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North American Business Continuity and Disaster Recovery Markets - Potential financial and productivity losses from network downtime drive demand for business continuity and disaster services in North America
North American Business Continuity and Disaster Recovery Markets

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2007/04/17 - Potential financial and productivity losses from network downtime drive demand for business continuity and disaster services in North America.

   
 
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The North American business continuity and disaster recovery (BCDR) services market is likely to continue to grow over the next few years, primarily due to the burgeoning demand for network security, storage and regulatory compliance services among enterprises. While mounting concerns over possible financial and productivity losses from network downtime, growth in business activity over the Web and changing regulatory compliance requirements is also likely to drive demand in this market. In addition, competition in the BCDR market expects to increase as existing IT vendors expand their market reach and others such as telecom service providers enhance their product portfolios to include a vast array of business continuity services.

New analysis from Frost & Sullivan (communicationservices.frost.com), North American Business Continuity and Disaster Recovery Markets, finds that enterprise business continuity and disaster recovery spending totaled $15.1 billion in 2006 and estimates to reach $23.3 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the North American BCDR markets, then send an email to Mireya Castilla, Corporate Communications, at mireya.castilla[.]frost.com. Please include your full name, company name, title, telephone number, city, state, country and email address. Upon receipt of the above information, an overview will be sent to you by e-mail.

“The North American BCDR services market is expected to command an increasing share of overall enterprise spending on telecommunications services over the next several years,” notes Frost & Sullivan Program Manager Imran Khan. “The need to minimize financial repercussions associated with network outages and applications downtimes are driving an increasing number of small, medium and large enterprises to pro-actively plan for business continuity services.”

This apart, some of the other important trends facilitating adoption of BCDR services include changing regulatory compliance requirements that are forcing business process changes across various enterprises verticals, increasing implementation of Web-based applications and services and the resulting threat of viruses/worms and distributed denial of service attacks (DDoS) and the continuing threat of natural and man-made disasters.

However, while the market for BCDR services offers revenue growth opportunities to telecom services providers, these operators must address or overcome several challenges in order to capitalize on the market potential. These include the relative lack of understanding/awareness of BCDR solutions, limited enterprise IT and telecom budgets as well as the high capital and operating expenses associated with developing a wider array of business continuity solutions.

From an enterprise customers’ perspective, the need for effective BCDR programs must also be balanced against the cost of implementing such programs. Although the cost of technology, such as computing platforms, desktop devices, servers, storage hardware and software, and so on, in general, has seen a continuing decline over the past decade, the relatively higher cost of managing in-house telecom and IT systems keeps a large number of enterprises from deploying organization-wide BCDR programs that include remote offices and employees. It is due to this reason that enterprises have focused on network security and storage as the primary, if not the only, elements of their BCDR programs.

“Enterprise customers’ understanding of the importance of BCDR planning as well as the benefits of various solutions is vital in generating demand for BCDR services,” says Khan. “Given this, market participants are likely to make concerted efforts to further promulgate the relevance and benefits of BCDR solutions in today’s high stakes business scenario.”

North American Business Continuity and Disaster Recovery Markets is part of Communication Services Subscription which also includes research services in the following markets: managed telecom services, enterprise product penetration and spending trends, enterprise voice services markets, and small business telecom services trend. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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North American Business Continuity and Disaster Recovery Markets

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