Network Managed Services Market Slows After Double-digit Boom Years

Oyster Bay, New York - 11 Apr 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 profitability.

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 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.

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact ABI Research

Media: Interview an Analyst

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670