NetCracker preparesfor the Gigabit Society through aggressive expansion and innovation

AF: The acquisition of the activation assets from Subex is an outcome driven by a key industry trend — one where service providers are looking for strategic partners who can deliver a complete, end-to-end fulfillment stack. The complementary nature of NetCracker’s Telecom Operations andManagement portfolio and Subex’s activation business made it a perfect product and technology fit. Subex’s activation and provisioning business has been one of the market leaders in its segment. The scalability and high availability of the platform, combined with the diversity of network elements supported, underscore Subex’s strong track record of innovation and successful delivery. This acquisition pairs NetCracker’s breadth of offerings at the customer and service layer with strong network activation capabilities. As Tier 1 converged service providers deploy next-generation networks and services, the ability to rapidly activate and provision services becomes a critical success factor. With Subex’s activation business we get a proven, scalable technology with rich functionality that many of our customers and prospects expect us to deliver as part of our fulfillment solution. We also share a number of customers, making this a relatively easy transaction with the least amount of disruption for our customers and ongoing projects. More importantly, this acquisition needs to be viewed within the broader context of NetCracker’s aggressive expansion in the TOMS segment. This acquisition is yet another important milestone in our quest to deliver the most comprehensive and innovative end-to-end Telecom Operations and Management Solution (TOMS) portfolio to our customers. As we continue to execute on our strategy, you should expect to see continuous investment in internal growth and development, increased leveraging of NEC assets, and further acquisitions.

 

VP: Products are only part of the story for solution providers. Services are increasingly demanded by CSPs. What's your services strategy?

 

AF: As a company, NetCracker has been built on a foundation of three key capabilities: innovative software, deep telecom domain expertise, and one of the largest BSS/OSS professional services workforces in the world. NetCracker’s professional services offerings have been one of the critical elements in our success and growth in the market. It is absolutely intrinsic to our offerings and something that all our customers expect from us. BSS/OSS transformation is not possible without each of the three elements described above. You need a cutting-edge, comprehensive software suite, deep telecom domain knowledge to make it applicable in a fast-changing environment, and a strong professional services capability to install and operationalise the solution set to make the transformation possible. NetCracker’s professional services offerings run the entire spectrum of capabilities expected from a company of our scale and size. From planning and consulting to turnkey delivery; from operations and maintenance to end-to-end outsourcing and managed services, we offer a full portfolio of professional services to our customers across the world. Some of our services offerings — such as managed services and end-to-end turnkey delivery — have seen much greater emphasis in recent times. As our customers seek to reduce their OpEx by as much as 30-40%, they will continue to rely on assistance from strategic partners such as NetCracker. Services, therefore, will continue to remain a key focus and an ongoing area of investment for us.

 

VP: The NEC acquisition itself is interesting. Does that give you greater credibility in the market and greater access to CSP customers? How has it enhanced your ability to innovate and execute?

 

AF: NetCracker’s merger with NEC has been a unique event in the industry. It has created one of the largest Telecom Operations and Management solutions companies in the world with a global footprint and a track record of innovation and growth. From the world’s first LTE network, to mobile money, from managing home network to the largest data centres in the world, NetCracker (with the help of NEC) has delivered on the promise of this acquisition — now coming up on its third anniversary. This acquisition has benefited us both. For us, it has certainly opened up new regions and access to customers in them. For NEC it has broadened and deepened their offerings and built a bigger software footprint globally. Together we bridge the Network and IT domains — and deliver what we call the "4C Experience": customer-centricity, content, convergence, and connectivity

 

VP: Why is NetCracker different? What sets you apart from the other BSS/OSS system vendors?

AF: We have built our business and its success on four things: Our business model, our technology, our track record, and our employees. From very early on, our business model was driven by our desire to solve our customers’ biggest challenges in the BSS/OSS domain, and we built our capabilities accordingly. We never thought of ourselves as a “software company” or a “services company”. We are a company that solves major, strategic problems faced by our customers in the BSS/OSS domain and have built the best-in-class capability to do that – with software, solutions, services, and domain expertise. We also ensured that when it came to softwareand technology, we were a generation ahead. We probably spend the largest amount of R&D dollars in the BSS/OSS space, ensuring that we maintain our technology lead — from the core platform through to the highest level of standardisation in the industry. Another key area of differentiation is our track record of successful implementations. An obsessive customer focus, along with best-inclass execution, has ensured that we deliver on time and on budget and help our customers achieve success in their implementations. And last but not least is our people. In addition to sourcing the best talent globally, we invest in training them in the BSS/OSS domain — and by making them successful, we are successful.

 

VP: What are typical NetCracker success stories? Are there any examples you can share?

 

AF: For a company of our scale and size, there are many, many examples: from major transformation programmes involving converged service providers with multiple subsidiaries in Europe to the world’s first deployment of commercial LTE in Japan. We have worked closely with mobile carriers offering the next generation of mobile broadband in Asia to enabling cable companies in North America achieve rapid time to market with quad- and

multi-play services. In terms of innovation, we have successfully met the very sophisticated and complex requirements of the US Government and the Department of Defense, and assisted utility companies in deploying smart grid technologies. We are involved with service providers in Asia and Europe using cloud and SaaS services to create new offerings and mobile operators entering new verticals with mobile payment and banking. We are even playing a central role in cases where sudden and often unpredictable regulatory changes have forced service providers to re-think operations and management requirements for IT and Network. All of these are examples from our customer base. From large, converged operators such as Deutsche Telekom, America Moviles and France Telecom with their multiple subsidiaries to DoCoMo with its LTE deployment and NTT Communications with its innovative SaaS offerings. Maxis, Celcom, and DiGi in Asia who are rapidly expanding their mobile broadband to TNZ and Chorus who have gone through multiple evolutions driven by regulatory change. In North America customers such as TELUS, Sprint have introduced next generation services and networks, and MSOs such as Shaw, UPC and Videotron have been innovators in delivering an optimum customer experience, each adopting a unique approach. As you know, success comes from teamwork – it’s the result of service providers and suppliers working in tandem towards the same goal. We consider all of these as success stories – of innovative thinking and outstanding execution on the service provider side; of solution innovation and customer-focus on our side.

 

VP: The communications industry is in the midst of a major shift as suppliers consolidate, and new entrants, including OTT providers gain traction. What's your view of these dynamics? How do you see the industry developing in the next few years?

 

AF: An entirely new industry structure is evolving.A lot of the old companies are transitioning out — either via consolidation or failure — and new companies with new business models are gaining. Old titans such as Nortel are no more, while new, aggressive suppliers from China and India are expanding rapidly in new regions. In this rapidly changing industry structure, scale and size become very important contributors to success when combined with the right mix of offerings. And the traditional lines between HW, SW, and Service suppliers start blurring. Network and connectivity are still important, but are not the only differentiators for service providers. There is far greater emphasis on reducing cost of operations and increasing agility as opposed to old notions of owning networks and IT infrastructure. This development will throw up new models for shared networks and managed services. There will also be a much greater focus on delivering a compelling customer experience. OTT providers will force innovation and change in this area more than any other. The notion of usability, anywhere-anytime access, and personalisation will change dramatically in the next 24-36 months. Another key area where we see the industry evolving is into new segments using new technology platforms. Until recently, service providers used the next generation of network technology as the foundation for growth. But in the coming months and years, service providers will aggressively focus on industry-specific solutions — in finance, retail, banking, security, medicine, etc., using new technology platforms such as Cloud and M2M. With change comes opportunity, and as we evolve to a Gigabit Society, NetCracker is more bullish than ever regarding the future of this industry and the scale of opportunities.