-- Europe currently leads in the adoption of managed services, but will
be overtaken by the North American market, which is expected grow to be the
largest market in the world for managed services by 2012. Asia Pacific is
projected to have the most rapid growth fueled by managed service adoption
in India and China, with a CAGR estimated at 27 percent.
-- Customers who have adopted managed services are largely pleased with
that decision, and they are enjoying lower costs and higher levels of
support and availability than anticipated.
-- The current global market for managed IP VPN services is the largest
among the managed services studied at US $17 billion.
-- By 2012, managed IP VPNs will remain the most widely deployed adopted
service, though IP voice is the fastest-growing managed service with a 39
percent CAGR for the forecast period.
-- The manufacturing industry remains the vertical industry that uses the
most managed services, followed by finance and retail. Government fell from
third to fourth place in managed services adoption since the first report
was published in February 2006.
-- Thirty-nine percent of the respondents said they would use "Cisco
Powered" services if offered by their providers, in comparison to a total
of 8 percent who said they would use services based on solutions from the
next four most highly ranked networking vendors in the study.
-- Interest from end users in managed service bundles continues to grow,
with more than 64 percent of respondents indicating that better, more
intelligent, integrated managed service solutions would further incline
them to purchase bundles.
"As IT and networks become ever more critical to business success,
customers recognize the importance of uptime, security and performance in
supporting critical applications," said Al Safarikas, senior director of
marketing at Cisco. "The worldwide growth in managed services indicated by
this study shows that businesses are recognizing that these can be
successfully delivered by a managed service provider."
Cisco's strategy is to support managed service providers as they envision,
build and accelerate demand for their network and premise-based managed
services that today's businesses expect. The Cisco Powered Program
designates service providers who deliver their services using Cisco
networking equipment and technology and have met market-based standards of
support defined by Cisco. Through the Cisco Powered Program, managed
service providers have access to industry-leading solutions, third-party
validated designations, training and extensive go-to-market support.
"Greater end-user awareness of the availability of relevant services,
combined with a competitive provider environment, is creating the necessary
conditions for rapid market growth in this area," Safarikas said. "More
companies in every geography understand the business case for adopting
managed services; they can significantly reduce total cost of ownership
while increasing the quality of service. The latter is an important driver,
especially in developing markets where due to IT skills shortages, and
managed services may be the only way to achieve satisfactory quality of
service and service-level agreements."
Hall and Cisco will host a series of live webcasts entitled, "Capture the
Managed Service Opportunity in Your Region" on May 20 and 21. Topics will
include:
-- Global and regional opportunities for managed services; and
-- Managed IP VPNs, managed metro Ethernet, managed security and managed
IP communications services trends.
The results of Ovum's last study of this type were announced in February
2006 and may be found at:
http://newsroom.cisco.com/dlls/2006/prod_021306d.html.
To learn more about the webcast and to register, click on the following
URL: http://www.ciscowebtools.com/sp/newsletters/05-2008/ovum_ms_webinar.html
For additional information about managed services and the Cisco Powered
Program, please visit the Cisco web site at:
http://www.cisco.com/go/managedservices.
About Cisco
Cisco (Contact Information: Media Contact: Kevin Petschow Cisco (773) 444-5106 kpetscho@cisco.com Industry Analyst Contact: Todd Hanson Cisco (408) 853-8255 todhanso@cisco.com Investor Relations Contact: Marilyn Mora Cisco (408) 527-7452 marilmor@cisco.com