Infotech Lead India: Cisco leads the manufacturer-provided service market, followed by Avaya and Siemens.
Beyond the top 3 vendors, the services market is fragmented, made up of hundreds of vendors with single-digit or lower market share.
Global revenue from manufacturer-provided maintenance and support, professional services, and hosted and managed services grew 9 percent in 2011, to $17 billion.
Infonetics forecasts manufacturer-provided services to grow to a $25-billion market by 2016.
Maintenance and support is the largest service revenue-generator, but is growing the slowest.
Revenue from advanced services, including professional and hosted/managed services, is forecast by Infonetics to grow at a double-digit CAGR through 2016.
Network infrastructure manufacturers bring in the most revenue from services, though Infonetics expects communications vendors — those that manufacture phone systems, unified communications, videoconferencing equipment, etc. — to take the lead within a few years.
“Services already make up a sizeable chunk of manufacturers’ overall revenue, and the share of services will grow robustly over the coming years as vendors embrace a holistic approach to technology delivery,” expects Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.
One of the key growth segments is hosted services, which many vendors are starting to offer to deliver technology in any fashion, including both CPE and cloud-based models, and to respond to shifts in customer preferences.