LAN/WAN test equipment market mushrooms
A
Frost and Sullivan product story
Edited by the Engineeringtalk editorial team
Oct 23, 2002
As companies in a range of businesses demand higher bandwidth and faster connectivity, the need for equipment that can test and monitor local and wide area networks will rise.
As companies in a range of businesses demand higher bandwidth and faster connectivity for e-commerce, videoconferencing, multimedia and other applications, the need for equipment that can test and monitor the local area networks (LANs) and wide area networks (WANs) will rise.
The multiplication of enterprise networks should further boost demand for test equipment.
New analysis from Frost and Sullivan reveals that this industry generated revenues of $854 million in 2001 and is expected to offer significant opportunities.
Growth in demand for LAN/WAN test equipment used for network installation and maintenance, research and development, and manufacturing should push total revenues to $1.45 billion by 2008.
Despite the promise this market presents vendors, LAN/WAN test equipment markets will have to fine-tune their business strategies to overcome the serious effects of the recent economic downturn.
Reducing the time to market must be a key part of these revised plans.
"Manufacturers of LAN/WAN test equipment face the challenge of developing state-of-the-art test equipment fast enough to meet end-user demand", says Frost and Sullivan Research Analyst Sailaja Vepa.
"Network technologies evolve rapidly, hence equipment that test those technologies must develop just as quickly".
Test equipment vendors must track emerging standards, incorporate them into test equipment designs swiftly, and then reduce product development time in order to sustain sales.
"Transitioning from protocol analysis to performance analysis should offer additional opportunities", says Vepa.
"The advance of test equipment from mere protocol analysers to sophisticated performance analysers is more evident now than ever".
While protocol analysers focus on connections, examining a specific point in the network at a given time, performance analysers monitor the overall network level of activity.
"End users place high value on performance analysers because they can provide a range of problem-solving applications in an easy-to-use interface", says Vepa.
"Test equipment manufacturers that offer performance analysers are likely to achieve increased sales".
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