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Hosted Softswitch: Study Reveals Managed Services Deliver Real Cost Savings

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December 12, 2011

Hosted Softswitch: Study Reveals Managed Services Deliver Real Cost Savings

By Ashok Bindra, TMCnet Contributor

With the advent of VoIP services, hosted softswitches are gaining momentum and more and more IT mangers are tapping the benefits of these services. As a central device in a telecom network, hosted softswitching connects IP-to-IP telephone calls over the Internet and brings substantial savings in telephone costs to companies. It is bundled with other hosted IT services as part of hosted managed services.

A new study by the IT industry non-profit association CompTIA (News - Alert) reveals that hosted managed services are delivering significant annual savings in cost. In fact, based on online surveys of 400 IT and business professionals in the United States and 364 IT channel firms in the U.S, CompTIA has released a new study titled “Trends in Managed Services.” Both the surveys in this report disclose that amongst current users of managed services, 46 percent of firms have trimmed their annual IT expenditures by 25 percent or more as a result of their shift to managed services.

According to CompTIA’s latest report, about 13 percent of the users have cut yearly IT costs by over 50 percent. Plus, another 50 percent of the organizations have saved between 1 percent and 24 percent in IT costs annually, the study uncovers.

Commenting on the result of this study, CompTIA’s director of industry analysis Carolyn April said, “This is compelling evidence that managed services, even when implemented on a small scale, can deliver significant cost savings, freeing up cash for other business needs.” “More importantly, these savings are accomplished without impacting the availability and reliability of the technology solutions the company relies on to conduct business,” added April

Furthermore, the study finds that 89 percent of current managed services users are very satisfied or mostly satisfied with their experience. According to CompTIA, factors contributing to this satisfaction include performance and uptime, agreeable contract terms, secure environment, and the flexibility to easily and quickly add new services.

Good communication between the user and the managed services provider (MSP) was another important factor for customer satisfaction, said CompTIA.

 Although, cutting cost was a major attraction toward managed services, more than half of the respondents in the CompTIA survey contracted an MSP to free up their internal IT staffs, so that they can focus on core competencies. In other words, work on revenue-generating activities.

Also, going forward, 62 percent of users surveyed indicated more IT spending on managed services for the next two years, while the others opted not to increase IT spending.

Major IT needs driving companies toward hosted managed services in the next 12 months include security, hosted softswitching, help desk and IT support, according to CompTIA study. About 36 percent of respondents to the survey indicated that they would like hosted softswitching as part of managed IT services.  

Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Stefania Viscusi

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