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OSS Observer: Analyst views of recent consolidation

Patrick Kelly from OSS Observer comments on the latest acquisitions throughout the OSS/BSS industry.

Unlike earlier this decade when start-ups and small suppliers were the target of acquisitions, the trend is pointing towards mid-sized consolidation. The mid-sized suppliers � companies between $60 million and $150 million in annual sales are the targets of larger suppliers such as IBM, Oracle, Amdocs, and HP. We believe that several factors beyond the obvious fact that CSPs are consolidating and therefore suppliers have fewer prospective customers to pursue are contributing to this trend.

Then Patrick summarizes new entertainment services that consumers are demanding which we are all experiencing with the iPod generation (music, tv shows, and movies), greater bandwidth to the home, IPTV anytime/anywhere and how this blurs with telecommunication services...

More importantly, IT and telecommunication services will converge just as mobile and fixed line services are converging. IP is the common denominator. Because they cannot be deployed in isolation, the OSS and BSS systems needed to interface with the networks of the future. IBM, Oracle, and HP have strong presences in the CSP IT organizations. Assembling the fulfillment, assurance, customer care, and real time convergent charging systems for next generation services will enable each supplier to bring a credible solution to meet the requirements to deliver next generation services to the IT and operation groups inside CSPs.

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