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Cambridge, Massachusetts - January 12, 2011 - As enterprises continue to seek ways to contain costs and limit spending, they will invest a large portion of their IT budgets on network-centric managed services. This willingness to spend more money on managed services should serve as a wake-up call for operators and vendors, according to a new report from Pyramid Research (www.pyr.com).
Managed Services for Enterprises: Telco Operators and Vendors Capitalize on the Need of Businesses to Focus focuses on network-centric managed services offered by operators and technology vendors in areas like network security, data center, videoconferencing, and telepresence to enterprises. First, this report leverages Pyramid’s enterprise survey data to highlight emerging market opportunities for telecom operator- or vendor-managed services. Second, it mines the survey results and presents a case study to determine the key reasons why enterprises of all sizes have embraced and are benefitting from managed services. Third, the report examines industry trends over the next 18 to 24 months. Fourth, the report highlights key target enterprise markets for operators and vendors looking to expand their managed services footprint. The report concludes with a demand analysis and recommendations for operators and technology vendors.
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Enterprises indicated the two most significant variables for choosing a managed service are to gain a competitive advantage and to save on capex costs. As a result of the recession and its continued effects, enterprises are being forced to cut costs, indicating the largest incentive to invest in managed services. “A significant number of enterprises are willing to spend large portions of their IT budgets - between 10 percent and 20 percent - on network-centric managed services, as operators and vendors continue to prove the value and reliability of their offerings,” says Denise Culver, Analyst at Large at Pyramid.
“While growth in revenues from traditional businesses continues to slow down, and in some instances, declines, operators, and vendors alike can expand their managed services offerings to replace that lost revenue,” says Culver. According to survey respondents the two factors that would most likely affect an enterprise’s decision to outsource its IT services are better applicability to business processes and the ability to lower costs. “This presents a tremendous marketing and educational opportunity for MSPs. Vendors and operators with large advertising budgets - such as Oracle, BT, and Motorola - have the chance to promote managed services to enterprises, thus driving up usage. As this happens, it will drive adoption of managed services further down the chain to those MSPs that don’t necessarily have the marketing power of large players,” she adds.
“MSPs will also drive adoption of managed services, as they move away from focusing on IT-centric managed services and develop other opportunities that enable them to increase loyalty and drive down costs,” Culver points out. Virtualization, M2M, network security, and VoIP have been identified by MSPs as key drivers for managed services to be adopted by enterprises.
Managed Services for Enterprises: Telco Operators and Vendors Capitalize on the Need of Businesses to Focus is part of Pyramid's research report series.
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About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries - a distinction that has remained unmatched for more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry's most comprehensive market data, trusted research and insightful technology analysis.
About Light Reading (www.lightreading.com)
Founded in 2000, the Light Reading Communications Network is the world's leading research-led integrated media company serving the global communications market. Lightreading.com is the ultimate source for technological and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, and TelcoTV Asia, Ethernet Expo New York and Ethernet Europe, and The Tower Summit @ CTIA, as well as focused one-day events tailored for cable, mobile, and wireline executives in the US, Europe, India, and China. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.
About UBM TechWeb
UBM TechWeb (http://www.ubmtechweb.com/), the global leader in technology media and business information, enables people and organizations to harness the transformative power of technology. Through its core businesses - media solutions, marketing services, and professional information - UBM TechWeb produces the most respected and consumed brands, applications, and services in the technology market. More than 14.5 million business and technology professionals (CIOs, IT and IT Support managers, Web and digital professionals, software and game developers, government decision makers, telecom providers and business executives) actively participate in UBM TechWeb’s communities. UBM TechWeb brands include: global face-to-face events such as Interop, Game Developers Conference (GDC), Web 2.0, Black Hat, and VoiceCon; large-scale online networks such as InformationWeek, Light Reading, and Gamasutra; research, training, and certification services, including HDI, Pyramid Research, and InformationWeek Analytics; and market-leading magazines such as InformationWeek and Wall Street & Technology. UBM TechWeb is part of UBM, a global provider of media and information services for professional B2B communities and markets.
Press Contact:
Jennifer Baker
Pyramid Research
+1 617-871-1910
jbaker@pyr.com
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