network and application performance management market
TRANSCRIPT
Network and Application Performance
Management Market
A Holistic, Unified Network Approach Leads to Growth
Mariano Kimbara, Senior Research Analyst
Measurement & Instrumentation
December 13th, 2012
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Today´s Presenter
Mariano Kimbara, Senior Research Analyst,
Measurement & Instrumentation
Mariano Kimbara focuses on next generation services, monitoring and analyzing emerging trends, technologies and market behavior in the communications test & measurement equipment market, while simultaneously fulfilling customized regional consulting engagements and leading global research studies within this field. Since joining Frost & Sullivan, Mr. Kimbara has completed several research studies on following markets: world mobile backhaul test equipment, Latin American wireless test equipment and world network performance & monitoring.
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Agenda
1
State of the Market
2
Market Trends
3
Strategic Considerations for Investment Decision-Making
4
Q&A
4
State of the Market
5
Executive Summary—Market Engineering Measurements
Total Network and Application Performance Management Market: Global, 2012–2017
Market Overview
Stable Increasing Decreasing Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Market Stage
Growth
Market Revenue
$2,195.2M
(2012)
Market Size at
2017
$4,453.8M
(2017)
Compound Annual
Growth Rate
15.2%
(2012-2017)
Degree of
Technical
Change
8
(scale:1 [low] to 10 [High])
Market
Concentration
45.1%
(Percent of market share held by
top 3 companies)
3.2
years
Replacement
Rate
(average period of
replacement)
6
Market Overview—State of The Market
Separately
analyze the
network from the
application
New APM Approach
• Lack of complete visibility into how
network behavior and complex hybrid-
cloud infrastructures impact transaction
performance and end-user experience.
• Comprehensive solutions that provide visibility across all tiers of the
application infrastructure.
• Managing applications by transactions.
• Monitoring all transactions in an end -to -end manner across physical,
hybrid-cloud
NPM APM Overlapping Definitions
Traffic Monitoring and Analytics
Application Performance Management Market: Concept Generation (World), 2012
.
Shift to a complete, holistic approach and integrated
monitoring solution
7
. Source: Frost &Sullivan analysis.
Who are the key challenges flourishing?
Unity trumps integration
Enterprise-class scale and complexity
Service Assurance
Competitive Analysis— Market Challenges, 2012
8
Total APM
Market Software fees
Subscription fees
Maintenance fees
Professional services fees
Which licensing fee will have
major growth potential for your product
portfolio in the next years ?
Poll Question
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Demand Analysis—Survey
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
1. Software fees
2. Maintenance fees
3. Subscription fees
4. Professional services fees
Percent of Sales Total Application Performance Management Market: Global, 2012
10
Market Trends
11
Drivers and Restraints M
ark
et
Dri
vers
M
ark
et
Restr
ain
ts
1–2 years 3–4 years 5 years
Network storage requirements boosts the NPM
market.
The current legacy approaches restrain market growth.
Hybrid-cloud infrastructure increases market
growth.
Impact: High Medium Low
Network and Application Performance Management Market: Key Market Drivers and Restraints, Global, 2013–2017
Source: Frost & Sullivan analysis.
Lack of end user awareness impedes market growth.
Big Data enables higher market growth.
The need of a holistic and unified solution
increases market growth.
IT Organizational boundaries hinder market growth.
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• Innovation around electronic medical records and
auditory care in big hospitals.
• Records are converted into digital and are transferred
into a single database.
End-User Analysis
Retail banking, investment banking, capital markets and insurance sector.
High performance trading
Conversion of network infrastructures and a number of opportunities in pre
deployment testing.
Financial Services
Heathcare
Retail
Education & Research
Government Agencies • High opportunities coming from labor departments.
• High volume of data in high end retail, companies providing e-business and
contact centers.
• High education focused on research & and medical schools.
• Organizations with distance learning programs.
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Global Hot Spots
North America • Majority of the global
APM revenue market
• Increased adoption of
consolidated and
integrated management
solutions
Europe • Increasing IT Budget
pressure
• Moderate growth rates
• Growing opportunities
coming from UK,
Germany and Mexico
and France
Latin America • Growing
opportunities
coming from Brazil
and Mexico
• Increasing local
R&D spending
• Increasing pricing
pressure
• Moderate growth
rates
Source: Frost & Sullivan analysis.
Asia Pacific • CAGR of 19.2%
• Growing
opportunities
coming from
Australia, New
Zealand, Malaysia
and Singapore.
North America leads the global APM market, accounting for 59.0 percent of the
overall market revenue in 2012.
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. Note: All figures are rounded. The base year is 2012. Source: Frost &Sullivan analysis.
Who are the next potential giants in the Emerging Markets?
Global Hot Spots (Continued)
New Zealand
Australia
Singapore
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Market Overview—Distribution Channels
OEM Manufacturers
End Users
Channel Partners assist in the
distribution of OEMs’ products.
Specialty Distributors assist in the
distribution of products as well as
provide some technical training to
customers.
Indirect Sales
(channel
partners and
specialty
distributors) Direct Sales
Total Network and Application Performance Management Market: Distribution Channel Analysis,
Global, 2012
Key: OEMs: original equipment manufacturers.
Source: Frost & Sullivan analysis.
Key Takeaway: A combination of direct sales channels and channel partners is
required to meet the needs created by the demand for custom solutions.
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Strategic Considerations for Decision-Making
Process
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Improving APM Technologies: Competitive Factors and Assessment (Global), 2012
APM
Competitive
Factors
…
…
…
…
…
…
…
… User experience
Diagnosis and resolution
Scale and Complexity
Cross-enterprise visibility
Higher end-to-end application quality
Investment protection
Unity trumps integration
Flexible buying options
How To Evaluate Best Suited APM Solutions
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The Last Word—Three Big Predictions
2
3
1
Source: Frost & Sullivan analysis.
Smart cloud will continue to be an important part of the equation, as more
customers has adopted them they will require more visibility into the cloud
and applications.
The next generation APM solution will combine business transaction
management, end-user experience management, and cloud application
monitoring in a single solution.
Successful real time analysis in the big data world is probably one
of the issues from 2013 to 2017.
What does the future hold for the APM Market ? So, what’s next ?
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Q&A
Thank you!
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Next Steps
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Jessy Cavazos
Industry Director
Measurement & Instrumentation
(325) 695-6332
For Additional Information
Olga Yashkova
Program Manager
Communications Test &
Measurement
(210) 247-3863
Mariano Kimbara
Senior Research Analyst
Measurement & Instrumentation
(210) 678-3619
Mariano. [email protected]
Kiran Unni
Research Director
Measurement & Instrumentation
(210) 247-2495