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Wed 15 May 2002 04:00 AM

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System support market to hit $34 billion by 2006

Despite a period of flat growth the system support market is predicted to reach $34 billion worldwide in 2006 as it remains a crucial part of vendors’ revenue streams.

Despite the flat growth of the system support market, IDC is estimating that it will reach $34 billion worldwide in 2006, as it remains a crucial part of vendors’ revenue streams. The movement away from simple-break fix maintenance to a solutions type approach where all systems are supported together will drive growth further.The analyst house predicts also predicts that electronic support and reventative/predictive maintenance will exhibit the highest growth rates at 28.9% and 12.6% respectively. However, on-site maintenance is still the largest service activity, as it is expected to reach $9.9 billion in 2006.“The reality is that system support is a very mature market, yet still maintains fairly strong gross margins,” says Ana Volpi, program manager of IDC’s software and system support services program. “While not always considered the most exciting or glamorous market, there are some inherent opportunities available to drive support costs down, increase customer satisfaction, and increase profit,” she adds.IDC believes that the leaders in the system support market will be companies that offer high availability services while investing in remote services, partnerships that enable multi-vendor support, and effective electronic support solutions. Those that are able to provide the most effective support that achieves system availability and increases customer satisfaction will be the most likely to increase their overall support revenue in the long run, adds the analyst house.

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