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1 Frost & Sullivan 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 Asia-Pacific WAN Optimization Controller Market CY 2013 Tracker Growing Business Buzz around SDN Hindered the Market Growth June 2014

3 Contents Section Slide Numbers Executive Summary 5 Market Definitions and Research Methodology 7 Asia-Pacific WAN Optimization Controller Market ANZ WAN Optimization Controller Market ASEAN WAN Optimization Controller Market Greater China WAN Optimization Controller Market Indian WAN Optimization Controller Market Japanese WAN Optimization Controller Market South Korean WAN Optimization Controller Market Appendix 120 4

4 Key Findings The Asia-Pacific (APAC) WAN Optimization Controller (WOC) market recorded a flat 5% growth on a year-on-year (YoY) basis in The demand for the technology was fairly subdued, given the relatively weaker business environment in the region, which affected enterprises propensity to spend on IT. Moreover, the technology segment also faced growing competition from newer networking technologies such as Software Defined Networking (SDN). The market buzz surrounding SDN diverted enterprise attention away from WOC, with some enterprises adopting a wait-and-see attitude towards the long term viability and value proposition offered by both technologies. The relatively mature understanding that APAC enterprises had towards WOC technology meant that they were able to recognize the value that WOC offered in minimizing network performance inefficiencies and improving workforce productivity. Indeed, the direct impact that WOC had in creating business value for the enterprise also helped in justifying investments in the technology, as enterprise customers were able to see its Return on Investment (ROI) value. Service providers across APAC continued to invest in WOC solutions, with many of them looking to offer WOC-related services as a part of their value-add on top of their traditional offerings. In many ways, the ability of WOC to reduce application latency and maximize bandwidth usage has meant that service providers have also been able to offer more value-add services such as security-related ones into their service bundle packages. SMB enterprises were also keen to adopt WOC through the services approach due to their budgetary and expertise constraints. Looking ahead, emerging technology trends such as Internet of Things (IoT) and Big Data are likely to hold great potential for WOC technologies. Moreover, with more enterprises looking to build their own private clouds, there may be a greater role for WOC to play in enabling these extended networks to constantly operate at optimal performance levels. Thus, the challenge is for WOC vendors to introduce more innovative capabilities into the solution to ensure that it remains relevant in the long run. 6

5 Research Objectives This tracker provides an analysis of the total WAN Optimization Controller Market in the APAC region for 2013 (January to December 2013) period. It analyzes the market trends, vendor performance, vertical market splits, and enterprise size splits. 8

6 Research Methodology WAN Optimization Controller Market: Research Methodology, Asia-Pacific, 2013 In-house Information/ Secondary Research Primary Research WAN Optimization Controller Vendors Major Distributors System Integrators and Resellers Data Collation, Analysis, and Strategic Review Final Research Service 9

7 Geographical Coverage WAN Optimization Controller Market: Geographical Coverage, Asia-Pacific, 2013 Greater China China Hong Kong Taiwan Japan South Korea India ASEAN Singapore Malaysia Indonesia The Philippines Thailand Vietnam ANZ Australia New Zealand 10

8 Market Definitions WAN Optimization Controller (WOC): WAN traffic management controllers are appliances or software that enhance WAN performance by classifying, monitoring, and shaping WAN traffic. WAN acceleration controllers are symmetric appliances or software that are deployed in datacenters and branch offices or remote locations to enhance application and WAN performance. Controllers use techniques such as traffic shaping, compression, caching, and protocol acceleration to enhance performance. WOCs can be deployed at datacenters, branch offices, or end-points. 11

9 Market Definitions (continued) For the purpose of this study, the WAN optimization controller market is segmented as follows: WAN Optimization Controller Market: Technology Segmentation, Asia-Pacific, 2013 WAN Optimization Controller WAN Traffic Management WAN Acceleration Datacenter Branch Office End-point 12

10 Market Definitions (continued) For the purpose of this study, the WAN optimization controller market s vertical and horizontal segments are defined as follows: WAN Optimization Controller Market: Vertical and Horizontal Segmentation, Asia-Pacific, 2013 Customer Segmentation By Enterprise Horizontals Large Business (Large: greater than employees) Small and Medium Business (SMB: less than employees) By Enterprise Verticals BFSI (Banking, Financial Service, and Insurance) Manufacturing Government Education Service Providers Tech/Internet Others (include pharmaceutical, retail, logistics, oil/gas, energy, mining, agriculture, IT/ITes, and BPO verticals) 13

11 Assumptions All revenues are based on end-user prices, that is, the actual price paid by end users for the products. All revenues associated with system integration, maintenance, and other professional services attributes have been excluded from this analysis. Revenues are in US Dollars, unless specified otherwise. The average channel mark-up is assumed to be between % %. The research excludes WAN optimization products that are focused exclusively on non-enterprise verticals (such as only telecom-focused products). Appliances that offer limited functionality by offering these as non-core features on routers or other platforms are excluded from the study. Stand-alone WAN link load balancers are excluded from this study. Only symmetric appliance deployments are considered in WAN accelerations. 14

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