Network analytics emerged during 2011 as a tools that can meet the growing demand for network optimization through analytics technology. Network analytics tools utilize analytics capabilities to monitor and forecast network traffic on a real-time basis, helps IT admins to plan and manage network capacity thereby excelling in service delivery to customers. The growing penetration rates of smartphones and broadband augmented by the emergence of advanced technologies like mobility, cloud services, IoT etc.
will drive the market for network analytics.
North America hold the major share of network analytics market with close to 60% of vendors having headquarters in the region. North America will remain the leader in network analytics market due to the rise in demand for high speed networks, intense competition among major players in networking industry to provide better customer experience and higher adoption rates of cloud computing as compared to other regions. The industry verticals like healthcare, financial services, retail etc. have favoured the utilization of newer technologies to innovate their operations and services.
Asia Pacific to witness a higher growth rate Government policies and reforms has favoured adoption of technology oriented solutions thereby bringing tremendous change in industry landscape of the region. APAC provides opportunity for telecom players to serve the largest addressable market. The growing broadband penetration has increased the number of mobile network users in the region. This is augmented by the availability of smartphones from a number of vendors at cheaper costs. Network service providers are increasingly customizing their services to retain or grow market share while serving the varying demands of customers. The improved adoption of cloud computing in the region is also expected to give a boost to Network Analytics market.
Cloud deployment to grow farther than on-premise models Network analytics has been gaining popularity as a solution to optimize network performance and achieve operational efficiency for companies. It is helping communication service providers to offer better solutions and retain customers. On premise solutions are often sought by companies for flexibility, multi-tenant architecture and security aspects associated with them. However, with security aspects being dealt within cloud, their demand is gradually diminishing over the recent past. Emergence of cloud computing has helped small and mid-size companies to avail technology without investing heavily in IT infrastructure. The adoption of cloud based network analytics tools will enable companies to get visibility into real time data regarding network traffic and distribute bandwidth across their technology oriented business process according to priority.
IT & Telecom to exhibit maximum adoption The communications market has disrupted with the increase in the number of mobile devices with network access. The increase in the penetration of mobile devices and demand for quality network services has aggravated the need for efficient network traffic management by communication service providers. The rise in demand for consistent and speedy network services have forced communication service providers to offer solutions improve customer acquisition and retain market share. Network Analytics help IT & Telecom providers to overcome technical challenges of networks and provide a seamless customer experience by analyzing network performance over a period of time to identify the problem statement, institute a solution to improve performance through network infrastructure upgrades and ultimately reap profits. Since IT & Telecom industry serves communication needs of a gamut of industries, they tend to be the highest adopters of network analytics technology.
Challenges The market for Network Analytics is growing at a healthy rate but there are certain challenges that need to be overcome for the technology to grow to its full potential. The challenges include lack of awareness among industries about the technology, security and privacy concerns associated with adoption of cloud based solutions, scarcity of skilled talent to integrate and implement network analytics with cloud etc.
However partnerships of network analytics players with major networking players will help in generating awareness about the technology in the long term. Besides, addressing the security aspects of cloud technology and its cost effectiveness will drive adoption among small and mid-size companies which would help the technology to flourish in the market.