Global Telecom Software Market Analysis

Subscriber Data Management
Outlook
June 2009

By Peter Mottishaw

Table of Contents
Contents
Executive Summary...............................................................................6 Figure 1: 2008-2013 Global subscriber data management spending forecast. ..................................................................................................6 Deployment Scenarios...........................................................................7 Market Share..........................................................................................9 Figure 2: Subscriber data management market share........................... 9 Alcatel-Lucent. ........................................................................................9 Bridgewater Systems...........................................................................10 Ericsson. ...............................................................................................10 OSS Observer LLC PO Box 1319 Sugar Grove, IL 60554-1319 Phone: +1.630.466.9223 Fax: +1.630.566.3863 E-mail: info@ossobserver.com Website: www.ossobserver.com OSS Observer is part of Analysys Mason Ltd www.analysysmason.com research@analysysmason.com Analysys Mason Ltd is registered in England and Wales. Registration No. 5177472 HP. ........................................................................................................ 11 Huawei................................................................................................. 11 NSN...................................................................................................... 11 Forecast ..............................................................................................13 Figure 3: 2008-2013 Global subscriber data management forecast.... 13 Figure 4: 2008-2013 Breakout of legacy and next generation subscriber data management forecast. ..................................................................14 Forecast by Region..............................................................................15 Figure 5: 2008-2013 Global subscriber data management forecast by region...................................................................................................15
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Subscriber Data Management Outlook
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Market Drivers......................................................................................17 Drivers..................................................................................................17 Inhibitors...............................................................................................17 High subscriber growth in emerging markets Operational cost saving drives HLR consolidation Operational cost saving drives broader database consolidation Competitive pressures drive subscriber profiling Flat rate data tariffs drive the need for subscriber policy management Partner access to subscriber data and enabling new business models IMS deployment Pricing pressure Trust and privacy issues Business Environment. .........................................................................21 Figure 6: Proliferation of subscriber data in CSP operational and network infrastructure .......................................................................................22 Market Definition..................................................................................23 Figure 7: SDM in Analysys Mason segmentation.................................23 SDM Definition.....................................................................................24 Figure 8: Subscriber data management functional components.......... 25 Definition of legacy SDM and next-generation SDM............................25 Deployment Scenarios.........................................................................26 Subscriber Data Management Outlook
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Scenario 1: Network database silos Figure 9: Scenario 1: Network database silos......................................27
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Scenario 2: Network database consolidation Figure 10: Scenario 2: Network database consolidation scenario....... 28 Scenario 3: Cross network consolidation Figure 11: Scenario 3: Cross network consolidation ........................... 29 Scenario 4: SDM platform Figure 12: Scenario 4: SDM platform ..................................................30 Vendor Summaries...............................................................................31 Alcatel-Lucent Amdocs Blueslice Bridgwater Systems Ericsson HP IBM Motorola Nokia Siemens Networks Nortel Oracle Sun Xeround ZTE Subscriber Data Management Outlook
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Suppliers..............................................................................................39

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.........................................39 Recommendations.....................................40 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 5 ........................................Table 1: Comparison of evolved IN and next generation telecom application server suppliers ...........................

200 $1.000 $800 $ millions $600 $400 $200 $NG SDM (CAGR 33%) Legacy SDM (CAGR -19%) CY2008 $268 $803 CY2009 $321 $749 CY2010 $399 $679 CY2011 $551 $597 CY2012 $810 $436 CY2013 $1. The vision of subscriber data management (SDM) is to provide a platform with open interfaces to real-time subscriber data and manages the location.096 $274 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd Source: Analysys Mason 6 . Figure 1: 2008-2013 Global subscriber data management spending forecast $1. service settings. The current reality for SDM solutions is that CSPs manage subscriber data in many silos to support different operational requirements. preferences and policies for each subscriber. Identity management systems manage customer access to web portals and web services. the customer or subscriber data is often unavailable because it exists in many different silos often with little support for open access. However. Network databases such as HLRs and AAA servers maintain subscriber profiles for authentication and service configuration to support real-time execution of services. In principle communications service providers (CSPs) have very detailed knowledge of how their customers use their services and they have platforms that can be adapted in realtime to customer needs.Executive Summary Executive summary A detailed understanding of customer behavior and the ability to respond in real-time to customer needs can dramatically increase the competitiveness of a business. Real-time charging systems manage subscriber account information in real-time to support pre-paid services. These are a few examples of how and why subscriber data is used in different silos. Customer care systems maintain records of customer interactions and service subscriptions to support customer service representatives and customer self-care.

AAA. We also include deployments of SDM to support both mobile and fixed services. but excludes hardware and general system integration and consulting services. This is an area of strategic importance to CSPs as they try to improve their ability to customize. This transition is captured in Figure 1. personalize and target new services based on subscriber characteristics.10 billion in 2013. Revenue estimates in this report include product software revenues (license. but with different degrees of success. Spending on next-generation subscriber data management platforms (NG SDM) will grow at a dramatic 33% CAGR from $268 million in 2008 to $1. EIR and MNP. This broadens the scope of SDM to exploit existing systems and support new requirements. Most HLR vendors are pursuing this opportunity. Another key trend is the adoption of IT and web concepts such as federation of subscriber data. The market definition section provides a detailed description of these scenarios. such as legacy HLRs. The market drivers section provides a more detailed view on the business drivers behind these scenarios. This is important because it decouples the network database application from the subscriber data management and can be extended to support the applications such as single sign-on for web portals or dynamic profiling of subscriber behavior. The modest growth rate reflects the transition that is occurring from high cost legacy network databases silos. dynamic profiling of behavior. HSS. One major trend contributing to this is the replacement of legacy HLR deployments with a distributed logical subscriber database that supports multiple front-end applications including HLR. to lower cost next-generation subscriber data management platforms (NG SDM). maintenance and product related services).07 billion in 2008 to $1. but mobile is the dominant area of deployment. Network database silos: traditional deployment model of stand7 . While spending on legacy SDM will decline from $803 million in 2008 to $274 million in 2013 at a CAGR of -19%.37 billion in 2013 at a CAGR of 5%. Deployment scenarios CSPs are deploying SDM in a number of different scenarios. In our new SDM coverage we will focus on platforms that are designed to manage subscriber data in real-time and near real-time independently from specific applications. The most important deployment scenarios are: Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 1. policy management and identity management.Executive Summary Analysys Mason forecasts that the overall subscriber data management market will grow from $1.

4. 2.Executive Summary alone network databases (often deployed as mated pairs for resilience). Network database consolidation: consolidate to a logical subscriber database supporting network database as a front end. Cross network consolidation: extension of scenario 2 to include different types of network databases and different access network types. SDM platform: extension of scenario 2 or scenario 3 to support a north bound access to subscriber data and support third party access to data. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 8 . 3.

