3G raises growth prospects for monitoring system vendors

16 May 2006

(Wireless News via NewsEdge) Network monitoring system and protocol analyzer vendors can expect significant growth opportunities in the coming years with the eventual migration of the wireless networking industry to 3G.

'With the movement of networks toward 3G, companies with expertise in protocol analysis of asynchronous transfer mode, Internet protocol and others are in an advantageous position to capitalize on the 3G protocol analyzer market opportunity and increase market share,' Frost & Sullivan Program Manager Jessy Cavazos said.

In its new analysis, the consulting firm said the wireless network monitoring and protocol analyzer market, excluding the load and functional protocol analyzer market, generated revenue of $269 million in 2003. This is seen hitting $349.6 million in 2007.

The need for more real-time monitoring and troubleshooting is also growing, thus calling for the continuous monitoring and analysis of key performance indicators (KPIs) and key quality indicators (KQIs). With the vast amounts of data to be processed and handled increases, products with distributed processing capabilities can be successful in both monitoring and protocol analysis.

'The sheer complexity of the protocols due to the gradual evolution to 3G and the greater need for data-focused protocol analyzers and monitoring systems are likely to compel operators and equipment providers to buy 3G-specific protocol analyzers,' Cavazos said.

However, capital expenditure reductions by many network equipment manufacturers and service providers and carriers may adversely affect revenues from network monitoring systems and protocol analyzers.

To encourage end-users to invest in such technologies and to prevent a slowdown in demand for newer monitoring systems, they must first be convinced of the benefits and return on investment of these solutions.

The transition to 3G has likewise led to a rise in radio issues, such as how UMTS radio problems can cause network issues that may affect the determination of the resulting quality of service (QoS). Frost & Sullivan said products that can address this critical aspect of network testing are likely to succeed.

Fierce competition among operators and service providers to deliver enhanced QoS and data applications to customers has led to the evolution of network monitoring systems: from having just traditional monitoring and troubleshooting functions to including service and customer assurance systems.

'As vendors realize the importance of meeting this need among service providers, they are attempting to include network and service assurance as a function of monitoring solutions,' Cavazos said. 'Network monitoring and protocol analyzers play a pivotal role with the former used for QoS after deployment and the latter used to pinpoint errors in the lab and during the installation and deployment phase.'

c 2005 Dialog, a Thomson business. All rights reserved.

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