Hosted Applications: Crunching the Numbers

It has been a few weeks since we launched Heavy Reading's "Hosted Applications Deployment & Market Perception Survey," which provided significant insight into carrier hosted applications deployment strategies.

While the survey validated which services would be deployed by wireless or wireline operators in the near future, it also provided an important perspective into the importance of other enablers, such as vendor financing.

Although vendor financing is not the preferred approach of many vendors, it still appears to represent a favorable attribute in certain market segments. (See Vendor Financing Not in the Cards.)

In order to access the impact of vendor financing, the survey requested input globally from network operators on the importance of access to vendor financing. Based on all input received, 16 percent of respondents replied that it was a critical factor in making vendor selection, while 40 percent viewed it as an important consideration.

However, there is considerable deviation in these results by geographic region. For example, 21 percent of respondents from the U.S. viewed access to vendor financing as critical, with a further 34 percent assessing it as an important consideration. In addition, network operators from Central and Eastern Europe considered vendor financing as an important factor in 40 percent of responses, while none of them viewed it as a critical factor.

Respondent input from India, however, revealed a much higher value associated with access to vendor financing. In this market, it was cited as a critical factor by 67 percent of respondents, while 33 percent ranked as important. These metrics are summarized in the table below.

Table 1:
Global 16% 40% 26% 19%
United States 21% 34% 23% 21%
Central/Eastern Europe 0% 40% 40% 20%
India 67% 33% 0% 0%
Source: Heavy Reading

Therefore, given the focus on emerging markets (see Emerging Markets Offer Capex Hope), vendor financing still appears to represent a market opportunity in some geographic regions for vendors that are willing and able to accept the financial liability.

— Jim Hodges, Senior Analyst, Heavy Reading

For more information, or a FREE PREVIEW of the "Hosted Applications Deployment & Market Perception Survey," please contact:

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