The overall spend was $1. The top six suppliers account for 87% of the market. 4%. Alcatel-Lucent also offers its 8660 Data Grid Suite that supports the federation of data across multiple data sources. but is well advanced in transitioning customers to the new platform. HP 5% and Bridgwater. Alcatel-Lucent Alcatel-Lucent has brought together the HLR and network database businesses of Alcatel and Lucent and has a strong next-generation SDM offering. HSS.071 million Bridgewater 4% HP 5% Other 13% Ericsson 24% Nokia Siemens Networks 25% Huawei 14% Alcatel-Lucent 15% Source: Analysys Mason Full summaries of the SDM suppliers are provided in the Vendor summaries section towards the end of the report. Lucent had invested in next-generation SDM products early and these have formed the basis of Alcatel Lucent’s next-generation SDM offering the 8650 SDM. 9 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd . Huawei. AAA. Figure 2: Subscriber data management market share 2008 SDM Revenue = $1. Here we focus on the strength of the market leaders. Alcatel-Lucent continues to support the installed base of HLRs. 14%. LDAP databases and pre-paid platforms. It has tier-1 CSP deployments where Data Grid is being used to federate data across HLR. 15%. Nokia Siemens Networks (NSN) is the market leader with 25% market share followed by Ericsson. Alcatel-Lucent.Market Share Market share The market share for subscriber data management is shown in Figure 2. 24%. This is a highly concentrated market dominated by the big four network equipment manufacturers (NEMs).1 billion in 2008.

This took NSN significantly ahead of Ericsson in terms of its NG SDM offering. Ericsson’s HLR platform is built on Ericsson’s proprietary AXE platform and was originally introduced in the early 1990s.7 billion subscribers are supported on its HLR platform with 218 customers. This supports front ends for HLR. NSN took market leadership in 2008 with the acquisition of Apertio. but has been slow to address the NG SDM requirements of CSPs. It has built a strong installed base with CDMA CSPs in North America addressing the needs of mobile data services. Ericsson has been the long term leader in the SDM segment based on its leadership in HLR deployments. AUC and for mobile number portability. UMTS. Ericsson has been developing its NG SDM strategy and recently began offering a User Data Consolidation solution that supports centralization of subscriber data in a Centralized User Database (CUDB). Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 10 . In the WiMAX market it has 25 global customers including Sprint and its XOHM network. It has expanded beyond its original core market by addressing GSM.Market Share Alcatel-Lucent claims more than 200 SDM customers and supports more than 775 million subscribers on its SDM solutions. Ericsson offers a separate HSS node to support IMS and WCDMA requirements. Bridgewater Systems Bridgewater Systems is the leading subscriber data management specialist. Its success is based on a comprehensive SDM product offering. but it is behind Ericsson and NSN because of its smaller presence in the mobile infrastructure market. The solution does not yet have any significant installed base. with more than 70 million of these from Verizon Wireless. third party ecosystem enablement. It claims more than 150 million subscribers. This uses Ericsson’s TSP platform a Linux-based real-time blade server introduced in 2001. Bridgewater has grown consistently and is in good financial shape. HSPA. Bridgewater’s growth strategy is to expand beyond basic subscriber data management and address some of the new opportunities for mobile personalization. WiMAX and LTE requirements. Ericsson Ericsson is the market leader in providing mobile infrastructure to CSPs and it has the most widely deployed HLR platform. customer profiling and targeted advertising. It has invested in the Subscriber Data Broker product to enable this. It is strongest in Europe and Asia with less presence in North America. It claims that more than 1.

AAA. The Apertio 11 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd .Market Share HP HP’s HLR platform was one of the earliest to be offered on an IT platform rather than a specialized telecom platform. The HP Profile Manager supports centralization and federation strategies for subscriber data. HSS. Africa and Eastern Europe. HSS. Huawei has a strong subscriber data management installed base in China. It can be used as the primary centralized database for subscriber profile data. It launched this next generation SDM platform in early 2008 and 350 million of its subscribers are currently on this new platform. Overall HP now has more than 250 million subscribers on its SDM platform. Huawei was the fastest growing of the leading SDM suppliers and poses a major threat to the top three suppliers. AAA and other SDM functions as front ends. Siemens had been delivering HLR consolidation projects using the Apertio platform for a few years notably a large-scale project for T-Mobile in Europe. Huawei currently has 170 customers for its SDM products and is supporting 900 million subscribers globally. It also provides support for access from application platforms and four third-party services. Huawei Huawei has recently established itself as one of the top four suppliers of telecoms equipment globally and a credible competitor to Ericsson. supporting HLR. NSN and Alcatel-Lucent. onto a single logical database. It significantly enhanced its position in the SDM market with the acquisition of Apertio in early 2008. This provides essential credibility as Huawei competes for business in emerging and mature markets. EIR and MNP. It has proven that it can successfully deploy and support tier-1 CSPs such as China Mobile with installations supporting more than 100 million subscribers. NSN NSN has built its SDM market position from the HLR business of Siemens and Nokia. Huawei has invested in a next-generation subscriber data management platform that supports full consolidation of the network database applications. It has also won business in emerging markets with Reliance in India and Vivo in Brazil. HP has established HLR market leadership in North America and is deployed with both AT&T Wireless and Verizon Wireless. Asia-Pacific. It uses HP’s high availability Integrity NonStop platform. including HLR. It has been particularly successful in high-growth emerging and developing markets. HP has addressed the NG SDM requirements with its Profile Manager introduced in 2007.

NSN states that the legacy HLR products support more than 1. The main source of growth for the One-NDS business is the migration of this installed base to the new platform. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 12 . NSN has continued to grow the SDM business with particular success in transitioning its existing Nokia and Siemens HLR installed base to the new platform. Oracle and Sun. However. NSN has won new business outside this installed base. This led to overall leadership in the SDM market in 2008. Notably the success at Time Warner Cable as part of an overall IP multimedia subsystems (IMS) solution due to be deployed in 2009. Approximately one quarter of these subscribers has migrated to the One-NDS architecture. It has added 33 new customers since the acquisition of Apertio in January 2008. and other NEMs such as Motorola. Others include specialist SDM providers. IT companies such as IBM. NSN claims more than 845 million subscribers using its One-NDS product including five deployments supporting more than 40 million subscribers and one with more than 55 million subscribers.5 billion subscribers. Nortel and ZTE.Market Share acquisition has gone well and NSN has adopted the Apertio One-NDS platform as its next generation subscriber data management solution. Overall NSN has 66 customers for the One-NDS product line in 43 countries with 28 references.

