Network infrastructure services (NIS) suppliers have increased revenue in Q4 2016 via transformational services offerings around cloud, analytics and virtualization, according to Technology Business Research.
The global NIS market grew at a midsingle-digit rate in Q4 due to customer demand for network transformation-related services. The TBR report did not disclose the actual size of the growth of the NIS market.
NIS suppliers adapted their services organizations to address market disruption stemming from the rapid growth of network virtualization.
“NIS suppliers are realigning their global services organizations around technologies such as cloud, analytics and security, which requires the replacement of legacy staff with employees who are trained around newer technologies,” said TBR Analyst Michael Soper.
Product-centric NIS suppliers such as Cisco Systems, Microsoft and Juniper are increasingly focused on higher-value professional and managed NIS.
Product-attached NIS, and maintenance in particular, accounts for over 50 percent of the market. Revenue from this segment will be hindered by decreased demand for network hardware.
C&SI suppliers including Accenture, Fujitsu and IBM will continue to face rising competition from product-centric suppliers in these higher-value NIS segments. C&SI vendors will target customers seeking vendor-agnostic services and lead engagements with their large rosters of industry-trained consulting personnel.
TBR’s Network Infrastructure Services Benchmark covers suppliers including Accenture, Avaya, Cisco Systems, Dell EMC, Fujitsu, Hewlett Packard Enterprise (HPE), Huawei, IBM, Juniper Networks and Microsoft.
