innovators from the OSS/BSS marketplace

On one hand, you have mega-companies who have a broad functional OSS/BSS product footprint with a strong telecom focus – but making a deal with them is a little like making a deal with the devil: it might feel good at the time, but you will probably regret it later. There’s nothing wrong with their products. In fact, their solutions are best-of-suite products that have been tailor-made for CSPs. Companies like Huawei not only try to encompass OSS/BSS solutions, but hardware too. Entrusting so many fundamental pieces of the OSS/BSS architecture and CSP operations to a single solution provider (and their roadmap) can cause a cold-sweat to form on the back of even the most battle-worn CSPs.

On the other hand, you have a group of CRM applications that are primarily frameworks. Again, rugged, top-tier solutions that are world-class, and carrier-grade products, but the degree of customization required, the implementation costs, implementation process, timeframe, and total cost of ownership (TCO) are daunting to say the least. Often analogized as the Rolls Royce of OSS/BSS solutions, these tend to come with an equitable price tag.

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Both the mega-company providers and mega-framework providers require a significant IT transformation project for CSPs to optimize the return on their investment (ROI) for their solutions. And, while both types of companies embrace interoperability standards, it seems to be so that acquired products can be easily integrated with their portfolio of products; or at least that’s where the ROI is optimized.

Fig. 1 - OSS/BSS Acquisition History
Company Functionality Year Amount
Clarify Customer Relationship Management 2001 $200,000,000
Longshine Customer Care and Billing 2005 $30,000,000
Cramer OSS 2006 $365,000,000
SigValue Billing, Customer Care, Service Control 2007 $54,000,000
BridgeWater Policy and Subscriber Management 2011 $255,000,000
Siebel CRM 2005 $5,800,000,000
Metasolv OSS 2006 $219,000,000
PeopleSoft CRM 2004 $10,000,000,000
Portal Billing and Revenue Management 2006 $220,000,000
Netsure Network Planning and Optimization 2007 UNDSCL
    Total $18,047,000,000

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