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South African Network Management Services Market
Frost & Sullivan, Nov 2010, Pages: 106
This Frost & Sullivan research service titled South African Network Management Services Market unpacks major market forces and trends impacting the market, provides forecasts of growth within the different solution segments, key customer verticals, and concludes with strategic recommendations for vendors, telecommunications providers and service providers/integrators wanting to capitalise on the opportunities presented. In this research, Frost & Sullivan's expert analysts thoroughly examine the following technologies: managed LAN and managed WAN services.
Market Overview
Network Managed Services to Boost Prospects of the South African IT Market
Managed services have encouraged growth within the IT market, which is in a recovery phase after the global recession. Managed services provide client companies with cost-effective strategies to realise business value. As South African businesses are becoming increasingly dispersed, network management services (NMS) are often one of the first areas to be outsourced. The uptake of NMS is, therefore, forecast to be high over the next six years with competition between service providers increasing.
“Budget constraints and skills shortages are driving the demand for outsourcing with network managed services providing an attractive viable option to meet this demand,” notes the analyst of this research. “Companies need to outsource business activities, shifting from CAPEX to OPEX spending which results in cost savings.” The global recession caused IT expenditure to decline considerably. Moreover, the cost of IT equipment and staff added to costly CAPEX and companies had to re-think their budget strategies. “Shifting from CAPEX to OPEX spending results in cost savings for customers,” states the analyst. “This is achieved by avoiding the direct, indirect and overhead costs of CAPEX.”
Pressing Need for Increased Bandwidth Capacity and Better Connectivity
A key challenge remains limited bandwidth and connectivity. This impacts service delivery. Prices of international bandwidth and broadband connectivity are still too costly for most end users. Moreover, the lack of proper backhaul infrastructure and sub-networks cause connectivity and limited bandwidth issues. This is a major concern for technologies such as cloud computing that are dependent on bandwidth and connectivity in order to provide effective services. This ultimately impacts on what services can be offered in the NMS market.
“Introducing more undersea cables and upgrading the backhaul infrastructure and sub-networks to support the influx of international bandwidth is critical for the market to gain access to world class services and innovation,” advises the analyst. “Moreover, the government will need to play a pivotal role in this regard as it will ensure the strengthening of the country’s IT market.” The South African broadband market has experienced a decline in the cost of bandwidth and improved connectivity due to the launch of new undersea cables linking South Africa to the rest of the world. Moreover, ‘last mile’ fiber networks are becoming more common. These offer businesses in metropolitan areas scalable, fast and cost-effective bandwidth such as the Metro Ethernet Fiber network (Metro E). The enhanced infrastructure allows for the rapid transfer of large amounts of data that is essential for services that require smooth data provisioning. Increased bandwidth capacity and better connectivity brings with it innovation and better quality of services.
Technologies
The following technologies are covered in this research:
- Managed LAN - Managed WAN services
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