Communication service providers (CSPs) in the Western European enterprise market have faced difficult market conditions for years, hit by a perfect storm of economic headwinds, spending rationalization, technology migrations, competition, and regulatory pressure. A new report from International Data Corporation (IDC), however, suggests there might be light at the end of the tunnel for the troubled sector.
The report shows that revenue declines for CSPs– business wireline activities continued to level off in the fourth quarter of 2015. While this does not mean an end to the difficult market conditions for the telecoms sector, IDC does expect sustained improvement in the coming years.
“The rate of decline for connectivity markets, which remain at the heart of the CSP business, will decrease, and will eventually turn positive by 2019,” said Jan Hein Bakkers, senior research manager, IDC. “The perfect storm will subside, while enterprises will increasingly migrate to higher-capacity next-generation access networks to satisfy their ever-growing bandwidth requirements. A focused approach to selected associated markets, such as cloud, IoT, security, and unified communications, will present CSPs with additional opportunities to speed up their recovery.”
The report, State of European Enterprise Communications, March 2016 (IDC #EMEA41157216, April 2016), examines the development of the market in recent quarters, analyzes trends and communication service provider strategies, and ties these to IDC–s outlook for enterprise connectivity services in the coming years.
For more information, please contact your local IDC office or visit www.idc.com. If you would like to know more about IDC–s enterprise communications research, please contact Jan Hein Bakkers at jbakkers@idc.com.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world–s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
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