Market Snapshot: Spring 2005 (Cont'd) By Elisabeth Rainge

Many OSS vendors are following the cost containment and/or ROI approach in 2005, and with reason since SP buying decisions are based on such key criteria. However, the network equipment providers (NEPs) are blazing a new trail in 2004-2005 with a focus on IMS and the future of telecommunications infrastructure. We have found very few OSS vendors - except for groups within or very closely associated with NEPs - that are capable of articulating a position of how they would fit into an IMS-like or IPTV infrastructure.

As we look at the swings in influence within the OSS market, we see that, over time, NEPs have relatively more or less influence on the shape of the OSS. For example, in the current market we see many NEPs growing their professional services practices through deal wins as well as strategic intent. As challenges around the management of advanced services appear to be growing in importance to key Tier 1 accounts, OSS vendors need to step up to the challenge. The question is whether NEPs are building the kind of momentum that will marginalize the efforts of independent OSS vendors.

Elisabeth Rainge is the Program Director of IDC's Network and Service Management and Next-Generation OSS programs. Ms. Rainge's research and analysis of network and service provider infrastructure and service management markets examines the challenges and opportunities of the business and technology upheavals that are facing telecom software and network management players. She is based in San Mateo, California. For more information visit: www.idcresearch.com.

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