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News
Issue #2002 - 22 (June 2002)
(Updated June 12, 2002)

INFRASTRUCTURE, PRODUCTS & SERVICES

IBM Discloses Telecommunications Strategy

IBM has unveiled its plans to outsource development services to telecommunications carriers.

The company’s new Network Innovation Lab (NIL) in Atlanta will be devoted to helping service providers introduce and execute service management processes such as product selection, ordering, provisioning, activation, CRM, and billing within their existing IT infrastructure. NIL will leverage IBM’s hardware, middleware and software as well as technologies from other vendors where appropriate.

In some cases the company may work with both the service provider and content provider, for example, a retail outlet wants to place ads on a carrier’s mobile phones.

At the center of IBM’s strategy is its Service Provider Delivery Environment (SPDE), an open standards based framework designed to give wireless and wireline telecommunications service providers the flexibility to introduce new voice, text and Internet-based services to their customers faster, easier and at a lower cost. Other software vendors will be able to write software adapters to integrate their applications into the SPDE Integration Hub software and work with other components of the IBM network infrastructure.

Rich Stomp, vice president of solutions for IBM’s Global Telecommunications Industry Group, told Computer Weekly that the initiative is focused on the Linux platform, but not exclusively. Although Linux has not caught on in the telecom sector, it has the potential to save carriers money and let them take advantage of the creativity of the large Linux development community, Stomp said.

IBM recently signed an outsourcing contract with Nextel Communications to take over much of the carrier’s CRM operations.

For more information: http://www.ibm.com

(Additional source Computer Weekly)

MobileInfo.com’s Comments & Advisory:  We see here an intent by IBM to get into this rather important and equally-difficult area of provisioning, billing and customer services where telecom service providers find tremendous turnover. The telecom industry is in turmoil and needs all the help it can get in putting its house in order. Integration with current suite of carrier ERP systems is the challenge. IBM has the resources, expertise and technology to do it and do it right. We feel that Network Innovation Lab is only a resource center that IBM can and will use to market its professional and consulting services and more importantly its Linux-based servers where Sun was the default platform. There are several other independent efforts to solve the same problem. Centrata (http://www.centrata.com) is a startup in the Silicon Valley much further ahead in providing an open solution to the telecom service providers. If IBM is serious, it might find it attractive to look at Centrata's solution before it re-invents the wheel. This might be a good news for Centrata because it validates the market they are after. 

MobileInfo is surprised that it has taken one of the largest industries in the world so long to focus on perhaps the most fundamental problem that may determine survival of individual telecom providers in a highly competitive environment of today.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.


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