IP network probe systems increasing role in managing the customer experience

Transcription

1 Research Report IP network probe systems increasing role in managing the customer experience October 2013 Patrick Kelly and Anil Rao

2 2 Contents Slide no. 5. Executive summary 6. Investment in IP probes is a factor of supporting network technology, new protocols, new services and, increasingly, customer satisfaction 7. The IP probe market is forecast to grow from USD0.81 billion in 2012 to USD1.47 billion in 2017, at a 13% CAGR 8. Network upgrades, mobile data traffic growth and a focus on customer experience is driving IP probe system spending in all regions 9. Tektronix, JDSU and NetScout account for 69% of the IP probes market 10. Market drivers and inhibitors 11. Factors driving the IP probes market in Circuit-switched and IP network lifecycle Evolution towards all-ip networks has resulted in adoption of new signalling and data protocols 14. Recommendations 15. Recommendations 16. Market definition 17. Telecoms software market segmentation 18. IP probes segment and sub-segment definitions 19. Packet monitoring reference architecture for mobile networks 20. Definition of geographical regions Slide no. 21. Business environment 22. The business environment in Operator case studies 24. A Tier-1 operator in Europe deploys IP passive probes to assure NGN services, and reduces costs through supplier consolidation 25. A Tier-1 operator in Europe aims to monetise data services using IP and real-time network monitoring solutions 26. A Tier-1 operator in the USA aims to enhance the customer experience through the use of network monitoring techniques 27. A Tier-2 operator in the USA aims to reduce customer churn by improving network quality of service 28. A Tier-2 CSP in Asia Pacific aims to improve end-to-end quality of service and support new IP-based services 29. A Tier 2 MSO in the USA uses probe technology to reduce troubleshooting times and use network data for analytics 30. Vendor analysis 31. Anritsu 32. Astellia 33. Empirix 34. JDS Uniphase

3 3 Contents Slide no. 35. NetScout Systems 36. Oracle (Tekelec) 37. Spirent Communications 38. Tektronix Communications 39. The Now Factory 40. Vendor analysis summary [1] 41. Vendor analysis summary [2] 42. Vendor analysis summary [3] 43. Vendor analysis summary [4] 44. About the authors and Analysys Mason 45. About the authors 46. About Analysys Mason 47. Research from Analysys Mason 48. Consulting from Analysys Mason

4 4 List of figures Figure 1: IP probes role in technology, protocol, service and customer dimensions Figure 2: IP and legacy probe revenue, worldwide, Figure 3: IP probe revenue by region, Figure 4: IP probe market share by revenue, 2012 Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Major trends that will have an impact on the telecoms market and their implications for IP probe investments Circuit- to packet-switching lifecycle, and related investments in probe systems, Evolution from circuit-switched to IP packet network testing and monitoring, Telecoms software market segments Definitions of the probes market and its sub-segments Reference architecture for packet monitoring in mobile networks Regional breakdown used in this report Figure 12a: IP probe suppliers by region and service sector Figure 12b: IP probe suppliers by region and service sector Figure 13a: IP probe vendors by service and capabilities Figure 13b: IP probe vendors by service and capabilities

5 5 Executive summary Recommendations Market definition Business environment Operator case studies Vendor analysis About the authors and Analysys Mason

6 6 Investment in IP probes is a factor of supporting network technology, new protocols, new services and, increasingly, customer satisfaction Figure 1: IP probes role in technology, protocol, service and customer dimensions [Source: Analysys Mason, 2013] Access Customer care and marketing benefits Analytics Test SS7 Operational benefits 2G 3G 4G Fixed Aggregation Core Customer experience Troubleshoot Internet SIP NGN broadband Data center Network quality is determined by coverage and capacity. According to interviews and research Analysys Mason has conducted, network quality of service (QoS) is responsible for 40% of all churn. Network coverage is achieved by capital investments, technology upgrades (for example, LTE, femtocells and small cells), acquiring spectrum licences, and better planning and optimisation techniques. Network capacity is achieved by deploying excess network equipment so that demand does not exceed supply, policy control techniques (such as bandwidth throttling), and deploying new technology that transports more bits over the same physical assets. The cost of providing broadband data services is exceeding revenue and profit growth, so communications service providers (CSPs) must manage how quality of service is delivered. CSPs have always measured themselves on five nines of reliability. The Internet Protocol (IP) is connectionless, so traffic can be bursty and unpredictable. Voice and video, unlike other services, are susceptible to latency and jitter, which results in a poor customer QoS if QoS controls do not exist in the network.

7 Investment (USD billion) IP network probe systems increasing role in managing the customer experience 12 Circuit-switched and IP network lifecycle Figure 6: Circuit- to packet-switching lifecycle, and related investments in probe systems, [Source: Analysys Mason, 2013] 2 Circuit switching LTE Diameter 5G All IP ATM SIP Packet switching 1 Frame relay SIGTRAN SS7 UMTS Migration and IP probe investments Legacy probe investments

8 45 About the authors Patrick Kelly (Research Director) leads Analysys Mason s Telecoms Software research stream, which focuses on identifying the rapidly growing segments in the telecoms software market and providing forecast and market share data on each of the 26 segments by region and service type. He has produced research on IP next-generation service assurance, the 3G mobile software market and customer experience management. Patrick is a frequent speaker at industry conferences. He holds a BSc from the University of Vermont and an MBA from Plymouth College. Anil Rao (Analyst) is a member of Analysys Mason s Telecoms Software research team, focusing on service assurance, infrastructure services, service delivery platforms and telecoms software strategies programmes. He has more than 10 years experience in the telecoms industry, working in systems integration and service delivery with major Tier 1 mobile and fixed-line operators, and independent software vendors. Anil joined Analysys Mason in early He holds a BEng in Computer Science from the University of Mysore and an MBA from Lancaster University Management School.

9 46 About Analysys Mason Knowing what s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research. Consulting Our focus is exclusively on TMT. We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy. We have developed rigorous methodologies that deliver tangible results for clients around the world. For more information, please visit Research We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services. Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts. Our dedicated Custom Research team undertakes specialised and bespoke projects for clients. For more information, please visit

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