What Makes Oracle Need Acme Packet and Tekelec?

Cisco has a reputation for “never having found a protocol it didn’t like.” We can also make the case that Oracle has never found a revenue stream it didn’t want to acquire.

So now it looks like Oracle is focused on milking the cash cow of telecom, and particularly the wireless side.

First, let’s set the stage. We’ve seen the carriers punting a tremendous amount to their primary vendors, from out and out outsourcing by Sprint to Ericsson, to the normal integration services by ALU and Ericsson and Huawei.

Ericsson’s acquisition of Telecordia made it so that Ericsson now had a story to tell that went to the heart of the carrier’s support systems.

Much of those support systems are built on the hardware that was associated with SUN / now Oracle.

In addition, the SUN Java community has built a softswitch and Service Execution Engine that could be deployed in the network.

Acme Packet represents an ability to manage sessions in the network, while Tackle represents a way to manage cellular traffic with cellular. Both assets are used to manage traffic and can create a service view that can be used to provide policy control and SLA services. 

Here are the points made in Oracle’s statement...

• Tekelec’s technology enables service providers to deliver, control and monetize innovative and personalized communications services, and is utilized by more than 300 service providers in over 100 countries.
• Tekelec’s network signaling (Diameter and SS7), policy control and subscriber data management solutions complement Oracle Communications’ mission-critical operational support systems, service delivery platforms and business support systems, and are expected to help service providers efficiently allocate and monetize network resources.
• By combining Tekelec with leading capabilities from Oracle Communications and Acme Packet, Oracle expects to provide the most complete communications offering that will enable service providers to engage with customers, improve operations, control network resources and deploy innovative communications services.
•  “As connected devices and applications become ubiquitous, intelligent network and service control technologies are required to enable service providers to efficiently deploy all-IP networks, and deliver and monetize innovative communication services,” said Bhaskar Gorti, senior vice president and general manager, Oracle Communications. “The combination of Oracle and Tekelec will provide service providers with the most complete solution to manage their businesses across customer engagement, business and network operations, service delivery and end user applications.”
• “In an increasingly mobile and social world, customer experience is about optimizing network performance and personalizing services based on what engages, moves, and inspires people,” said Ron de Lange, president and CEO, Tekelec. “Together with Oracle, we expect to accelerate the pace of service innovation by helping service providers transform the way they manage and monetize the explosive growth in signaling and data traffic on their networks.”

Alan Quayle has pointed out that Oracle can easily add an SDN acquisition and give the carriers a new alternative. 

Now comes the next part. Oracle is also a primary supplier to back end systems on the Database side, where carriers’ IT departments spend most of the development time and look for innovation.

When it comes to the carriers’ Network OSS systems, they have been frustrated by the demise of Nortel and the International nature of ALU, Ericsson and Huawei.

In fact, the carriers have a bit of legacy problem in their systems because of all the mergers and bankruptcies. For example, the registration systems for one wireless carrier, in particular, are made up of legacy Nortel, ALU and Ericsson.   This part of the system (called the HSS or HLR) is where service distinctions are supposed to be stored. The acquisition of Acme and Tekelec point to an opportunity to bypass these HLRs and provide differentiated services since Tekelec and Acme control the sessions.  

It indicates that the Oracle thinks it can integrate into the back end systems to the network.  

Our friend Phil Edholm points out that a No IMS delivery solution is possible with Oracle’s systems,

Of course Oracle also has a history of just buying just to have more revenue. Its numbers missed and the viewpoint was that sales was to blame.  The firm obviously thinks there is money on the table with the carriers. And I think the carriers would agree they want alternatives.