In a new report Decision Matrix: Selecting a Managed Network Services Provider, independent market analyst firm Datamonitor ranks 13 of the world's leading MNS providers based on their network services, end user-user sentiment and market impact.
The global MNS market is extremely competitive, particularly among the large telecommunications providers and conglomerate systems integrators that dominate it: AT&T, BT Global Services, HP Services and IBM Global Technology Services. Yet new threats are emerging in the form of smaller, more agile rivals, such as CSC, Orange Business Services, Verizon Business and Vanco, despite the latter's recent financial troubles. These smaller providers are forging key partnerships to expand their MNS portfolios while at the same time keeping focused on overall customer experience. This is putting new competitive pressure on the industry's leaders.
There is a chase to the mid-market among most of the world's top MNS providers, which consider the small to mid-sized enterprise market as the next frontier for new customers and revenues. And while the vast majority of MNS revenue is driven by large enterprise customers, small to mid-sized enterprises are increasingly seeking out MNS as their networks also become more complex and difficult to manage. However, Datamonitor research shows that mid-market user sentiment varies to that of large enterprises and that most MNS providers are missing the mark when it comes to the mid-market.
There has also been a flurry of consolidation in the market, including among the top ‘big four' as well as among smaller yet highly competitive rivals. In some cases, smaller players, such as THUS and Vanco, have acquired newfound market impact, which may, in time, catapult them to the next competitive level.
When it comes to HP's acquisition of EDS, however, it is a case of the strong getting stronger. Yet it remains to be seen how well HP will integrate EDS' MNS portfolio and customers and what effect this will have on HP's global ranking.
The report's findings show that the most successful MNS providers have a winning combination of broad portfolio capacity, solid financial stability, and excellent quality of services, customer relationship management and global reach. It also predicts that while managed network services will continue to align with business objectives, providers must adopt a more focused go-to-market approach and improve their execution capabilities for future success.
Datamonitor's report Decision Matrix: Selecting a Managed Network Services Provider (Competitor Focus) provides an overview of the most important trends affecting the MNS market and influencing its competitive dynamics. It delivers a comprehensive comparison of MNS providers in terms of their services, user sentiment and market impact, as well as an insight into mid-market user sentiment. Providers covered are AT&T, BT Global Services, Cable & Wireless, CSC, Deutsche Telecom, Dimension Data, Fujitsu Services, HP Services, IBM Global Technology Services, Orange Business Services, THUS, Vanco and Verizon Business.
