Last week we discussed a sell-side co-op business model. Today we’ll look at buy-side co-op models.
In other industries, we hear of buying groups getting great deals through aggregated buying volumes. This is a little harder to achieve with products that are as uniquely customised as OSS. It’s possible that OSS buy-side aggregation could occur for operators that are similar in nature but don’t compete (eg regional operators). Having said that, I’ve yet to see any co-ops formed to gain OSS group-purchase benefits. If you have, I’d love to hear about it.
In OSS, there are three approaches that aren’t exactly co-op buying models but do aggregate the evaluation and buying decision.
The most obvious is for corporations that run multiple carriers under one umbrella such as Telefonica (see Telefonica’s various OSS / BSS contract notifications here), SingTel (group contracts here), etisalat, etc. There would appear to benefits in standardising OSS platforms across each of the group companies.
A far less formal co-op buying model I’ve noticed is the social-proof approach. This is where one, typically large, network operator in a region goes through an extensive OSS / BSS evaluation and chooses a vendor. Then there’s a domino effect where other, typically smaller, network operators also buy from the same vendor.
Even less formal again is by using third-party organisations like Passionate About OSS to assist with a standard vendor selection methodology. The vendors selected aren’t standardised because each operator’s needs are different, but the product / vendor selection methodology builds on the learnings of past selection processes across multiple operators. The benefits comes in the evaluation and decision frameworks.Read the Passionate About OSS Blog for more or Subscribe to the Passionate About OSS Blog by Email