37 billion in 2013 at a CAGR of 5% (see Figure 3). They are often implemented on COTS hardware platforms with a lower price per subscriber. The global economic recession will also reduce the level of SDM spending in 2009 and 2010 as CSPs take longer to evaluate projects and delay some SDM spending.071 Source: Analysys Mason Legacy network database platforms are deployed as separate silos.400 $1. An operator with 20 million subscribers may deploy 10 to 15 mated pairs each of which has to be provisioned and managed independently. Next-generation SDM platforms support a single logical subscriber database with multiple front-end applications such as HLR.200 $ Millions $1.000 $800 $600 $400 $200 $CY2008 CY2009 $1.07 billion in 2008 to $1. They have significantly lower operational 13 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd .245 CY2013 $1.Forecast Forecast Analysys Mason forecasts that the overall subscriber data management market will grow from $1. Figure 3: 2008-2013 Global subscriber data management forecast $1. The modest growth rate reflects the transition that is occurring from high cost legacy network databases platforms to lower cost NG SDM. EIR.370 SDM (CAGR 5%) $1.147 CY2012 $1. AAA and MNP. either singly or as mated pairs. Legacy SDM products are often supported on proprietary hardware and software platforms and have a higher price per subscriber then next generation SDM platforms.078 CY2011 $1.070 CY2010 $1.600 $1. The GSM HLR is the most common legacy network database and a single HLR mated pair will support a few million subscribers. to support a particular set of subscribers.

subscriber policy management. The decrease is driven by the termination of maintenance contracts as equipment that has reached end of life is replaced by NG SDM deployments. They can also support new applications such as subscriber profiling. third-party access and targeted advertising. Next generation subscriber data management will grow rapidly.Forecast costs than legacy platforms and greater flexibility and openness. The revenue from the legacy and the next generation product categories is broken out in Figure 4.200 $1. Figure 4: 2008-2013 Breakout of legacy and next generation subscriber data management forecast $1.096 $274 Source: Analysys Mason Legacy SDM spending is mainly on maintenance contracts to support existing infrastructure. with spending of $268 million in 2008 growing to $1.000 $800 $ millions $600 $400 $200 $NG SDM (CAGR 33%) Legacy SDM (CAGR -19%) CY2008 $268 $803 CY2009 $321 $749 CY2010 $399 $679 CY2011 $551 $597 CY2012 $810 $436 CY2013 $1. This spending will decrease rapidly from $803 million in 2008 to $274 million in 2013 at a CAGR of -19%. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 14 . This extremely rapid growth is mainly driven by the replacement of legacy platforms. See the market drivers section for a more detailed analysis of growth drivers. but towards the end of the forecast spending on next-generation SDM solutions to support new applications will become a significant growth driver. A more detailed description is provided in the market definition section along with some deployment scenarios.10 billion in 2013 at a CAGR of 33%. personalization. identity management.

Europe (NA). In the later years of the forecast growth will be driven by opportunities to expand the use of subscriber data in support of new applications and third-party access . EIR and other network databases. AAA. In Eastern Europe. They will invest further in next generation SDM to consolidate databases and reduce operational costs. Central and Latin America (CALA) and Asia Pacific (APAC).Forecast Forecast by region Figure 5 shows the SDM forecast in each of the four major regions. Middle East and Africa investment in SDM is driven more by subscriber growth and there will be rapid growth in spending on next-generation SDM solutions to address scalability and performance requirements. The mature markets of Western Europe are pursuing similar strategies to North America with limited subscriber growth opportunity. CSPs will continue to invest in next generation SDM solutions to consolidate HLR.. They will also start to spend on new ways to exploit subscriber data. Spending on SDM in EMEA will grow from $419 million in 2008 to $506 million in 2013 at a CAGR of 4%. North America. Middle East and Africa (EMEA). but this will be offset by a continuing decline in maintenance spending on legacy SDM as legacy HLRs are retired from service. North America is a mature telecom services market with limited opportunity for subscriber growth. Spending on subscriber data management in North America will grow from $243 million in 2008 to $268 million in 2013 at a CAGR of 2%. Figure 5: 2008-2013 Global subscriber data management forecast by region $600 $500 $400 $ millions $300 $200 $100 $NA (CAGR 2%) CY2008 $243 $419 $91 $318 CY2009 $238 $417 $94 $321 CY2010 $235 $418 $98 $327 CY2011 $243 $439 $108 $357 CY2012 $254 $470 $123 $398 CY2013 $268 $506 $143 $453 EMEA (CAGR 4%) CALA (CAGR 9%) APAC (CAGR 7%) Subscriber Data Management Outlook © 2009 Analysys Mason Ltd Source: Analysys Mason 15 .

CSPs are investing in subscriber data management to achieve operational cost savings and explore new ways to use subscriber data. Australia and Singapore. This is the fastest growing market. but they will also explore new ways to use subscriber data. Spending on SDM in APAC will grow from $318 million in 2008 to $453 million in 2013 at a CAGR of 7%. This is driven by high subscriber growth rates in countries like China and India.Forecast Spending on SDM in CALA will grow from $91 million in 2008 to $143 million in 2013 at a CAGR of 9%. driven by high subscriber growth rates in countries like Brazil and Mexico. CSPs will invest in next generation SDM to meet scalability requirements. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 16 . In mature markets such as Japan. but these mature markets make up a smaller percentage of the telecoms spending than in other regions.

will change CSP spending priorities.Market Drivers Market drivers SDM is an essential function in the CSPs’ service infrastructure. Pricing of SDM solutions is based partly on the number of subscribers supported and CSPs will need to spend money on SDM simply to support the new subscribers. In the last few years it has been realized that considerable value can be delivered if the CSP moves from the standalone network database approach to a holistic subscriber data management approach. the performance and scalability requirements well drive CSPs to invest in updating to the latest SDM platforms. the attractiveness of new revenue opportunities will reassert themselves in 2011 and 2013. Latin America and emerging Asia. shifting the emphasis to cost reduction business cases and away from risky new revenue streams. particularly in the Middle East. but growth rates are still high and will accelerate as the recession comes to an end. Africa. CSPs are still experiencing strong mobile subscriber growth rates. This growth will be the single biggest driver for spending on SDM solutions. However. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 17 . The global recession will slow growth in 2009 and 2010. It can also deliver efficiencies by reducing the number of subscriber data management silos. Drivers • • • • • • • High subscriber growth in emerging markets Operational cost saving drives HLR consolidation Operational cost saving drives broader database consolidation Competitive pressures drive subscriber profiling Flat rate data tariffs drive the need for subscriber policy management Partner access to subscriber data and enabling new business models IMS deployment Inhibitors • • • Pricing pressure Trust and privacy issues CSP organizational challenges High subscriber growth in emerging markets In emerging markets. In addition. With this evolution SDM can add significant value by providing a consolidated view of subscribers and their behavior. The difficult economic climate that we expect to persist through 2009 and most of 2010.

