Amdocs has entered into a definitive agreement to buy UK-based Mycom OSI (MO), a software service provider that promises to raise the average revenue per head (ARPU) on 5G customers by cutting the management time needed to look after them. Privately-owned MO works with the world’s top mobile network operators (MNOs) to clarify events on their networks and nip problems in the bud. It was the first to provide service assurance applications on the public cloud as a subscription-based software service.
Amdocs said MO’s network portfolio gives it more end-to-end service and network orchestration through ‘assurance capabilities’. MO’s service assurance suite manages management, faults and service quality. It does this by artificial intelligence (AI) and machine learning (ML) to detect and predict anomalies. It then applies intent-driven closed loop operations through automated remediation and AI Operations. MO had an increasing number of both wireline operator networks and MNOs with 5G networks who were virtualising, containerising and software defining their networks but struggling with the finer details of convergence. MO’s cloud-native systems helped them enjoy the promised cloud benefits that they were struggling to realise, like scalability, cost savings and reliability.
The problem for MNOs is that the networks and services of the 5G era has become increasingly dynamic and complex. The cloud’s murkiest secret is that everything is nebulous and nobody can see from one end to the other. It’s difficult to be both hyperscale and holistic at the same time. That’s why they need AI agents to go in there and see the problems they can’t spot. “We predict and resolve network problems before they affect customers, while reducing operational costs through automation and AI,” said Andrew Coll, Mycom OSI’s CEO.
There pillars of wisdom
“This strategic growth move builds on our other recent successful acquisitions in the network and cloud space and executes on three of our core strategic pillars – intelligent network automation, 5G and cloud,” said Amdocs CEO Shuky Sheffer. Amdocs’ Board of Directors has approved the transaction for a consideration of approximately $188 million in cash which, subject to the satisfaction of the conditions to closing, is expected to be completed in the fourth quarter of fiscal 2022. Revenue from MYCOM OSI is expected to be immaterial in fiscal 2022 and will add less than 1% to total revenue on an annualised basis.