Multinational Organizations Expected to Adopt CaaS on a Global Basis Between 2010 and 2011
STAMFORD, Conn., September 4, 2007 � The market for communications as a service (CaaS) has started relatively slowly as providers determine how to define, package and market service as a value-added Internet protocol (IP) telephony offering, according to Gartner, Inc. Worldwide CaaS is projected to total $251.9 million in 2007, a 37.6% increase from last year. The market is expected to total $2.3 billion in 2011 (see Table 1), representing a compound annual growth rate at more than 105% for the period.
Gartner defines CaaS as IP telephony that is located within a third-party data center and managed and owned by a third party. The assets are not carrier-grade, the service is not �in the network� and the assets are multitenant in terms of usage.
�Users will begin to embrace CaaS more enthusiastically in 2009, attracted by predictable costs for fixed telecoms,� said Eric Goodness, research vice president at Gartner. �Users will also be attracted to CaaS as a means of shifting technology risk to the service provider. Technology obsolescence will be more easily managed by a scalable third party.�
|Source: Gartner (August 2007)|
Gartner analysts said the initial slow start of CaaS will be compounded by a longer sales cycle, as customers will need time to get used to larger, but consolidated, prices.
�A single bill that consolidates telecom services with equipment infrastructure will gain acceptance,� Mr. Goodness said. �Providers are bullish about CaaS�s potential because of the opportunity to bundle more new features and capabilities to avoid service commoditization.�
Additional information is available in the Gartner report �Emerging Communications Services (Hosted IP Telephony, IP Centrex and CaaS), Worldwide, 2006-2011.� The report is available on Gartner�s Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=511346&subref=simplesearch.
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Consulting and Gartner Events, we work with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,800 associates, including 1,200 research analysts and consultants in 75 countries. For more information, visit www.gartner.com.