The entry of non-traditional competitors from adjacent industries into telecom services has further increased the competitive pressure. reduce churn and find new sources of revenue. This transition is well underway in the industry with most tier-1 CSPs in the process of implementing HLR consolidation. AAA. simplify provisioning and move to a lower cost COTS hardware. A typical tier-1 mobile operator with 25 million subscribers and 20 mated pairs of legacy HLRs can move to a single logical database and reduce the number of platforms managed. MNP and HSS functions onto a single SDM platform. In the longer term. An operator with a CDMA and GSM network for example. In these markets there are normally three or more CSPs to choose from when purchasing mobile or broadband services. These companies are a strategic threat because of their ability to disrupt the value chain. parts of the Middle East and Asia. as CSPs consolidate mobile. CSPs with legacy HLR infrastructure can reduce operational costs by more than half by consolidating to a next generation SDM solution. A CSP that operates a GSM/UMTS network can consolidate the HLR. such as North America. can consolidate all SDM functions onto a single SDM solution. Device manufacturers such as Apple and Nokia are also offering mobile services that limit the opportunity for existing CSPs. Operational cost saving drives broader database consolidation CSPs can achieve further cost savings by consolidating multiple SDM functions onto a single SDM solution. Competitive pressures drive subscriber profiling In mature markets. This extends the cost savings of HLR consolidation and many operators will choose to do this when they consolidate legacy HLR platforms. Search and information portal providers such as Google and Yahoo are aggressively exploiting the shift of advertising dollars from traditional media outlets to the web. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd CSPs are responding by improving their ability to understand and 18 . Western Europe. fixed and Internet services are SDM platforms will be extended to support common identity. policies and personalization should across multiple services.Market Drivers Operational cost saving drives HLR consolidation CSPs are under increasing pressure to save operational and capital expenditure as the top line comes under pressure from the recession and competition from more efficient service provider increases. CSPs that operate multiple network types can also consolidate SDM functions across networks. competition will continue to put increasing pressure on CSPs to improve customer experience.

Market Drivers respond to customer behavior. CSPs are exploring the opportunities for providing similar levels of personalization and tracking of customer behavior. The number of IMS deployments will increase steadily over the forecast period and this will drive spending on SDM solutions. This has the potential to create new value chains and enable CSPs to participate in some of the “Internet value chains”. In some cases relatively few subscribers are making a disproportionate contribution to data growth through sharing of large media files. Internet companies such as Amazon. These trends will be increasingly important towards the end of the forecast period. eBay. As a consequence CSPs are seeing dramatic growth in data traffic with insufficient revenue growth to support the required infrastructure build-out. This requirement can be addressed without a separate SDM function. personalization of services and targeted advertising. Google and Yahoo. Flat rate data tariffs drive the need for subscriber policy management Competitive pressures are driving mobile and broadband CSPs to offer flat rate data tariffs. Partner access to subscriber data and enabling new business models CSPs will increasingly recognize the importance of third parties and new value chains in delivering new and innovative services. It provides access to a rich set of service enablers. Subscriber data is potentially very attractive to third parties to enhance the services they can offer using the CSPs infrastructure. but a next generation SDM solution is a good platform for managing subscriber policies independent of the application implementing those policies. have demonstrated the attractiveness of a business model based on flexible personalization of services and tracking of customer preferences. SDM can help CSPs address this issue by supporting subscriber specific policies. They are also starting to provide access to service enablers within their own infrastructure to third parties. IMS 19 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd . This enables the CSP to offer a number of “flat rate” data tariffs with differing caps on bandwidth. It can also be provided in an anonymized format to advertisers. overall data volume and allowed services. IMS deployment IMS provides a more flexible and lower cost control layer for both wireless and wireline services. SDM systems are starting to support these requirements by providing real-time access to subscriber profiles to support new applications such as real-time business intelligence.

This is an area where CSPs will need to be very careful about public perception. The EU Commission has started proceedings against the UK government because of concerns that Phorm has been used by UK CSPs in a way that infringes privacy and personal data protection rules. CSPs that have not already done so will choose to consolidate and upgrade SDM functions as part of the IMS deployment.Market Drivers requires a specific SDM function. which is attractive to CSPs. This is driven by the move to COTS hardware platforms and by increased competition between vendors. Providing incentives such as discounts or service announcements should be enough to encourage most customers to opt in. It is an issue when the data is shared with third parties or used to support targeted advertising. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 20 . Pricing pressure The price per subscriber of SDM solutions has declined steadily and will continue to do so over the forecast period. fixed and Internet services to work together and use a common SDM infrastructure. but in most cases the cost savings will be compelling. The recent experience with using Phorm in the UK is an indication of the problems. Huawei and ZTE in particular are driving costs down further based on low-cost development in China. The current recession is also likely to reduce objections to consolidation of infrastructure. SDM consolidation will eventually require business units responsible for mobile. Where operators are organized as separate operating companies in each country there is a similar challenge. These barriers will slow some of the more ambitious SDM consolidation projects. CSP organizational challenges A significant inhibitor for the broader SDM consolidation projects is the organizational challenges they face. There is a risk that pricing pressure will increase further. Most issues can be addressed by ensuring that the customer opts in before any profiling data sharing occurs. the home subscriber server (HSS). CSPs are typically organized in silos with ownership for separate parts of the service infrastructure. Trust and privacy issues The use of subscriber data to profile customer behavior can be controversial and the public perception may prove to be an inhibitor to some next generation SDM opportunities. but will reduce the overall spending on SDM. If CSPs manage this poorly the regulatory framework is likely to restrict their ability to extract value from subscriber data.

authentication. Pre-paid services are a good example of this. The GSM networks deployed by CSPs in the early 1990s included a home location register to maintain subscriber data essential to mobility management. whether it is a Yahoo e-mail account or updates to a Facebook account. Major drivers in this evolution were the need to manage mobility and authentication. Most of these are currently supported by separate databases. At the same time the growth in residential broadband services drove the deployment of AAA network databases to support authentication and accounting needs. There is a long term need for a common dedicated SDM function that can meet the needs of each of the application areas. In parallel with these developments real-time and near real-time requirements were becoming more important to the service offered by operators and the customer experience they needed to deliver. Originally targeted at customers with low credit ratings. They were deployed as stand-alone network nodes or as mated pairs with one database acting as a redundant hot standby. They also looked at new multi-layer architectures that could deliver improved scalability and resilience through a distributed approach. they have evolved to provide real-time account management for most mobile consumer customers. Most of the network databases deployed were built on special purpose telecom hardware platforms. Along with the AUC and EIR it supported the need for identity management. The web has also contributed to the expectation of near real-time management of services. The potential areas of the OSS. These network databases evolved to support specific protocols and requirements. which are loosely synchronized using the fulfillment processes. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 21 . The operational and capital costs of this approach started to become an issue in the early part of this decade and most vendors began developing next generation solutions that used standard IT software and hardware platforms.Business Environment Business environment SDM is becoming a broad requirement for the real-time and near real-time management of customer data. Originally it evolved from an embedded function of telephone switches to become an independent network database and is now evolving into a distributed platform supporting multiple network and service level functions. BSS and SDP infrastructure requiring real-time or near real-time SDM are indicated in Figure 6. mobility management and some server settings for the GSM service.

