Spending on xSP Infrastructure Will Return to Double-Digit Growth by 2004, IDC Says
FRAMINGHAM, MA – JUNE 27, 2002 – While this last year has seen great contractions in spending, IDC expects the spending on infrastructure by xSPs to increase at a combined annual growth rate (CAGR) of 13.5% over the forecast period of 2001- 2006.
"Although the xSP market has had a rough ride over the last year, year and a half, xSPs are finally beginning to loosen their spending belts," said Laurie A. Seymour, IDC’s program manager for xSP research. "While suppliers to xSPs can still expect tough times through 2003, the good news is that the market is starting to grow again." The xSP market (comprised of one-to-many, externally managed, network-delivered, fee-based services) includes a wide and growing range of services, from business process, to content, network infrastructure, for businesses and consumers.
According to IDC, worldwide xSP spending on infrastructure was $75.8 billion in 2001, which will increase to $142.8 billion in 2006. Most of the CAGRs of the individual segments remain in the double digits. However, some segments – most notably, services – will undergo withdrawal through 2001 and 2002. This trend will be attributable mainly to the current desperate need of xSPs not to spend money on capital expenditures of all types, not only services, where they can avoid doing so. Growth will return to a healthy level for services in 2003.
IDC’s new report Worldwide xSP Spending on Infrastructure, 2002-2006 (IDC #27395) looks at how much xSPs will spend on infrastructure network equipment, servers, services, software, and storage through 2006. Included within the report are individual overviews of the drivers and inhibitors for growth in each segment.
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