Network and Application Performance Management Market


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Network and Application Performance Management Market

  1. 1. Network and Application Performance Management Market A Holistic, Unified Network Approach Leads to Growth Mariano Kimbara, Senior Research Analyst Measurement & Instrumentation December 13th, 2012© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property ofFrost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. 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. 2
  3. 3. Agenda 1 State of the Market 2 Market Trends 3 Strategic Considerations for Investment Decision-Making 4 Q&A 3
  4. 4. State of the Market 4
  5. 5. Executive Summary—Market Engineering Measurements Total Network and Application Performance Management Market: Global, 2012–2017 Market Overview Market Size at Replacement Market Stage Market Revenue 2017 Rate 3.2 Growth $2,195.2M $4,453.8M years (average period of (2012) (2017) replacement) Degree of Compound Annual Market Technical Growth Rate Concentration Change 15.2% 8 45.1% (Percent of market share held by (2012-2017) (scale:1 [low] to 10 [High]) top 3 companies)Decreasing Stable Increasing Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis. 5
  6. 6. Market Overview—State of The MarketApplication Performance Management Market: Concept Generation (World), 2012 Overlapping Definitions NPM APM Separately analyze the New APM Approach network from the application Traffic Monitoring and Analytics Shift to a complete, holistic approach and integrated monitoring solution • Lack of complete visibility into how • Comprehensive solutions that provide visibility across all tiers of the . network behavior and complex hybrid- application infrastructure. cloud infrastructures impact transaction • Managing applications by transactions. performance and end-user experience. • Monitoring all transactions in an end -to -end manner across physical, hybrid-cloud 6
  7. 7. Competitive Analysis— Market Challenges, 2012 Who are the key challenges flourishing? Unity trumps integration Enterprise-class scale and complexity Service Assurance Source: Frost &Sullivan analysis. . 7
  8. 8. Poll Question Which licensing fee will have major growth potential for your product portfolio in the next years ?Total APM Market  Software fees  Subscription fees  Maintenance fees  Professional services fees 8
  9. 9. Demand Analysis—Survey Percent of Sales Total Application Performance Management Market: Global, 2012 3. Subscription fees 4. Professional services fees 2. Maintenance fees 1. Software fees Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis. 9
  10. 10. Market Trends 10
  11. 11. Drivers and Restraints Network and Application Performance Management Market: Key Market Drivers and Restraints, Global, 2013–2017 The need of a holistic and unified solution 1–2 years 3–4 years 5 years increases market growth. Big Data enables higher market growth.Market Drivers Hybrid-cloud infrastructure increases market growth. Network storage requirements boosts the NPM market. The current legacy approaches restrain market growth.Market Restraints IT Organizational boundaries hinder market growth. Lack of end user awareness impedes market growth. Impact: High Medium Low Source: Frost & Sullivan analysis. 11
  12. 12. End-User Analysis  Retail banking, investment banking, capital markets and insurance sector.  High performance trading Financial Services  Conversion of network infrastructures and a number of opportunities in pre deployment testing. • Innovation around electronic medical records and Heathcare auditory care in big hospitals. • Records are converted into digital and are transferred into a single database. • High volume of data in high end retail, companies providing e-business and Retail contact centers. Education & Research • High education focused on research & and medical schools. • Organizations with distance learning programs. Government Agencies • High opportunities coming from labor departments. 12
  13. 13. Global Hot SpotsNorth America leads the global APM market, accounting for 59.0 percent of the overall market revenue in 2012. Europe • Increasing IT Budget pressure North America • Moderate growth rates Asia Pacific • Majority of the global • Growing opportunities • CAGR of 19.2% APM revenue market coming from UK, • Growing • Increased adoption of Germany and Mexico opportunities consolidated and and France coming from integrated management Australia, New solutions Zealand, Malaysia and Singapore. Latin America • Growing opportunities coming from Brazil and Mexico • Increasing local R&D spending • Increasing pricing pressure • Moderate growth rates Source: Frost & Sullivan analysis. 13
  14. 14. Global Hot Spots (Continued) Who are the next potential giants in the Emerging Markets?  New Zealand  Australia  Singapore Note: All figures are rounded. The base year is 2012. Source: Frost &Sullivan analysis. . 14
  15. 15. Market Overview—Distribution Channels Key Takeaway: A combination of direct sales channels and channel partners is required to meet the needs created by the demand for custom solutions. Total Network and Application Performance Management Market: Distribution Channel Analysis, Global, 2012 OEM Manufacturers Channel Partners assist in the distribution of OEMs’ products. Indirect Sales Specialty Distributors assist in the (channel distribution of products as well as partners and provide some technical training to specialty Direct Sales customers. distributors) End Users Key: OEMs: original equipment manufacturers. Source: Frost & Sullivan analysis. 15
  16. 16. Strategic Considerations for Decision-Making Process 16
  17. 17. How To Evaluate Best Suited APM Solutions Improving APM Technologies: Competitive Factors and Assessment (Global), 2012User experience … Higher end-to-end application quality …Diagnosis and resolution … Investment protection … APM …Scale and Complexity Competitive … Unity trumps integration FactorsCross-enterprise visibility … Flexible buying options … 17
  18. 18. The Last Word—Three Big PredictionsSo, what’s next ? What does the future hold for the APM Market ? The next generation APM solution will combine business transaction 1 management, end-user experience management, and cloud application monitoring in a single solution. Smart cloud will continue to be an important part of the equation, as more 2 customers has adopted them they will require more visibility into the cloud and applications. Successful real time analysis in the big data world is probably one 3 of the issues from 2013 to 2017. Source: Frost & Sullivan analysis. 18
  19. 19. Q&A Thank you! 19
  20. 20. Next StepsDevelop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities 20
  21. 21. 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 “Rating” this presentation. 21
  22. 22. Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter 22
  23. 23. For Additional InformationOlga Yashkova Jessy CavazosProgram Manager Industry DirectorCommunications Test & Measurement & InstrumentationMeasurement (325) 695-6332(210) 247-3863 jcavazos@frost.comOlga.Yashkova@frost.comMariano Kimbara Kiran UnniSenior Research Analyst Research DirectorMeasurement & Instrumentation Measurement & Instrumentation(210) 678-3619 (210) 247-2495Mariano. 23