Confluence of Storage and Networking Technologies - How is It Transforming Physicla Security?


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The major focus points of this presentation will be market segmentation, a snapshot of the economy, force field analysis, vertical market growth rates, key trends, total market and segment highlights, and major market participants.

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Confluence of Storage and Networking Technologies - How is It Transforming Physicla Security?

  1. 1. Confluence of Storage and Networking Technologies – How is It Transforming Physical Security? George C Paul, Industry Analyst Auto ID and Security October 28, 2009
  2. 2. Focus Points 1 Market Segmentation 2 Snapshot of Economy 3 Force field Analysis 4 Vertical Market Growth Rates 5 Key Trends 6 Total Market and Segment Highlights Major Market Participants and Conclusion 7 2
  3. 3. Market Segmentation Physical Security Digital Storage Market Physical Security Digital Storage Market Vertical Market Revenue Breakdown Product Categories Hardware Government DAS Software Critical Infrastructure NAS Services Enterprise SAN Education Healthcare Retail Source: Frost & Sullivan 3
  4. 4. Key Revenue Generating Verticals • This segment includes federal, state, and local government Government purchases for government buildings, correctional homes, defense projects and border security initiatives. Critical • This segment includes securing critical infrastructures such Infrastructure as airports, seaports, utility infrastructures and city surveillance. • This segment includes non-retail office space, high-tech Enterprise facilities, corporate office premises, and industrial plants. • This segment includes kindergarten to grade 12 (K-12) schools, Education colleges, universities, and other educational institutions. • This segment includes retail outlets, malls, parks, tourist Retail locations and retail bank branches. • This segment includes hospitals, clinics, and other medical Healthcare facilities. Source: Frost & Sullivan 4
  5. 5. Economic Revival: Key Indicators (U.S.) Unemployment Rate Industrial Output Retail Sales Consumer Sentiment Source: Federal Reserve Bank of St. Louis 5
  6. 6. Economic Stimulus Components of American Recovery and Reinvestment Act (ARRA) of 2009 State and Local Relief Other 18% 1% • Bill signed into law on February Energy 5% Taxe Cuts 17, 2009 38% Infrastructure • Total Stimulus Package $ 787 14% Billion Aid for Education Healthcare • 22% of stimulus package paid Vulnerable 7% 7% 10% out as of Oct 2009 Physical Security Components of ARRA, 2009 Infrastucture 16% Healthcare 35% Education 13% Public Services 36% Source: Frost & Sullivan 6
  7. 7. Forcefield Analysis with Timeframe High Stimulus Program Growth in Government Vertical Market Drivers Falling Prices Impact Shift to Mega-pixel Cameras Converting Hybrid Systems Shift Towards Network Storage Low Short Term Medium Term Long Term Low Market Restraints Return on Impact Absence of Network Infrastructure Investment Reliability and Lack of Awareness Maintenance and Expertise Installed Base Vs New Economic Systems Slowdown High Source: Frost & Sullivan. 7
  8. 8. Key Physical Security Vertical Growth Rates Sectors with highest total growth potential High CAGR for Vertical Markets (>10%) 2 1 Government 2 2 Critical Infrastructure 1 3 4 Enterprise 1 3 Medium (5-10%) 4 Education 6 3 5 Retail 5 6 6 Healthcare Low (0-5%) 4 5 Small Medium Large (<$100 million) ($100-$500 million) (>$500 million) CAGR is calculated from 2008 - 2012 Market Size of Vertical Markets Source: Frost & Sullivan 8
  9. 9. Key Trends Video Analytics Transition from Disk Attached to Network Attached Storage Key Mega – Pixel Cameras Storage Virtualization Trends Reducing Power Consumption Storage at the Edge Source: Frost & Sullivan 9
  10. 10. Total Market and Segment Highlights • The total storage products market was valued Storage Revenues at $26.5 billion for base year 2008 and includes Tape Based Vs Disk based Storage Split all the application markets Tape Based, 7% Storage Revenues – Vertical Market Split Government Disk based, Healthcare 93% Education Financial Storage Revenues Manufacturing DAS, NAS and SAN Based Storage Split Energy DAS, 25% Retail SAN, 40% Others 0% 5% 10% 15% 20% 25% NAS, 35% Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan 10
  11. 11. Major Industry Participants • Data Direct Network • NetApp (DDN) • Nexsan • Dell • Omneon • EMC • Pillar Data Systems • Fujitsu • Pivot 3 • Hie Electronics • Seagate/Maxtor • Hitachi Data Systems • Teradata • HP • Western Digital • IBM • Intransa • Iomega • Isilon 11
  12. 12. Conclusion Government Market relatively unhindered by economic recession thanks to mandates Greater integration of security sub systems likely to overcome the lethargy in shifting towards IP based storage Key Trends & Increased proliferation of wireless technology is expected to spur Conclusions growth for centralized network storage to stream video feeds. Video analytics to be a major driving factor for networked security once the reliability is established along with greater affordability Storage virtualization to become the norm among enterprise applications Source: Frost & Sullivan 12
  13. 13. Next Steps Request a proposal for a Growth Partnership Service to support you and your team to accelerate the growth of your company. ( 1-877-GoFrost (1-877-463-7678) Register for the next Chairman’s Series on Growth: The CEO’s Perspective on Competitive Intelligence, November 3, 2009 ( Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities ( 13
  14. 14. Your Feedback is Important to Us What would you like to see from Frost & Sullivan? Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by taking our survey. 14
  15. 15. For Additional Information Jake Wengroff Diana Bragg Global Director Sales Manager Corporate Communications Electronics and Security (210) 247-3806 (210) 247-3879 Keith Robinson Research Manager Electronics and Security (210) 247-2402 15