Nexign: digital transformation

COMPANY PROFILE

NEXIGN: DIGITAL TRANSFORMATION

JOHN ABRAHAM

analysysmason.com
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Nexign: digital transformation

Company summary

Nexign (formerly known as Peter-Service) was founded in 1992 Figure 1: Nexign company facts
and is a leading provider of telecommunications software and
services for CSPs. The company is based in Russia and has a Founded 1992
dominant position in the Commonwealth of Independent States
(CIS) region for its BSS portfolio of offerings. Nexign counts Offices 9 offices worldwide; HQ in St. Petersburg (Russia)
multiple tier-1 CSPs in the region such as MegaFon and
Rostelecom as its customers. Employees 1610 Employees (33% R&D; 50% Services)

The company is seeing strong demand from CSPs for digital Russia & CIS, Middle East, Africa, Southeast Asia, LATAM,
Regional focus
transformation engagements and is investing in expansion, in CEE
order to cater to the opportunity. From a product design
perspective, Nexign considers Digital BSS, Network monetisation Revenue USD 123 million worldwide (2017)
and IoT as strategic to its growth ambitions. The company is Over 50 CSP customers in 14 countries over 25 years.
investing in making its portfolio cloud-native compliant in addition Major clients include MegaFon, ROSTELECOM, Gazprom
Customers
to scaling up its DevOps led delivery model to address Telecom, MTS, MTT, Yota, KievStar, Vodafone Romania,
opportunities outside its captive markets. Turkcell North Cyprus and Geocell
Selected key MegaFon, Rostelecom, Turkcell Group, MTS, Vodafone
Nexign is actively expanding its presence outside of CIS region
customers RO, Geocell (ex Telia Sonera Group)
especially in the Middle East Africa (MEA) and South East Asia
(SEA) regions with multiple new offices planned in these regions in Key Oracle, Procera Networks, Sandvine and SAS. Also has
Partnerships some teaming agreements with IBM, HP and Huawei.
2018. The company is increasing its partnerships with SI’s
especially in regions where it does not have a direct presence and
also with technology providers for combined offerings.
This profile is focussed on the Nexign’s digital transformation
portfolio and initiatives.

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Company summary: financials

The CIS region accounts for the major share of Nexign’s revenues Figure 2: Nexign’s revenue, worldwide, 2015-2017
where the company has dominant presence across CSPs of all
tiers. Nexign understands that its continued growth can only come 125
by expanding beyond this region, which is why the company is 120
121.0 123.0

Revenue (USD million)

making significant investments in pursuing deals in Middle East 115
Africa (MEA), South East Asia (SEA) and Central and Eastern 110
Europe (CEE).
105
Nexign has been a USD100 million revenue company for the past
3 years. Nexign’s slower growth rate in 2017 can be attributed to
100
104.0
95
unfavourable forex and also its focus on scaling up the
90
organisation internally for wider opportunities. The company 2015 2016 2017
intends to scale up its workforce by over 50% over the next year as Source: Analysys Mason
it continues to add more offices in new regions of Asia and Middle
East. Figure 3: Nexign’s revenue by type, worldwide, 2017

Nexign’s BSS portfolio accounts for majority of its current

revenues. As part of its expansion strategy, the company is
investing around 13% of total revenues in expanding its portfolio
to address opportunities around network monetisation and also 33%
IoT in addition to its BSS offerings. Services account for two-thirds Total revenue: Licenses
of the company’s revenues and Nexign plans to continue its USD123.0
investments in strengthening its managed services capabilities. million
Services
The company is also making a sizable investment in improving its 67%
sales and marketing by expanding its regional footprint and
partner engagement. Based on its current pipeline Nexign
anticipates a 100% increase in revenue by 2020. Source: Analysys Mason

