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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST MarketResearch.com

2 WAN OPTIMIZATION MARKET BY SOLUTIONS (HYBRID NETWORK OPTIMIZATION, WOC, NETWORK TRAFFIC ACCELERATION AND MONITORING); BY SERVICES; BY DEPLOYMENT TYPE; BY VERTICALS; BY END USERS (CSPS, NETWORK OPERATORS, ENTERPRISES); BY REGIONS GLOBAL FORECAST TO 2019 It s all about markets MARKETSANDMARKETS

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2015 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1

4 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To analyze the Wide-Area Network (WAN) market with emphasis on high-growth solutions, services, deployment model, vertical, and end user To provide impact analysis of market dynamics that describe the factors currently driving as well as restraining the growth of the market, along with their impact in short, medium, and long terms To provide competitive intelligence from market share analysis To analyze market growth strategies from the market size and forecasts statistics To analyze the opportunities for the stakeholders through the study of the competitive landscape in the WAN optimization market To provide insights on core competencies and key growth strategies of companies in the WAN optimization market To forecast the market size of the WAN optimization market and its various submarkets with respect to five regions, namely, North America (NA), Latin America (LA), Europe, Middle East and Africa (MEA), and Asia-Pacific (APAC) 1.2 MARKET DEFINITION WAN optimization is defined as a set of techniques or technologies that maximize the data flow efficiency across the WAN infrastructure. As per the report scope, the WAN optimization market includes all the solutions, and services offered by the technology vendors to arrive at the market numbers. The market also considers the various deployment models of WAN optimization solution. 1.3 MARKET SCOPE The report on the WAN optimization market focuses on various WAN optimization solutions, services, deployment models, verticals, and end users that are driving this market. NA, Europe, and APAC are the top three regions that hold the largest market share in the year The detailed scenario of the WAN optimization market across different sub segments along with their market sizes are described in this report. The market analysis has been carried out in the following regional markets: NA, Europe, APAC, LA, and MEA. The various factors driving these markets are also described in detail in the regional sections. Apart from the regions, the trends of the component markets and reasons for the rise in the market size of a particular solution, and segment market are also described in the report. The report ends with the competitive landscape highlighting the recent M&A, venture funding, and product developments that has happened in the industry in the recent past; the company profiles section highlights the players dominance in this market and their strategies for expansion to gain a large market share in the WAN optimization market. 2

5 1.3.1 MARKETS COVERED This research report categorizes the WAN optimization market into the following segments: Global WAN optimization Market, By Solutions WAN Optimization Controller (WOC) appliance solutions Application performance management solutions Network monitoring solutions TCP optimization solutions Hybrid network optimization solutions Network traffic accelerator solutions Mobile WAN optimization solutions Global WAN optimization Market, By Services Professional services Deployment and integration services Training and support services Global WAN optimization Market, By Deployment On-premises On-demand Global WAN optimization Market, By Vertical Financial services IT and telecom Healthcare Government Media and entertainment Energy Manufacturing Retail Others Global Optical Transport Network Market, By End User Communication services providers Network operators Enterprises Cloud services providers 3

6 Global Optical Transport Network Market, By Region NA Europe APAC MEA LA YEARS CONSIDERED FOR THE STUDY Historical Year: 2012 Base Year: 2014 Estimated Year: 2014 Projected Year: CURRENCY The denomination currency used in the report is U.S. dollars, with market size indicated only in $million. For companies reporting their revenues in U.S. dollars, the revenue was picked from their annual report. For companies that reported their revenues in other currencies, average annual currency conversion rate was used for the particular year to convert the value in U.S. 1.4 STAKEHOLDERS The WAN optimization market consists of the following stakeholders: Services providers Content delivery network providers Data center operators Internet services providers Cloud services providers Network equipment manufacturers 1.5 LIMITATIONS The market size has been derived considering the cost of WAN controllers, platforms, and services in US$ and not in volume In this report, we have limited the report scope only to the commercial WAN optimization vendors solutions excluding the open-source-based WAN optimization solutions The market size of WAN optimization does not include the license fee 4

