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InfoTech Study: Improved Network Performance, Reliability, Risk Reduction Drive Managed- Services Growth

InfoTech Study: Improved Network Performance, Reliability, Risk Reduction Drive Managed- Services Growth

Parsippany, NJ (PRWEB) March 23, 2006

According to the recent InfoTech Managed Services Study, U.S. and global primary motivators for adopting managed services across business-sized segments rarely are led by a drive to decrease operations costs. Improved network performance, increased network reliability and reduced business risk are the top reasons given for purchasing managed services.

The market for managed services is expected to experience double-digit growth for the next five years, InfoTech says. Buyers in all regions and across all business segments indicate high levels of interest in considering managed services in 2006, representing a vast opportunity for service providers.

“Across the board, vendor selection is influenced by flexibility of offer, skills on staff, accountability (service level agreements and single point of contact) and online access to reports,” says Warren Williams, vice president and director of the InfoTrack for Enterprise Services program at InfoTech. “U.S. managed-services buyers want their vendors to provide offers that are flexible to their specific needs and to stay engaged, providing proactive recommendations over the course of the contract. Globally, APAC buyers are the most demanding, while other regions are more closely aligned with U.S. buyer needs.”

Among the key findings of the study:

--Reported actual U.S. and global buyer savings achieved through managed services vary by individual service, level of sophistication and business size (between 5% and 35%).

--EMEA buyers indicate strong near-term demand for managed security services, while CALA buyers indicate a preference for managed network services.

--U.S. and APAC buyers indicate strong near-term demand for managed network services and managed security. Canadian buyers strongly consider managed security services as their top priority.

--The U.S. market, particularly enterprise businesses, reflects a planned consideration of advanced network management and managed security services, as does much of Europe and Canada. The rest of the world is adopting more basic managed services.

--The “hot” managed services globally are managed security services, though buyer interest continues in network management services.

The study also notes the importance of qualifying the customer. “Depending upon the business size-segment, offers may need to be tailored to that segment or sales efforts should be diminished or abandoned,” according to Williams. “Managed service providers must align their marketing messages to customer-segment adoption motivations, and they must better align their proposals to reflect buyer needs in order to maximize opportunity.”

About InfoTech

InfoTech, part of The Telecom Intelligence Group, publishes six comprehensive, primary research studies each year as part of its InfoTrack for Enterprise Services (IES) program. Its Managed Services track focuses on the decision process for purchasing managed services and factors influencing vendor selection among services decision-makers in end-user organizations, examining 28 separate services worldwide. InfoTech’s other IES program tracks focus on the market for professional and maintenance services.

For more information on the IES program and the Managed Services Study, please contact Craig Born at 973/602-0123.

About The Telecom Intelligence Group

The Telecom Intelligence Group includes market intelligence provider InfoTech; TelecomWeb and TelecomWeb news break; newsletters Wireless Business Forecast, Broadband Business Forecast, Telecom Policy Report and Inside Digital TV; tariff consultancy Tarifica; and the Web-based business-telephony-product database TelecomTactics.


Sharon Valencik, research director


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