Posted by: Tom Nolle
capital expense, IP services, managed services
There are indications that some smaller providers are going to make an entry into the enterprise managed services and applications market, including Reliance and Tata. The goal is to make a wide-ranging network with ample capacity into a financial asset by relying less on its commoditizing bits and more on what can be done with the capacity—services, in short.
We believe that the decision is also linked to a slow response from incumbent providers to the sudden interest in managed services, interest that was mounting even before the current economic bust. In tough times, enterprises often want to trade expense for capital investment, particularly in markets where credit is tight or expensive.