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Strategic direction

Telco digital transformation is at the heart of Nexign’s strategy for Figure 4: Overview of Nexign’s approach to BSS portfolio [Source: Nexign 2018]
expansion and growth. The company is seeing significant demand
from its existing customers and also a large number of
opportunities in its target regions for helping digitise CSP’s BSS
stacks and launch new services such as IoT.
Nexign emphasises ‘best-in-class TCO’ as a key differentiator for
its services. The company’s value-based approach to digital
transformation that emphasises return-on-investment (ROI) is
finding increasing traction with CSPs.
Cloud-based architecture and delivery models is also an area of
strong focus for Nexign. The company will continue to invest in
making its solutions fully cloud-native even as it continues to
embrace DevOps framework for its development and delivery
model. Other areas of focus from a product perspective include
5G monetisation, IoT, digital channels, big data analytics, AI and
personalisation. The company is also investing in broadening its
managed services capabilities.
Nexign is also significantly increasing the number of its technology
and services partners both to expand its channel coverage and
also to be able to offer a larger footprint combined portfolio. MEA
and SEA are the primary focal regions for the company currently,
even though the company continues to see growing demand in
CEE region as well.

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Nexign: digital transformation
Digital BSS
Nexign Digital BSS Suite is a 5G ready cloud-native end-to-end
suite that can be deployed out of the box. The solution has been
designed based on the principles of DevOps and CI/CD
methodology which supports faster time to market (TTM) for
updates and new product launches. The solution also provides
support for dual-speed architecture frameworks during the legacy
to cloud transitionary phase.
The suite includes a Digital Experience layer to address
omnichannel requirements across multiple digital channels and
engagement systems across customer, service and order
management systems as well analytics and monetisation (policy,
online charging, billing) capabilities.
Partner management is also an important part of the Digital BSS
suite. The solution offers support for a range of processes for third
party content and service management and settlement for various
types of partners: network, sales/channel, OTT and non-telco
services.
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Figure 5: Nexign’s priorities for Digital BSS [Source: Analysys Mason and Nexign, 2018]
DIGITAL ECONOMY
▪ Cloud Native, 5G ready suite delivered through DevOps CI/CD proven
methodology
▪ Processes (Experience, Agility, Channels, Partners) and configurable business
models
▪ Ecosystem enabler: Gateways, sandboxes and partner self-service
OMNICHANNEL
▪ Extensive Digital Experience layer and seamless channel hopping and assisted
channels
▪ Unified user experience framework for call-centre, retail and self-service
▪ Open integration framework and API for existing portals, apps and partner
integration
UNIFIED ENGAGEMENT AND PERSONALISATION
▪ Analytics Driven advisory and guiding
▪ Continuous personalisation
▪ Open integration framework and API for existing portals, apps and partner
integration
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Digital BSS Architecture

Figure 6: Overview of the digital BSS architecture [Source: Nexign, 2018]

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Network monetisation suite

Nexign’s Network Monetisation suite (NWM) is a 5G, cloud ready, Figure 7: Nexign’s priorities for network monetisation [Source: Analysys Mason and Nexign,
real-time solution for rating, charging and policy control for that 2018]
provides support for IoT, OTT-services, E-commerce and E-banking. PRE-INTEGRATED SUITE
Nexign is positioning Network monetization suite (NWM) to mainly
address CSPs challenges in monetizing use cases around OTT, IoT ▪ OCS, PCRF (including UDR, DRA, AAA, RCAF)
and other related digital services. ▪ Catalog-driven engine
▪ Partner PCEF and IMS
Nexign’s NWM is cloud-ready and has a roadmap towards cloud- ▪ TMF, 3GPP, ETSI & OMA-compliance
native compliance for real-time monetization functions such as
policy and charging over next 12 months. NWM can be offered as
a standalone suite or may be integrated into CSPs existing BSS PREDEFINED SERVICE MODELS
solution through standard API functions.
▪ Predefined templates for all types of mobile and fixed services
▪ ASP. OTT-services, E-commerce and e-banking operations supported in core

