Despite Flat Growth, System Support Market to Reach $34 Billion Worldwide by 2006, IDC Says
FRAMINGHAM, MA – MAY 6, 2002 – Despite a somewhat flat growth in the system support market, a new study published by IDC estimates the market to reach $34 billion worldwide in 2006. The Americas and EMEA represent the two largest regions, growing at a 3.8% and 2.4% compound annual growth rate (CAGR) respectively. The worldwide market is growing and will continue to grow at a fairly flat rate through the forecast period. While not generally the most strategic aspect of services, system support is still one of the most crucial and can be respectable part of a vendor's revenue stream.
"The reality is that system support is a very mature market, yet still maintains fairly strong gross margins," said Ana Volpi, program manager of IDC's Software and System Support Services program. "While not always considered the most exciting or glamorous market, there are some inherent opportunities available to drive support costs down, increase customer satisfaction, and increase profit."
The established system support market is gradually moving away from simple-break fix maintenance to more of a solution approach, where all systems are tightly integrated and supported together, IDC's research reveals. Technology is therefore becoming more commoditized with simpler pieces fitting together into an overall end-to-end solution. The impact on system support has created a market that is not going away, yet is moving more towards mission-critical support of an entire technology solution.
In an examination of system support by activity, IDC's research indicates that electronic support and preventative/predictive maintenance will exhibit the highest growth rates at 28.9% and 12.6% respectively. On-site maintenance is still the largest service activity, expecting to reach $9.9 billion in 2006.
IDC believes that the leaders in the system support market will be companies that offer high availability services, invest in remote services, create partnerships that enable multi-vendor support, and create an effective electronic support solution. The vendors that are able to provide the most effective support that achieves system availability and increases customer satisfaction will be the most likely to increase their overall support revenue in the long run.
This study, System Support Market Forecast and Analysis, 2001-2006, (IDC #26784) provides worldwide revenues for the 2001-2006 system support market. Included in this bulletin are overall system support trends, opportunities, drivers, and inhibitors. Inherent in this slow growth market are systems that are quickly becoming commoditized and dropping in price. This report also examines the potential opportunities to grow support by region, system, and support activity.
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IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.
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