r line between CSP software providers and the vast number of internet service software providers becomes more blurred due to the market convergence. Contents 1 Introduction Pasi Tyrväinen and Mirja Pulkkinen Part I: Evolving Software Markets Vertical Software Industries Pasi Tyrväinen 3 Theories Related to Vertical Software Industry Evolution Lauri Frank 4 Model for Evolution of a Vertical Software Industry Pasi Tyrväinen Overview of Telecom Operator Software Market Eetu Luoma, Lauri Frank, and Mirja Pulkkinen Part II: Current State of the Telecom Software Market 6 Process Improvement Through Software Olli Martikainen Effect of Software on CSP Performance Oleksiy Mazhelis, Pasi Tyrväinen, and Kimmo Suojapelto Insights from Operator Interviews Mirja Pulkkinen and Jari Veijalainen Analyzing the Current Phase of the OSS/BSS Software Market Lauri Frank, Pasi Tyrväinen, and Eetu Luoma Contents Part III: Issues Affecting Telecom Software Market Evolution Vertical Integration due to Software Systems' Modularity Oleksiy Mazhelis and Pasi Tyrväinen 11 Vertical Integration due to Small Market Size and High Product Development and Integration Costs Oleksiy Mazhelis and Pasi Tyrväinen 12 Market Polarization due to Difference in Interface Implementation Efforts Oleksiy Mazhelis and Pasi Tyrväinen 13 Barriers to Horizontal Development Olli Martikainen Part IV: Future Scenarios for the Teleoperator Software Market and their Evaluation 14 Delphi Study Lauri Frank Manager's Toolbox for OSS/BSS Market Analysis Pasi Tyrväinen 16 Developing Toolboxes Pasi Tyrväinen Part V: Evolution of Telecom Operator Software Industry - Conclusions and Future 17 Evolution of Telecom Operator Software Industry: Conclusions and Future Pasi Tyrväinen References Index Contributors Lauri Frank, Dept. of Comp. Sci. & IS, P.O. Box 35, FIN-40014 University of Jyväskylä, Finland, Lauri.Frank@jyu.fi Eetu Luoma, Dept. of Comp. Sci. & IS, P.O. Box 35, FIN-40014 University of Jyväskylä, Finland, Eetu.Luoma@jyu.fr Olli Martikainen, University of Oulu, Departmen