Aberdeen Group Launches Outsourcing Infrastructure and Services Practice; Aberdeen Predicts Rapidly Evolving Hosting Services Industry Will Reach $70 Billion by 2005.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--March 22, 2001

Aberdeen Group, a leading IT market analysis and positioning services firm, today announced the launch of its Outsourcing Infrastructure and Services Practice. This practice will examine the challenges traditional outsourcing companies, data centers, hosting companies, and managed service providers face in the New Economy, as well as the differing technological needs of companies, depending on size and geographic location.

"IT infrastructure is becoming increasingly complex and resources are drying up. Thus, outsourcing is becoming almost a necessity for many businesses," says Lisa Perri. "As industry analysts, we are in the unique position to help suppliers and buyers understand the different `xSPs,' which describe everything from a single technology point solution to fully hosted, monitored, and managed infrastructure services. Armed with a solid understanding of the myriad services available today, end-users can make the right choices in partnering with a service provider that will work with them on their particular infrastructure operation problem."

Aberdeen's research indicates that by 2005, the hosting services industry will be a $70 billion market. However, not all service providers will survive. Only those service providers that have an understanding of the value of constantly improving process and procedure, and that use technology to automate and manage complicated IT environments, are attracting the attention of the business user.

"Before the dot.com fiasco, many businesses casually purchased outsourced services. Now, decision-makers must look more carefully at the needs of their companies and their options as they search for operational partners. It is essential that suppliers and buyers alike know the IT service industry inside and out," says Perri.

Companies followed include AboveNet, AT&T, Atesto, BellSouth, Colo.com, Digex, Digital Island, Genuity, HostPro, InFlow, Intira, Logictier, Loudcloud, NaviSite, Qwest, Silverback Technologies, siteROCK, SmartPipes, StrataSource, Telenisus, Teleplace, Totality, Verio, and XUMA.

For more information about Aberdeen's Outsourcing and Infrastructure practice, please contact Lisa Perri at [phone] or [e-mail].

About Aberdeen

Aberdeen Group is a leading IT market analysis and positioning services firm that helps information technology vendors establish leadership in emerging markets. Steeped in technology and armed with end-user field research, Aberdeen answers clients' critical business and technology questions in the context of the Internet economy and across the product lifecycle. Founded in 1988, Aberdeen is headquartered in Boston, Massachusetts, and has research divisions in Palo Alto, California, and Amsterdam, the Netherlands, and Fort Collins, Colorado. Aberdeen is on the Web at www.aberdeen.com.