Network Managed Services Market Slows After Double-digit Boom Years, Says
LONDON -- April 11, 2013
ABI Research forecasts that the market for network managed services will grow
at a modest CAGR of 7% between 2012 to 2018, unlike the previous years where
the market saw double-digit growth. The sudden turn to modesty can be
attributed to a sluggish operator capex outlook, some level of disconnect
between internal tools and scaling of network operations, commoditization of
the low-end managed services, but the main reason is the wake up call to
The network managed services market saw its glory years starting around 2005,
where vendors like Ericsson, Nokia Siemens, Alcatel-Lucent or their erstwhile
existences benefitted from a trend where a large number of operators, many of
them from developing regions, outsourced their day-to-day network management
and operations in return for a considerable cost savings. Most managed
services vendors invested heavily in growing network operations centers,
taking on board staff, and building large cost structures. In these boom years
we had managed service vendors sacrifice profitability for growing market
share and revenues.
“The managed services market faces a reality check as many of the false
promises of high cost savings begin to be shattered, as some vendors struggle
to appease investors,” says Aditya Kaul, ABI Research practice director. “On
one level we see a certain maturing of the market, as low-end field operations
get commoditized and transactional cost based models give way to
customer-centric managed services and strategic business transformation.
However, it’s too early to say to what extent operators will bite this new
shiny avatar of managed services. While operators face immense pressure to
transform their business and not be relegated to dumb pipes by the OTTs, it
remains to be seen if they will trust their managed service partners in
helping with this transformation.”
The “Network Managed Services” Market Data is published as a part of the
Managed Services Research Service
(http://www.abiresearch.com/research/service/managed-services/) that tracks
traditional in-building systems like Active and Passive Distributed Antenna
Systems and Repeaters.
ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
thousands of decision makers through 70+ research and advisory services. Est.
1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
Christine Gallen, +44.203.326.0142
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