IDC Publishes Management Services Provider Market Forecast

FRAMINGHAM, MA – JUNE 29, 2000 – Activity in the management services provider (MSP) market is heating up. In fact, IDC now believes the market is busy enough to warrant its own forecast. In a new IDCFLASH, IDC estimates worldwide revenues will reach $78 million in 2000 and grow to $524 million by 2004.


"The level of MSP market activity has been increasing rapidly in recent months. New vendors and established software vendors are jumping in with both feet to provide these services," said Paul Mason, group vice president of IDC's Infrastructure Software research. "As a result, to continue to ensure we keep our clients up-to-date on the latest IT trends and emerging markets, we decided it was time to start measuring and analyzing this market."

According to IDC, an MSP provides IT customers with bundled systems management functions consisting of hosted software and services that are accessed over a network and sold on a subscription or rental basis. MSPs operate in a manner similar to application service providers (ASPs). Examples of early MSP functions are performance monitoring and reporting, performance load testing, desktop management, and service-level tracking.

IDC believes MSPs will have an opportunity to provide system management operations to ASPs, Internet service providers, dot-coms, and midtier businesses with small to medium IT operations. Additionally, MSPs can provide supplemental systems management services to companies with large IT organizations.

"It's still early in the game, but we think the MSP business model can address important industry needs such as rapid time to market for ebusiness applications and coping with the IT skills shortage in important systems management disciplines," said Tim Grieser, research director for IDC's Performance and Availability Software program. "MSPs can help IT organizations streamline and simplify the use of system management software tools by using Web-enabled technology to enhance operations."

Download IDC's Free IDCFLASH

The IDCFLASH Worldwide MSP Market: Forecast and Analysis (IDC #B22619) presents IDC's revenue forecast for the market and analyzes market opportunities. It can be downloaded for no charge in the Free Research section of IDC's online store at

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

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