Software-as-a-Service in the Telecommunication Industry: Problems and Opportunities

  • Eetu Luoma
  • Oleksiy Mazhelis
  • Pertti Paakkolanvaara
Part of the Lecture Notes in Business Information Processing book series (LNBIP, volume 51)


This paper examines the telecommunication software market and the adoption of topical Software-as-a-Service (SaaS) model in this vertical market. The aim of this paper is to estimate which telecommunication software products are likely to be provided as a Service, and to examine the potential factors disallowing SaaS adoption. The set aim is pursued by studying both the supplying software vendors and the communication service providers (CSP) as customers. A set of thematic interviews, software industry statistics and information disclosed by the software vendors are used in the analysis. The results of the analysis reveal challenges in adopting SaaS for telecommunication software as well as suggest that SaaS offerings are more likely to appear in specific areas of CSP operations, rather than as a comprehensive solution.


Software-as-a-Service Communication Service Provisioning Operations Support System Business Support System Business Networks 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Tyrväinen, P., Warsta, J., Seppänen, V.: Evolution of Secondary Software Businesses: Understanding Industry Dynamics. In: León, G., Bernardos, A., Casar, J., Kautz, K., DeGross (eds.) Open IT-Based Innovation: Moving Towards Cooperative IT Transfer and Knowledge Diffusion. IFIP International Federation for Information Processing, vol. 287, pp. 381–401. Springer, Heidelberg (2008)CrossRefGoogle Scholar
  2. 2.
    SIIA: Software as a Service: Strategic Backgrounder, Software & Information Industry Association (2001)Google Scholar
  3. 3.
    McNeice, S.L.: The Emergence of Software-as-a-Service (SaaS) in Telecom, Stratecast Perspectives & Insights for Executives (SPIE) – 2008 #11, Frost & Sullivan (2008)Google Scholar
  4. 4.
    Unterschütz, T.: Recommendation for Actions based on the mapping of topics and activities for NG-OSS, Report of project OSS for NGN – Co-ordination of Telco Activities, Eurescom (2004)Google Scholar
  5. 5.
    Frank, L., Luoma, E., Tyrväinen, P.: Market Scope of the vendors in the OSS software market. In: Proceedings of the IEEE International Conference on Industrial Engineering and Engineering Management, pp. 2096–2010 (2007)Google Scholar
  6. 6.
    Xin, M., Levina, N.: Software-as-a-Service Model: Elaborating Client-Side Adoption Factors. In: Boland, R., Limayem, M., Pentland, B. (eds.) Proceedings of the 29th International Conference on Information Systems, Paris, France (December 2008)Google Scholar
  7. 7.
    Frank, L., Luoma, E.: Telecommunications Software Industry Evolution. In: Proceedings of 7th Conference on Telecom, Internet & Media Techno-Economics (2008)Google Scholar
  8. 8.
    Terplan, K.: OSS Essentials – Support System Solutions for Service Providers. John Wiley & Sons, New York (2001)Google Scholar
  9. 9.
    Thomsen, O.: The Lean Approach. Wireless Personal Communications 38, 17–25 (2006)CrossRefGoogle Scholar
  10. 10.
    Kelly, M.: The TeleManagement Forum’s Enhanced Telecom Operations Map (eTOM). Journal of Network and Systems Management 11(1), 109–119 (2003)CrossRefGoogle Scholar
  11. 11.
    TMF GB929: Telecom Application Map - The BSS/OSS Systems Landscape. Version 3.11. TeleManagement Forum, Morristown (October 2009)Google Scholar
  12. 12.
    Laplante, P., Zhang, J., Voas, J.: What’s in a Name? Distinguishing between SaaS and SOA, IT Professional, pp. 46–50. IEEE Computer Society, Los Alamitos (2008)Google Scholar
  13. 13.
    Greschler, D., Mangan, T.: Networking lessons in delivering, Software as a Service’ Part I. International Journal of Network Management 12(5), 317–321 (2002)CrossRefGoogle Scholar
  14. 14.
    Jacobs, D.: Enterprise Software As Service. Online Services are Changing the Nature of Software. In: ACM Queue, July/August 2005, pp. 36–42 (2005)Google Scholar
  15. 15.
    Wang, R., Brown, E.G., Erickson, J., McEnroe, W., Metre, E.V.: Comparing The ROI Of SaaS Versus On-Premise Using Forrester’s TEITM Approach, Measuring The TEI For Enterprise Applications series, Forrester Research (2006)Google Scholar
  16. 16.
    Benlian, A., Hess, T., Buxmann, P.: Drivers of SaaS-Adoption – An Empirical Study of Different Application Types. Business & Information Systems Engineering 1(5), 357–369 (2009)CrossRefGoogle Scholar
  17. 17.
    Mazhelis, O., Tyrväinen, P., Matilainen, J.: Analyzing Impact of Interface Implementation Efforts on the Structure of a Software Market: OSS/BSS Market Polarization Scenario. In: Proceedings of the 3rd International Conference on Software and Data Technologies (ICSOFT 2008), Porto, Portugal (July 2008)Google Scholar
  18. 18.
    Lee, J.-N., Huynh, M.Q., Kwok, R.C.-W., Pi, S.-M.: IT Outsourcing Evolution, Past, Present and Future. Communications of the ACM 46(5), 84–89 (2003)CrossRefGoogle Scholar
  19. 19.
    Carraro, G., Chong, F.: Software as a Service (SaaS): An Enterprise Perspective. Microsoft Corporation (2006),
  20. 20.
    Fontana, A., Frey, J.H.: The Interview: from structured questions to negotiated text. In: Denziu, N.K., Lincoln, Y.S. (eds.) Handbook of qualitative research, pp. 645–672. Sage, London (2000)Google Scholar
  21. 21.
    Dittberner. OSS/BSS KnowledgeBase. Vendor financials 2000 and 2006 (2007)Google Scholar
  22. 22.
    Tesch, R.: Qualitative research: Analysis types and software tools. Falmer, New York (1990)Google Scholar
  23. 23.
    Hirsijärvi, S., Hurme, H.: Tutkimushaastattelu. Teemahaastattelun teoria ja käytäntö (2001)Google Scholar
  24. 24.
    Järvinen, P.: On Research Methods. Tampere, Juvenes-Print (2004)Google Scholar
  25. 25.
    Hevner, A., March, S., Park, J., Ram, S.: Design Science in Information Systems Research. MIS Quarterly 28(1), 75–105 (2004)Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  • Eetu Luoma
    • 1
  • Oleksiy Mazhelis
    • 1
  • Pertti Paakkolanvaara
    • 2
  1. 1.Dept. of Computer Science and Information SystemsUniversity of Jyväskylä 
  2. 2.Faculty of Economics and Business AdministrationUniversity of Oulu 

Personalised recommendations