M'sian SMBs not demanding managed services
There needs to be more investment focused on promoting managed communications services so the circle of low supply and demand for these among SMBs (small and midsize businesses) in Malaysia can be broken, according to Ovum.
Claudio Castelli, senior analyst, Ovum, said despite SMBs in the country expecting to continue spending on telecommunications, "not many companies are considering buying specific managed services".
Castelli said the low demand can be attributed to the "immaturity of enterprise offerings" and low availability of such managed services in the market in Malaysia.
But this low supply has come about because of low awareness of managed services in the first place, the analyst told ZDNet Asia.
Castelli said: "It seems there aren't many managed services offerings because customers don't ask for these services. And they don't ask for them because they don't recognize the benefits.
"The cycle has to be broken at some stage by an innovator willing to invest...[in] customer educational programs and marketing communication to increase awareness."
Vendors eyeing this market opportunity "will have to invest first" to reap the rewards, he added.
Overall, the Asia-Pacific region is continuing to demand managed services, according to a recent IDC study. It noted that the economic slowdown will take its toll on the growth of the IT services industry, but that the market is expected to expand to US$49.4 billion in 2009, primarily fueled by demand for managed services and outsourcing.