Visiongain Report Predicts Managed Services Market Will Reach $86 Billion by 2016

By Laura Stotler

A new report from Visiongain predicts the managed services market will reach $86 billion by 2016. “Managed Services in LTE Era Report 2011-2016” looks at the market for managed services with particular reference to the Long Term Evolution (LTE) boom.

The Visiongain research examines managed services growth, market sizing and analysis of managed services provider (MSP) prospects within the 2011-2016 timeframe. The report predicts growth from the 2010 market, which was around $55 billion.

The company specifically sees the LTE market as a high growth category within the mobile industry, with revenues predicted to grow to $68 billion by 2016. According to Visiongain, infrastructure vendors are tailoring their managed services offerings alongside their LTE product portfolios to capitalize on the momentum, with tier 1 vendors vying to take an early movers advantage with LTE managed services.

3GPP Long Term Evolution (LTE) is a standard for the mobile phone technology tree responsible for GSM/EDGE and the UMTS/HSPA network technologies. It is associated with the 3rd Generation Partnership Project (3GPP) and is a set of enhancements to the Universal Mobile Telecommunications System (UMTS). Much of the latest release of the standard focuses on 4G technology including an all-IP flat networking architecture.

Visiongain sees managed services contracts continuing to grow in size, tenure and value this year, with new contracts having a major impact on the wireless value chain and on wireless operators specifically. The report also examines managed services strategies for mobile network operators (MNOs) planning to deploy LTE. MNOs must adopt a lean business model and overcome their inherent organizational limitations within the LTE model, according to Visiongain, in order to reduce the payback period and maximize profits while also remaining competitive.

The report also finds that operators throughout the world are embracing managed services, and particularly in the EMEA region as well as Asia Pacific and emerging markets in India and China. In contrast, many US carriers see networks as a source of competitive advantage and are hesitant to launch a managed services strategy. Visiongain predicts those carriers will manage networks in-house through 2013 with LTE deployment offering the cost savings required to increase Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) levels.

The company predicts that with a well structured and executed managed service for LTE, networks will deliver from 10 to 20 percent in OpEx savings, which could have a real effect of increasing EBITDA by eight percent in some cases.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.

Edited by Jennifer Russell

MSPToday Contributing Editor

Related Articles

T-Systems Enters AWS MSP Partner Program

By: Maurice Nagle    5/28/2020

This week, T-Systems entered the AWS MSP Partner Program, signaling expertise and validation in delivering full lifecycle solutions to partners.

Read More

What are Critical Differences Between Proactive & Reactive Cybersecurity?

By: Special Guest    5/21/2020

Thought leaders preach proactive solutions to business adversity. But when it comes to cybersecurity, too many decision-makers find themselves well be…

Read More

Armor Adds MSP Program to Support Growing Cyber Security Opportunity

By: Erik Linask    5/19/2020

Armor has launched a new MSP program to ensure its partners have the tools they need to protect their customers and guide them through their security …

Read More

Businesses Seeking Positive Outcomes Will Smart Source their MSP Selection

By: Laura Stotler    5/14/2020

Companies want strong relationships that will lead to positive outcomes as they look for MSP partners, according to new research from NTT. The company…

Read More

SkySwitch Launches Loyalty Program to Foster Partner Relationships

By: Erik Linask    5/12/2020

SkySwitch launches a loyalty program for its MSP and reseller partners.

Read More