DIGITAL MONETISATION

▪ Application-based charging helps develop flexible and appealing offers

▪ VoLTE / VoWifi / External application support
▪ Cloud ready

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Network monetisation suite

Figure 8: Overview of the Nexign’s network monetisation suite [Source: Nexign, 2018]

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IoT

Nexign’s IoT offering is an Open-API modular platform with elastic Figure 9: Nexign’s main offerings in IoT [Source: Analysys Mason and Nexign, 2018]
architecture. The solution is offered to customers in multiple
revenue models - as a license-only solution, as a managed service CONNECTIVITY MANAGEMENT PLATFORM
and also on a revenue sharing / PaaS model.
Nexign’s connectivity management platform (CMP) is a BSS ▪ Real Time Intelligence & Behaviour analysis
agnostic, 3GPP compliant platform that provides customers with a ▪ SCEF functions
set of tools to control and manage their connected IoT devices. ▪ Network equipment and BSS agnostic
The solution allows customers to monitor distributed devices in
▪ eSIM support
real time, manage devices at both BSS and infrastructure layers
and diagnose any problems that may occur when IoT devices are ▪ 5G standards support
connected to the network. ▪ IoT MVNE enablement

Nexign’s application enablement platform (AEP) is 3GPP and

OneM2M compliant. The platform supports a selection of common APPLICATION ENABLEMENT PLATFORM
monetisation streams relevant for typical CSP-led IoT use cases.
The platform provides pre-integrated big data analytics and an ▪ NFV support
environment for the creation and running of IoT applications with
▪ Pre-integrated cross industry vertical solutions
the option of acquiring IoT marketplace and pre-built cross-
industry vertical applications. Vertical solutions from Nexign’s IoT ▪ Big data / AI support
offering can be ported to clients in multiple industries, such as ▪ Orchestration and interaction of various IoT vertical solutions
transport and logistics, municipal services, banking, ▪ Partners ecosystem and IoT marketplace
manufacturing and oil and gas.
▪ Blockchain support (2019 onwards)

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Nexign IoT suite

Figure 10: Overview of the Nexign’s IoT platform [Source: Nexign, 2018]

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Cloud-native compliance is an integral part of Nexign’s software

development strategy
Nexign is positioning itself as a ‘business value first’ vendor, with a Figure 11: Nexign’s software development framework [Source: Nexign, 2018]
vision of developing cloud-native micro-services based software
backed up by a DevOps-led delivery model.
Nexign’s cloud strategy has been influenced both by the growing
CSP demand for dual-speed architecture and also the emerging
B2B2X business models that CSP’s are seeking to embrace.
Nexign has considerable experience in cloud-native deployment
through the MegaFon transformation project (77.5 million
subscribers on a single platform) which led to the development of
hybrid cloud vision programme.
Some of Nexign’s initiatives to drive adoption of cloud-native
technologies include:
• Utilising open source technologies
• Refactoring and decomposing existing applications into
stateless microservices. All new software developed are based
on cloud-native frameworks.
• Utilising its experience from delivery customer projects to fine-
tune its DevOps and CI/CD approaches

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Product summary

Figure 12: Nexign’s products [Source: Analysys Mason and Nexign, 2018]

Product Analysys Mason Description

segment

Network Monetisation The Nexign Network Monetisation (NWM) suite is a cloud-ready suite for real-time rating, charging, policy and session
Monetisation Platforms control. NWM includes multiple pre-integrated modules such as OCS, PCRF, DRA, UDR, PCEF, IMHS/HSS. NWM suite is
Suite compliant with industry standard frameworks, which makes it easier to integrate with CSP’s existing networks and BSS
systems.
NWM can help CSPs boost revenues by launching new products and services faster, improving subscriber loyalty, and
reducing the capital and operational cost of ownership

Digital BSS Monetisation Nexign’s Digital BSS suite is a cloud-native, pre-integrated offering that covers all core BSS functions, allowing CSPs to
Platforms, move to a centralised, convergent and high-performance future-proof platform. Nexign’s modular BSS offering provides
Customer analytics-based decision making, rapid creation of new partnership ecosystems, fast TtM for digital services, Omni-channel
Engagement, customer experience and fast adaptation to business changes through its DevOps ready architecture.
Analytics

IoT Platform IoT Platform Nexign’s modular, cloud native IoT offering includes a connectivity management platform, an application enablement
platform (with pre-integrated Big data analytics and DML) and pre-packaged, market-ready IoT applications that can
accelerate CSPs new business models monetization.
In addition, Nexign will also include an additional IoT Marketplace module to its offering beginning Q4 2018 to improve
telco monetization opportunities for IoT.

