Analysis of the Global Active Monitoring Network Performance Market QoS and QoE Drive the Demand for Active Monitoring

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1 Analysis of the Global Active Monitoring Network Performance Market QoS and QoE Drive the Demand for Active Monitoring July 2014

2 Contents Section Slide Numbers Executive Summary 4 Market Overview 7 Active Monitoring Network Performance Market Drivers and Restraints 16 Forecast and Trends 25 Market Share and Competitive Analysis 35 The Last Word 40 Appendix 44 The Frost & Sullivan Story 48 3

3 Executive Summary The global active monitoring network performance (AMNP) market registered a revenue of $ million in 2013, growing at % from The AMNP market is expected to grow at a compound annual growth rate (CAGR) of % from 2013 to Quality of service (QoS) and quality of experience (QoE) drive the demand for active monitoring equipment, while LTE deployments drive the need for more use of these products. The key features of a network monitoring tool include bandwidth monitoring, traffic flow analysis, support for forensic analysis, application monitoring, and reporting. Integrated test solutions that can address end-to-end monitoring are gaining importance. While Europe contributed the largest revenue with a share of % in 2013, more growth is expected from the Asia-Pacific region and emerging markets with CAGRs of % and %, respectively. 5

4 Executive Summary Market Engineering Measurements Active Monitoring Network Performance Market: Market Engineering Measurements, Global, 2013 Market Overview Market Stage Market Revenue Market Size for Last Year of Study Period Base Year Market Growth Rate Compound Annual Growth Rate Growth $ M $ M % % (2013) (2020) (CAGR: ) Competitor Overview Customer Price Sensitivity Degree of Technical Change Market Concentration Number of Competitors % More than (scale: 1 [Low] to 10 [High]) (scale: 1 [Low] to 10 [High]) (% of market share held by top 3 companies) (Active market competitors in base year) Decreasing Stable Increasing For a tabular version click here. Note: All figures are rounded. The base year is

5 Market Overview Definition and Scope Active Network monitoring systems include network layer monitoring products that are usually used for network-wide monitoring. These tools are used for pro-active monitoring. The dependence on networks is growing by the day with the increasing need for high performance reliable networks. Integrated end-to-end monitoring is performed to actively collect network information for analyzing the data. Through active network performance monitoring, network administrators can choose which parameters they want to monitor, and process the data accordingly. This study covers active network performance assurance solutions for service providers (fixed and mobile) covering the following: Turn-up testing Performance monitoring Troubleshooting IP core Mobile backhaul 8

6 Market Overview Definition and Scope (continued) The study also provides the the major trends prevailing in the market from drivers and restraints standpoints. The various regions analyzed in this study include: North America: Canada and the United States Europe: Western, Central, and Eastern Europe as well as Russia Asia-Pacific: Countries that are on the western border of the Pacific Ocean (including those on the Indo-Chinese peninsula), the Pacific Islands, and Central Asia Emerging Markets: Central and South America, the Caribbean islands, the Middle East, and Africa Only active network-monitoring tools are considered for the analysis. Key market participants include Keynote SIGOS (SITE), H-Log (H-Advisor, Xperience), EXFO (Brix system), JDSU (RCATS), Spirent (TestCenter), Ixia (IxChariot), Telchemy (APP series) and Empirix (E-XMS) among others. 9

7 Comparison Between Active and Passive Monitoring As task is to provide continuous network functioning, end-to-end solutions are key. Pro-active testing is significant because outages are expensive and losing a customer is five times more expensive than maintaining a customer, in today s scenario. While passive monitoring involves watching and monitoring traffic, it does not involve increase of traffic network. On the other hand, active monitoring includes active test devices that inject traffic into network, simulate traffic, and have complete control over traffic. On-demand monitoring from active monitoring can be run as scheduled with the required timing and frequency. Active monitoring is typically used during service activation to validate the performance and qualify a particular service before carrying live traffic. It is used in the activation phase of a service lifecycle or during troubleshooting. In addition, active monitoring is the only way for turn-up services (to test a new service where there is no network traffic) and also they provide real time results. 10

8 Comparison Between Active and Passive Monitoring (continued) Various active monitoring tests include latency, jitter, throughput and quality of service (QoS) measurements between a traffic source and end point across a network. Such tests would span across Ethernet and IP transport as well as web services. Synthetic tests can be used to generate various protocols used by applications. As active monitoring involves only monitoring active test results and not the entire traffic as in passive monitoring, it has lesser data storage requirements. Active monitoring involves real-time debugging and post-processing while passive monitoring is run for certain specific problems that are ad hoc in nature. While in active monitoring, customer experience is focused; passive monitoring is involved in the overall network performance. With passive probes, operators can use them on a signaling plane for network access, routing and handoffs, while active probes can be used in S1-MME links for mobile to Internet end-toend testing. 11

9 Comparison Between Active and Passive Monitoring (continued) As IP based traffic increases, so does the number of endpoints, and the criticality of network performance to application performance (and ultimately user experience). In such a scenario, active monitoring is becoming an increasingly important function, used as part of automated processes as services are activated or turned-up. On the other hand, the passive monitoring technique uses the concept of monitoring traffic that is already on the network. It requires a device on the network to capture network packets for analysis. Active monitoring offers real-time assurance and analytics with the ability to monitor the performance of live or production traffic, end-to-end and through various points in the network. On the other hand, the traditional approach has been focused primarily on troubleshooting and assurance. In an ideal scenario, however, a combination of both active and passive testing is ideal because operators can compare and contrast measurements when there are differences in results, for example. 12

10 Market Overview Key Questions This Study Will Answer Is the market growing? If so, how long will it continue to grow, and at what rate? What are the key growth drivers and restraints for the market? Who are the major participants in this market, and what are their market shares? Which geographic region provides potential opportunity for growth? Are the products offered today meeting customer needs, or is there additional development required? 13

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