Amdocs Partners With Samsung, Fortifies Footing In NFV Market

Amdocs (NASDAQ:DOX) has announced that it is partnering with Samsung (OTC:SSNLF) to speed up the delivery of 5G services to market.

Reportedly, the companies will deliver various solutions and services to expedite the shift of communications service providers (CSPs) to open cloud networks.

The companies will work together to onboard and integrate Virtual Network Functions (VNFs), thereby allowing CSPs to leverage Samsung’s 5G network solutions with the Open Network Automation Platform (ONAP).

Amdocs and Samsung will also attempt to deliver services such as vRAN deployment and integration, and related Network Function Virtualization (NFV) solutions.

The partnership will help accelerate the transformation of CSPs to a dynamic software-driven architecture, which will enable networks to meet the changing user demand and network conditions.

Notably, with the increasing deployment of 5G networks, CSPs are redesigning their network to be open, virtualized, cloud-based and AI-based.

5G connectivity also demands new network architecture based on NFV. The partnership will allow Amdocs to combine its expertise in enterprise-grade ONAP with Samsung’s advanced 5G network solutions portfolio to help CSPs speed up the development of new services.

NFV: A Key Growth Driver

The company’s NFV area is witnessing positive developments, aiding the company’s growth.

Last year, Amdocs signed a deal with Comcast (NASDAQ:CMCSA) on the latter’s SD-WAN offering, which leveraged Amdocs’ leading energy portfolio, bringing orchestration, fulfillment and automation capabilities to service providers.

Per a Technology Business Research report, investments in telecom service provider NFV and software defined networking (SDN) are expected to exceed $168 billion by 2022.

The number of global service providers, which are evaluating NFV, are also on the rise. Amdocs’ constant efforts to enhance capabilities in this front are likely to help it cash in on this opportunity.

In the last reported quarter, strong growth in Amdocs’ managed services business was driven by the continued ramp-up of managed transformation activities for customers like PLDT and Infineon (OTC:IFNNY) . It is combining the deployment of large-scale data transformation projects with operational benefits of its managed services model.

In an effort to strengthen its presence in the 5G and NFV spaces, Amdocs also announced the acquisition of TTS Wireless to strengthen capabilities in open cloud and 5G network.

Rising Competition Concerns

Companies operating in the NFV market are following product development strategies to meet the need of customers.

Some of the key players competing with Amdocs in the NFV market are the likes of Huawei, Broadcom (NASDAQ:AVGO), Ericsson (BS:ERICAs), Juniper, AT&T (NYSE:T), Nokia (HE:NOKIA), and F5 Networks (NASDAQ:FFIV).

For instance, AT&T is on track to virtualize 75% of its core network operations by 2020, leveraging the ONAP.

Moreover, in February this year, F5 Networks added carrier-grade network address translation as a stand-alone package to its NFV portfolio.

Nonetheless, Amdocs’ expertise in enterprise-grade ONAP is expected to help it strengthen foothold in the market.

The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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