The key to unlocking growth in telco lies in a more agile, efficient and automated future, where business and operations systems work effortlessly together to deliver a step change in simplicity, velocity, partner-ability and customer experience.
Open Digital Architecture (ODA) is the blueprint for achieving this growth, based on standardised components and methodologies that are both ‘plug and play’ and customisable, enabling Communications Services Providers (CSPs) to build modular, cloud-native, AI-enabled solutions.
TM Forum has been instrumental in this evolution, with members working on ODA since 2017 to create greater clarity between different OSS/BSS domains and accelerate adoption. To further support the industry on this journey, we have published our latest ‘Assessing ODA Benchmark Report’ which provides a comprehensive overview of where ODA is being implemented today, its demonstrated advantages, and the challenges that need to be addressed to realise the significant benefits that ODA offers.
ODA adoption – a multi-stage process
It’s evident from the data that ODA is no longer merely a theoretical concept; it is increasingly becoming a critical architectural approach for telcos. Within TM Forum’s global membership community, 16 CSPs are now ‘Running on ODA’, 15 vendors are offering ‘Ready for ODA’ certified products and many more globally are implementing the architecture within their organisation. We estimate that this equates to more than 1 billion subscribers globally being supported by networks utilising ODA.
Looking at the benchmark report in more detail, it’s clear that the vast majority of CSPs are familiar with ODA, with a combined 72% of the surveyed CSPs indicating a commitment to implementing ODA, either enthusiastically moving forward or in the early stages of their transition.
While there is clear evidence that ODA is becoming the de facto pathway for CSPs, the fact that over half of surveyed CSPs are still in the early stages of transitioning to ODA also recognises that adopting ODA is a multi-stage process and requires greater support and evidence of value to accelerate adoption.
ODA delivering value today
Recognising the demand from CSPs to see tangible proof of value from ODA, TM Forum has been working closely with the industry to assess both the expected impact of ODA, and highlighting real-world use cases. The findings make for compelling reading:
- Lower integration costs: Both CSPs and vendors express confidence that ODA compliance will lead to significant or moderate reductions in integration costs as components and APIs become standardised. This is a crucial factor in reducing the ‘integration tax’ that has historically burdened CSPs.
- Enhanced agility and faster time-to-market: The vision of ODA enabling faster service innovation is being realised. Vodafone, a notable ODA pioneer, is targeting a ten-fold improvement in operational efficiency and time-to-market for new services by implementing its ODA-based Telco-as-a-Service (TaaS) cloud-native platform. Australian operator Telstra has also demonstrated significant improvements, including a reduction in service creation and onboarding time from 12-18 months to just three months by leveraging Open APIs and ODA.
- Reduced vendor lock-in: A significant 39% of CSPs see the ability of ODA to reduce the risk of vendor lock-in as a significant short-term benefit, increasing to 51% in the longer term. This growing desire for greater control and flexibility is a key motivator for ODA adoption.
- Improved efficiency through automation: The ODA Canvas, a standardised operating environment for ODA Components, is beginning to demonstrate its value in automating operations. Vodafone Greece, for instance, is already seeing the benefits of the ODA and the ODA Canvas in terms of reusability, infrastructure, automation, and development efficiency and believes it will improve agility and operational efficiency by a factor of ten.
The report also provides clear evidence of the business value already being realised by CSPs that have achieved “Running on ODA” accreditation with TM Forum. Telstra for example has achieved a higher volume of orders and a 30% reduction in processing time. TELUS has leveraged ODA to reduce costs and time to market for services. Bell Canada’s Customer 360 transformation program, built on ODA including TM Forum Open APIs, has led to a 1.3 times growth in the adoption of B2B services.
Navigating the hurdles – addressing real-world challenges
While the progress is encouraging, it’s important to provide a balanced view by addressing potential challenges to ODA adoption, and there are several areas that CSPs should pay close attention to:
- Integration of legacy systems: In the short term, deploying ODA might increase the cost of a project because legacy systems must be adapted. This upfront investment and complexity need careful consideration. However, in the medium term, CSPs can expect to see reduced total cost of ownership due to a much lower maintenance burden.
- Business case justification: Creating a comprehensive financial business case for a large-scale ODA transformation remains a challenge for many. As one CSP leader notes, it can be “too big, too difficult to create a business case for ODA that you can articulate down to financial metrics”. A phased approach with early demonstrable successes is crucial.
- Governance: While 69% of CSP respondents feel able to make a strong business case for ODA compliance, ensuring consistent governance and commitment across the entire organisation remains a hurdle. Only one in three respondents reported having a governance program in place to ensure full ODA compliance.
- Adoption: While tier 1 CSPs will want the full flexibility of a fine-grained ODA Component model, smaller CSPs will benefit from simplifying components into larger, pre-integrated ‘macro modules’ or ‘Duplo blocks’ to reduce integration costs and enable faster implementation of ODA. The industry should avoid thinking one size fits all.
- Vendor compliance: Despite outward support, half of CSP respondents feel that vendors are pushing their own standards rather than fully embracing ODA. Furthermore, one in three believe vendors are not moving quickly enough to introduce ODA-compliant products. This highlights the need for continued collaboration and commitment from both sides.
Encouragingly, the vendor community is showing strong support for ODA, with 178 software vendors, systems integrators, and cloud providers having signed the TM Forum ODA Manifesto. 57% of CSPs are making ODA a requirement in RFPs and notably 46% of vendors agree that ODA compliance is helping them win business. While some vendors remain concerned that their products will become commoditised, as ODA focuses on facilitating software interoperability and simplifying procurement rather than limiting the functionality of commercial software, this concern can be eliminated by a commitment to industry collaboration rather than siloed thinking.
The path forward – pragmatism and progress
Industry collaboration is at the very heart of TM Forum. Together with our Members and the wider industry, we have developed three industry missions; Composable IT & Ecosystems, Autonomous Networks and AI & Data Innovation, that will unlock growth for the industry, and each one is built on ODA. The evolution of ODA, including the integration of AI capabilities into the ODA Canvas, will be key to helping the industry realise each mission’s full potential.
As the industry gains more experience and continues to collaborate on the evolution of ODA the benefits will only accelerate, paving the way for a truly agile, efficient, and innovative digital future.
Join us at DTW Ignite in Copenhagen June 17 – 19th where the industry unites to move beyond discussion to actionable strategies and unlock pathways to growth powered by ODA. Don’t miss this opportunity to gain vital insights and shape the future of a truly open and innovative telco landscape. Find out more and register here: https://dtw.tmforum.org
Andy Tiller