Indy wireless play pushes open source into back office

Transverse execs cite faster time-to-market, better architectural support for new media and Web 2.0-style technologies, and a drastic improvement in return on investment — thanks to open-source economics — as the key selling points for its new platform.

Transverse is taking on established OSS players such as Amdocs, Convergys, Oracle and others with its open-source OSS play.

“We think of ourselves as the first-ever carrier-friendly OSS platform — we're open-source, transparent and break down the barriers to rapidly introducing new services,” said Chris Couch, chief operating officer for Transverse. “This is not just about cheaper software but fundamentally adjusting the cost model for [service provider] IT infrastructure.”

Open-source development and economics are now well-understood in the infrastructure portion of the market, but mission-critical platforms such as enterprise resource planning and customer relationship management — and telco OSS/BSS — represent more of a challenge. Such systems represent strategic purchases for IT shops, which typically want the support and development backing of a large, established vendor standing behind the platform.

Nevertheless, Couch said, “the lower cost base and flexibility of the Bleep platform could appeal to smaller, Independent telcos.”

That said, service providers often pay for large software projects on a services basis. Paying a software vendor with open-source roots is much the same as paying a systems integrator to keep back-office systems up to date, said Jeff Cotrupe, senior analyst with Enterprise Management Associates. “There's a risk-sharing, gain-sharing element to this that may appeal to some service providers,” he said.

For Crossroads Wireless and its future ILEC partners, the hope is that there is more gain than risk. When fully built-out, Crossroads claims it will be the 11th-largest 850/1900 MHz wireless carrier in the U.S. It is in the process of launching wireless broadband data service — to be followed by voice service — in Pontotoc and Verona, Miss.; Hoxie and Harrisburg, Ark.; and West Plains, Mountain View and Willow Springs, Mo.

OPEN SOURCE: PROS AND CONS

• Typically lower upfront software costs.
• Support of a community of developers backing core open-source platform.
• Potential for more rapid development of new code and delivery of new services.
• Lower software costs offset by support-based fee models.
• Less responsiveness from a single vendor to individual needs.
• Open source in telecom environment is relatively unique, especially in the back office.