Showing posts with label Celcite. Show all posts
Showing posts with label Celcite. Show all posts

Thursday, July 30, 2015

Amdocs CEO: "Network Optimization Business is Slow"


In the past two years, Amdocs entered a new space of managing networks' traffic  by acquiring two companies - Celcite (2014, $129M, here) and Actix (2013, $120M, here). See also "Amdocs Integrates RAN Management and Optimization Solutions" - here.

Was this a successful move? 

Amdocs Q3 (June 30) earning call (revenues of $908M, here) provides some insights into Amdocs' network business: 

Question by Amit Singh - Jefferies: " .. you have previously highlighted network optimization as one of the avenue of growth. And I believe a few quarters ago you had even said that it could be about $100 million plus revenue this year. So just wanted to get a sense of how that business or the growth in that business is playing out and what is your expectation going forward from here?"

Answer by Eli Gelman [pictured], President and CEO, Amdocs: "So network software in general, including network optimization, is moving along well. Its lumpy, because the deals there are not so smooth I would say in terms of the deals, the deal flow, not the execution.

So we see progress. We actually expanding the offering, so it’s not only specific in the network optimization, it's not only around that product that we acquired we are now talking about more services, a broader view of the problem, not only the red optimization other network optimization as well. And as we are talk about that we are also trying to make our first moves into the network visualization which is the even the bigger potential in this network software space.

But it’s slow, its – we are executing on some development, we have some dialogue with some customers. But these are completely new topics. So the ones that we have already are progressing well. The new ones are a big unknown. And what we are learning is that it is lumpy as many other projects" 


See "Amdocs' (DOX) CEO Eli Gelman on Q3 2015 Results - Earnings Call Transcript", by SeekingAlpha, here.

Tuesday, February 4, 2014

Amdocs: Telus [Canada]; TIM, Nextel [Brazil]; Vodafone, Telefonica [Germany] Selected Actix/Celcite


Amdocs announced "a number of customer wins [and expansions] for mobile network optimization capabilities resulting from its recent acquisitions of Actix [see "Amdocs Acquires Actix ($120M) to Provide Geo-located Network Information" - hereand Celcite [see "Amdocs Acquires Celcite for $129M" - here]:

[see also "Amdocs Explains Celcite/Actix Business" - here]
  • TIM Brasil [here] to improve data traffic transmission across Brazil
     
  • TELUS (Canada) for 3G and LTE geo-location and radio access networks (RAN) consolidation into a single, unified solution that will enable TELUS to improve customer experience while realizing significant engineering efficiencies
     
  • Nextel Brasil (NII Group) selected ActixOne to be one of the network optimization solutions for its recently deployed 3G network in Brazil
     
  • Vodafone Germany to continue Vodafone's strategic RAN optimization program to increase efficiency, improve customer experience and enable advanced optimization
     
  • Telefónica Germany added 2G optimization to the company's existing ActixOne optimization platform and extended 3G and LTE coverage to 100 percent"
See "Amdocs Announces Customer Sales Momentum for Mobile Network Optimization" - here.

Thursday, January 30, 2014

Amdocs Expands PCRF Deployments in Deutsche Telekom; Explains Celcite/Actix Business


Quotes from Amdocs' Q1 2014 earning call, by Eli Gelman [pictured], Director, CEO and President of Amdocs Management Limited:
  • "We have similar trends [expanding inside large MNO groups] with Deutsche Telekom on our policy product that we implemented. We signed a contract with their corporate and then we implemented in certain affiliates. And now I think it's about 6 or 7 affiliates already of Deutsche Telekom all across Europe are using the same for policy standardizing on Amdocs as a certain component of the business. But not less encouraging is the fact that you see some business that we announced in Luxembourg or in Telekom Austria, A1 in Austria and in other places. So you see kind of variety of different businesses"
     
