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Insights from Operator Interviews

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Vertical Software Industry Evolution

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Abstract

The previous section analysed use of software to improve productivity from a general perspective and provided a quick statistical analysis of software usage to the performance of a CSP. Before conducting elaborated statistical analysis on CSP software usage, we need to gain some insight into operator business and understanding on how operators see the role of software in their business as well as how they acquire software.

Telecommunications operators run a software intensive business. Currently, there exist a variety of access networks which form the technological infrastructure for providing communications services. Each network technology may require specific software applications for running services on that network. As seen in the previous sections, the OSS/BSS software is composed of numerous applications each for a rather narrow area of functionality. Further, in the operator business, growth seems to come in the developed countries from services built on top of plain network connectivity. The CSPs provide access to the Internet and to diversifying mobile services (besides telephony, also data transfer, email and chat services, and as a growing area also media, including video and TV), as well as a growing number of other value added content services. PSTN telephony is commonly facing phase-out in the portfolio of CSP services. All this adds to the number of applications a CSP has to maintain in their application portfolios.

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Notes

  1. 1.

    This operator has a few software engineers from a local software company at their premises performing tailoring and other tasks for them continuously on request.

  2. 2.

    This operator uses 70 -80 % of their investment budget for hardware, ca. 10 % for software purchases and 10 % for personnel.

  3. 3.

    This operator uses of the their software systems expenditure 25 % for the equipment, 40 % for own personnel, 30 % for software.

  4. 4.

    Overall software systems expenditure 40 % personnel, 40 % HW, 20 % SW (10-15 % of HW price is SW)

References

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Correspondence to Mirja Pulkkinen .

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© 2009 Springer-Verlag Berlin Heidelberg

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Pulkkinen, M., Veijalainen, J. (2009). Insights from Operator Interviews. In: Tyrväinen, P., Mazhelis, O. (eds) Vertical Software Industry Evolution. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2352-3_8

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