Amdocs announced this week that it has entered into an agreement to acquire U.K.-based Mycom OSI for $188 million in cash. The companies expect to finish the transaction by the end of fiscal 2022, subject to customary closing conditions. The acquisition has already been approved by the Amdocs board of directors.
Mycom’s acquisition is more strategic than material, expanding its portfolio for Communication Service Providers (CSPs) to include scalable 5G service assurance, according to Amdocs President and CEO Shuky Sheffer.
Mycom OSI claims a competitive advantage in the service assurance market, as the first vendor to offer its applications on public cloud services as a subscription-based Software as a Service (SaaS). Sheffer described the Mycom OSI acquisition as, “strategic growth.”
Both Amdocs and Mycom work with Tier 1 CSPs and many others worldwide. But Amdocs’ Mycom OSI grab executes on the company’s core strategic technology pillars: “intelligent network automation, 5G and cloud,” he said.
Andrew Coll, Chief Executive Officer at Mycom OSI, said that combined, Amdocs and Mycom OSI will be able to deliver on the promise of closed-loop automation to help CSPs deploy scalable 5G – with, one infers, equally scalable service assurance. He noted that his company’s merger with Amdocs comes during “a time of rapid transformation in the communications sector.”
Amdocs noted that Mycom OSI’s revenue will be immaterial this year, accreting than 1% additional annual revenue going forward. Amdocs reported $4.3 billion in revenue for its fiscal 2021.
Sheffer noted that 5G is driving the telecom business toward more dynamic and demanding solutions built using AI and ML-driven predictive modeling and automation.
“As the network and services of the 5G era become increasingly dynamic and complex, a holistic, end-to-end approach is key and can only be achieved with a powerful AI-backed assurance solution suite,” he added.
Amdocs recently opened a 5G Experience Lab in Dallas, Texas. The facility gathers service providers and enterprises with Amdocs and its 5G edge applications to incubate new use cases for 5G solutions and services.
For Amdocs, it’s an opportunity to offer its 5G platform for network access and capabilities “as-a-service,” ensuring ecosystem components from diverse partners are interoperable, scalable, with reduced time to market and easier monetization opportunities. Work at the lab includes Open RAN, private wireless networks, premium 5G services, cloud services, Industry 4.0, and security.
Last September, French telco Orange picked Amdocs to provide the business support systems (BSS) for the latter’s 5G Standalone experimental cloud network launched in July in Lannion, France. The data- and AI-driven software-enabled Open RAN network is a two-year project, said the companies, which planned to have several hundred users by year’s end.
The network will also offer a glimpse into Open RAN and how open networking can coexist with other technologies. The network will also host Information System OSS (Operations Support System – network inventory management and network operations), BSS (Business Support System – CRM and billing), as well as scaling Orange’s ambition using AI to secure and optimize the network and predict its behavior, said the companies.