Standard Multi-Service Networks OSS Platforms Boost With Cisco-NSN Alliance
| Current Perspective: |
| Very Positive |
| Vendor Importance: |
| Moderate |
| Market Impact: |
| High |
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On May 21st Cisco and Nokia Siemens Networks agreed to develop a standards-based telecommunications network management platform to manage the increasingly complex carrier networks and speed time to market of new services. The jointly developed Operations Support Systems (OSS) platform will help the entire service provider community better align network capabilities and costs with business demands, and facilitate faster service deployment.
Recommended Competitor Actions
► Both HP and Ericsson are standard leaders in their respective fields, but lack similar partnerships. Ericsson arguably leads the NGN IMS standards space, and HP is pushing its HP OV and OSS solutions to broadband service providers. They should consider a similar alliance to ensure that they can launch a competitive standard OSS solution.
► Alcatel-Lucent should also embrace open standards in its NGN relationships with carriers and seek to expand its OSS-BSS capabilities in preparation for tighter links between network based services and CPE solutions. Future combinations of enterprise softswitches and carrier service delivery platforms are key enablers for integrated service delivery.
► The many small innovators in this industry must now find their place in the ‘food chain’ and join whatever eco-system is most appropriate. Eco-systems of relevance include vendors, SIs, ISVs and outsourcers. The Cisco-NSN announcement underscores the importance of standards based solutions, and opens up new opportunities for small innovators that are able to adhere to these ‘open standards.’
Verizon Business Strengthens European Security Play with Cybertrust Acquisition
| Current Perspective: |
| Positive |
| Vendor Importance: |
| High |
| Market Impact: |
| Very High |
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On May 14th Verizon Business announced that it would acquire Cybertrust, which provides information security services. The move will boost Verizon Business’ position in the managed information security services sector and help it better cater to large business and government customers. In addition to helping Verizon Business’ global security services, Cybertrust brings with it a solid identity management suite, security operation centres (SOCs) in EMEA and Asia-Pac and ICSA Labs, an independent division of Cybertrust that provides security product certification.
Recommended Competitor Actions
► Competitors in general will need to take steps to review the depth of their European security service and determine their preparedness to compete with Cybertrust’s LAN and data centre security services. With the recent wave of mergers (BT/Counterpane, IBM/ISS and now Verizon Business/Cybertrust), the barriers to entry are growing for those hoping to compete globally.
► Orange is thrust into a difficult position, having worked with Cybertrust for some of its managed security services via its partnership. It will need to assess quickly whether it continues in this partnership arrangement, needs a new partner, or makes an acquisition. One such possible acquisition target is Getronics, which has security expertise on the large corporate LAN and data centre side to rival Cybertrust.
► IBM can point out that Verizon is obviously reacting to its own acquisition of ISS, which it completed in 2006. It can also note that not only did it get an extensive global managed security service in the deal; it also got a security hardware business that blends well with IBM’s professional approach for global enterprises.
► AT&T will need to evaluate its own position for global security. It has done a terrific job taking its higher end services (such as its Internet Protect) and offering variations on its services that appeal down-market. However, its European professional services staff resources remain limited. While it has been no slouch in the global market (see “ITU Telecom World Hong Kong: AT&T Debuts Disaster Recovery Efforts,” December 5, 2006), it must evaluate its security profile to meet worldwide demand.
Recommended End User / Customer Actions
► European MNC customers gain added global security resources to help their company’s protection. Going forward, customers can expect fast improvement in global carriers’ integration of data centre, LAN and WAN security services. Cybertrust’s European customers gain the additional advantage of a strong global WAN owner with deep pockets and the demonstrated will to increase service transparency and integration.
► Prospects should approach this merger with caution initially, as the combination of assets and organization arrangements could be disruptive in the short term until there is a comfortable strategy coalesced post-merger. Longer term, the global reach of Cybertrust along with the backing and other resources that Verizon brings to the table will provide a worthy consideration for MNCs.
► Customers using a pure-play MSSP should seriously consider the new combined global carrier-MSSP approach being spearheaded by BT, IBM and now Verizon. On the one hand, these service providers become even further entrenched in their accounts; on the other hand, they provide more transparency and easier management, combined with standards adherence to allow for migration back from an outsourced model to an in-house or co-sourcing model.
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