Clearly there are many regulatory and privacy issues that must be addressed. CSPs are aware of the potential value of the customer data embedded in their many subscriber database silos.Business Environment Figure 6: Proliferation of subscriber data in CSP operational and network infrastructure Source: Analysys Mason As the SDM function evolves it will enable new services and capabilities. The move towards a common platform will make it easier to provide a holistic near real-time view of customer behavior. advertising and adapt existing services to better suite subscriber needs. but Amazon. device type and status giving a very complete picture of the subscriber’s preferences and interests. This type of data can be used to target offers of new services. Google and others have demonstrated how a business model can be enhanced by detailed knowledge of user preferences. location. services in use. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 22 . This can include account balance.

Customer Care. CSPs are purchasing subscriber data management solutions to consolidate subscriber data onto fewer platforms and to open up subscriber data to support new applications and business opportunities. Figure 7 below illustrates the 23 functional categories of telecoms software analyzed by Analysys Mason grouped under their major segments: Service Assurance. Figure 7: Subscriber data management in Analysys Mason segmentation Source: Analysys Mason Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 23 . Service Delivery Platforms and Network Management Systems. We plan to include it in broader coverage of the service layer at a future date. Billing.Market Definition Market definition Analysys Mason uses the buying behavior of CSPs to define market segments. Service Fulfillment. The subscriber data management segment is currently not part of one of the major segments.

Market Definition SDM definition In this report. pre-paid platforms. if the data is likely to be used by more than one application it should be in the SDM system. BSS and network infrastructure. An area of confusion is that subscriber data is managed in many different parts of the CSP’s OSS. We are already seeing a migration of subscriber data from other platforms such as messaging platforms. personalization information. telecoms application servers and web portals to the SDM platform. The look up to the subscriber database should take less than 50 milliseconds of that budget. Hardware is of decreasing significance as vendors move to use COTS hardware. As a general rule. In the revenue and market share estimates we exclude revenue from hardware and general system integration and consulting services. One of the architectural tradeoffs is whether a piece of subscriber data should be stored in the SDM system. The SDM they provide is tied to the particular application they support. These are not included in our definition of the SDM segment because they are not providing a general purpose SDM function that is available to any service or application. This is distinguished by not supporting the real-time requirements of network services and being focused on supporting only the customer care operation. authentication information. The major functional areas included in the subscriber data management segment are illustrated in Figure 8. Pre-paid charging platforms for example provide subscriber data management in real-time. policy settings and settings for specific services. we define SDM as the software product that supports real-time and near real-time access to subscriber data to support the execution of services. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 24 . The real-time requirement is driven by services such as voice that have a tight latency budget of the order of 250 milliseconds. or with the application that requires it. Other less sensitive services can be supported with near real-time performance of up to a few seconds. The requirement for real-time response requires the subscriber data to be simple and specific to the services supported. The subscriber data that is managed includes identity information such as IMSI and IMISDN. We include a “subscriber management” sub-segment within the customer care segment in Figure 7.

either singly or as mated pairs. to support a particular set of subscribers. EIR. They have significantly lower operational costs than legacy platforms and greater flexibility and openness.Market Definition Figure 8: Subscriber data management functional components Source: Analysys Mason Definition of legacy SDM and next-generation SDM Legacy network database platforms are deployed as separate silos. The GSM HLR is the most common legacy network database and a single HLR mated pair will support a few million subscribers. AAA and MNP. Legacy SDM products are often supported on proprietary hardware and software platforms and have a higher price per subscriber then next generation SDM platforms. third-party access and targeted advertising. identity management. An operator with 20 million subscribers may deploy 10 to 15 mated pairs each of which has to be provisioned and managed independently. They are often implemented on COTS hardware platforms with a lower price per subscriber. personalization. Next-generation SDM platforms support a single logical subscriber database with multiple front-end applications such as HLR. 25 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd . subscriber policy management. They can also support new applications such as subscriber profiling.

CSPs tend to evolve from one scenario to the next. The most important deployment scenarios are: Scenario 1: Network database silos: traditional deployment model of standalone network databases (often deployed as mated pairs for resilience). Scenario 4: SDM platform: extension of scenario 2 or scenario 3 to support a north bound access to subscriber data and support 3rd party access to data. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 26 . but this happens at different rates for different service infrastructure and operating companies. The market drivers section provides a more detailed view on the business drivers behind these scenarios. Scenario 3: Cross network consolidation: extension of scenario 2 to include different types of network databases and different access network types. Scenario 2: Network database consolidation: consolidate to a logical subscriber database supporting network database as a front end.Market Definition Deployment scenarios CSPs are deploying SDM in a number of different scenarios.

OSS Observer ). such as HLRs. is for each HLR (or HLR mated pair) to operate independently with responsibility for a subset of the subscriber base (see Figure 9). An HLR mated pair provides geographical resilience by duplicating the HLR functionality in two different locations. In this report this type of deployment is classified as “legacy SDM” because it does not provide a platform for the broader requirements of SDM. Figure 9: Scenario 1: Network database silos Source: Analysys Mason Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 27 . The provisioning (or fulfillment) system is responsible for partitioning the subscriber base and configuring individual subscriber settings (see Service Fulfillment Market Review.Market Definition Scenario 1: Network database silos The traditional deployment paradigm for network databases. April 2008.

The “front end” platforms support the required network interfaces and cache subscriber data dynamically.Market Definition Scenario 2: Network database consolidation In the last few years vendors have started to offer SDM solutions that consolidate subscriber data into a single logical database or “back end” platform (see Figure 10). Figure 10: Scenario 2: Network database consolidation scenario Source: Analysys Mason Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 28 . It also simplifies the provisioning process. In this report scenario 2 deployments are categorized as next generation SDM because it is the first step to supporting broader SDM requirements. This provides immediate benefits with more efficient use of resources on the front end platforms and greater flexibility in offering resilience to failures.

