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Managed Network Services Sales Will Reach $28.5 Billion By 2007: Study

Revenues will grow at a 10.5% compounded annual growth rate; competition for market share will become fierce.

A new report by Research and Markets predicts dramatic growth for the global managed network services market, growing from $18.8 billion today to $28.5 billion in 2008.

According to the report, market revenues will increase at a 10.5% compounded annual growth rate to $28.5 billion in 2008, from $18.8 billion today. That represents a 34% overall increase in sales of managed network services and equipment carriers and system integrators over four years.

With this impressive growth comes competition for market share, as carriers and system integrators fight for the managed services dollar. Research and Markets predicts that system integrators will cut into carriers' revenues over the next four years, but does not expect them to completely supersede carriers in the market. Indeed, the report notes that carriers will remain enterprises' vendors of choice for stand-alone managed service and that they can offer vital value propositions to system integrators.

Ultimately, Research and Markets expects carriers and system integrators to comfortably divide the growing managed network services market by making strong plays in different market environments. The report predicts that system integrators will continue to be the main players in single-sourced outsourcing environments, with carriers and equipment vendors having opportunities to sell services that seamlessly integrate into the system integrators' offerings. Conversely, Research and Markets expects carriers and equipment vendors to be the big players in selective sourcing environments

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