IDC Reports Increasing Competition Within the Desktop and Network Management Services Arena
LONDON — OCTOBER 31, 2000 — The desktop and network management services market attracts many vendors as it offers a more flexible alternative to straightforward IS outsourcing. As a result, IDC forecasts desktop and network management services will be the fastest-growing segment in the infrastructure services market, with revenue increasing at a compound annual growth rate of 16.8%, from $5.7 billion in 1999 to $12.4 billion in 2004.
"The network and desktop management market promises higher margins, beyond simple hardware support and attracts a wider audience," said Lionel Lamy, senior analyst of European Business Infrastructure and Technology Services at IDC. "An increasing number of companies want an increasing number of flexible solutions, and this is seen as an alternative to straightforward outsourcing."
The main market drivers are the ebusiness pull-through effect and end-user pressure. "Without an adequate desktop and networking infrastructure, no organization can sustain the demand of the Internet economy," Lamy said. "In addition, users want quality, not just low price, because the infrastructure is increasingly vital to them within the networked economy."
IDC predicts the competition will intensify. Currently, each vendor's position within the leadership grid is not linked to the revenue it generates. In other words, size is not the only thing that matters. "Although the market dynamics will call for aggressive, flexible companies, the major players will still dominate the market because the infrastructure is too vital to corporations to take a gamble on," Lamy said.
Desktop and Network Management Services — A Competitive Analysis (IDC #SS10G) provides a detailed analysis of the top players in terms of revenue and positioning. It examines the interactions between the different types of players and also predicts the future positioning of the top 10 vendors within the leadership grid. An analysis of vendor strengths and weaknesses is provided. The report also offers advice and recommendations to service vendors regarding the best way to capture revenue share as the market grows. This report can be purchased at your local IDC office.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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