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Managed Services in an IP World:  Global Opportunities for Wireless and Wired Networks, 2011-2016

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Table of Contents
Market Segmentation

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Managed services, traditionally supplied by carriers or systems integrators to support their customerís requirements for complete WAN solutions, are headed into new territory. Whereas these services used to require separate capabilities for monitoring each voice, data, mobile or video service, convergence based on common IP networks and systems technology will present new opportunities for wireless and wireline providers.

In this study, Insight will provide a detailed analysis of the current state of the managed services marketplace: the providers, the technology, and the scope of current service offerings. The study differentiates among four segments of managed services: managed WAN services, managed LAN, mobility management, and managed infrastructure. In addition to the revenue forecasts for these market segments, forecasts are provided for various market subdivisions including managed IP VPNs and IP endpoints, managed security services, managed WLANs, VoIP services, managed hosting and managed storage and a number of other significant areas within the managed services domain. Also provided is Insightís survey of outsourced disaster recovery and storage management services by vertical industry.


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    Report Excerpt

    1.1 Why Managed Services?

    The telecommunications market is a mature industry, exhibiting only low single-digit growth each year.  The Managed Services market, on the other hand, will grow two to three times the rate of the global telecom marketplace.  The underlying reason for the much faster growth in the Managed Services segment is the challenge faced by business enterprises of all sizes to deliver the next generation of business applications, while simultaneously migrating their supporting telecom networks to new technologies, such as IP and wireless.  Generally, these new types of applications and the network migration strategies need to get those applications before the end-user community has to be absorbed within current resource and capital budgets.  The complexity faced by the enterprise manager in managing these applications and networks within these constraints is compounded by the multiple networks, support systems, and services that have to be integrated into a modern corporate communications network. 

    The US and global economic growth that seemed to be starting in 2010 has waned and we will likely see another year of slow growth through 2012.  Throughout 2011, US joblessness and domestic consumer confidence continued to drag on the economy.  The unemployment rate in the United States will likely remain above nine percent through 2012, which is almost double the average rate over the past 30 years. 

    With the global and the US economy stagnant, and businesses not hiring, enterprise IT departments must still find a way get those new applications before their end-user communities.  Increasingly, enterprise application performance is becoming critical to the health of businesses.  A large percentage of business activity now depends on the Internet from everything from electronic commerce to intranet applications to customer service.  Increasing use of video and wireless services is driving exponential bandwidth demands onto enterprise networks.  As more endpoints and applications are added to enterprise networks the combined traffic will drive ďan order of magnitude increaseĒ on to enterprise networks.

    Managed Services can help solve these IT challenges.  Managed Services let enterprises outsource the most complicated elements of their information systems, including network management across multiple transport providers and devices.  With limited IT staffing, the enterprise can focus on the developing the corporate application, while outsourcing the network design, installation, and management to a provider who has the ďstate of the artĒ tools and skills to do it right.  New cloud-based applications ...........

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    Market Segmentation

     

    Global Region Forecasts

            North America
            Europe, Mid-East, Africa
            Asia-Pacific
            Latin-America, Caribbean

            By Global Region, Managed Services Revenues by Service Type

                  Data Center
                  LAN
                  WAN
                  Mobility
                  Infrastructure

    US Forecasts

             US Managed Service Revenue by Segment

                  Data Center
                  LAN
                  WAN
                  Mobility
                  Infrastructure

            US Managed LAN Services Revenue

                  LAN Extensions
                  IP Telephony

            US Managed WAN Services Revenue by Segment

                  Managed IP VPNs
                  Managed VLANs
                  Managed Security
                  Managed VOIP
                  Managed Other WANs

            US Managed IP VPN Endpoints

                 Dial
                 Wireless
                 Broadband
                 Dedicated-Copper
                 Dedicated-Optical

            US Managed Security Service Revenue

            US Managed VoIP Service Revenue

            US Managed Mobility Services Revenue

                Wireless Access
                Managed WLANs

            US Managed Infrastructure Revenue

            US Managed Data Center Revenue

                  Managed Hosting
                  Managed Storage
                  Applications


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    Table of Contents

     

    Chapter I
    EXECUTIVE SUMMARY
    1.1      Why Managed Services?
    1.2      Industry Structure
    1.3      Managed Service Industry Forecast

    Chapter II
    OVERVIEW OF MANAGED SERVICES
    2.1      Managed Services Momentum Continues
    2.2      Definitions Used in this Report
    2.3      Telecommunications Market
    2.4      Value Proposition for Managed Offers
    2.5      Overview of Managed Services Providers
    2.6      Service Provider Opportunities

