Enterprise Digital Transformation Creates Growth Opportunities for IT Managed Service Providers

Current economic and technological environment fuels demand for UCaaS and managed premise-based services, finds Frost & Sullivan Digital Transformation Research Team
Frost & Sullivan
2016-09-08 21:15 3190

MOUNTAIN VIEW, California, Sept. 8, 2016 /PRNewswire/ -- The enterprise communications market is at a cross-road with enterprises moving away from traditional business models and embracing digital transformation. There exists a strong market for trusted managed customer premises equipment (CPE) services partners to run businesses' day-to-day IT infrastructure operations. However, with the gradual shift of IT to the cloud, providers of hosted Internet Protocol (IP) telephony and unified communications as a service (UCaaS) solutions are rapidly stealing the march from managed CPE service providers.

New analysis from Frost & Sullivan, 2016 Managed Unified Communications Services Buyers' Guide (, finds that the market will continue to grow from 2017 to 2021, but annual growth rates will decline year-over-year. Growth rates also vary significantly from provider to provider due to differences in strategy and execution.

For exclusive information about this research and to schedule your one-on-one strategy dialogue with our analysts, please email Clarissa Castaneda at

Managed service providers are responsible for managing complex and continuously evolving technology environments, delivering consistent quality of service, more economical scalability and convenient vendor and telecom carrier management.

"IT decision makers will be keen to partner with a service provider with a comprehensive product and service portfolio comprising solutions that may be needed in future, and solutions that can help future-proof existing investments," said Frost & Sullivan Digital Transformation Program Director Elka Popova. "Businesses should look for a provider with extensive IP data networking and real-time communications skills as well as familiarity with products from a variety of vendors."

The top priority for businesses is to collaborate with a managed service provider with the right technology expertise, but they also lay considerable emphasis on scale, breadth of services, price and service level agreements (SLAs). Service provider attributes such as geographic reach, customer service and support, ability to balance consistency and standardization with flexibility and a customized approach will also greatly influence customers' purchase decisions.

"Each competitor brings specific strengths and a differentiated skill set to the market," noted Popova. "While UCC solution vendors can provide the deepest technology expertise, value-added resellers, systems integrators and other managed services partners typically offer greater flexibility and multi-vendor expertise."

Enterprises have to conduct due diligence with regard to the managed service provider's implementation history and track record, among a myriad other factors. The providers that are most likely to be chosen will be the ones with broad portfolios covering equipment, network-based services, IT services and solutions and integration skills, as it will help them address diverse customer requirements.

2016 Managed Unified Communications Services Buyers' Guide is part of the Enterprise Communications ( Growth Partnership Service program. Frost & Sullivan's related studies include: Addressing Communications Infrastructure Challenges in the Hospitality Industry, Global Enterprise Communications Platforms and Endpoints Markets, Managed Services Market in South Africa and Australia, India, Japan, Malaysia, the Philippines, and Asia-Pacific Data Center Services Market 2016. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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2016 Managed Unified Communications Services Buyers' Guide


Clarissa Castaneda
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003

Source: Frost & Sullivan
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