Software business in the telecommunications sector

  • Authors:

  • Lauri Frank;Eetu Luoma;Oleksiy Mazhelis;Mirja Pulkkinen;Pasi Tyrväinen

  • Affiliations:

  • Software Industry Research Team, Department of Computer Science and Information Systems, University of Jyväskylä, Finland;Software Industry Research Team, Department of Computer Science and Information Systems, University of Jyväskylä, Finland;Software Industry Research Team, Department of Computer Science and Information Systems, University of Jyväskylä, Finland;Software Industry Research Team, Department of Computer Science and Information Systems, University of Jyväskylä, Finland;Software Industry Research Team, Department of Computer Science and Information Systems, University of Jyväskylä, Finland

  • Venue:
  • Telecommunication Economics
  • Year:
  • 2012

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Abstract

Operations and Business Support Systems (OSS/BSS) software of Communication Service Providers (CSP's) can be developed internally within the CSP or acquired from a Software Vendor. The software industry lifecycle model hypothesizes that software development is internal in the beginning of the industry's lifecycle, and that the share of external products increases when it matures. Empirical evidence shows signs of the OSS/BSS software industry approaching maturity. Current and future developments of the industry include the possibilities of utilizing the Software-as-a-Service (SaaS) model and Open Source software (OSSw). Both have gained increasing interest by the CSP's. However, the relatively small markets (number of CSP's), added with complex and proprietary interfaces of technology and software, seem to hinder this development. The results of scenarios on the future of the industry propose that the adoption of SaaS and OSSw could be motivated by general cost-cutting, by alliances within the industry or by a focus of CSP's business on either providing network capacity or value-added services.