    Chapter III
    MANAGED SERVICES AND MARKET SEGMENTS
    3.1      Managed Services Segments
    3.2      Managed LAN Services
    3.3      Managed WAN Services
               3.3.1   Remote Access
               3.3.2   VPNs
               3.3.3   Managed Ethernet Services
               3.3.4   Managed VoIP Services
               3.3.5   Managed Security
    3.4      Mobility Management
               3.4.1   Mobility Services
               3.4.2   Managed Mobile Applications
    3.5      Infrastructure Management
    3.6      Data Center Management

    Chapter IV
    SERVICE INDUSTRY FORCES
    4.1      Drivers of Managed Services
    4.2      Employment Trends
    4.3      Business Establishments
    4.4      Mobility and the Workforce
    4.5      US Business Telecommunications Spending
    4.6      The Global Picture
               4.6.1   Global Economy
               4.6.2   Global Employment
               4.6.3   Global Internet Penetration
               4.6.4   Global Mobile Subscribers
    4.7      IT Management Trends
    4.8      Industry Structure
               4.8.1   Power of Suppliers
               4.8.2   Power of Buyers
               4.8.3   Availability of Substitutes
               4.8.4   Threat of New Entrants
               4.8.5   Competition

    Chapter V
    MARKETS & TECHNOLOGY
    5.1      Managed Services Segments and Drivers
    5.2      Business Size Characteristics
    5.3      Vertical Markets
    5.4      Network Convergence
    5.5      IP Technology
    5.6      Ethernet Services
    5.7      Fiber Optics
    5.8      Wireless Mobility

    Chapter VI
    SERVICE PROVIDERS
    6.1      Provider Segments
    6.2      Telecom Carriers
               6.2.1   AT&T
               6.2.1   Level3
               6.2.3   Global Crossing
               6.2.4   Century Link and Qwest
               6.2.5   Sprint
               6.2.6   Verizon
    6.3      Cable Operators
               6.3.1   Comcast
               6.3.2   Time Warner Cable
               6.3.3   Cox Communications
               6.3.4   Charter
               6.3.5   Cablevision
    6.4      Equipment Vendors
               6.4.1   Alcatel-Lucent
               6.4.2   Cisco Systems
               6.4.3   Ericsson
               6.4.4   Juniper
               6.4.5   Siemens
    6.5      System Integrators
               6.5.1   HP
               6.5.2 I  BM

    Chapter VII
    FORECASTS
    7.1      Methodology & Forecast Definitions
    7.2      Managed Services Forecast Summary
               7.2.1   US Managed Services Forecast Summary
               7.2.2   Regional Managed Services Forecast Summary
    7.3      US Managed Services
               7.3.1   US Managed Services by Segment
               7.3.2   US Managed LAN Services
               7.3.3   US Managed WAN Services
               7.3.4   US Mobility Management
               7.3.5   US Infrastructure Management
               7.3.6   US Managed Data Center Services
    7.4      Regional Managed Services
               7.4.1   North America Managed Services
               7.4.2   Europe, Middle East, Africa Managed Services
               7.4.3   Asia Pacific Managed Services
               7.4.4   Latin America Managed Services
    7.5     Global Managed Services by Segment
    7.6     Conclusion

    Table of Figures

    Chapter I
    I-1      Managed Services Segments

    Chapter II
    II-1     US Telecommunications Revenue by Market, 2011
    II-2     Telecommunications Value Chain

    Chapter III
    III-1    Managed Remote Access
    III-2    Managed WAN Optimization
    III-3    E-LAN Network
    III-4    AT&Tís Wireless WAN Service
    III-5    Sales Force Management Package Options
    III-6    Inventory Management Flow
    III-7    Alcatel Managed Services Model
    III-8    AT&Tís US Enterprise Hosting Services

    Chapter IV
    IV-1    US Employment, 2000-2011 (Percentage)
    IV-2    Projected US Employment by Major Occupational Groups, 2008 & 2018
    IV-3    Employment and Teleworkers, 2008-2015
    IV-4    Managed Endpoints, 2011-2016
    IV-5    Distribution of US Establishments, 2008
    IV-6    Percentage of World's Pop. Covered by a Mobile Cellular Signal
    IV-7   US Business Wireline and Wireless Revenues, 2010-2015
    IV-8   US Business Wireline Data Market Share, 2010 and 2015
    IV-9   Real GDP; Quarterly Percent Change 2000-2012
    IV-10 Employment Select Developed Countries, 1971-2010
    IV-11 Global Internet Access Penetration, 2002-2010
    IV-12 Managed Services Gross Margins
    IV-13 Porterís Five Forces

    Chapter V
    V-1    Converged Networks
    V-2    Fixed Mobile Convergence
    V-3    AT&Tís Ultra-available Managed Network Service
    V-4    Ethernet Network
    V-5    Managed Carrier Ethernet Network Ė Wireline and Wireless
    V-6    Carrier Ethernet Evolution
    V-7    FTTx Network
    V-8    US FTTH Home Passed and Connections, 2005-2016
    V-9    Regional Wireless Penetration, 2000-2010
    V-10  US Wireline Access Lines and Wireless Subs, 1988 to 2012

