Analyst firm Ovum said today that managed services, including connectivity, voice, security and other IP services, are on the rise.
According to Ovum’s report, commissioned by Cisco Systems Inc., the managed-services market is expected to reach $41.5 billion per year by 2009. The study features data collected from more than 2,500 end users from companies using managed services in 20 countries across the Americas, Europe, Middle East, Africa and Asia, and representing the finance, manufacturing, retail, government, health care and education markets.
“More and more business customers want service providers to deploy and manage their network solutions to reduce costs and improve reliability,” said Peter Hall, research director for Ovum. “Significant opportunities exist for service providers developing and delivering managed services, especially in the areas of multiservice IP VPN, IP communications, security and metro Ethernet.”
Other key findings from the Ovum study include the following:
• Customers who have adopted managed services from service providers largely are pleased with that decision, based on cost reduction and higher levels of support and availability.
• Network security is the most commonly adopted IP service.
• By 2009, managed IP VPN will remain the largest portion of the market (53 percent) but managed VoIP will grow the fastest (65 percent CAGR).
• The region including Europe, Middle East and Africa (EMEA) currently leads in adoption of managed services, followed by North America. Latin America is currently the smallest market for managed services, but offers rapid growth potential for IP VPN and VoIP.
• The manufacturing industry is the broadest adopter of managed services, followed by government and finance.
