tegra- tion) accounted for 24% of this estimated total spending (see Fig. 3). According to the same estimates the share of product licenses, ASP and bespoken professional services are increasing while the use of in-house work is dropping below 60% of the total spending in 2008. As shown in Fig. 3, in 2004, over 60% of spending on OSS systems was based on product-based systems implying high rate of adoption - above the critical mass. Analyzing the Current Phase of the OSS/BSS Software Market Product - SW License Product - In-house Product - Professional services Bespoken - In-house Bespoken - Professional Services ASP/Service Bureau Fig. 3 Shares of software delivery methods in OSS/BSS spending in 2004 (calculated from Dittberner 2007b) However, the available market data cannot be directly compared with the innovation diffusion theory, since we do not have figures on how large is the portion of the 650 telecom operators who have adopted OSS/BSS systems, although the general assump- tion is that almost all operators are also using some software for OSS/BSS purposes. Overall, in terms of the Moore's model (cf. chapter on "Theories Related to Vertical Software Industry Evolution"), the evolution of the whole product is far from the final phase, as only 7% of the volume comes out of software licenses and ASP while most of the spending goes to services. More specifically, the market seems to be in the early majority phase of Moore's technology adoption life cycle. Nevertheless, there may also be submarkets, where services are used dominantly, and where product-based systems have not been widely adopted by the customers. From the viewpoint of vertical software market evolution (cf. chapter on "Model for Evolution of a Vertical Software Industry"), a large portion of work - about 70% - was done in-house, although some percentage of spending goes to product licenses and ASP. This implies that the telecom software industry is roughly in the Productization phase, although some individual market segments within it may also b