A study of the global information & communication technologies (ICT) sector outlook facilitates better understanding of the managed VPN market
The global digital ecosystem has been continuously evolving over the last few years. The worldwide ICT sector has witnessed some key disruptions of late and governments of various economies are devising and implementing smart and inclusive regulations to govern sector penetration and facilitate technology connectivity to all parts of the world. Even as the world of technology prepares for a massive revolution with unimaginable advancements powered by machine intelligence, here are some of the key drifts presently trending the global ICT sector:
- Mobile as the new internet accessibility engine: Currently, about three-fourths of internet usage is through mobile phones, with an increasing usage witnessed in low-income and middle-income countries. Yet, over half the world’s population is bereft of mobile broadband internet services. Mobile data providers have accepted this challenge and are targeting niche, unpenetrated markets with high-speed connectivity offerings to increase their customer base.
- Cloud computing to shoot beyond the sky: Cloud is a potent catalyst in all technological advances of the 21st Cloud is transforming the way enterprises handle big data, and ICT companies are looking to deploy new mechanisms and tools to “speak to data” and acquire the relevant information capable of impacting cross sector business growth.
- Swifter integration of networks and technologies: ICT will continue to disrupt industries and with an increasing shift in focus towards cross-functional platforms that integrate networks, devices, and technologies, a structured integration of communication applications and protocols is fueling new service offerings.
- An app-led technology universe: If mobile is at the heart of the ICT revolution, mobile apps are the arteries that pump in the necessary innovation for survival. The rise of start-ups offering a plethora of mobile apps is set to revolutionize the entire paradigm of the global ICT sector.
- Cyber readiness is the norm: A rapid digitalization has also upped the risk of cybercrimes and cyber-attacks. Mobile companies are working to build secure ICT servers and networks and cyber readiness is of paramount importance today while introducing new products and services in the global market.
A robust research methodology for accurate market estimation
PMR utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
PMR collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
In this phase, PMR validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.
Data Analysis and Projection
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
Standard Report Structure
- Executive Summary
- Market Definition
- Macro-economic analysis
- Parent Market Analysis
- Market Overview
- Forecast Factors
- Segmental Analysis and Forecast
- Regional Analysis
- Competition Analysis
- Production Companies
- Channel Partners
- Marketing Authorities
- Subject Matter Experts
- Research Institutions
- Financial Institutions
- Market Consultants
- Government Authorities
Cloud Service Providers
- IT and ITES
- Energy and Power
- Media and Entertainment
- Transportation and Logistics
- Remote Access VPN
- Site-to-site VPN
- North America
- Latin America
- SEA and Other APAC
In today’s fast growing business world, organizations are moving from current legacy networks to VPN based services. Every day, the amount of data created and processed is increasing, which leads to an increase in the demand for valuable IT resources that can look after the flow and management of this data. In order to cater to this demand, organizations are outsourcing IT operations, which results in increasing their spending on outsourced services. Organizations are now moving towards the adoption of managed network services such as managed VPNs, which create a private network within an organization and secure critical data from any type of security breach. Also, service providers design, install, manage, and maintain the local and global network of organizations, which reduces the cost pressure on internal IT resources to manage VPN infrastructure efficiently. Such features provided by managed VPNs are driving the growth of the global market.
Enterprises to lead the way in future
Managed VPN services enable users to manage and monitor their organization’s network, and provide a complete view of the network. Service providers help enterprises manage the end points of the network, and notify users whenever a threat is detected. Moreover, enterprises can access a portal where all the activities of the network, such as performance reporting, network health monitoring, service management, and SLA management are reported, which makes management of the network easier. Furthermore, managed services help organizations in the optimum utilization of all the resources, which increases the efficiency of the organization.
Small and medium enterprises are increasing rapidly across the globe. These enterprises need efficient VPN services to connect their customers globally through the Internet. Managed VPN services can focus on such enterprises that are doing business on a small scale, but they need to fulfill the demand at a global level. The demand for VPN services in small and medium level enterprises could be less, but if service providers succeed to reach a large number of SMBs, they could earn good revenue from these enterprises.
Cloud services to rise in popularity
Advancements in technology have led to innovation in cloud enabled services. Factors such as high availability of data, flexibility, scalability, and mobility have led to tremendous growth in the cloud service market. A rapid increase in the number of cloud service providers across the world has created tremendous opportunities for managed VPN service providers to integrate their services with the cloud by entering into strategic partnerships with cloud service providers. This collaboration will also help resolve the problem of cyber security breaches, as managed VPNs provide secure access to organizational networks.
However, the high costs involved might impact the adoption of managed VPN services by different end users. The advantage offered by a managed virtual private network service is that it eliminates the cost of managing the network and reduces in-house IT costs significantly. However, there are many other costs involved, which put a plug in the adoption of these services. The cost of the transformation of the company’s systems, the cost of technology adoption, and the cost of management all tend to gradually increase. This initial cost factor is considered as a big challenge for organizations to adopt these services, thereby restraining the growth of the global market for managed VPN services.