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Hurray! A Serious Product Portfolio for Telcos from a Software Giant
Ovum, November 2006, Pages: 8
The software giant in question is Oracle. Rich and ambitious, it sees telco IT as one opportunity for growth. This is not a company that does things by halves and it stands a good chance of achieving its goals. We don’t know what these goals are specifically because Oracle is not a company that discusses revenues or growth targets, but we have no doubt they are substantial but realistic. Qualitatively, Oracle says it wants to provide an end-to-end solution for the telco industry based on a service-oriented architecture (SOA) and to power next-generation networks based on carrier-grade computing technologies.
Oracle is taking on a huge task to bring the product culture of enterprise IT to the whole spectrum of telco IT. This will offer much more than today’s commercial-off-the-shelf software (COTS) supplied by a fragmented supply industry, both in terms of reducing costs and increasing flexibility. Large parts of telco IT are ready for this transformation, but in some areas uncertainty about the way the value chain will develop means that productisation is not appropriate in the short to medium term. Over the next 12 months, Oracle needs to continue to develop its understanding of the telco market and to remain flexible in its product roadmap to maximise its chances of long-term success.
Strategy for the telco market
Components of the portfolio
Oracle’s timing is spot on
Failure to implement could be the biggest challenge
Table of figures
Figure 1 Oracle’s telecoms portfolio