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Industry Research Featured Article

October 07, 2008

Services Transforming Network Ecosystem: Global Forecasts from 2008 to 2013

Joe Six-Pack, don’t worry that pretty little head off, help is on the way. So what, the economy is down the tubes and people are afraid to walk down Wall St. Nevertheless, walking anywhere does beat driving, regardless where it is. What with gas being your first born child which, rumor on the street is, it soon might be raised in a few hours to your soul. Regardless, Research and Markets has created a forecast from 2008 to 2013 analyzing the current detailed global market.

Although within the telecommunications industry, it hasn’t taken a devastating hit, yet. The haze of inevitability does loom in the shadows, waiting to strike at just the inopportune moment. The global market for professional and managed network services, which is composed of network consulting, implementation, managed network services and network product support services shows it’s expected to remain robust throughout the 2008-2013 forecast period; however companies must understand what must be done for the upcoming future.
Key questions answered:
  • What are the key drivers for growth in the professional and managed network services business?
  • How should network technology vendors, Network Services Providers (NSPs) and specifically management consulting firms model and articulate a long-term strategic plan for their enterprise or network provider clients?
  • How can professional and managed network services providers anticipate the changes that alternative delivery models and new technologies such as Web 2.0 will bring to the telecommunications industry?
  • What can network services providers do to differentiate their post-merger integration practices?
  • What will fixed-line service providers, mobile service providers and enterprises spend globally on network consulting, implementation, managed services and product support services over the next five years?
Key conclusions of the report include the following:
  • The focus for the network services provider should extend beyond mere costs. Along with rigorous assessment of cost structures and technology alignment, the author believes network technology vendors, NSPs and particularly management consulting firms would do well to articulate for their enterprise or service provider clients a long-term vision that centers on what today’s organization looks like, how it may evolve over the next decade and which path would be most advantageous to pursue.
  • Network equipment vendors with services organizations as well as independent consulting firms should possess the skills, knowledge transfer capabilities and global resources to assist client organizations in migrating to an IP network platform as one method of establishing the foundation for all successful technology rationalization- and convergence-led engagements.
  • Successful NSPs will possess a deep understanding of emerging technology delivery models such as Software as a Service (SaaS) and cloud computing that enable always-on, real-time 24/7 application availability, and companies should recognize the potential impact on network capacity, network latency and network security.
  • For service providers the initial attractiveness associated with simply buying millions of new subscribers remains compelling. Despite often dysfunctional merger execution and currently adverse credit market conditions, M&A activity will likely continue through the 2008-2013 forecast period. As a result, ongoing M&A activity makes post-merger integration a key consulting capability for any services organization trying to compete in the global network services marketplace.
  • Organizations and individuals around the world continue to embrace the concept of a seamless communications environment, one that enables access to converged applications — voice, video and data, for instance — anytime, anyplace, over any network and from any device. While this concept is not without numerous technological hurdles, the author believes it is incumbent upon professional and managed network services providers as well as other ecosystem participants to make such an ambitious environment a reality.
Based on a thorough analysis of the first calendar half of 2008 and projecting expenditures for the second half, Research and Markets expects total expenditures in 2008 to reach $357.2 billion, representing a year-over-year growth rate of 10.7%. Of this worldwide total, $237.7 billion will be spent externally by service providers and enterprises with leading professional and managed network services vendors.
This growth continues to be enforced by the needs of global enterprise organizations as well as of mobile and fixed-line telecommunications service providers to develop more relevant strategies for, in a broad sense, using deployed network assets more effectively, and, more specifically, for optimizing network performance and capacity. While many enterprises and service providers still use internal network engineering staff and administrators for network projects, an increasing number of these organizations are seeking the independent guidance of third-party professional services and network support organizations that possess the scale and skills to deliver discrete (i.e., one-off) or end-to-end services with global capability.
This report examines the worldwide market for network consulting, network implementation, network product support and managed network services as well as associated expenditures from 2007 through 2013. It presents market sizing and a five-year forecast for four discrete service activities, and includes global segmentation by region, vertical industry and organizational size. In addition, this report discusses in detail factors such as network technologies, geopolitics, macroeconomics, customer demand and industry competitions that continue to shape and influence the global marketplace for end-to-end network services. It also examines the most common organizational challenges facing NSPs through the remainder of this decade and into the next, and outlines how a successful NSP can help clients navigate around these challenges.
Research and Markets target audience are network consulting, implementation, managed services and product support services firms.
With the information provided within the report, Research and Markets hope to help companies develop an understanding of how the role of professional and managed network services is evolving in the global market, and how this will affect your market leverage over both the short and long terms in addition to use these insights to successfully position your offerings and enhance your value proposition.
Key Topics Covered:
  • Methodology and definitions
  • Global network services — the catalyst for technology change and business model transformation
  • Research and market forecast assumptions
  • Trends shaping the professional and managed network services marketplace
  • Conclusions and Recommendations
  • Table of exhibits
Companies Mentioned:

  • Alcatel-Lucent
  • Alltel (News - Alert)
  • Atos Origin
  • Brasil Telecom
  • BT
  • China Netcom
  • China Unicom
  • Ciena
  • Cisco (News - Alert) Systems
  • David Suzuki Foundation
  • Embarq
  • Ericsson
  • Facebook (News - Alert)
  • Fujitsu
  • Goldman Sachs
  • Huawei Technologies
  • Juniper Networks (News - Alert)
  • Millicom Cellular
  • MySpace
  • NewBay Software
  • Nokia Siemens Networks
  • Nortel (News - Alert)
  • Oi
  • Siemens
  • Telecom New Zealand
  • Texas Pacific Group
  • US Cellular
  • Verizon Wireless
  • World Economic Forum

Jessica Kostek is a channel editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Jessica’s articles, please visit her columnist page.

Edited by Jessica Kostek


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