  • ".. the topic or the space of RAN optimization, radio access network optimization, have been on our agenda for quite some time. We just eventually managed to find the right assets and we completed this deals [see "Amdocs Acquires Actix ($120M)", here, and Amdocs Acquires Celcite for $129M" - now reported as "cash consideration of $141 million", here]
      
  • The nature of these deals are relatively different from the one you expect on BSS transformation or even OSS transformation project. Usually, each one of the deals are relatively small. Could be in the $1 million, $2 million, $3 million each. Usually, the tendency is to augment it with addition projects. Now in some cases, you will see a company streamlining around an Actix product, for example, for 3G optimization, 3G network optimization. And they will then pay a different or subsequent license for the 4G and then LTE. That could be something different from small serves and different technologies. Same goes about the regions. It usually could be pure segments of market or subsets of markets. And that's kind of the trend with the Actix product.
     
  • With the Celcite, it's similar but on the services side. So usually, we provide optimization services around Celcite tools and now we're combining it with the Actix infrastructure product but we'll basically offer the services to a certain market or submarket for a certain technology, sometimes certain network equipment providers. 

See "Amdocs Limited Management Discusses Q1 2014 Results - Earnings Call Transcript", by SeekingAlpah, here.

Wednesday, November 6, 2013

Amdocs Acquires Celcite for $129M; 2014 Expected Revenues (w/Actix):$68-103M

   
Amdocs continues to expand its offering in the network optimization space - much close to the IP data plane compared to its legacy products.

The BSS/OSS vendor announced ".. it has entered into a definitive agreement to acquire substantially all the assets of Celcite Management Solutions LLC [see "Celcite Updates SON with Responsibility Metrics and Accelerated Load Balancing" - here]  for approximately $129 million in cash .. Additional consideration may be paid later based on the achievement of certain performance metrics".

"The acquisition of Celcite builds upon and enhances the recent acquisition of Actix [see "Amdocs Acquires Actix ($120M) to Provide Geo-located Network Information" - here], and demonstrates Amdocs’ continued commitment to its network software and services strategy. By combining Actix’s market leading products with Celcite’s comprehensive network management and Self Optimizing Networks (SON) services and offering capabilities, Amdocs will be able to offer service providers comprehensive equipment-agnostic optimization solutions".

During its Q4 2013 earning call, Amdocs CEO Eli Gelman [pictured] said that "Combined, we expect Actix and Celcite to contribute between 2% to 3% of our full year revenue outlook in fiscal 2014 and drive modest earning accretions" (see "Amdocs Limited Management Discusses Q4 2013 Results - Earnings Call Transcript", by SeekingAlpha - here). Based on 2013 revenues of $3.3B and expected "organic growth outlook of roughly 2% to 5%" for 2014, this translates into $68-103M for both acquisitions.

See also - "[Guest post]: Preventing Conflict in Self-Optimizing Networks"- here.

"In addition, Amdocs will be expanding its CES (Customer Experience Systems) portfolio with quality-of-service (QOS) focused, geo-located network data that will drive a variety of optimization use cases. The acquisition will position Amdocs as the first supplier to offer customer experience-driven network optimization software and services based on a holistic view of the customer experience across all domains"

See "Amdocs Has Signed a Definitive Agreement to Acquire Celcite, a Leading Provider of Network Management and Self Optimizing Network (SON) Solutions" - here.

Tuesday, October 1, 2013

Celcite Updates SON with Responsibility Metrics and Accelerated Load Balancing.


Celcite announced that is has ".. launched Celcite SON 3.5. This update introduces advanced new features unavailable elsewhere: 
  • With Responsibility Metrics, network engineers can, for the first time, quickly and easily ascertain which cells are proportionately most responsible for network problems. This means that Celcite’s self-optimizing network system can automatically prioritize and handle the issues that will deliver the biggest improvements in network capacity and customer experience – or allow engineers to do so themselves in an “open-loop” set-up.
     
