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In-Stat: Enterprise Market for Managed Network Services Poised to Grow in Next Two Years

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March 05, 2007

In-Stat: Enterprise Market for Managed Network Services Poised to Grow in Next Two Years

By Mae Kowalke, TMCnet Associate Editor


Good news for VoIP service providers serving, or looking to serve, the business market with managed solutions: your customer base is set to increase significantly during the next few years.

 
That’s according to a new study out this week by In-Stat (News - Alert), in which the industry research firm examined the prevalence of managed services adoption among enterprises companies. The report specifically looked at large companies with a global focus.
 
The IT and network managers at the companies surveyed—representing firms with more than 1,000 employees—indicated that until recently globally focused enterprises preferred to manage network functions in-house rather than outsource the job. But this is changing.
 
Why the change? In-Stat said that it boils down to the increasing complexity of converged communications networks. Network management has become so complex, in fact, that even large companies are finding it more cost-effective to go with a managed network services (MNS) solution than handle the tech on site. This trend is only set to continue in the future.
 
“In two years, nearly 40 percent of survey respondents in the areas of PBX (News - Alert)/Phone System Management and Telecom Expense Management indicate that these functions will be out-tasked,” said In-Stat analyst Jeff Jernigan, in a statement.
 
Jernigan continued: “Within two years, MNS adoption rates will roughly double for security, storage and hosting, with nearly one-third of respondents indicating these functions will be out-tasked.”

In-Stat found that, aside from the sheer complexity of network management, a key driver for enterprises to seek out managed solutions is gaining access to state-of-the-art technology. Managed solutions generally are more flexible and adaptable in this regard, since the enterprise is essentially renting communications equipment rather than owning it; this makes upgrades relatively easy and cost-effective.
 
The upshot of all this is that VoIP service providers, and companies offering other IP-based communication solutions, are looking at a growing market in which to sell their wares. Managed VoIP isn’t just for small to medium-sized businesses (SMBs) anymore; it also can be sold successfully to enterprises.
 
To learn more about the advantages of managed network services, both for VoIP service providers and enterprises, please visit Smoothstone’s TMCnet.com channel, VoIP Service Providers.
 
Mae Kowalke previously wrote for Cleveland Magazine in Ohio and The Burlington Free Press in Vermont. To see more of her articles, please visit Mae Kowalke’s columnist page. Also check out her Wireless Mobility blog.

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