Mobile Number Portability (MNP) and HSS “front ends” can be supported from the same “back-end” system. Figure 11: Scenario 3: Cross network consolidation Source: Analysys Mason Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 29 .Market Definition Scenario 3: Cross network consolidation Further efficiencies can be achieved by supporting multiple “front end” applications from the same “back end” database. The approach can be extended to a common platform that supports SDM across multiple networks (see Figure 11). This provides greater efficiency in resource utilization and also supports the consolidation of operational processes. In a mobile network. for example. HLR. In this report scenario 3 is classified as next generation SDM. AAA.

Market Definition Scenario 4: SDM platform The final scenario is normally an evolution of scenario 2 or scenario 3. It also supports the migration of subscriber databases from application servers and real-time charging platforms to the common subscriber data management platform. Figure 12: Scenario 4: SDM platform Source: Analysys Mason Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 30 . It provides support for other applications to access subscriber data in real-time (see Figure 12). This is classified as a next-generation SDM deployment and is typically the vision that many CSPs have when investing in upgrading existing network databases to support broader subscriber data management requirements. This includes applications that respond in realtime to subscriber behavior and potentially for access from third-party service providers.

Its virtualization ability blends data from multiple domains including the IT and real-time network domains as well it federates data from thirdparty resources such as marketing partners. Alcatel-Lucent also offers the 8660 Data Grid Suite (DGS). 31 . The 8661 Directory Server is an open repository of data that can also simultaneously support multiple applications. the Alcatel-Lucent 8661 Directory Server supports subscriber personalization. next-generation SDM. It includes network databases. personalization. IMS and all-IP network. identity and privacy preferences. In addition to the 8650. which is focused on subscriber profile data. can be seamlessly upgraded to the 8650 SDM. The 8660 DGS handles the multiple queries and protocols to the multiple data sources to return the required information in real-time. it allows mobile service providers to evolve their networks without replacing the SDM solution. Alcatel-Lucent Alcatel-Lucent has the broadest SDM offering of any of the vendors. identity management. It simplifies the enablement and integration of new applications into a service provider environment. virtual data store to enable the management of subscriber profile data and support HLR/SLF/HSS/AAA/MNP/EIR applications across multiple networks.Vendor Summaries Vendor summaries The following provides short summaries of the market position and products of selected subscriber data management vendors. Amdocs Subscriber Data Management Outlook © 2009 Analysys Mason Ltd Amdocs is the leading telecom software supplier. for example. Its next-generation SDM solution is the 8650 Subscriber Data Manager. The 8650 SDM creates a single. but does not provide a standalone subscriber data management solution. friends and family data for pre-paid/post-paid applications as well as personalization of portals and other identity and web-based services. subscriber policy management. The Alcatel-Lucent HLR solutions. the 1430 ngHLR and the 1440 USDS. The 8660 DGS is able to simultaneously support multiple protocols to multiple data sources to extract needed data records including HLR/HSS/AAA information from the 1430 ngHLR. It has been deployed to support messaging applications. moving from a GSM/UMTS network to LTE. It provides near realtime subscriber data management in a number of its products. By centralizing the subscriber data. 1440 USDS and 8650 SDM or other third-party HLR/HSS/AAAs. consolidation of network databases and federation of subscriber data.

For example. It is focused on the HLR/HSS opportunity. The Subscriber Data Broker also enables service providers to open the mobile ecosystem and deliver a wide range of personalized services and applications to subscribers. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 32 . and Subscriber Data Broker. The Subscriber Data Broker supports federation enabling the deployment of a mixture of consolidation and federation to meet CSP requirements. Bridgewater’s suite includes an HSS. It brings together dynamic subscriber data with the tools to broker that data securely to third-party application providers to support new business models and revenue sources. Amdocs recently acquired ChangingWorlds that provides a specialist platform. Bridgwater Systems Bridgewater Systems built its success around the AAA requirements for CDMA operators in North America. and quality of service. which adapts to mobile subscriber behavior in real-time. Policy Controller.Vendor Summaries It provides a master data management solution for customer data that can provide near real-time analysis of subscriber behavior. Blueslice Blueslice is a specialist SDM vendor offering a common next-generation SDM platform that supports HLR . Significant customers include BT and VimpelCom. such as mobile advertising. For LTE deployments. and Subscriber Data Broker function. Bridgewater has added a policy controller that controls subscriber access to network resources. but provides subscriber data management for the associated mobile data services. It claims 15 CSP customers and has a partnership with Comverse. applications. they may deploy the Service Controller (AAA). These requirements are addressed by its Service Controller product. HSS and AAA requirements. Bridgewater supports both consolidation of subscriber data and federation where the business case for replacing existing platforms is not compelling. It has also added the Subscriber Data Broker that supports access by third parties to subscriber data. This is based on the IBM platform. PCRF (Policy Controller). particularly the replacement of legacy platforms. for CDMA EV-DO markets. Bridgewater does not provide the HLR function. In WiMAX deployments the Service Controller and Subscriber Data Broker are deployed. This is a major strategic focus for Bridgewater. This enables Bridgewater to address the needs of a number of different types of mobile operators. 3GPP-AAA (Service Controller).

HSS. Ericsson has been developing its NG SDM strategy and recently started to offer a User Data Consolidation solution that supports a layered architecture.7 billion subscribers are supported on its HLR platform. This uses Ericsson’s TSP platform a Linux-based real-time blade server introduced in 2001. This supports front ends for HLR. AUC and of mobile number portability. It claims that more than 1. It is built on Ericsson’s proprietary AXE platform and was originally introduced in the early 1990s. This was initially successful with CDMA operators in North America. Overall HP now has more than 250 million subscribers on its SDM platform. It can be used as the primary centralized database for subscriber profile data. HP has addressed the NG SDM requirements with its Profile Manager introduced in 2007. HP HP has been providing SDM solutions for CSPs since the mid-1990s. The HP Profile Manager supports centralization and federation strategies for subscriber data. It also provides support for access from application platforms and four third-party services. Existing HLR and HSS can be used as front end servers so that the existing installed base can be transitioned to a layered architecture. This includes centralization of subscriber data in a CUDB. The CUDB is intended to provide a centralized single data access for CSP applications. supporting HLR. but HP has expanded to address GSM/UMTS requirements and become the leading supplier of HLR platforms in North America with AT&T and Verizon Wireless as customers. The HLR platform supports both HLR and AUC specifications on a single node. The CUDB is based on a generic computing and database platform. This is part of HP’s OpenCall portfolio of telecoms platforms and it runs on HP’s high availability Integrity NonStop platform. Its original success was with the Tandem HLR product it acquired with the Compaq acquisition. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 33 . Its HLR installed base is strongest in Europe and Asia with little presence in North America. Ericsson offers a separate HSS node to support IMS and WCDMA requirements. AAA and other SDM functions as front ends.Vendor Summaries Ericsson Ericsson is the market leader in providing mobile infrastructure to CSPs and it has the most widely deployed HLR platform. It has also won business in emerging markets with Reliance in India and Vivo in Brazil. The architecture enables high availability with pooled Front End Servers and clustered redundancy in the CUDB.

