Report Date: March 2011 The global network service provider (NSP) market remains highly competitive, with additional pressure from regional sourcing options. This is good news for enterprises, because, when combined with competitive purchasing strategies, it ensures continued downward pressure on pricing (of as much as 10% to 15% per year, depending on service and geography), which we expect to continue for at least the next three years, as well as the opportunity to gain more-favorable commercial terms. The increasing use of partnerships and network-to-network interconnects (NNIs) is gradually diminishing the importance on ownership of network assets; however, such arrangements are seldom entirely equivalent to a single network solution, and enterprises need to focus on the outcomes, especially SLAs, when comparing providers with different quantities of their own infrastructures. Multiprotocol Label Switching (MPLS) and internet virtual private networks (VPNs) have been joined by Ethernet services as the standard portfolio of underlying transport services. Overlaying these services are an ever-broadening array of value-added capabilities, with WAN optimization, managed LAN, cloud (infrastructure as a service) and SIP trunking joining hosted Internet Protocol (IP) telephony, unified communications, remote access, telepresence and security services. While few organizations will take all of these services from a single provider, global NSPs are gaining credibility in supplying these strategic services.
Mentions: AT&T, Verizon, BT , Global Services, Orange Business Services, T-Systems, Tata Communications, NTT Communications, Telefonica, Cable&Wireless Worldwide, Global Crossing, Reliance Globalcom
Free Download of Full Report
Topics: Market Research, Competitive Intelligence, Competitive Strategy, Market Intelligence