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Significant customers

Figure 13: Nexign’s key customers and scope of deployment [Source: Analysys Mason and Nexign, 2018]

Customer Country Scope

Rostelecom Russia BSS Suite, Partner Management Solution

MegaFon Russia BSS Suite, NWM, Partner Management Solution, Mobile Wallet Solution, IoT

Vodafone Romania Convergent Billing Solution (Rating Engine), Partner Management solution (Roaming)

Turkcell Group (KKTCell) Cyprus BSS Suite

Geocell (Telia Sonera Georgia BSS Suite, Partner Management Solution

Group*)

MVNO Gazprom Telecom Russia MVNE Platform, Partner Management solution

Yota Russia Policy management

Kiyvstar Ukraine BSS Suite, Partner Management solution (Interconnect)

MoldCell Moldova BSS Suite

beCloud Belarus Partner Management Solution

MTS Russia Partner Management Solution

CJSC Aquafon-GSM Abkhazia BSS Suite

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Analysis: strengths, weaknesses, opportunities and threats
ST R EN GT HS
▪ Nexign has a strong portfolio of offerings and a dominant position in the
CIS region. The company also gained critical experience working with a
number of CSPs including large digital transformation projects for tier-1
CSPs in the region.
▪ Nexign continues to see strong growth and has a very healthy pipeline.
The company is set for major expansion over the next 12 months as it
positions itself for broader opportunities.
▪ Nexign has made significant strides in investing in next generation cloud-
native architecture frameworks and delivery models even as it continues
to support existing customers who are not prepared for cloud based
technology frameworks.
WEAKN ES S ES
▪ Nexign has limited presence outside of some select regions of Europe,
South East Asia and Middle East.
▪ The company will need to rely on partners for wider channel access
which will slow down its rate of growth.
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OPPOR TUNITIES
▪ Nexign has a strong services practice, which positions the company well
for the increasing number of opportunities in providing managed services
for telcos.
▪ The company is differentiating itself as a ‘value leader’ in telco digital
transformation, which continues to resonate strongly especially with mid
and small sized CSPs concerned with the risk and ROI potential of digital
transformations.
▪ As leading BSS vendors build their own professional services practice,
vendors such as Nexign are viewed as an ideal technology partner by
systems integrators.
THR EATS
▪ There is a growing convergence between telco-grade and internet-grade
solutions which can trigger the entry of a larger number of competitors
for CSP contracts.
▪ CSP spending on adopting next generation architecture models and
process frameworks may be restrained in the short term as they wait for
these technologies to be more widely proved in telcos environments.
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About the author

John Abraham (Principal Analyst) is part of the BSS practice in Analysys Mason's Telecoms Software and Networks Research team. He leads our
Monetisation Platforms programme and our research into digital experience for monetisation platforms, as part of the Digital Experience
programme. John also contributes to our research into cloud-native architecture models, which is covered as part of the Software-Controlled
Networking programme. John has been part of the telecoms industry since 2006, and joined Analysys Mason in early 2012. He has worked on a
range of telco projects for operators in Africa, Europe, India and the Middle East. Before joining Analysys Mason, he worked for several years for
a BSS vendor and before that for Dell Inc in India. John holds a bachelor's degree in computer science from Anna University (India) and an MBA
from Bradford University School of Management (UK).

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PUBLISHED BY ANALYSYS MASON LIMITED IN MAY 2018

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