This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Oracle Not Done with Its Telecom Foray

Stocks in this article: ORCL BSFT ALLT CTXS CSCO

Tekelec gives Oracle second-to-none expertise in signaling, where it is the leader not only in the Signaling System 7 (SS7) protocol, with more than 300 carrier customers, but also in the emerging Diameter market. Tekelec also has a dominant market share in the DSC (Diameter Signaling Controller) segment, with over 30 LTE DSC operators. Additionally, Tekelec has grown its policy control (roughly 60 customers) and SDM (Subscriber Data Management) product lines (over 35 carriers) via the acquisitions of Camiant and Blueslice Networks. With a repository of policies and subscriber data, Oracle will create stickiness with its customer base and further expand its footprint into the telco space, where it already had a leading position in database infrastructure.

Oracle's Next Move?

After acquiring two companies in the telecom space, Oracle management hinted at financial services and retail as other verticals the company would delve deeper into via innovation or acquisition. However, I believe that the company will further bolster its telecom stack. Here are a few possibilities:

DPI (Deep Packet Inspection) - this is an important capability that can enhance the Oracle charging solution set. Players such as Allot Communications (ALLT - Get Report) (which maintained a relationship with Tekelec to enhance the latter's PCRF product in accounts such as Orange, Verizon (VZ) and Vodafone (VOD )) and Procera Networks (PKT) (which partnered with Tekelec in some accounts such as Comcast) can be distinct possibilities.

Video optimization - these systems can further augment the utility of policy control systems. As per Cisco's (CSCO - Get Report) VNI (Visual Networking Index) forecasts, video is going to be the key component in mobile traffic growth, so this will be a hot area, as attested by last year's acquisitions of Bytemobile (by Citrix (CTXS - Get Report)) and Ortiva (by Allot). Other current standalone vendors include Flash Networks and Vantrix.

SDN (Software Defined Networking) vendor - as part of the future "Thinking Networks" vision outlined by Tekelec, there is a "policy-directed SDN controller" element that leverages SDN technologies such as OpenFlow to dynamically control traffic entering or leaving a cloud-based DSC. The acquisition of an SDN startup can accelerate the time-to-market of this component. The field is wide open here, with over 200 companies competing in the nascent SDN arena.

Oracle might still opt to delve into the applications arena via Broadsoft or some other smaller incremental purchase in the UC/RCS (Rich Communication Suite) arena such as Mavenir (VoLTE/RCS) or app enablement (via APIs) such as Solaiemes or other vendors that are enabling carriers to formulate a response to the ongoing OTT (over-the-top) threat of new players such as WhatsApp. Post Acme Packet and Tekelec, Oracle now has a full arsenal of control/application plane functions at its disposal.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Ronald Gruia is a Director at Frost & Sullivan covering emerging telecoms. He has spoken at conferences including Supercomm, CTIA, Intel Communications Summit and VON Canada.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs