Telecom’s SDP spending to reach $6.7 bn by 2019 from $4.7 bn in 2014

The combined service delivery platform (SDP) software and services market is anticipated to reach $6.7 billion by 2019 from $4.7 billion in 2014, said Infonetics Research, now part of IHS.

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Ericsson and Huawei are leading the SDP revenue market share in 2014. The SDP market grew 13 percent in 2014 – driven by API exposure platforms and enterprise and small- and medium-sized business (SMB) services.

Infonetics’ SDP Software and Services report tracks the mobile and fixed-line SDP software and services that operators use to create and deliver services to their subscribers.

“Virtualization is a hot topic throughout the communications industry right now, and the service delivery platform (SDP) segment is no exception,” said Shira Levine, directing analyst for service enablement and subscriber intelligence at Infonetics Research.

Service Delivery Platform (SDP) Market growth

SDP trends

Telecom operators are going beyond traditional APIs and exposing capabilities such as ringback tones, missed call notification, policy management, authentication and authorization, and subscriber analytics.

The consumer opportunity drives service delivery platform spending in emerging regions, while more developed markets are focusing investments on enterprise and SMB services, including the M2M opportunity.

Tier 1 telecom operators in established markets are comfortable with on-premise solutions deployed on purpose-built hardware, while some large telecoms are looking at virtualizing the SDP on a private cloud.

The SDP report also noted demand for software-as-a-service (SaaS) and platform-as-a-service (PaaS), which provide operators with a lower-risk and more cost-effective way to trial different lines of business, such as MVNO offerings and M2M services.

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