Recent Press Releases
04/23/2003

IDC says Managed Network Services is the Evolution of the Telecommunications Carriers Value Proposition

NORTH SYDNEY – APRIL 23, 2003 – At a time of constrained budgets due to a sluggish economy and mounting geopolitical worries, IDC has completed an in-depth analysis of the competitive Managed Network Services (MNS) market in Australia. This study draws on leading models being implemented by systems integrators, outsourcing companies, and service providers.

 

IDC expects strong growth in the MNS market driven by companies looking to reduce costs and operational expenses associated with their physical infrastructure and network management. The local market is experiencing an influx of players coming from diverse backgrounds, such as carriers, global services providers, equipment vendors and system integrators. All of which are approaching the market opportunities with a variety of value propositions.

IDC's recently released study, Australia Managed Network Services Market: Trends and Recommendations (IDC #AU201211K) examines the dynamics of the Australian managed network services (MNS) market in detail and offers insight into how companies and suppliers should position themselves for success.

Research collected in IDC's 2003 telecommunications survey, identified three key trends where carriers and suppliers should focus their offerings:

Customer service and support is the number one factor used to select services providers. Key elements required by businesses of service providers are accountability, single point of contact, network visibility and control;

IP VPN is on most companies must buy list and is becoming a service enabler; and

Managed IP Telephony services are maturing and the concept of integrating voice, video, data, and storage is supported with strong arguments.

Our recommendations for service providers to drive the highest value to their customers, said Landry Fevre Senior Analyst Telecommunications Research. Providers need to focus their offerings on:

products — companies are migrating their networks to IP-based services;

network — service providers need to provide end-to-end connectivity;

pricing — develop flexible and granular tariffs and different bandwidth options;

customer service — an impeccable flow of information of how one company's network is performing is a must have; and

bundling — while system integrators seemed to be best positioned, telecom operators need to build stronger relationships with system integrators to offer a broader range of services.

The market in Australia is maturing with additional consolidation expected. We anticipate more sophisticated offerings with a strong focus around products such as VPNs, VoIP, and Storage Area Networks. To be a winner in this market service providers should be accompanied with best practices, TCO and ROI tools that demonstrate the viability of entering into managed network services agreements, said Landry Fevre.

IDC is now delving deeper into market strategies and partnerships, to do this we are interviewing 300 end-users on their acquisition behaviour, usage, and preferences in adopting managed network services.

Click here to go to the press release: http://www.idc.com.au/resources/press/telecom/20030424_Network%20Services.htm

Last Chance to Regsiter for Directions 2003. This event brings together key players from the IT industry in a one day format which includes discussions by leading IDC analysts, presentations from leading edge customer deployments, a panel discussion from the MD's of Australia's top IT&T Vendors and also a panel of Australia's leading channel players.

Date: Tuesday, 29th April 2003

Time: 8.00am-5.00pm

Venue: Star City Hotel, 80 Pyrmont St, Sydney

Cost: Early Bird $715 -Incl GST

For a detailed agenda or to register go to:http://www.idc.com.au/events/directions2003 or for further information contact Bree Charlton on ph: 02-9925 2200 or email: bcharlton@idc.com

About IDC

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 local and 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 organisations, eBusiness companies and the financial community. Additional information can be found at www.idc.com.au

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