Recession Reversal: Network Monitoring Systems Business Grows

Here’s some encouraging news in these recessionary times – when everything seems to be down except the unemployment rate: the network monitoring business is booming!

They’re called passive network-monitoring systems, and the demand for their wireless technology is growing by leaps and bounds, and the market is becoming more competitive, too – which often means better bargains for buyers. Network monitoring systems are rapidly taking over the traditional technology of protocol analyzers. I read about research from analysts Frost & Sullivan that says the total wireless protocol analyzer and network-monitoring systems market generated revenues of over half a billion dollars last year, up 13% over 2007.

Meanwhile, traditional troubleshooting and monitoring protocol analyzers registered a year-over-year revenue drop of 9.5%, while load stress generators and functional testers fell 7%.

Clearly, the future is in wireless, passive systems, as the market is forecast to reach $814.6 million in 2013, growing at a compounded 6.5% per year.

So why is this important news? you may be asking yourself right now. For one, I think it’s because of some pretty powerful trends driving it, including, below, which were mapped out in a recent article on network monitoring:

– The growth of services that marry voice, video and data; there’s more demand now for mobile broadband and IP-based networks, and many services are being introduced that will increase the adoption rate of new technologies (e.g. LTE and mobile WiMax). So, as carriers converge multiple network types, there’s more need to monitor the network for end-to-end performance.

– The complexity of 3G networks (e.g. iPhone). This is forcing service providers to buy network-monitoring systems that are capable of monitoring services across different technologies.

– The growth of mobile applications in cloud computing, for example, Google email. Recently, there has been some high-profile press coverage of system-wide outages, with some observers suggesting the downtimes could have been avoided by using network monitoring systems.

Expect the market to expand, too, providing buyers with more choices, as it’s a sure bet that traditional protocol analyzers will switch to manufacturing monitoring systems and CEMS (customer experience management systems). Many already are.

Also, the future is all about service providers taking more interest in gauging service quality and subscriber experience. That, also, will feed the need for network monitoring.

Where do you think the future of network monitoring is going? Any thoughts on this topic that you’d like to share?

  • Nice one!! I agree with your point, now network monitoring business is progressing with market.

  • Surprisingly the uk economy shrank a further 0.4% between July and September (the last quarter that there are figures for), so the end of the downturn is a long way off yet – another 6 months at least i reckon, its the longest recession since records began 50 years ago and it wont be till years later the economy and property market recovers, it was’nt until the late 90’s that the property market recovered after the 89/90 recession.