IMS Ignites Network Transformation: Market to Reach $14.4 Billion in 2010, IDC Says

FRAMINGHAM, MA – OCTOBER 20, 2005 – Fueled by the emergence of IP multimedia subsystem (IMS), a telecom network transformation is gaining momentum. IMS is emerging as a viable, long-term standard and architecture that will fulfill the idyllic promise of converged fixed and mobile services that provide a seamless end-user experience across various access networks. According to new research from IDC, network equipment providers and IT vendors are seizing the opportunity and will drive the IMS market to an impressive $14.1 billion in 2010.

IMS is still in its infancy and will continue to develop and mature over the coming years. While all players on the supply side agree that it is an important construct, there is little consensus on what, specifically, IMS is. "IMS is complex and up for interpretation by key market players seeking to push their individual agendas," said Lee Doyle, vice president of IDC's Network Infrastructure group. "Each organization is trying to shape IMS in its own image and likeness, giving it a leg up on the competition."

For service providers, IMS could become the "killer environment" they desperately covet. Service providers recognize the importance and need for the IMS architecture, but must realize that deployment is not without its challenges. In general, service providers will remain patient and embrace the IMS opportunity while continuing to invest prudently in the emerging technologies that will lead to long-term success.

Although IMS shows great promise, current disconnects between infrastructure vendors and network operators, as well as implementation issues, must be resolved. "Vendors need to find common ground quickly, since a fragmented IMS 'story' is likely to fuel uncertainties and undermine the confidence of network operators in embracing IMS," Doyle said.

Additional key findings from this study include:

— Adoption of IMS architectures will vary greatly by region

— IMS will require a strategic industry response from network equipment providers, systems integrators, and IT providers

— IMS is distinct from NGN (next generation network) and other network modernization initiatives

— IMS in not a flash in the pan, but a viable and significant standard that will become manifest across the industry in due course

This IDC multiclient study, IMS Status Report: Demand and Supply of a Key Enabling Technology, presents a systematic inquiry into key IMS issues, such as the scope and timing of deployment of the IMS architecture and the application/feature set that may drive its adoption among wireline and wireless network operators (including cable companies and ISPs). This study is based on structured interviews with key network operators around the world and the leading infrastructure vendors advancing IMS solutions. In short, the study investigates, and profiles the demand for and supply of IMS solutions worldwide.

To purchase this multiclient study, contact IDC Sales at 508-988-7988 or email

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

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