New research predicts major first-mover advantage for service providers using virtual customer premise equipment (vCPE) solutions: up to $1.4 billion in new revenue and 79 percent order-to-cash cost reduction per site1
ST. LOUIS , Oct. 13, 2015 (GLOBE NEWSWIRE) -- Amdocs (NASDAQ:DOX), the leading provider of customer experience solutions, today announced Amdocs Service Design and Create, a new network functions virtualization/software-defined networking (NFV/SDN) solution that allows service providers to achieve service agility by enabling the design, testing and launching of new network services in weeks rather than months2 and meet the expectations of today's customers, influenced by the pace of over-the-top (OTT) providers' service innovation.
Amdocs Service Design and Create overcomes the manual, time-consuming and resource-intensive service development process that today is a barrier to service innovation. With resource and service creation automation capabilities, the new solution shortens the service development lifecycle and reduces engineering and IT costs, automating the complete service development process – spanning service modeling, test and de-bugging, packaging and distribution – with an intuitive drag-and-drop interface and modular, reusable components.
Underscoring the strong market opportunity for agile software-powered networks, Amdocs also today announced new commissioned research from Analysys Mason that provides the industry's first detailed analysis of the benefits that NFV/SDN can deliver for "first mover" service providers: up to $1.4 billion in new revenues, and a 79 percent improvement in order-to-cash (O2C) per-site per year for enterprise virtual customer premises equipment (vCPE) – a most promising NFV/SDN use case2.
"Our working hypothesis for this project was NFV and SDN are disruptive technologies that, if properly operationalized with OSS automation and self-service customer empowerment, will drive service agility and cost savings, which indeed the research proved," said Glen Ragoonanan of Analysys Mason and report co-author. "But interestingly, we found that vCPE-enabled services solution is a revolutionary opportunity for first-mover fixed-line service providers, provided they reach their critical mass ̶ 50 percent for residential and 40 percent for enterprise ̶ for vCPE customer migration."
The new research, drawing heavily on data from North American and European tier-1 service providers, investigates the key financial impacts of NFV in two areas which will be among its first commercial deployments: enterprise vCPE and residential set-top-box replacement (vSTB).
- Enterprise vCPE: service providers with first-mover advantage stand to realize up to a 5 percent annual revenue increase, resulting from increased revenues (of $1.4 billion over the investment period) from upsell/cross-selling of new and existing NFV/SDN services and a 79 percent O2C cost reduction per customer site, per year, due to OSS automation and customer self-provisioning.
- Residential vCPE/vSTB: service providers with first-mover advantage stand to realize up to 82 percent cost savings per home from the adoption of vCPE-enabled services, where high cost savings (up to $1.34 billion net cost savings over the investment period) can protect revenue margins from competitive price wars, as well as fund digital-home investments and generate new strategic residential revenue streams, and provide a $655 million increase in revenues from faster upsells of double-play to triple-play services.
"Service providers moving to NFV need to be aware that it's not enough to simply deploy an NFV orchestrator to manage their hybrid physical and virtual network services," said Ann Hatchell, head of network marketing at Amdocs. "As this new research makes clear, to reap maximum benefit, they must also bring a new stream of services into the mix faster and at lower cost, which is exactly what this new solution helps to enable. Amdocs Service Design and Create enables agile OSS that moves our customers one step closer to The New World of Customer Experience, an era where service providers are expected to offer innovative and personalized services, brought to market quickly and delivered via agile software-powered networks."
Amdocs offers a comprehensive NFV portfolio including Amdocs Network Cloud Service Orchestrator (NCSO), an NFV orchestration solution, and a number of virtual network functions (VNFs).
1Analysys Mason white paper, "vCPE services business case: potentially billions of dollars payback for fixed CSPs" by Glen Ragoonanan and Gorkem Yigit, Analysys Mason; October 2015.
2Results from Amdocs internal testing. Commercial results may vary.
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Amdocs is the market leader in customer experience software solutions and services for the world's largest communications, entertainment and media service providers. Its portfolio powers The New World of Customer Experience™, where a wide array of innovative and personalized services are delivered seamlessly to end users, regardless of device or network. For more than 30 years, Amdocs solutions, which include BSS, OSS, network control and optimization, coupled with professional and managed services, have accelerated business value for its customers by streamlining complex operating environments, reducing costs and speeding time to market for new products and services. Amdocs and its more than 24,000 employees serve customers in over 90 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $3.6 billion in fiscal 2014.
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Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2014 filed on December 8, 2014 and our quarterly 6-K form furnished on February 9, May 11 and August 10, 2015.
CONTACT: Media Contact: Sara Preto Fusion PR for Amdocs Tel: +1-212-651-4214 E-Mail: firstname.lastname@example.org