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Partner First and Compete Later, the New Mantra for Australian Convergence Integrators, Says IDC

  • 08 May, 2006 15:49

<p>NORTH SYDNEY, May 8th, 2006 – According to IDC's latest study "Australia Managed Convergence Services, 2005-2010: Convergence Integrators Forming a Very Crowded Pack", IDC finds that Australian organisations are now embracing all IP converged solutions and are starting to reap some benefits from their initial investments in terms of productivity, lower operating expenses and flexibility.</p>
<p>This IDC study explores the market dynamics and trends set out by convergence integrators. Key highlights of the study are:</p>
<p>Managed IPVPN is the most established market of Australia managed convergence services which is forecasted to reach $833 million by 2010. The fastest growing market is managed VoIP services which is expected to reach $472 million by 2010 while managed traditional data WAN is forecasted to decline to only $209 million by the end of the decade, as more organisations are parting ways with their traditional data services such as frame relay and migrate to next generation IP based access services.</p>
<p>"Partner first and compete later is the new untold mantra in the market with the different players targeting the convergence integration market and in essence is characterising the new way of doing business with convergence. Telcos don't want to just provide dial tone anymore, and network system integrators are now offering communications services", said Landry Fevre, Research Director, Telecommunications Services and Consumer Markets.</p>
<p>"With IP lines shipment now reaching its peak and market maturing, convergence integrators need to reinvent themselves and start to diversify their offerings from one off revenue to annuity based revenue such as managed or hosted IP PBX and also generate increased revenue from IP communications applications such as collaboration, unified communications, video, presence integration" added Landry Fevre.</p>
<p>A trend that is accelerating 2006 is the dissolution of margin in the data market. This is now reaching convergence services and IDC expects more consolidation in the marketplace, as service providers migrate their existing customer base from legacy services to next generation access services such as business DSL, Metro Ethernet and IP VPN.</p>
<p>New services such as fixed mobile convergence are emerging with a very attractive value proposition and will gather strong pace, credibility and mindshare in 2006. Today most IP PBX equipment vendors are now offering fixed-mobile bridging, allowing a fixed line extension to be readily available on a mobile phone.</p>
<p>If you would like further information or to purchase IDC research, please contact Gary Clarke, IDC Associate VP of Sales via email or phone 02 9925 2226.</p>
<p>For press enquiries please contact:
Landry Fevre
Research Director, Telecommunications and Consumer Markets
Phone: 61 2 9925 2252
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