  • Celcite SON 3.5 also introduces Accelerated Load Balancing (ALB), which rapidly finds and addresses abnormal load situations within the network. The accelerated response time means that the network can now be corrected within minutes, circumventing any issues that could multiply with slower responses to the problem. The ALB function is even more powerful with Celcite SON 3.5’s increased scalability and speed, as multiple instances can now be handled on the same processor". 
Celcite's Centralized SON (C-SON) product, provide SON support for all major equipment providers, including EricssonNSN, and Huawei, across both 3G and 4G".  

See "Celcite Launches Celcite SON 3.5 Self-Optimizing Network Solution" - here.

Monday, September 23, 2013

[Guest post]: Preventing Conflict in Self-Optimizing Networks

By Chris Larmour*, CMO, Celcite

Self-organizing networks (SON) address the challenges posed by increasingly complex mobile networks by automating the provisioning, configuration and reconfiguration of the radio access network (RAN) for optimal capacity and performance. The benefits are clear. Operators who have installed it have seen more than a 15 per cent improvement in capacity utilization and greater than 20 per cent improvement in the dropped call rate. However, like any powerful technology, it needs to be put in the right hands.

To explain the implications, we need to start at the beginning. There are two main types of SON, decentralized and centralized. Decentralized SON (D-SON) only applies to a single node and does not allow for any coordination between different infrastructure vendors' equipment.  With D-SON, because the SON process happens at a distributed level, its effects are very localized.  Nonetheless, that can set up conflicts with other instances of SON elsewhere on the network.  From experience, most operators that have installed some level of D-SON on their network soon realize that they need some level of centralized organization layer.  Because of those limitations and scope for conflict, there is even some concern that D-SON may already be a redundant technology. 

Centralized SON (C-SON), on the other hand, allows the whole network to be self-optimized because it is a conglomeration of multiple, smaller use cases that focus on solving a single problem across the whole network.  But even with C-SON, the vendor absolutely needs experience of live, in-network installations of SON or risk setting up conflicts in the operator network, which could potentially lead to making the network worse, not better.

There are two key functions required to prevent conflict in C-SON. These are the trigger function, which determines which use case to initiate based on specific symptoms, and the coordination function, which manages any conflicts on the outbound command path to the network. The coordination function plays a pivotal role in deciding which command should take precedence over another, and in which order they should be transmitted.

Without the coordination function in place, a worse-case scenario of “Runaway SON” could occur.  It would come about if a command gets into a never-ending loop between two cells, setting in motion a chain of events which can ultimately lead to network outages. For example, one bad command may create a condition on one cell that the SON system senses, and corrects it on that and subsequent cells. Then, the first SON system catches the “bad” condition on the “corrected” cells, amplifying a single mistake and catalyzing a chain reaction of errors.  While this is currently only a theoretical scenario, for SON vendors without in-network SON experience and years of network management experience, it is a potential reality.

Mobile operators are sometimes wary of autonomous systems because of the risk of such outages occurring without human involvement. But humans do not have to be completely left out of the picture, particularly at the early stages of an installation.  Operators can start by incorporating some human involvement into the command loop. This “open-loop” method allows for greater control of the SON system since live personnel can decide if a particular change to a cell should be pushed to the network or not, minimizing the risk of a command being incorrectly prioritized and causing network outages. Once the foundation of trust is built, human intervention can slowly be removed from the equation to enable a completely autonomous SON system, once real people have seen how effective the system is.

Operators that have installed an “open-loop” system have made the switch to fully autonomous in as little as four weeks in our experience.  This shows just how quickly operators can be convinced of the real-world benefits of SON when they see it in action.  If operators keep a skeptical eye on D-SON and do not rush to engage partners without live SON experience, there is no need for conflicts to ever become an issue.  Then finally, the positive impact of SON, and C-SON in particular, of improved customer experience and reduction in CAPEX and OPEX can be felt universally.

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*Chris Larmour, CMO of Celcite, is an INSEAD MBA graduate with over 25 years of mobile industry experience. Chris was most recently VP Global Sales & Marketing at SwissQual (acquired by Rohde & Schwartz) and Chief Marketing Officer at Actix.