ethernet test equipment market abuzz with activity

Ethernet Test Equipment Market Ethernet Test Equipment Market –– A Buzz with A Buzz with ActivityActivity

PresentedPresented byby::PrathimaPrathima BommakantiBommakanti, Industry Analyst, Industry Analyst

Test & Measurement GroupTest & Measurement Group

We Accelerate Growth”

GuestGuest Speaker:Speaker:Jeff SchmitzJeff Schmitz

Chief Marketing OfficerChief Marketing OfficerSpirentSpirent CommunicationsCommunications

Today´s Presenters

Prathima Bommakanti, Industry Analyst

Test & Measurement Group

Measurement & Instrumentation

Frost & Sullivan

Jeff Schmitz

Chief Marketing Officer

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Chief Marketing Officer

Spirent Communications

Hyper Connectivity: Billions of Connected Devices in 2020LTE and Datacenter Activities Drive Demand

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“We currently have 5 billion users worldwideconnected to mobile networks and Ericssonestimates there will be 50 billion connecteddevices by 2020”.

– Antonia Walter-Krisch,VP Business Development & Strategies, Ericsson

Agenda

11 Objective & Scope of Research Objective & Scope of Research

22 Market OverviewMarket Overview

44 Revenue ForecastsRevenue Forecasts

33 Market Drivers & RestraintsMarket Drivers & Restraints

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55 Revenues by Geographic SegmentationRevenues by Geographic Segmentation

66 Competitive AnalysisCompetitive Analysis

77 Guest Speaker - AgendaGuest Speaker - Agenda

88 ConclusionConclusion

Objective and Scope of Research

Objective

This study focuses on the world market for Ethernet test equipment . It provides an overview of the market

trends, industry challenges, market drivers, market restraints, competitive landscape and geographical

trends

Forecast Period: 2008 -2018

Base Year – 2011

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Geographic

CoverageWorld – North America, Europe, APAC, Rest-of-World

Technologies/

Products Covered1GbE,10GbE,40/100GbE

End-user

IndustriesService Providers & Carriers, NEMS, Enterprises

Base Year – 2011

Market Drivers and Restraints

Driv

ers

Driv

ers

DatacenterActivities

Triple Play and Quad Play deployments

IEEE 1588 v2 and ITU-T SyncE

Evolving End User

Technologies

LTE /LTE Advanced

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Denotes Long term Impact

Denotes Current Impact

Source: Frost & Sullivan.

Re

stra

ints

Re

stra

intsLimited Capex

Investments Complexity of Protocols

Dominance by Leading Players

800.0

1200.0

1600.0

Reven

ue (

$ M

illio

n)

Revenue Forecasts

Total Ethernet Test Equipment Market: Revenue Forecasts (Global), 2011 and 2016

Total Ethernet Test Equipment Market: Percent of Revenues by Product Type (Global), 2011

$822.5 M

$1225.7 M

1 GbE10GbE

40/100 GbE

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0.0

400.0

2011 2016

Reven

ue (

$ M

illio

n)

Year

Note: All figures are rounded; the base year is 2011.

. Source: Frost & Sullivan

10GbE

Revenues by Geographical Segmentation

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Source: Frost & Sullivan

• The North American market, is witnessing tremendous activity, with participants such as Ixia, Spirent Communications, JDSU, and EXFO playing a key role in the region.

Asia-Pacific region is largely driven by network expansions, along with technology upgrades, the rise of mobile data usage and the improvement of network quality.

• The migration from a synchronous network to a more cost-effective Ethernet continues to be the most significant trend in Europe

Competitive Analysis

Competitive Factors

Price

Ease of Use

Scalability

Major Participants

Major Participants

•Spirent Communications•Ixia•JDSU•EXFO

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Note: All figures are rounded; the base year is 2011. Source: Frost & Sullivan analysis.

Use

Local Presence

Brand Name

Scalability

Gigabit

Rank the applications driving the Ethernet test equipment market demand?

Poll Question 1

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Gigabit Ethernet Test

Equipment

Market

•Mobile backhaul •Datacenter Activities•Triple Play/Quad play•LTE/WIMAX

Jeff Schmitz

November 2012

Testing Ethernet

Ethernet is Ubiquitous

12 PROPRIETARY AND CONFIDENTIAL

Mobile Backhaul & Packet Core10, 40 and 100 Gigabit Ethernet

Cloud Computing & Virtualization4G / Long Term Evolution (LTE)

Application-Aware NetworksGlobal Positioning

Security

Testing Ethernet From Lab to Live

Device Wireless

2G3G

4G/LTE

Residential

CopperFiberCable

Cloud Applications

Content Delivery

Mobile

Packet Core

Unified Core

IP/MPLSEthernet

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Device

Mobility

ApplicationsFixed/Mobile

Convergence IMS

Backhaul/Edge

Service quality, security

& application, and SDN/

OpenFlow performance

Cable

Enterprise

CopperFiberCable

Packet Core

Internet

WWW

High Speed

Ethernet

Base Station Air

Interface (MIMO)

OpenFlow Testing Challenges

� Best way to test Performance, Availability, Security and Scale (PASS)

• Individual switches

• Controllers

• End to end networks - Advanced routing or Overlay Virtual Networks

• Unique OpenFlow applications - cloud provisioning application

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Diagram source: https://ntt-review.jp/archive/ntttechnical.php?contents=ntr201112fa4.html

Testing Tomorrows Networks

Mobile Internet looking beyond LTE

Network devices are becoming increasingly

application-aware

Bandwidth-hungry applications driving need for 400GbE with increased scale

quality of experience

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driving need for 400GbE with increased scale while maintaining quality of experience

Cloud computing and Virtualization promisesinfinite flexibility

Overcome complexity with test automation and infrastructure test optimization (ITO)

16 PROPRIETARY AND CONFIDENTIAL

spirent.com/tws

Conclusions

Commoditization

Need for Intelligent Test Tools

Need for Scalable Solutions

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After Market Services

Gigabit Ethernet Test Equipment

Market

AcquisitionsHighly competitive

landscape

Solutions

Next Steps

Develop Your Visionary and Innovative SkillsGrowth Partnership Service

Envision Your Future and Succeedwith Growth Workshops

www.frost.com/growthworkshopwww.frost.com/growthpartnership

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For Additional Information

Jeannette Garcia

Corporate Communications

Measurement & Instrumentation

+1 210-477-8427

Jeannette.garcia@frost.com

Sailaja Tennati

Global PR Manager

Spirent Communications

+1( 770)432-3225

Sailaja.tennati@spirent.com

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Olga Yashkova

Program Manager

Communications Test Practice

+1 (210)247-3863

oyashkova@frost.com

Prathima Bommakanti

Industry Analyst

Measurement & Instrumentation

+44 20 80902004

Prathima.bommakanti@frost.com