The News: Amdocs and Oracle announced the expansion of their global collaboration to empower customers on their journey toward cloud and digital adoption with Oracle Cloud Infrastructure (OCI). Read the full press release on the Amdocs website.
DTW23: Amdocs and OCI Provide Telcos More Cloud Agility
Analyst Take: Amdocs and OCI are expanding their partnership to enable telcos to move their Amdocs classic applications to OCI, specifically Oracle Cloud for Telcos. Through this extended cooperation, both firms seek to strengthen the ability of telco service providers to play an integral role in the cloud journey of communications and media organizations by offering new and differentiated cloud-based services that power growth and customer loyalty through enabling agile and swift interactions at scale.
From my view, the combination of Amdocs software portfolio, including operations support system (OSS)/business support system (BSS) assets, and OCI’s high-performance and secure cloud can provide the cloud-centric foundation critical to ensuring that service providers can attain their strategic objectives of more operational efficiency, broader agility, and improved business outcomes. Now Amdocs telco customers can array their service choices across Oracle’s diverse 45 public cloud regions or OCI Dedicated Region, which aids customers in fulfilling requirements and legal mandates for data residency, data sovereignty, and other security and privacy priorities.
I believe that it is important to observe that Oracle delivered solid fiscal year (FY) 2024 Q1 earnings highlighted by OCI growth of 66% year-over-year (YoY), notably faster than the company’s hyperscale cloud infrastructure rivals. Oracle CEO Safra Catz emphasized that Oracle’s total cloud services revenue, infrastructure plus applications, grew 30% to $4.6 billion in the quarter.
In August 2023, Oracle debuted Oracle Compute Cloud@Customer, developed primarily to enable organizations to run applications and middleware on OCI compute, storage, and networking services with flexible virtual machine (VM) shapes in their data centers. When combined with Oracle Exadata Cloud@Customer, it is the best-suited platform for workloads that are tightly integrated with Oracle databases.
Accordingly, organizations can use the same OCI services in their data centers and Oracle Cloud regions, while developers and IT managers can use the same application programming interfaces (APIs) and management tools to deliver a consistent user experience (UX) everywhere. Organizations can also migrate and consolidate existing workloads and deploy new cloud-native applications on a fully managed cloud platform in their data centers, enabling them to capitalize on OCI’s cost-effective consumption model to streamline operations and reduce costs.
Notably, with the June 2023 European Union (EU) Sovereign Cloud launch advancing its distributed cloud strategy, I ascertain that Oracle is the only hyperscaler to offer every single one of its hundreds of cloud services in the deployment model and location that a customer selects. Whereas other hyperscalers essentially assert “you must come to my public cloud for the best services,” Oracle brings its best services directly to customers as proven through the Oracle EU Sovereign Cloud unveiling.
Amdocs needed to enlarge its OCI relationship to further reinforce its multicloud capabilities across the global service provider ecosystem, especially as telcos are assigning top priority to having choice and flexibility in conducting their overall cloud journey. Also, Amdocs gains a short-term differentiator against OSS/BSS rivals that have yet to formally detail their telco-specific partnerships with OCI.
In addition to OCI, Amdocs has a longstanding alliance with Amazon Web Services (AWS) that leverages Amdocs cloud-native solutions, practices, and operations. Already the pair have generated more than 100 affirmation stories encompassing the diverse cloud native offering by Amdocs on AWS for telecom, FSI, and media and entertainment, aimed at using modular cloud-native technology to fulfill fast-evolving business needs by reducing the risks of cloud migration and deploying proven solutions.
Moreover, Amdocs and Microsoft unveiled a new Customer Engagement Platform in February 2023 targeted at enabling service providers to improve their engagement and end user experiences across all channels and applications, streamlining business processes and monetization of 5G use cases by leveraging Microsoft’s extensive AI portfolio capabilities. Microsoft Azure-certified solutions include Amdocs BSS Customer Experience Suite (CES) and Amdocs Data Intelligence to further ease adoption. Plus, Amdocs is collaborating with Google Cloud to deploy Amdocs solutions across hybrid and multicloud configurations with Google Cloud’s Anthos, its hybrid, cloud-agnostic container environment.
Key Takeaway: Amdocs Burnishes Multicloud Credentials With Expanded OCI Relation
Taken together, the expansion of its relationship with OCI further strengthens the multicloud credentials of Amdocs, directly addressing the topmost priorities of cloud service providers (CSPs) to have choice in advancing their overall cloud journeys. From my perspective, Amdocs customers can now gain access to a broad ecosystem of cloud services, spanning OSS/BSS, core network, and IT, to modernize their operations and applications in augmenting CX and improving business outcomes.
Disclosure: The Futurum Group 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 The Futurum Group as a whole.
Other insights from The Futurum Group:
Oracle FY 2024 Q1: Solid Results Bolstered by IaaS Gain
Oracle Compute Cloud@Customer: Taking Cloud Services to New Heights
Amdocs Announces a Telecom-Specific Generative AI Framework
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.