7 2 EXECUTIVE SUMMARY The changing user requirements, rapid growth in IP and Ethernet services, and increase in the demand of WAN optimization-as-a-service over cloud are driving the evolution of the WAN optimization market. The WAN optimization is a part of Optical Transport Network (OTN) ecosystem architecture concept originally developed by the ITU-T. In last 5 years, the enterprises have become much more sensitive about the smooth delivery and visibility of applications over the WAN. The numerous software applications used by the companies are now being converted to web-based versions, which enable easy accessibility to the remote employees of the businesses. The fact that the cloud based solutions for WAN optimization appeals both to the enterprises and small companies has fueled the market growth. A sudden fall has been observed in the sales volume of the WAN optimization hardware while contrary the cloud-based WAN optimization solutions is gaining the market share, which is balancing the overall market and boosting WAN optimization market growth. Moreover, the fact that WAN optimization enables seamless data transmission and removes latency issues is another major driving factor for this market. One of the biggest drivers for this market is the easy transmission of high-memory content over the networks, handling high data traffic. The rapid adoption of WAN optimization solutions continues to gain momentum in the NA and APAC market. This is attributable to the significant leap forward in WAN optimization technology. The WAN optimization market research report outlines the key trends, and market sizing and forecasting for various emerging sub-segments of WAN optimization market. The report also emphasizes on key global adoption trends, future growth potential submarkets, key drivers, competitive outlook, restraints, and opportunities of optical network market ecosystem. It also provides insights into the current and future revenues of market from 2014 to 2019 and is aimed to provide the reader with an understanding of market drivers, current and upcoming players, and competitive landscape. The WAN optimization market is further drilled down by solutions, by services, by deployment, by vertical, by end user, and by region (NA, APAC, Europe, MEA, and LA). NA is expected to lead the market growth, with data center deployments and demand for high data speed being the main drivers. In NA and APAC, the telecommunications industry and services provider networks are quickly evolving to deal with an explosion of digital traffic driven by multimedia services, mobile applications, social media, VoIP, and cloud computing, and an ever-growing array of bandwidth-hungry applications. In APAC, Australia, Singapore, Indonesia, Malaysia, China, India, and Taiwan have planned higher budgets toward CAPEX and networking spending. The major driving forces include continued expansion of consumer broadband services, growing broadband penetration, growing adoption of optical backhaul and wireless networks, and increasing penetration of enterprise data services. WAN optimization controllers contribute the biggest share of global WAN optimization solutions market however now its decreasing slowly because of they are less cost effective. The fact that the enterprises demand solutions that can provide better application visibility over WAN, and enable seamless data transmission between branch offices and data centers is the prime reason for the increasing demand of WAN optimization solutions. 5

8 FIGURE 1 GLOBAL OPTICAL TRANSPORT NETWORK MARKET SNAPSHOT, 2014 Market Share = % CAGR = % Market Share = % CAGR = % Market Share =% CAGR = % Market Share = % CAGR = % North America Europe Market Share = % CAGR = % Asia-Pacific Latin America Middle East and Africa Source: SEC Filings, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis Note: CAGR forecast period ( ) FIGURE 2 WAN OPTIMIZATION (BY SERVICES AND SOLUTIONS) SNAPSHOT, 2014 VS CAGR% Professional Services % Deployment and Integration Services % Training and Support Services % WOC Application Solutions % Network Monitoring Solutions % Network Traffic Accelerator Solutions % Application Performance Management Solutions % Mobile WAN Optimization Software % Hybrid Network Optimization Solutions % TCP Optimization Solutions % Market Size ($Million) Source: Articles, White Paper, Expert Interviews, and MarketsandMarkets Analysis 6

9 TABLE 1 WAN OPTIMIZATION MARKET SIZE, BY TYPE, ($MILLION) Type e 2019-p CAGR ( ) Solutions Services Total e = estimated; p = projected Sources: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis The table and figure given above highlight the global WAN optimization market. The global WAN optimization market is expected to grow from $ billion in 2014 to $ billion by 2019, at an estimated Compound Annual Growth Rate (CAGR) of % from 2014 to As network operators, CSPs, and enterprises are clamoring for WAN optimization solutions to handle the growth in traffic from broadband and mobile applications, WAN optimization-as-a-service is expected to be one of the highly penetrated technologies for network sector in the coming years. The demand for low-latency services is increasing at a higher rate across all verticals. Increased demand for network flexibility to support high-content applications and better data transmission need among distant offices and data centers will drive the demand of the WAN optimization market. FIGURE 3 NEW PRODUCT/ TECHNOLOGY LAUNCHES TO BE THE DIFFERENTIATING TREND FOR THE TOP COMPANIES % New Product/Technology launches % Mergers & Acquisitions % Partnerships, Agreements, Joint Ventures, & collaborations % Others (Expansion) New product/technology launches are the key strategies adopted by industry players in order to achieve growth in the WAN optimization market. These strategies accounted for a share of % of all growth strategies adopted by market players. The rising demand for WAN optimization solution from all sorts of organizations, and business has compelled the solution vendors to develop products which can deliver seamless data transfer irrespective of the content type and also enhance the application visibility. Besides new product/technology launches, companies adopted the strategy of new partnerships, agreements, collaborations, and joint ventures in order to enter new markets. This strategy accounted for a share of % of the total number of growth strategies adopted by players in the WAN optimization market between 2011 and

10 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. 8

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