erage (%) Median (%) spending on internal software 100.0 30.01 22.25 development (among total 91.16 31.54 26.68 software spending) 89.15 32.27 26.03 software services and integration. The share of spending on internal software development among the total software spending is: Approximately 80% in the first phase Drops to 65% and less in the second phase For the CSPs, the estimation of the internal software spending share is presented in Table 8. As can be seen from the table, the share is in the range of 25-30%. This suggests, similarly to the software spending data, that the first phase of the evolution is over, and that the software market is currently in the Productization and Standardization phase. 3.3 Software Delivery Methods Based on the Dittberner data for 2006, the total OSS/BSS revenue of these compa- nies, excluding the revenue from other industries, was approximately USD 30,000 million (see also Table 1 in chapter, "Overview of Telecom Operator Software Market," along with related discussion). Out of this, close to USD 12,000 million was generated by software product companies from software products and related services, while the rest was generated by IT companies providing systems integra- tion and other merchant professional IT services. Unfortunately, these figures describing market transactions exclude the in-house software development taking place within the telecom operator companies. Two years earlier Dittberner estimated product related in-house work to be approximately 2-3 times as large as product related professional services, and the in-house bespoken work to be about 4 times as large as bespoken merchant professional services. Based on these estimates, the in-house software services accounted for 70% of the total estimated USD 49,000 million spending on OSS/ BSS software in 2004. Software licenses and application services provisioning, ASP (i.e., software "leasing" over the network) accounted together for about 7% and professional IT services (both product related and bespoken systems in