Oracle
INSIGHTS

The Role of Open Source in the New Service Delivery Model

The increasing need for data storage and the rapidly increasing storage issues has led many organizations and businesses to move to cloud-based storage implementation. For communication service providers (CoSPs), the concern is shooting through the roof. In parallel with expediting time to market, Service Providers recognize the need to reduce the costs and complexity of delivering services. This is where open source comes into the picture, providing a vehicle for Service Providers to augment their traditional standards efforts with direct software contributions to the ecosystem. Apart from providing a cost-effective and efficient means to bring new solutions to the market, the open source model also helps to influence a multifaceted vendor community.

However, the fact that the open source and the communities that drive these technologies reduce the operator TCO (Total Cost of Ownership) is debatable. Despite the ‘horizontal approach’ during the implementation of new service delivery model enabling ingredients from multiple vendors and allows for competition at each layer, Service Providers will often need software warranty, indemnification and support agreements, interoperability compliance, and customization, which drive up the price of commercial open source offerings. Since the warrantees must guarantee performance and reliability from software ingredients whose authors may not be part of the entity providing the guarantee, it makes for a tricky situation.

While working with the open source community, the desired outcome and direction of the project is not within the control of only one entity, resulting result in a mesh of contributions that do not account for commercial-level performance, quality, reliability and scale. This provides an opportunity for new ecosystem players to package open source-based offers to provide the reliability and scale required for telecommunication network providers. Summarizing, the open source model enables Service Providers to likely reduce the cost for services, extend their influence, avoid vendor lock-in, expedite time to revenue for new services, and provide useable software applicable to their unique environment.

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