The News: Amdocs announced it has entered a definitive agreement to acquire MYCOM OSI, a UK-headquartered company providing SaaS-based cloud network and service assurance solutions to communication service providers (CSPs) globally. Read the Amdocs Press Release here.
Amdocs Acquires MYCOM OSI to Bolster AIOps/Kubernetes Portfolio Capabilities and AWS Relation
Analyst Take: Amdocs’ acquisition of MYCOM OSI provides the service assurance as well as Kubernetes (K8S) capabilities needed to enable the overall Amdocs portfolio can deliver end-to-end service and network orchestration across CSP 5G Standalone (SA) and multi-cloud environments. This includes AI/ML capabilities that detect and predict anomalies and provide intent-driven closed loop operations through AIOps and automated remediation.
Amdocs’ Board of Directors approved the transaction for a consideration of approximately $188 million in cash and expected to be completed in fiscal Q4 2022. Revenue from MYCOM OSI is expected to be immaterial in fiscal 2022 and will add less than 1% to total revenue on an annualized basis.
The deal follows on the wave of consolidation across the service assurance market segment, including Oracle’s 2021 acquisition of Federos, Juniper’s 2020 acquisition of Netrounds, Ericsson’s 2018 acquisition of CENX, VMWare’s 2018 acquisition of Dell EMC’s service assurance assets, and Ciena’s 2018 acquisition of Centina Systems.
Amdocs gains MYCOM OSI’s AIOps portfolio assets targeted at automating telco operations, which is a key consideration. As CSPs accelerate their 5G deployments and expand virtualization of network solutions, I expect that Amdocs can swiftly offer AIOps-based solutions that are well-suited to managing intricate network operations across cloud-native 5G SA and virtual environments. Utilizing AIOps-based solutions, operations engineers could potentially cut down thousands of incoming events and trouble tickets each day and systematically track accuracy of root cause analysis. Features, such as automatic suggestion of root causes, auto-generation of trouble tickets for most common network issues, and customizable alarm prioritization can help the operations engineers to work on the most impactful events first.
Amdocs also locks in MYCOM OSI’s support for Amazon Elastic Kubernetes (Amazon EKS) as the foundational service for its Experience Assurance and Analytics (EAA) suite of Service Assurance applications. Through this MYCOM OSI implementation, Amdocs can improve the flexibility and efficiency of the EAA Cloud Service SaaS platform as well as bring-your-own-cloud (BYOC) option.
The MYCOM OSI relationship with AWS fully aligns with the already tight alliance between Amdocs and AWS. For instance, I believe the Amdocs and AWS AI-powered, cloud-based solution for conversion accuracy validation has contributed toward T-Mobile’s momentum in executing Sprint merger synergies. Specifically, the business assurance module of the Amdocs Data and AI Platform is developed to detect deviations and consistencies of customer financial and billing data while transitioning to new systems.
With AWS certified professionals embedded in the Amdocs organization, Amdocs strengthens its prospects in broadening its influence across the service provider community as they advance their cloud journeys in the pursuit of meeting their service innovation and customer experience objectives.
As such, Amazon EKS foundational service for Service Assurance applications can offer several benefits to CSPs such as expanded platform flexibility for BYOC customers. For SaaS tenants, the solution can unlock efficiencies by supporting a wider array of Amazon EC2 instance types by using the open-source developer ecosystem to spur software-powered innovation. Amazon EKS serves as a key building block of the MYCOM OSI EAA SaaS platform, delivering a production-grade managed Kubernetes (K8S) that could reduce the operational overhead of running K8S.
Since Amdocs has a good deal of recent M&A experience, including Openet, Vubiquity, Brite:Bill, Pontis TTS Wireless, Sourced Group, Projekt202 and UXP Systems, I expect the MYCOM OSI acquisition to proceed smoothly. I believe Amdocs now has a better-rounded portfolio and one that will be able to play a significant role in fulfilling growing CSP 5G assurance and automated operations demands across AWS, multi-cloud, and K8S environments.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.
Other insights from Futurum Research:
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MWC 2022: Amdocs Digital Services Expansion Accentuates Amdocs Mission to Spur Cloud Journeys
Image Credit: Mycomosi
Author Information
Ron is an experienced, customer-focused research expert and analyst, with over 20 years of experience in the digital and IT transformation markets, working with businesses to drive consistent revenue and sales growth.
Ron holds a Master of Arts in Public Policy from University of Nevada — Las Vegas and a Bachelor of Arts in political science/government from William and Mary.
