Results In For Survey On Network Outsourcing

    September 21, 2006

The results of the latest IDC WAN Manager Survey indicated something of a mixed outlook for enterprise network outsourcing services and providers. The former may enjoy “robust growth” in the coming months; the latter could “face challenges.”

According to IDC, “the market for network outsourcing is rapidly evolving and growing demand is expected across a number of industry verticals as well as companies of all sizes.”

“IDC believes the demand for adaptive IT service delivery will accelerate the demand for new on-demand utility-like platforms,” the press release continued. “Unlike the traditional systems architectures of today, IDC says the utility-like model will increase a company’s flexibility by turning traditionally fixed costs into variable costs.”

The less encouraging news followed soon after. “IDC says that delivering outsourced network-IT services will prove increasingly challenging for all service providers.” The release predicted that “service providers will have to adapt their service delivery models to compete,” and declared that “traditional service delivery architecture clearly will not do.”

“Customers now and increasingly in the future will require service delivery models that are shared, collaborative, and interoperable,” IDC predicted. A comment from Sean Hackett, a research manager for IDC’s Business Network Services, corroborated the company’s statements.

“The strategic issues of this shift are more than just technical in nature, as they will alter the competitive landscape, in some cases changing the buyer profile and altering the company’s mix of partners and suppliers,” Hackett said. “We believe the telecommunications carriers have a new advantage in this market primarily because of the cost advantages of scale and their deep understanding of the network.”

He also brought up one sticking point: “these carriers first have to raise their credibility in the marketplace as IT service providers.”

Regardless of the coming changes, it seems certain that, “with increasing merger and acquisition activity and rapidly changing business models, enterprises are looking for ways to reduce overall network costs, cope with increasing complexity, and become increasingly adaptable.”


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Doug is a staff writer for WebProNews. Visit WebProNews for the latest eBusiness news.