IDC Believes the Service-Level Management Market Will Triple to $849 Million in 2004

FRAMINGHAM, MA – FEBRUARY 5, 2001 – The service-level management market (SLM) is thriving. According to IDC, IP-service management and a growing reliance on service-level agreement (SLA) reconciliation for managed and hosted services will propel revenues in this market from $278 million in 1999 to $849 million in 2004.

 

"Initially, the managed services and hosting demand for service-level agreement conformance will combine with growth in ebusiness accounts to propel a surging service-level management market," said Paul Bugala, analyst for IDC's Network and Service Management program. "Then, the widespread availability of IP services caused by the transition from the deployment to the monitoring/assurance phase of the next-generation operational support system (OSS) will drive demand of SLM products that bridge the enterprise/service provider gap."

According to IDC's eBusiness Service-Level Management Survey, external service-level agreements have made their way into all organizations, regardless of their size. In enterprises with 2,500 or more PCs, nearly 97% of respondents said they would require an SLA for overall network availability in the next 12 months. In smaller businesses, 89% of respondents reported that overall network availability SLAs were expected of their network service providers.

IDC believes SLM software vendors’ responsiveness to the challenges presented by the rollout of the next-generation OSS and opportunities created by managed services will directly correlate to their success.

IDC recently published a report and two bulletins regarding service-level management. IDC's report, 2000 IDC 500 Series: eBusiness Service-Level Management Survey (IDC #B23569), assesses the impact of Internet and intranet network technology on companies’ existing and future management requirements. A total of 500 U.S. and Western European businesses were surveyed on their enterprise networking plans and SLA requirements.

IDC's bulletin Service-Level Management Market Share and Analysis, First Half 2000 and 1999 (IDC #B23228) analyzes and charts the characteristics and market share of the leading service-level management software vendors. IDC's bulletin Service-Level Management Forecast and Analysis, 1999–2004 (IDC #B23336) looks at the market opportunity for service-level management. Specifically, this bulletin analyzes the readiness of the service-level management market to strengthen service provider and enterprise relationships by translating physical networks into network service vehicles.

To purchase one or more of these documents, contact Bruce Atlas at 1-800-343-4952, extension 4053, or at batlas@idc.com.

About IDC

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.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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