Amdocs strengthens its SDP hand with JNetX purchase

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Amdocs strengthens its SDP hand with JNetX purchase

By CAROLINE GABRIEL

Published: 28 October, 2009

READ MORE: M&A | amdocs | IMS

In future, the operators may be delivering a host of mobile and fixed services over all-IP platforms, but for now they need interim solutions that bridge legacy and new networks, and do not require the 'big bang' commitment of full IMS (IP Multimedia Subsystem). Outside major IMS deployers like Verizon, these factors have created intense interest in service delivery platforms (SDPs), and the infrastructure and telco software vendors are jostling for position in the 'Telco 2.0' world where carrier network capabilities meet the open web. The latest to move is back office giant Amdocs, which has acquired SDP specialist JNetX for $50m.

Amdocs has acquired its former competitor to create a more complete platform to span the TDM and IP platforms. The deal, funded with a mixture of cash and debt, helps strengthen its hand against key rivals like Oracle and IBM, importing their service delivery expertise from the enterprise world, and against Ericsson. JNetX is a relatively SDP player but has a well respected product that is used by 30 operators (some, like Vodafone and BT, shared with Amdocs). The system is Java-based and claims strong scalability features. SDPs provide a reusable set of application creation and provisioning tools that work across multiple services and networks.

The acquisition removes one of the few independent SDP vendors left standing in the market. Stephen Karjewski, Amdocs' product marketing director, told Telephony that a key attraction was advanced progress in exposing telecom and IP components to developers - a key basis for Telco 2.0. "It's commonplace to say platforms are able to expose services and common IP network elements. What these guys have done is build their platform in a way where they can expose legacy services for a much lower cost," he said. This means it is far easier for operators to hold onto their legacy networks for as long as they wish.

Another JNetX strength is creating links into back office BSS/OSS systems, the area that Amdocs dominates, and it will be logical to integrate the two firms' various offerings tightly to support applications like converged charging and application stores.

This sector has seen a wave of acquisitions over the past three years, and some casualties, including Microsoft's efforts. Ericsson has been particularly active and in 2007 bought SDP specialist Drutt, shortly after Oracle had acquired Hotsip, billing specialist Portal Software and applications development firm Net4Call, to create its own carrier challenge. And smaller players have been merging too - Aepona bought Sweden's Appium in 2007 to gain greater weight in SDPs and web services frameworks, and then went on to acquire Valista this year, to add payments and settlement facilities.

In a recent survey of SDP deployments by fixed and mobile carriers, research firm Infonetics commented: "Our SDP survey confirms that getting services to market faster is the top driver for operators deploying service delivery platforms. In a market where web-based competitors can create new services in a matter of minutes, incumbent operators understand that they must overcome their legacy constraints and improve the time it takes to deliver new services to their subscribers." The report found that 82% of service providers saw rapid service deployment as the driver for investing in SDPs, with messaging the key single app driver.