but does not provide network database products such as HLR or HSS. Huawei introduced its first HLR in 1998 and replaced it with the ngHLR in 2002 based on compact peripheral component interconnect (PCI) platform. Bell Canada and Bharti Airtel.0 is the most recent release of the IBM SDP offering. MNP and identity management. The objective was to deliver added value to operators by converging all of the subscriber information in a centrallyaccessible database that can be used for traditional telecoms functions such as HLRs and newer functions such as HSS. The back-end platform is based on Oracle 9i and provides a unified view across multiple front-end applications. the InfoSphere master data management products and the solidDB in memory database. EIR. The Bharti deployment supports more than 90 million subscribers and uses the Tivoli directory products to support access to subscriber data from applications for near real-time requirements. Access Manager. HSS. These HLR products have been widely deployed. The USC is deployed on Huawei’s ATCA platform. but each HLR is a separate platform requiring provisioning and redundancy. The deployment at Bharti Airtel in India is the biggest SPDE deployment and IBM deployed and operates the SDP. 34 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd . It also supports integration with emerging services spanning the Internet and telecoms. Huawei supplies front-end applications to support HLR. SolidDB is an in-memory database used in a number of third party SDM products. IBM positions SDM as part of its SDP solution. Federated Identity Manager and Directory Integrator).Vendor Summaries Huawei Huawei is the leading supplier of SDM solutions in China and has extensive deployments in emerging and developing markets. Huawei addressed this issue when it launched its Unified Subscriber Centre (USC) early in 2008. IBM has many products that support SDM requirements including the Tivoli identity management and directory products (Directory Server. IBM also provides software components to the NEMs for their SDM products. IBM IBM provides a range of products and solutions related to next generation SDM. The USC separates the front-end real-time application from the backend database. SPDE 3. AAA. The back-end platform provides a common provisioning interface and supports open interfaces for subscriber profiling by thirdparty applications. AUC. It has significant subscriber data management deployments at AT&T.

35 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd . This includes supporting open interfaces to subscriber data to support CSPs in developing applications that use dynamic profiling of subscriber behavior. NSN has sponsored the Subscriber Profile User Group (SPUG) to share practical experience and develop industry best practice on the design. SPUG has a road map of more than 100 applications that can use the One-NDS platform. Siemens had been delivering HLR consolidation projects using the Apertio platform for a few years notably a large-scale project for T-Mobile in Europe. The Apertio acquisition has gone well and NSN has adopted the Apertio One-NDS platform as its next generation SDM solution. Nokia Siemens Networks NSN is a major NEM that has provided SDM HLR and other network databases since the early 1990s. NSN has also started to win non-traditional telecoms business with machine-to-machine deployment with iMetrik. The One-NDS architecture provides a core subscriber database with applications that support specific service logic and network protocols. These include HLR. Bharti. Vodafone and 3. Apertio was a start-up focused on SDM that had developed an X.Vendor Summaries Motorola Motorola provides subscriber data management as part of its core infrastructure offering. implementation and operation of subscriber profile centric networks. EIR and AAA. The acquisition of Apertio provided NSN with a leading edge subscriber data management solution.500 based network directory server to support consolidation of multiple network databases onto a single logical database. MNP. this is based on the Apertio One-NDS platform and the acquisition of Apertio by NSN has undermined this strategy. HSS. It also includes identity management and support for a consolidated view of the subscriber across multiple network database front ends. Members include AIS. NSN claims that the One-NDS architecture can be scaled to at least serve 250 million subscribers. It started offering a next-generation SDM solution in the form of its home location server in 2006 and had some early success. It also continues to expand existing One-NDS deployments with new applications such as identity management and subscriber profile. Its largest current deployments are in excess of 50 million subscribers. T-Mobile. It acquired SDM specialist Apertio early in 2008. It has offered legacy network databases such as HLR and AUC for many years. Sprint. . However. NSNs’ vision is to expand the scope of the Apertio platform to address the broader opportunity in SDM.

while at the same time. This is mainly as a side effect of its lack of success in winning new GSM network business and its failure in the WCDMA equipment market. and group lists in real-time. LDAP. RDBMS) and providing a unified API to that data. distributed data services tier at the application services layer. This capability is currently supported and delivered via the Oracle Communications Services Gatekeeper. The first perspective is focused around virtualiziation of subscriber profile data from multiple subscriber profile data stores (such as HSS. but has slipped a long way behind other NEMs over the last five years. but does not provide network databases such as HLR. which employs a data integration layer to pull subscriber profile data from disparate data stores such as HSS. location. HLR.Vendor Summaries Nortel Nortel was a significant supplier of HLRs. It has continued to win business in the GSM-R niche and provides its existing HLR to support this. Oracle supports SDM from three different perspectives. This approach allows operators to maintain tight control over the subscriber’s privacy. and storing it into the data caching tier. As a consequence it does not provide a NG SDM product. real-time. The current product delivering this approach is the Universal Subscriber Profile (USP) component of the Oracle Communications Converged Application Server. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd In addition Oracle has a dedicated identity management product family 36 . RDBMS. The third approach is focused on securely exposing subscriber profile data to third party developers within the operator’s third party partner ecosystem. Oracle currently delivers this by integrating a number of different products to meet specific customer requirements. HSS or AAA. Oracle Oracle provides a number of products that support next-generation subscriber data management. The second approach is focused on creating a dedicated. HLR. without having to query the back-end data stores. a data caching layer and a data integration layer. allowing third party partners to use the operator’s charging and payment facilities to charge the operator’s end-users for using their applications and content. LDAP. This will allow applications at the services layer to retrieve profile data around such things as presence. which can be enforced at runtime for each type of end-user requests for specific network services. The vision is for a “data services grid”. It provides facilities to implement subscriber-specific SLAs and policies.

