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Convergence Integrators to Bring More Competition in Managed Network Services Markets, Reports IDC

  • 18 April, 2005 12:26

<p>NORTH SYDNEY, April 18th, 2005 – IDC has recently conducted a study titled "Australia Managed Network Services, 2004-2009: The Ascent of Convergence Integrators", which highlights how convergence integrators have started to capture strong momentum in the Australian marketplace. Convergence Integrators are bringing new market dynamics by playing a key role in the managed network services market as more organisations are migrating their voice and data networks over one single network.</p>
<p>"Converging voice and data over a single network makes the distinction between LAN and WAN less relevant from both a technical and commercial standpoint. Both convergence integrators and network operators with a voice or data background are able to bid for such projects, intensifying competition", said Landry Fevre, Research Director Telecommunications and Consumer Digital Markets.</p>
<p>IDC defines the three different types of players as follows:</p>
<p>* Network Centric: this category comprises the network operators that have offerings beyond the typical access and transport component; network provisioning, configuration and monitoring. They are often building capabilities to migrate and install next generation services.</p>
<p>* IT Centric: the category encompasses the IT vendors with datacentres capabilities including server hardware and operating system, Web applications and databases. They often bundle solutions with application implementation services and application management and monitoring.</p>
<p>* Equipment Centric: this segment includes the equipment side of the convergence supply chain, with provision of LAN/WAN routers and switches, IP PBX, IP Phones and also sometimes maintenance, network readiness assessment.</p>
<p>IDC predicts the total market will grow from A$853 million in 2004 to reach A$1.53 billion by 2009 with a CAGR of 12%. The biggest market in 2009 will be managed IP VPN with A$918 million increasing at a 15% CAGR. The fastest expanding market will be managed VoIP, which will grow to reach A$410 million by 2009 with a 48% CAGR.</p>
<p>Convergence integrators must ensure not to be too reliant on equipment sales revenue and mitigate risks with recurring revenue such as services. Opportunities in managed convergence services are managed VoIP security, network capacity/support, application management, hosted voice solutions and contact centres.</p>
<p>Most players have revisited or are actively reviewing and repositioning their strategies accordingly, in order to find business opportunities with the potential to grow at double-digit rates. As a result, some vendors are looking at growing organically but many are evaluating acquisition to jump-start their efforts with the acquisition of expertise or a customer base.</p>
<p>For press enquiries please contact:
Landry Fevre
Research Director, Telecommunications
Phone: 61 2 9925 2252</p>
<p>Click here to view the press release online:</p>
<p>Click here to subscribe to IDC press releases and newsletters online:</p>

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