FRAMINGHAM, Mass. -- The worldwide demand for third- party network product support services will reach $15.5 billion, representing a compound annual growth rate (CAGR) of 8.9% from 2002-2007, a new study from IDC reveals. From a regional perspective, the demand for network product support services in the United States will continue to outpace (in terms of total expenditures) other regions of the world. However, although their markets may be more embryonic and proportionally smaller, developing regions abroad continue to offer attractive opportunities for firms possessing the capabilities and resources to help enterprise clients and service providers manage complex network architectures.

IDC's new study indicates that certain emerging network technologies (i.e., CBX, softswitch, IP VPN products, and optical devices) will provide attractive support opportunities during the next several years. For example, the 2002-2007 CAGR of the support market for softswitch products will be approximately 42.9%. Additionally, the demand for CBX equipment support will continue to strengthen from 2002 to 2007, generating a robust CAGR of 27.4%. Support for IP VPN and optical equipment will also increase, with CAGRs of 18.1% and 19.8%, respectively, during the same time period.

"We believe that the support service providers that will have the most success in the network product support marketplace in 2003 will be those that continually listen to the evolving needs of their global customers and whose product support strategies continue to adapt to meet the ever-changing requirements of global networking infrastructures, business models, and organizations," said Christine Tenneson, program manager for IDC's Network Life-Cycle Services research.

The document, Worldwide and U.S. Network Product Support Services Forecast, 2002-2007 (IDC 29302), discusses IDC's predictions and assumptions relating to market forces that affect the network product support services market and what impact they have on the market forecast. The document also analyzes the future outlook for the network services market and provides essential guidance to vendors looking to compete in the network product support services market.

IDC