Network Management Vendors Can Thank Themselves for Stability in 2002

FRAMINGHAM, MA – JULY 8, 2002 – Network and service management vendors have themselves to thank for their ability to weather the recent economic turbulence. The key strategies emerging in 2002 include realigning development and undertaking sales and marketing to meet the needs of existing customers and exceed the expectations of Wall Street. The network and service management opportunity will increase from $3.03 billion in 2001 to $4.94 billion in 2006, at a compound annual growth rate (CAGR) of 10.3%.


Although a lot of companies have worked hard at getting closer to their customers, the network management vendors have done a particularly good job of diversifying and are focused on the particular needs of their clients. Vendors are taking advantage of additional services revenue, modifying product configurations and pricing, and developing additional products that will help see the market out of its current state.

"Rapid growth in the past couple years buffered network management vendors from the ill effects of strategic sloppiness," said Paul Bugala, Senior Analyst, for IDC's Network and Service Management program. "The critical opportunity for network management in the forecast period is to fill in the gaps where network equipment and enterprise management strategies have fallen short."

In 2003 and 2004, the central role of network and service management will be as a bridge to the promise of network technology maturity in areas such as IP VPN, WLAN, and storage networking. We can expect customers to consolidate their buying decisions around a core of key vendors that are the heart of their management and service efficiency strategies.

IDC's recently released Worldwide Network and Service Management Forecast and Analysis, 2002-2006 (#27460) provides a five-year forecast on the network and service management market, which includes the network assurance and network Control functional segments. The overall forecast of both of these segments includes market splits based on geographic region and customer type. To purchase this document, call IDC's volume sales hotline at 508-988-7988 or email

About IDC

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