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CNM services see growth spurt

The market for Customer Network Management (CNM) services -- which enable enterprise customers to view, manage and provision data services -- will grow almost twice as quickly as the market for the da...


November 1, 2000  


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The market for Customer Network Management (CNM) services — which enable enterprise customers to view, manage and provision data services — will grow almost twice as quickly as the market for the data services themselves, according to a recent report by Insight Research, Parsippany, NJ.

The report, Self Provisioning Enterprises and OSSes: Customer Network Management, found that CNM service revenue will grow 50 per cent annually from the current market of US$335.4 million to over US$2.5 billion by 2005. During this same period, revenue from the data services that CNM will manage (i.e., ATM, frame relay, private line, primary rate ISDN and IP-based VPN) is expected to increase by 27 per cent annually.

As a result of the survey, Insight calls CNM a “win-win situation” for both service providers and enterprise customers. The market research firm says CNM provides the end customer “with a window to view their entire enterprise network, allowing them to monitor their own services, refer troubles to the provider, and plan for changing requirements.”

For service providers, CNM is said to reduce operational and maintenance costs and offer a way to differentiate their services in a highly competitive marketplace.

“Though enterprise customers want to outsource certain network management functions, they also want to retain security and control of their networks for internal strategic reasons, making CNM an attractive solution,” says Robert Rosenberg, president of Insight. “Enterprises earning over $10 million annually with qualified IT personnel are the early adopters of CNM — automobile manufacturers, light industrial manufacturers, financial services companies. Also look for rapid adoption by small-to-medium businesses with IP-based VPNs.”


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