The global marketplace dynamic of convergence, the blurring of traditional industry and technology lines, is driving a wide array of challenges in the network managed services arena—both for Communications Service Providers (CSPs) and the companies that serve them.
The ever-increasing capacity demands and continued cost pressure associated with convergence should drive further growth in the market for network managed services. However, based on the experience of both CSPs and Network Equipment Providers (NEPs), it is clear that all is not well in the network managed services market.
Measured by revenues alone, the network managed services market appears buoyant. However, CSPs are voicing a number of complaints related to network managed services, including both contracting and operations. Both CSPs and NEPs are struggling to find governance models that balance the end-to-end responsibility of the vendor and continued operator control, while at the same time allowing enough flexibility for future changes.
As a result, while CSPs still see network managed services as a key pillar of their strategy, they view it as a “grudge spend” for which they can muster little genuine enthusiasm.