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Subscriber Data Management (SDM) with LTE and Beyond: Market Opportunities and Forecasts 2012 - 2017
Overview: Subscriber data is a crucial commodity for network carriers worldwide, as it can be leveraged customize services and optimize applications to the market according to subscriber preferences. This creates opportunities for new and/or highly focused services/applications, revenue expansion, and improved customer loyalty and profitability. However, access to subscriber data is often a challenge for network operators. This is due largely to subscriber data being stored in a non-unified distributed architecture comprising a variety of different network elements and services, often vendor-specific, which makes it costly to attain a consolidated view of the data. Subscriber Data Management (SDM) solutions tackle this problem by unifying subscriber data into a central repository. With this repository, SDM solutions unify cross domain subscriber data from identity, location, presence, authentication, services and access preferences, which can feed into multiple applications through an API interface. Mind Commerce estimates that with SDM carriers can save up to 40 % in OpE in contrast to legacy mechanisms for managing subscriber data. In addition to OpEx savings, SDM solutions allow carriers to reduce churn rates by enabling carriers to personalize their services, improve marketing campaigns, and thereby improve revenue by gaining rich customer insights. As carriers continue to invest in network modernization and migrate networks towards LTE, vendors from both telecommunications and IT centric database backgrounds are intensively competing to gain a share of the SDM market. As a consequence, we expect SDM vendor revenues to surpass nearly $ 3 Billion by the end of 2016. Furthermore, SDM also allows carriers to establish themselves as brokers of subscriber identity through SDM APIs. Driven by internal utilization within carrier services and identity brokering, the SDM API market is expected to account for nearly $ 7 Billion in global revenues worldwide by 2016, growing at a CAGR of nearly 100 % between 2012 and 2016.
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