INTELLIGENCE FROM THE BROADBAND ECONOMY

Service providers have been trying to move up the data value chain for years, and it looks like that effort is paying off. Imran Kahn, industry analyst for Frost & Sullivan, said there is a growing demand for a host of managed services, which he breaks into three categories: managed transport services, such as virtual private networks (VPNs); managed applications, including security, storage and conferencing; and professional services such as network design and network management. Enterprises are looking to service providers for more help as networks get more complex and as they move more business processes offshore. Managed applications are considered the fastest-growing category of managed services, Kahn said. Infonetics analyst Jeff Wilson sees both VPNs and security services as hot commodities, predicting that by 2009 the market for VPNs will be $29.8 billion and the market for managed security will be $8.1 billion.

Source: The Economist and Frost & Sullivan Analysis

Source: Infonetics Research

Source: The Economist and Frost & Sullivan Analysis

Source: The Economist and Frost & Sullivan Analysis