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While business spending on all telecommunications services is expected to grow in low single-digit percentages over the next five years, global spending on managed services is expected to grow at an annual compounded rate of almost 12 percent, according to the latest market study from Insight Research. The market research report notes that in this period of sputtering economic growth and reduced spending on basic telecommunications and IT services, many enterprises will find that purchasing managed services is a cost-effective alternative to increasing internal staffing. The study also predicts that US revenues associated with the managed services market will increase from nearly $36 billion in 2014 to $53 billion in 2018.
Insight's newly-released market analysis report, "Managed Services in an IP World: Global Opportunities for Wireless and Wired Networks, 2014-2018" includes full segment details for the US, North America, Europe, Middle East and Africa, Asia and Pacific Rim, and Latin America. The study differentiates and forecasts five managed service segments: managed data center services, managed infrastructure, managed LAN services, managed WAN services, and managed mobility services. In addition to the revenue forecasts for these market segments, forecasts are provided for various market subdivisions, including managed IP VPNs, security services, VoIP, LAN extensions, Wireless LANs, managed mobility services, hosting and cloud services.
"While we are anticipating that the rate of spending globally will outpace domestic spending on Managed Services by a few percentage point over the next five years, the big news is the considerable variability in growth among the segments we’ve tracked," says Robert Rosenberg, President of Insight Research. "For example, managing Mobility services for US business is expected to grow at a rate in excess of 17 percent over the next five years, and this is comparable to the growth in spending we expect to see in Asia-Pacific and in Europe. However, other segments, including Infrastructure and Data Center management, will be not nearly as robust," concludes Rosenberg.
An excerpt of this market research report, table of contents, and ordering information are online at http://www.insight-corp.com/reports/manserv14.asp. The 191-page report is available immediately in electronic format (PDF) and can be ordered online. Visit our website at www.insight-corp.com or call 973/541-9600 for details.
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