Vendor Cloud Solutions
THE Bottom Line
Linx has undertaken multiple Competitive Intelligence (CI) projects in the area of OSS/BSS cloud services. Particularly, we have looked at key vendors in this space who provide cloud-based platforms for key CSP functions, including customer management, customer care, self-care, e-commerce, POS, inventory, real-time rating for voice and data, pre/post-paid, invoicing for postpaid, and taxation. We have extensively interviewed leading executives from key vendors, in order to understand the licensing criteria, solution roadmaps and key competitive factors in this market.
For all of our projects, Linx relies on in-depth, double-blinded interviews with key executives at leading and niche players in the industry including vendors, service providers, customers and systems integrators / channel partners. Every study we complete is based on specific and detailed interview protocols established together with our clients that drive toward producing actionable intelligence.
What does our research show?
Vendor cloud-based O/BSS offerings lack key product feature sets in areas such as active orchestration, channel management, and partner network solutions.
Based on our interviews, key vendors in this space claim to incorporate an advanced audit trail capability to ensure compliance with industry security and data privacy regulations. However, these same vendors also have the weakest connection to Cloud-based O/BSS offering in the CSP space, and their so-called Cloud-based product offering lacks key security feature sets that even MVNOs may be considering in their billing/CRM/Order Management platforms. For example, nothing in their Active Orchestration, Unified Channel Management, or Partner Network Solution is unique in terms of their functionality nor do leading vendors match the level of industry security and data privacy delivered by legacy on-premise OSS/BSS implementations.
Vendor cloud-based OSS/BSS installations have been limited to new subscriber-based OTT plays, the customer engagement layer, and the enterprise Line of Business (LoB).
Within these LoBs, our interviews with executives shows that vendor cloud-based OSS/BSS implementations include areas such as customer data master management, product catalogue, order orchestration, bundling of offers, promotions and campaigns, sales force automation, knowledge management, shopping cart and case management functions. Cloud-based vendors are also able to deliver products within an SOA framework for their CRM/portals, rating, billing, online provisioning, ESB self-care (IVR, USSD),
IN, Voice, Data, SMS Charging, Invoicing , mediation, quota management, AAA systems, and SSRS/Datamart solutions. However, non of the existing vendors touch either core OSS functions or crucial network SDM functions such as HLRs and HSS.
CAPEX reduction is the major driver behind CSPs implementations of cloud-based OSS/BSS solutions.
In case studies that we conducted, we found that MVNOs/MVNEs saved over 70% - 80% in potential CAPEX by implementing cloud-based OSS/BSS solutions while OPEX growth was limited by subscriber growth on their network. Vendor Y, for examle, provided us with a Case Study where it claimed that it enabled one of its customers to achieve a 21.5 percent reduction in Total Cost of Ownership (TCO) in three years relative to the next-best traditional enterprise CRM software alternative.
A "per subscriber" model dominates how cloud-based OSS/BSS vendors price their products.
For example, Vendor Z provides a complete cloud-based turnkey solution including OSS/BSS solutions design. In our scenario for a 100-seat license for a Tier 4 MVNO with a subscriber base of 215,000 post-paid and 100,000 pre-paid subscribers in an Eastern European market, we were offered the following price structure by Vendor Z: a price per subscriber per year of €5.15, a total cost per year of €1,622,250, and incremental growth of €5.00 per additional subscriber per year. The price range from our intelligence shows a range between €5.15 - €7.00 per existing subscriber to €5.00 - €6.00 per new subscriber per year in the European market.
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