This gives significant performance advantages for certain applications. but mainly for identity management within their own organization. Ericsson and Nortel are customers for the MySQL Cluster Carrier Grade Edition platform. It is used by a number of major NEMs and has the attractiveness of being an open source platform. Xeround Xeround is a start-up focused on real-time subscriber databases for CSPs.g. network databases and telecom application servers. Public references are Bridgwater Systems.Vendor Summaries called Oracle Identity Management Suite. Its main product is the MySQL Cluster Carrier Grade Edition an open source distributed relational database that can support the realtime requirements of HLR and HSS platforms. but is a major supplier of hardware and software components to NEMs and other SDM solution providers. Call center routing) rather than replacement of existing network databases. The Eagle platform is the most widely used SS7 signaling transfer point. which is deployed by a number of CSPs. Alcatel-Lucent. Sun Sun does not provide network databases directly. Oracle TimesTen in-memory database is used for subscriber management in real-time charging systems. BroadSoft and Sylantro. Xeround’s Intelligent Data Grid enables virtualization of desperate subscriber data in real-time. Mobile number portability and optimizing the routing of signaling traffic to HLRs are examples. Deployments are in support of specific subscriber management requirements (e. Oracle also supplies it’s relational and in-memory databases as components for suppliers of network databases and SDM products. Tekelec does not provide a general purpose SDM solution but addresses some subscriber data management requirements with embedded capabilities on its signaling platform. Tekelec has invested in the next generation SIP signaling infrastructure and has a well thought through strategy of smoothing the migration for CSPs from legacy SS7 to the next generation IP network. Tekelec Tekelec is the leading supplier of signaling and control infrastructure for the telecom network. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 37 . It has deployments at Pelephone in Europe and T-Mobile USA.

Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 38 . TD-SCDMA. AAA and others. HSS. ZTE have been particularly successful in China and Africa. It provides common subscriber data management across multiple technologies including PHS. IMS and WIMAX.Vendor Summaries ZTE ZTE provides a next-generation SDM solution with a common back-end supporting front ends for HLR. GSM. This can be offered as an upgrade to its legacy network database deployments. EIR. ZTE claim 1 billion subscribers for its legacy HLR and 340 million for its next generation SDM platform. CDMA. UMTS.

‘significant player’ or ‘present’. Relative market strength is categorized as either ‘market leader’. but we have no indication of significant sales. Leadership qualities include market penetration by region. and application area. Those we judge to be significant have recognition in the indicated segment due to significant sales. Table 1: Comparison of evolved IN and next generation telecom application server suppliers Company Overall EMEA CALA APAC NA Alcatel-Lucent Amdocs Blueslice Bridgewater Ericsson HP Huawei IBM Motorola Nokia Siemens Networks Nortel Oracle Sun Tekelec Xeround ZTE                                                                       Source: Analysys Mason & company briefings Subscriber Data Management Outlook © 2009 Analysys Mason Ltd  = has a presence in the market  = has a notable presence in the market  = market leader 39 . telecom segment. Vendors we have designated as leaders in a particular market segment or sub-segment are those that attract the most revenue in the segment and that we predict will continue to do so.Suppliers Suppliers We have identified 16 SDM suppliers in Table 1. Those we have indicated as merely present offer products in the indicated segment. We believe these companies are sufficiently important to be worth serious consideration by CSPs.

such as subscriber profiling and targeted advertising. Yahoo. but it is still an area of sensitivity. but raises many issues. but CSPs must proceed carefully. This opens up opportunities to support a broader range of applications from the NG SDM platform. Scenario 3 is also attractive in terms of OPEX savings. The growth opportunities in the next generation SDM market have gotten 40 Subscriber Data Management Outlook © 2009 Analysys Mason Ltd . Over the last year. Microsoft. CSPs should evaluate the more exciting opportunities generated by scenario 4. low cost. This would be very attractive to third parties. Subscriber data can be anonymized to address some of these issues. It also brings advantages in terms of flexibility and future scalability. and the myriad of smaller Internet innovators. There is a solid business case for moving to scenario 3. Individual business cases should be evaluated for each platform. telecom application servers and pre-paid charging platforms. CSPs should move from scenario 1 to scenario 2 as legacy platforms approach end of life and to deliver cost savings. In other words. Some of these involve the migration of subscriber data from existing platforms such as messaging platforms. horizontal platform. but more complex to implement. but the timing of the move depends on the details of existing infrastructure. The business case for replacing ageing network databases with a next-generation SDM platform is compelling because of the savings in operational expenditure (OPEX) that come from a simplified. CSPs must think carefully about customer perception of acceptable use of the data and the various regulatory requirements. Subscriber data is a key service enabler and scenario 4 opens up the possibility of including subscriber data as part of the third-party interface. CSPs in mature markets should evaluate scenario 4. we have seen an increasing number of CSPs providing web services access to service enablers to enable third-party service providers to offer new services. This is strategically important because of the potential for stimulating an ecosystem of innovative partners that will help CSPs compete with Internet players such as Google. These choices depend on the details of the specific infrastructure.Recommendations Recommendations CSPs in mature and emerging markets should have a strategy of how they will migrate remaining legacy SDM silos in their infrastructure to a next generation SDM platform. but for the forecast period dealing with subscriber growth will be a much higher priority. There are potentially some attractive new revenue streams. but there are strategic advantages in having widely used subscriber data in a common NG SDM platform. CSPs in emerging markets should also have scenario 4 in mind when selecting vendors and making architectural choices.

targeted advertising and other new opportunities. Subscriber Data Management Outlook © 2009 Analysys Mason Ltd 41 . However. Huawei. Companies such as HP. Oracle and Sun should invest in enhancing these to support the next generation SDM requirements. but the attractiveness of this opportunity depends on a vendor’s current position in the market. targeted advertising. subscriber policy management. and Nokia Siemens Networks who have a significant installed base of network databases should invest heavily in supporting the migration of customers to a next-generation SDM platform.Recommendations the attention of many vendors. In the coming years the opportunity will be in leading the market with support for subscriber profiling. They are well positioned to be the leading vendors of next-generation SDM platforms. subscriber profiling. They can also address smaller market opportunities than the big NEMs and IT vendors. Specialist vendors should also look for adjacent opportunities enabled by next-generation SDM platforms. They should also look to offer building blocks to the NEMs such as the real-time databases IBM and Oracle already offer. NEMs such as Alcatel-Lucent. Apertio and Bridgewater Systems have demonstrated that specialist vendors can build a strong business in the SDM segment. master data management and real-time databases. they should generally avoid direct competition with the NEMs and focus on the new opportunities enabled by a next-generation SDM platform. They have the advantage of greater flexibility and responsiveness to customer needs and market opportunity. business intelligence. real-time business intelligence and other leading edge capabilities. NEMs can maximize the value of their platforms by providing standard open interfaces to subscriber data and establish partnerships with application vendors who can address needs for business intelligence. IBM. The major IT vendors have many products and platforms that support functions closely related to SDM. Ericsson. but were developed for enterprise IT rather than the specialist needs of the telecoms vertical. Examples include identity management.

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