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Canadian Carriers Turn Focus to Managed Services, Again
Yankee Group, The, July 2004, Pages: 16


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Canadian service providers are bringing managed services back into the limelight again. In 2000, managed services received a lot of attention but with the ensuing telecommunications bust, budgets were cut and enterprises turned their focus to essential investments only. In 2004, carriers are once again pushing managed services as enterprises deal with increasingly complex and demanding network environments.

Historically, carriers’ managed services were more commonly referred to as managed network services. These services mainly focused on network provisioning, fault repair and CPE management. However, enterprises are now recognizing the need for assistance in addressing the IT- and application-specific needs of the network. “Speeds and feeds” services will no longer solve the strategic needs of the application-centric enterprise.

Carriers are seizing this opportunity and developing strategies to roll out a range of highvalue network services such as managed security, storage, messaging and hosted IP telephony, if they have not done so already. This change in mindset is helping carriers to differentiate an otherwise undifferentiated managed services portfolio.

Carriers are also preparing to face increased competition from IT outsourcers, such as IBM, CSC and EDS, which sell managed services. We believe that Canadian carriers will focus on communications and networking applications as an addition to their traditional network management services.


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