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Telcos and IT Vendors are on a Colliding Path for VoIP, Finds IDC

  • 28 April, 2004 11:03

<p>NORTH SYDNEY, April 28th, 2004 – In IDC's latest report titled “Australian Managed Network Services 2003 - 2008 Forecast and Analysis: Telcos and IT Vendors Moving Up or Down the Value Chain,” IDC finds that Australian managed network services will be worth A$1.4 billion by 2008, a compound annual growth rate (CAGR) of 14%, with the market expanding at double-digit rates for the next five years. This report covers the Managed Network Services (MNS) market, which includes the managed WAN, managed IP VPN and managed VoIP services market sizing, forecast and share. IDC found that the IP VPN market has outgrown the managed WAN market for the first time in 2003 and the highest growth will remain in managed VoIP services reaching A$288 million by 2008.</p>
<p>“The latest developments in next generation network services have led to a dramatic change in market landscape and dynamics during the past two years with system integrators, equipment vendors and telecom carriers competing for the same MNS market.”</p>
<p>"Traditionally, organisations would have gone to a carrier for their voice/video requirements but it is not necessarily the case anymore today with IT suppliers, network integrators and equipment vendors entering the fray and building skills to provide managed network services including VoIP", " said Landry Fevre, IDC Research Program Manager, Telecommunications.</p>
<p>IDC research shows that this market will continue to become very active with further consolidation expected. The MNS market dynamics have become more complex for carriers and IT vendors who find it difficult to move up or down the value chain by competing instead of co-operating and vying for the same business.</p>
<p>"The flagrant area of overlap and friction between IT vendors and telecom carriers is around convergence areas such as VoIP and IP video services," added Landry Fevre.</p>
<p>According to IDC's managed network services survey - what is keeping the CIO or the IT manager up at night - are not management issues but more operational issues, on reducing costs and getting the most value in terms of network uptime and performance for a given price.</p>
<p>To purchase this study, please call the IDC sales team on (61 2) 9925-5300 or email Gary Clarke on</p>
<p>For press enquries please contact:
Landry Fevre
Research Program Manager, Telecommunications
Phone: 61 2 9925 2252</p>

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