Before Amdocs fully commits to a strategic direction, the company likes to secure some affirmation on what it believes it is seeing in the marketplace. Its latest software release reflects the affirmation by service providers that the demands of connectivity and intelligent devices will require new approaches and business models.
Last week, Amdocs and Frost & Sullivan released the results of a survey that examined how service providers are planning for the evolution of what is anticipated to be a fully-connected world with trillions of devices connected to the network by 2017. The survey identified the technology challenges, business models and partnerships that service providers are considering in order to meet demand.
Most service providers see opportunity in the connected world, but know they must adopt more flexible business models to seize it. The survey showed that most providers have been testing short-term experimental models.
More than 90 percent of respondents to the survey said wholesale services and partnering with consumer Internet companies such as Facebook and Google were a growing area of business opportunity.
“For service providers to expand in the value chain they need to consider new markets, new verticals and business models ... especially in the area of wholesale, or what we call partner enabling models, where they can act as smart pipes enabling third-party services,” said Rebecca Prudhomme, director of product and solutions marketing at Amdocs.
To have the time and resources to focus on all this partnering, two-thirds said that outsourcing part of their operations will be critical. “As the market becomes more complex, they’ll need to focus on their strategies and core business and [start to] relinquish the operations of the back office and infrastructure,” Prudhomme said.
Changes in the approach to traditional device management and customer service also will have to be adopted, as seamless activation, self-healing devices, and “do-it-yourself” support were ranked as critical. Ubiquitous connectivity also is causing more than 80 percent of respondents to see investment in the network and network planning as the No. 1 area of investment in terms of preparation for the connected world.
They also see the areas of device activation, billing, charging, settlement and customer-directed self-service as essential to ensure future success. Service providers also know they need to expand their vertical markets and believe the most promising new areas of focus for service providers include health care, consumer electronics, government and utilities.
“Service providers have so much value they can add onto pure access,” Prudhomme said.
James Brehm, senior consultant for mobility and the unwired experience, Frost & Sullivan, said, “Nearly all of the service providers with whom we engaged recognize that they must quickly evolve, and have identified partners that can help them meet new levels of demand.”
