Motorola’s Service Optimization Service Hits on a Key Theme, but Lacks Core Component for Full Optimization

| Feb 17, 2010 | Telecom Infrastructure Services | Analyst: Jason Marcheck

Click here

Event Summary

February 16, 2010 – The networks business of Motorola announced the addition of service quality optimization (SQO) to its professional services portfolio. The service offering consists of helping network operators aggregate user data streams, and measure network performance against established KPIs with the goal of providing feedback that can be used to adjust network elements and business processes. In turn, this should help improve network performance, and lead to increased service quality.

Analytical Summary

• Current Perspective: Moderate on Motorola’s announcement of its Service Quality Optimization service because it packages a set of defined capabilities within Motorola to help operators improve the end user experience – always a key concern. From Motorola’s point of view the move shows that it is in touch with key strategic concerns of its customers, and is defining an offering to meet this need. At the same time, service optimization is about more than data collection and reporting. At its heart, it is about targeted network optimization that improves network operating efficiency, and thus, performance. Additionally, collecting subscriber data should also help operators to target advertising, and, in theory, better monetize their network assets. Unfortunately for the network arm of Motorola, the vendor does not seem to address both, latter points.

• Vendor Importance: Moderate to Motorola because the vendor has made a pointed effort at expanding the scope of its professional services offerings. Identifying, and then packaging, precise capabilities that attack specific operator problems is one way of raising market awareness. In addition, as the company seeks to split off its various operating units into separate entities, any initiative that draws attention to the networks units’ capabilities should help to highlight that value it brings to the table. However, because Motorola did not point to the product capabilities that could improve customer experience while reducing OpEx, it left a good deal of marketing “gold” on the table.

• Market Impact: Low on the Telecom Infrastructure Services market because while targeted services offerings do help to draw attention to a vendor’s capabilities, at the end of the day any branded service offering is little more than a collection of pre-existing skills and/or experience. To this end, Motorola’s competitors are not forced to react to anything new from a practical standpoint. Going further, vendors prepared to match Motorola’s service offering and build on it by articulating ways in which their equipment can help to improve network performance while lowering costs have a clear opportunity to “one up” the SQO offering.

CLIENTS ONLY

| Client access - Full report in Telecom Infrastructure Service | More information

Top