Japan Small and Medium Business Markets WAN Managed Service Deployment Trend and Vendor Strategy Analysis, 2008

Abstract

This IDC study (which is a translation of the Japanese report IDC #J8300110) analyzes the results of the Japan SMB User Survey we have conducted in February 2008 on the use of managed network services among Japan small and medium-sized businesses (SMBs). The implementation rates of managed services tend to increase with the company size. More than 50% of large companies with 1,000 or more employees have implemented managed services. Meanwhile, only 20% of small companies with 1–99 employees and 35%–40% of medium–small companies with 100–499 employees have done so. Even for functions that are necessary regardless of the industry or size of the user company, such as "network security" or "email", the implementation rates of managed services differ widely between the various company size segments. There is a huge room for vendors to cultivate customers outside the large-enterprise segment.

"Amid the economic slowdown that is affecting business performance, SMBs are now placing even stronger emphasis on cost cutting. Despite this, IDC believes that needs for managed services will increase among SMBs due to the shortage of IT manpower and demands for business clients to strengthen compliance systems. Whether service providers can develop sales channels that are able to reach this segment is a key determinant of their business success. It is necessary for service providers to pay attention to the procurement habits of SMBs, and collaborate with advisory professionals outside the IT sphere such as tax accountants/accountants," says Akiko Kawakami, senior market analyst, Communications, IDC Japan.

Table of Contents

• IDC Opinion
• In This Study
• Methodology
• Definition of Small and Medium-Sized Businesses
• Small and Medium-Sized Business User Survey Method
• Target Respondents
• Number of Respondents
• Survey Method
• Survey Period
• Survey Topics
• Executive Summary
• Managed Services Implementation Rates
• Undertakings of Japan Carriers
• Efforts SPs Should Undertake
• Situation Overview
• WAN and Managed Services Implementation Among SMBs
• Respondent Profile
• Number of WAN Access Points
• Managed Network Services Implementation Rates
• Implementation Rates by Function
• Existing Managed Service Providers
• Evaluation of Managed Service Providers
• Managed Network Services: Emphasis and Evaluations
• Managed Service Replacement Plans in the Following Year
• Japan Carriers' Undertakings in the SMB Market
• NTT Communications
• NTT East
• NTT West
• KDDI
• Softbank Telecom
• IIJ
• Future Outlook
• Essential Guidance
• Learn More
• Related Research
• Share Distribution by Managed Service Provider
• Synopsis
• Table: Japan Managed Services Implementation Rates by Company Size
• Table: U.S. Managed Services Implementation Rates by Company Size
• Table: Service Providers covered in Survey and Vendor Classification
• Table: Undertakings of Japan Carriers: NTT Communications
• Table: Undertakings of Japan Carriers: NTT East
• Table: Undertakings of Japan Carriers: NTT West
• Table: Undertakings of Japan Carriers: KDDI
• Table: Undertakings of Japan Carriers: Softbank Telecom
• Table: Undertakings of Japan Carriers: IIJ
• Table: Network Security Service Provider Share by Company Size
• Table: Email Service Provider Share by Company Size
• Table: Desktop/LAN Management Service Provider Share by Company Size
• Table: Remote Access Service Provider Share by Company Size
• Table: Datacenter Service Provider Share by Company Size
• Table: Business Application Management Service Provider Share by Company Size
• Table: CPE Operation/Management Service Provider Share by Company Size
• Table: IP PBX Management Service Provider Share by Company Size
• Table: Traditional PBX Management Service Provider Share by Company Size
• Figure: Distribution of Survey Respondents by Company Size
• Figure: Distribution of Survey Respondents by Industry
• Figure: Distribution of Survey Respondents by Company Size and Industry
• Figure: Distribution of Survey Respondents by Turnover
• Figure: Distribution of Survey Respondents by HQ Location
• Figure: Number of WAN Access Points: by Company Size
• Figure: Number of WAN Access Points: by industry
• Figure: Implementation Rates of Managed Network Services by Company Size
• Figure: Implementation Rates of Managed Network Services by industry
• Figure: Services Implemented and to Be Implemented
• Figure: Existing Services by Company Size
• Figure: Existing Managed Service Providers by Function
• Figure: Existing Managed Service Providers by Company Size
• Figure: Existing Email Service Providers by Company Size
• Figure: Existing Desktop/LAN Management Service Providers by Company Size
• Figure: Existing Datacenter Service Providers by Company Size
• Figure: Evaluation of Existing Managed Service Providers
• Figure: Aspects of Managed Network Services Emphasized/Appraised
• Figure: Top 3 Advantages of Using Managed Network Services Among U.S. Companies
• Figure: Plans to Replace Existing Managed Services in the Following Year by Company Size
• Figure: Plans to Replace Existing Managed Services in the Following Year by Industry