Last week, I spoke briefly about the emerging rise of Service Providers as customers and install base erosion. Last friday Sprint announced a $5 billion dollar contract with Ericsson to manage and upgrade its network over a 7 year contract. As I mentioned earlier, as each large enterprise shifts to such a business model it impacts the ISV revenue dramatically. The slow growth and gentle adoption doesnt really hold in this case, a single contract simply wipes out the underlying ISV's for such large contracts leaving the buying decision to the Service Provider! Though Sprint will continue to own the network/assets buying decision for new software licenses will shift to Ericsson.
http://news.cnet.com/8301-1035_3-10283799-94.html
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