    Chapter VI
    VI-1   AT&T Managed Internet Service
    VI-2   AT&Tís MPLS Private Network Transport Services
    VI-3   AT&Tís Ultravailable Managed Network Service
    VI-4   AT&Tís US Enterprise Hosting Services
    VI-5   AT&Tís US WiFi Hotspots Managed Internet Service
    VI-6   CenturyLink National Footprint
    VI-7   Integrated Managed Services
    VI-8   Comcast Fiber Backbone
    VI-9   Cablevision Network Service Areas
    VI-10 Alcatel Managed Services Model
    VI-11 Ciscoís Machine-to-Machine IP NGN Infrastructure
    VI-12 Converged Application Server

    Chapter VII
    VII-1   US Managed Services Revenues, 2011-2016
    VII-2   Regional Managed Services Revenues, 2011-2016
    VII-3   US Managed Services Revenue, by Segment, 2011-2016
    VII-4   US Managed LAN Services Revenue, 2011-2016
    VII-5   US Managed WAN Services Revenue, 2011-2016
    VII-6   Managed WAN Services Distribution, 2011 154
    VII-7   US Managed IP V PN Endpoints, 2011-2016
    VII-8   Managed VPN Revenue, 2011-2016
    VII-9   Managed VLAN Revenue, 2011-2016
    VII-10 Managed Security Services Revenue, 2011-2016
    VII-11 Managed VoIP Revenue, 2011-2016
    VII-12 US Managed Mobility Services, 2011-2016
    VII-13 US Infrastructure Management Revenue, 2011-2016
    VII-14 US Managed Data Center Services Revenue, 2011-2016

    Table of Tables

    Chapter I
    I-1   Managed Services Segments
    I-2   Service Providers Strengths and Weaknesses
    I-3   Managed Service Solutions by Business Size
    I-4   Global Managed Services Market by Region, 2011-2016

    Chapter II
    II-1  Managed Services Segments
    II-2  Managed Services Providersí Strengths and Weaknesses

    Chapter III
    III-1 Managed Services Providers Strength by Market Segment
    III-2 IP VPN Access Drivers
    III-3 Elements and Features of IP/MPLS Networks
    III-4 Characteristics of Ethernet Services
    III-5 Elements of Managed Mobility Services

    Chapter IV
    IV-1 Projected US Employment by Major Occupational Groups, 2008 & 2018
    IV-2 Mobile Cellular Subscriptions, by Level of Development, 2000-2010
    IV-3 Evolution of Enterprise Applications, 1991-2020
    IV-4 US Business Wireline and Wireless Revenues, 2010-2015
    IV-5 Global Mobile Subscribers Forecast, 2012-2017

    Chapter V
    V-1  Managed Services Segments and Drivers
    V-2  Business Size Characteristics
    V-3  US Business Wireline Revenue Forecast by Vertical Market, 2011-2015
    V-4  US Business Wireless Revenue Forecast by Vertical Market, 2011-2015
    V-5  Ethernet Services Characteristics
    V-6  US Wireless Statistics, 1995-2010

    Chapter VI
    VI-1 Managed Services Providers by Market Segment 98
    VI-2 Comcast Ethernet Services 124

    Chapter VII
    VII-1   US Managed Data Center Services Revenue, 2011-2016
    VII-2   Regional Managed Services Revenues, 2011-2016
    VII-3   US Managed Services Revenue, by Segment, 2011-2016
    VII-4   US Managed LAN Services Revenue by Sub-Segment, 2011-2016
    VII-5   Managed WAN Services Revenue by Sub-Segment, 2011-2016
    VII-6   Managed WAN Services Distribution, 2011
    VII-7   US Managed IP VPN Endpoints, 2011-2016
    VII-8   Managed VPN Revenue, 2011-2016
    VII-9   Managed VLAN Revenue, 2011-2016
    VII-10 Managed Security Services Revenue, 2011-2016
    VII-11 Managed VoIP Revenue, 2011-2016
    VII-12 US Managed Mobility Services, 2011-2016
    VII-13 US Infrastructure Management Revenue, 2011-2016
    VII-14 US Managed Data Center Services Revenue, 2011-2016
    VII-15 Regional Managed Services Revenues, 2011-2016
    VII-16North America Managed Services, 2011-2016
    VII-17 EMEA Managed Services, 2011-2016
    VII-18 AP Managed Services, 2011-2016
    VII-19 LA Managed Services, 2011-2016
    VII-20 Global Managed Data Center Services Revenue, 2011-2016
    VII-21 Global Managed LAN Services Revenue, 2011-2016
    VII-22 Global Managed WAN Services Revenue, 2011-2016
    VII-23 Global Managed Mobility Services Revenue, 2011-2016
    VII-24 Global Managed Infrastructure Services Revenue, 2011-2016


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