August 2016

Mac Taylor - Editor


SDP Market Stakeholders

We consider the following segmentation of stakeholders in the SDP market:

vendors of SDP products, solutions and professional services;

buyers of SDPs including Network Operators and other Service Providers;

investors in SDP technologies and solutions; and

end-users and subscribers of SDP services in business and consumer market segments.

Vendors of products, solutions and professional services

The SDP market represents only 2% share of overall telecommunications investments of over $1.3Trillion per year. Nevertheless this is enough an opportunity for several types of suppliers to upsell their core competencies.

Network Equipment Providers (NEPs) such as:

Alcatel-Lucent, Nokia, Motorola, Ericsson and Huawei offer comprehensive SDP solutions. They approach the SDP from the network side which is their traditional area of dominance. NEPs’ SDP offerings utilize:

SOA, middleware and other solutions, e.g. identity servers, LDAP servers, and databases from leading IT vendors. NEPs often partner with ISVs to offer high quality or highly specialized software such as telecom application servers, policy engines or Content Management Servers (CMS) as well as successful revenue-generating applications.

Enterprise IT Vendors such as:

Oracle, IBM, HP, Sun, and until recently Microsoft, moved aggressively into the SDP space either by partnerships for the networks and OSS integration or by M&As. They approach the SDP from the operator’s IT infrastructure and OSS/BSS side, where their position has traditionally been much stronger than on the network side. IT vendors create an SDP by extending their Service Oriented Architecture solutions, enterprise application platforms (J2EE and .NET) with telecom-specific components (e.g. SIP Application Server or Web Services based Network Gateways), service enablers and support applications (CRM, Billing, etc.). These SDP solutions are based on standard middleware and software products which create a low cost, “ready to assemble” SDP from these vendors (e.g. Oracle’s “SDP on a CD”).

Some IT vendors such as Oracle, IBM and Microsoft “own” application developer communities, which can be leveraged in the SDP space. HP and IBM play strongly with their Professional Services arms taking over long term management contracts after launching an SDP in production.

System Integrators (SIs) such as: 

Wipro, Accenture, Atos Origin, LogicaCMG, Cap Gemini, TCS as well as regional SI players had a predominant role in the initial development of SDP market. They leveraged the fact that an SDP is not a product, but rather a set of products that needs to be integrated into the operator’s network and IT infrastructure. They build their SDP offerings from components and products offered by different vendors: NEPs, Enterprise IT vendors or ISVs.

In the future, network and OSS/BSS integration will still be required for every SDP, but new pre-integrated SDP solutions built on the SOA principles will require less system integration than before. However, the SIs will keep very busy as the number of deployed SDPs and demand for new service creation and integration services increases.