Amdocs Introduces Amdocs AI Factory, Empowering Service Providers to Monetize the Next Generation of AI Services
Rhea-AI Summary
Amdocs (NASDAQ:DOX) has launched the Amdocs AI Factory, a comprehensive solution enabling service providers to commercialize generative AI services. The offering targets the growing enterprise and sovereign AI market, which is projected to grow at 18% annually over the next five years.
The solution focuses on three key market opportunities: GPU as a Service (GPUaaS), model gardens for AI development, and verticalized AI applications for different industries. Through strategic collaborations with NVIDIA and Dell, the platform integrates Amdocs' amAIz generative AI platform, monetization suite, NVIDIA's NeMo and NIM microservices, and Dell PowerEdge servers.
The AI Factory aims to help service providers leverage their existing assets, including their trusted position as national players, enterprise footprints, IT capabilities, and data center infrastructure, to capture new revenue streams in the AI services market.
Positive
- New revenue stream opportunity in the fast-growing AI services market (18% annual growth)
- Strategic partnerships with industry leaders NVIDIA and Dell
- Leverages existing telco infrastructure and enterprise relationships
- Comprehensive solution covering infrastructure to monetization
Negative
- None.
Insights
The launch of Amdocs AI Factory marks a calculated expansion beyond traditional telecom software into the high-growth enterprise AI infrastructure market. This strategic initiative leverages three critical competitive advantages: established relationships with telecom providers, deep domain expertise in service monetization, and partnerships with technology leaders NVIDIA and Dell.
The solution's architecture addresses a important market gap in sovereign AI deployment. While hyperscalers dominate the general AI infrastructure space, Amdocs is positioning telecom providers to capture the growing demand for localized, industry-specific AI solutions. The focus on data sovereignty and regulatory compliance is particularly significant for sectors like healthcare and financial services, where data governance requirements often prevent cloud-based AI adoption.
The monetization capabilities integrated into AI Factory represent a substantial value proposition. By enabling consumption-based pricing and flexible service packaging, telecom providers can create tailored offerings for different enterprise segments. This could generate recurring revenue streams through infrastructure utilization, model deployment fees, and industry-specific application subscriptions.
However, successful implementation will require significant investment in infrastructure and expertise from telecom providers. The partnership with Dell addresses the hardware component, but providers must still develop AI service delivery capabilities and industry-specific knowledge. The 18% projected market growth suggests there's room for multiple players, but execution speed will be critical as cloud providers and specialized AI infrastructure companies target the same opportunity.
New offering pairs industry-leading generative AI capabilities and robust monetization assets to capture growing enterprise & sovereign AI market opportunity
JERSEY CITY, NJ / ACCESS Newswire / February 20, 2025 / Amdocs (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today announced the launch of its Amdocs AI Factory, which enables service providers to commercialize generative AI - in the form of GPU as a Service, S/LLM as a service, vertically tailored applications, and more - across industries. This comprehensive, end-to-end solution is designed to help service providers address the surging enterprise demand for AI-driven infrastructure and applications, enabling them to unlock significant new revenue streams and establish a competitive edge in the fast-growing market for generative AI services.
With the global market for AI-based infrastructure services poised to grow at
Optimized GPU as a Service (GPUaaS) for scalable and cost-effective AI workloads
Model gardens for the rapid development and deployment of AI models
Verticalized AI applications tailored to the specific needs of diverse industries
In order to address sovereign AI and enterprise-verticalized generative AI monetization opportunities, service providers will need a robust generative AI value chain spanning infrastructure to monetization. The Amdocs AI Factory enables telcos to provide full control over data and tenant separation, addresses robust regulatory and data protection requirements, supports infrastructure optimization and orchestration and helps simplify the creation of market-tailored models & services. The solution leverages strategic collaborations with NVIDIA and Dell to provide the full ecosystem of capabilities needed to create innovative new services, enabling nearly limitless flexibility for emerging enterprise services:
Amdocs' amAIz generative AI platform including agentic capabilities, enterprise marketplace, AI studio, and governance/trusted AI
Amdocs' Monetization suite including rating, charging and metering capabilities to support diverse & innovative consumption-based service monetization
NVIDIA NeMo and NVIDIA NIM microservices, part of the NVIDIA AI Enterprise software platform, to enable powerful and efficient AI workloads
Dell PowerEdge servers, designed for telecom and edge use cases, and Dell Telecom Infrastructure Automation Suite to provide infrastructure automation with seamless scalability
"As enterprises across sectors increasingly recognize the transformative potential of generative AI, service providers are uniquely positioned to lead this revolution," said Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs. "With the Amdocs AI Factory offering, we're ensuring service providers are able to capture one of the largest revenue growth opportunities by enabling them to monetize critical AI services and deliver diverse agentic experiences for enterprises."
"There's tremendous opportunity in the AI factory space for telecom providers," said Christopher Penrose, Global VP of Business Development for Telco at NVIDIA. "With NVIDIA NeMo and NIM microservices - designed to speed the adoption of generative AI - the expansion of the amAIz platform to Amdocs AI Factory will help service providers deploy and monetize new business streams with greater ease."
"Dell PowerEdge servers and our automation software create a flexible network foundation to boost telecom AI adoption," said Dennis Hoffman, Senior Vice President and General Manager, Telecom Systems Business, Dell Technologies. "Through our collaboration with Amdocs and NVIDIA, communications service providers can unlock the potential of AI to drive industry innovation and positive business outcomes."
1 OMDIA's Global Enterprise Services Forecast 2024-29
Supporting Resources
Keep up with Amdocs news by visiting the company's website
Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macro-economic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events or pandemics, as well as the current inflationary environment, and the effects of these conditions on the company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the company's customers, Amdocs' ability to grow in the business
markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the company's offerings and operations and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2024 filed on December 17, 2024 and our Form 6-K furnished for the first quarter of fiscal 2025 on February 18, 2025.
Media Contact:
Michael Zema
Amdocs Public Relations
mzema@amdocs.com
SOURCE: Amdocs Management Limited
View the original press release on ACCESS Newswire
FAQ
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