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NoD Market Study Shows Adoption of Manged Services Growing


Network On Demand Identity
Network On Demand market study shows adoption of managed services are growing

A market study developed by Spanish analyst TPNET and ALE evaluates view of Network On Demand from large and medium companies in Spain

ALE, operating under the Alcatel-Lucent Enterprise brand, today announced the results of a survey conducted in conjunction with industry analyst TPNET. The survey revealed managed services are growing across companies and industries.

TPNET and ALE gathered input from 233 CIOs/IT directors from large and medium companies in Spain. The result, published in the market study “Network On Demand: un futuro para la infraestructura de red de las empresas” (Network On Demand: the future for the enterprises’ network infrastructure), showed the most requested managed services are: maintenance and infrastructure support (21.4%), managed services for network infrastructure (17.9%), data storage (17.9%), printing (14.3%), security (10.7%), servers (7.1%), and cloud voice communications (7%).

An IDC study estimates that 80% of corporate network infrastructure will be delivered via pay–per-use by 2020. The main advantages being the reduction or avoidance of equipment investment, and having the network managed by expert teams in an increasingly complex network environment.

With managed services, companies use only what they need, paying for that amount used, allowing a flexible structure according to network and connectivity needs. Analyst ZK Research assessed that multinationals and large companies need on average more than 30 software updates for their network infrastructure, making management of the network a challenge.

65% of companies delegate the management and maintenance of their network infrastructure to their own staff, and 20.7% outsource it. Less than 5% indicated they have a comprehensive agreement for the complete management of network services.

Costs, main benefit from Network On Demand
Additional information in the survey showed 40% of the respondents recognized the cost as a main benefit of managed services; 35% said the advantage was improving the network without requiring new budget. One-in-four businesses also recognized free updates on hardware and software as a benefit of such managed services. And similarly, one-fourth of those surveyed said they appreciate the possibility to begin a new service as OPEX and convert it to CAPEX when the business needs supports it. Finally, about 18% think that the main benefit is a reduction of their own staff for management of the network, and also the flexibility to apply seasonal variations of network use as needed, especially in the university environment when the summer season sees a lowered use of network resources.

With the network infrastructure growing in complexity, the study remarks that it is necessary to get the right tools to answer the new technological challenges, while keeping the costs of ownerships under control.

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