Worldwide Service Delivery Platform Spending to Reach $2.2 Billion in 2011, IDC Says

FRAMINGHAM, MA – FEBRUARY 20, 2007 – The need to deliver enhanced services over next-generation network architectures will drive worldwide telco operators to increase service delivery platform (SDP) spending to $2.2 billion in 2011. SDPs are a combination of hardware, software, and services that form a common architecture for the creation and delivery of services across multiple network types. However, according to new IDC research, the SDP market remains largely undefined and interpreted differently throughout the industry.

"There are tremendous market opportunities for IT suppliers, network equipment providers, independent software vendors, and systems integrators trying to establish their place in this evolving market," said Shira Levine, senior analyst for IDC's Next-Generation OSS and Billing service. "Each type of company faces a unique set of challenges, but the key to success is the ability of these companies to develop partnerships with vendors in other categories."

From the carrier perspective, SDPs address the need for faster, easier, cheaper solutions for delivering services over the network. Accelerating the speed at which services are brought to market greatly increases operators' ability to "hook" subscribers before their attention lapses. SDPs also reduce the ballooning costs associated with operating and maintaining multiple silos for service delivery, and can help smooth the path for operators migrating from legacy networks to next-generation environments.

Additional findings from IDC's research include:

— The lack of a clear, standardized definition of an SDP has made it difficult for operators to evaluate the wide range of SDP solutions in the market today

— While IMS is a significant catalyst behind SDP deployments, the concept of the SDP extends beyond IMS alone

— There is considerable work to be done in standardizing the processes associated with the exchange of information between the SDP and the related OSS/BSS environments.

— A broad range of vendors have targeted the SDP market opportunity from various vantage points, creating a unique ecosystem of partnerships and alliances between suppliers.

— Wireless services drove initial interest in SDPs, but investment by wireline and convergent operators will drive significant market growth over the next several years.

This IDC special report, Service Delivery Platforms: A Deployment and Market Assessment, defines and provides the worldwide revenue opportunity for the service delivery market. It is based on interviews with all of the major vendors in the SDP market, focusing on the vendor's definition of an SDP, its SDP offering and its key SDP customers. In addition, IDC conducted both formal and informal interviews with 15 service providers, both mobile and fixed-line, from North America, Europe, Asia, Latin America and the Middle East, in which we asked them about their definition of an SDP, their SDP requirements, their SDP deployment plans and their vendor selection criteria.

To purchase this study, please contact IDC Sales at 508-988-7988 or sales@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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