Five years ago, network operators were still hesitant to outsource operations and entrust their business to someone else, so the amount that they spent on network managed services totaled just US$5 billion in 2007. Today, almost every network operator depends on managed services for at least part of their operations and network managed services totaled US$12 billion in 2011.
“Outsourcing is a win-win situation,” says Jim Eller, principal analyst, wireless infrastructure. “Network operators can reduce OPEX, improve service quality, and increase revenues. And network equipment vendors earn higher margins on services than on hardware and software, which is increasingly commoditized.”
The leading vendors in network managed services are the major network equipment vendors: Ericsson, Nokia Siemens Networks (NSN), Huawei, and Alcatel-Lucent. Ericsson has been number one in network managed services since the first offerings in the 1990s. However, NSN has won more managed services contracts than anyone else over the past couple of years and was a close second in terms of 2011 managed services revenues. Alcatel-Lucent, third in network managed services last year, has introduced a lot of innovations in managed services offerings, such as energy managed services for sustainability. Meanwhile, Huawei is fourth but gaining quickly, with successes in emerging markets due to low-cost service offerings.
Aditya Kaul, practice director, mobile networks, sees a fundamental change in network managed services. “It’s not just about reducing operational costs anymore,” says Kaul. “Most operators have already achieved cost savings through outsourcing, so they are now looking for managed services partners who can help them to transform their businesses and increase revenues. We call this new paradigm ‘Managed Services 2.0 (MS 2.0).’”
ABI Research’s latest report, “Managed Services for Mobile Operators” discusses the latest trends in outsourcing, such as MS 2.0.
This report is part of the Mobile Core Networks Research Service.
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 40+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
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.
Asia: +65 6950.5670