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World Market of Systems / Solutions for Traffic Management

September 2012

Analytical Report (full version)

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Analytical Report (full version)

World Market of Systems / Solutions for Traffic Management
World Market of Systems / Solutions for Traffic Management
September 2012

World Market of Systems / Solutions for Traffic Management

September 2012

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J'son & Partners Consulting presents the research results of the world market of systems / solutions for traffic management.


Currently, most of internet providers in Russia and the world faced the growing demands of its customers in the B2C segment for the quality of services. But there is no technical ability for the providers to upgrade data networks quickly to the level of compliance with these requirements. To solve the problem, operators use DTM-solutions, as a rule, such as DPI and PCRF, which allow to reduce and balance the load on the network by changing the priority of traffic and individual users.

 

DTM (Data Traffic Management,) is the operator solution for traffic management which also enables the required level of the subscriber’s QoE.


PCRF (Policy and Charging Rules Function) is a solution that allows to define and modify policies and rules of multimedia network in real time.


DPI (Deep Packet Inspection) is a solution for IP filtering, which checks the data (and sometimes titles) at the control points for viruses, spam, intrusions, different protocols, or other criteria. Considering this information is taken a decision on the possibility of further data progress or its redirection to another location. Also, this solution is used for collecting statistical information.

 

Network load can vary dramatically, depending on the day time in the region or depending on whether it is weekend or working day. In hours of high network traffic operator networks can be significantly overloaded, which negatively affects the speed of the network and service quality.


Besides, to date, almost all internet providers offer internet access services with unlimited plans. Recently, however, this policy of internet providers reduces margins of their business due to the development of new services using large amounts of traffic, such as P2P-file-sharing services, and video services.


Currently in Russia B2C segment P2P-traffic (traffic file-sharing) generated by only 3% of subscribers constitutes about 76% of the outcoming and 50% of the incoming traffic. Data transfer via HTTP generates much less traffic - 33% of the incoming traffic.

 

 

Foreign market


There are more solutions for traffic management in the foreign market, manufacturers of these solutions are, for example, Openet, Flash Networks, Allot Communications, BlueCoat, Crescendo Networks, Oversi, PeerApp, Huawei, Tekelec, etc.


According to J'son & Partners Consulting estimations, in 2011 traffic management systems market size was $ 1 billion, and the size of the market in 2016 could be around $ 2 billion. Thus, the average annual growth in traffic management systems market for the period from 2011 to 2015 will be approximately 15%.


According to research agencies, adjacent market of DPI solutions, also has significant prospects. The companies Heavy Reading and Infonetics Research provide the most optimistic forecasts of the market: 2.7 and 2 billion dollars respectively. The driving factors are government initiatives in some countries, according to which for the purpose of national security a provider should monitor the traffic of clients.

 

 

The largest provider of traffic management in the global market are Openet, Huawei, Tekelec, Amdocs. However, there is a lot of other solutions on the market, the competition between the providing companies is quite high. There is no clear leader as the largest share of the company was about 9% as of August 2012.


The absence of a leader may be explained by high complexity of consumer transition from one solution to another: traffic management systems from different manufacturers have similar functionality, but implementing the system provider makes additional customization for specific needs of the client, which makes it difficult to transit.


Market operator in the management of traffic (PCRF and DPI), million,

 

 

DPI market amounted to about 530 million dollars in 2011, the market of PCRF - about 470 million dollars. The company Cisco is not shown on the diagram due to the fact that the main revenue from traffic management solutions of the company is from non-operator’s solutions.


The largest companies of the market of DPI solutions are Procedure Networks, Allot Communications, Sandvine.

 

Russian market

 

Russian internet providers face similar problems to western: the growth of user demands for data channels bandwidth with reduced ability to upgrade directly network infrastructure and equipment. So they are quite interested in the traffic management market.


The domestic traffic management solutions market, according to J'son & Partners Consulting, will follow global trends and for the next five years will show a significant growth. While Russian manufacturers of traffic management solutions are hardly represented in the market, due to high competition from Western companies, who operate on the market for quite a long time and have confirmed the success of the systems implementation in practice.


DTM-solutions can be used by operators not only to maintain the level of QoE, but also to provide additional services and to monitor equitable resource use by their subscribers.

 

Cases of DPI and DTM-based solutions implementations

 

1. To analyze the content consumed by their customers, TalkTalk launched a system of web scanning StalkStalk, which is designed to detect possible malware. This system was developed by the Chinese company Huawei.


StalkStalk main stages:


• the system reviews all site visits of the clients;
• URL pages are registered by the system and checked with the "black" list of sites containing malicious software;
• If URL of the page is not in the "black list", then URL is checked with the list of sites that contain malware;
• If URL of the page is not contained in the "black" or the "white" list, the system follows the user to the site and analyzes the code page. The system views a page in 0.5 - 2 minutes after the user;


"White" lists of Web pages are scanned for threats every 24 hours. A necessary condition for getting a web page from the "black" list to the "white" list is the absence of malicious code on the page for a week.


The system does not collect personal information about customers and according to the policy of providing services of company TalkTalk user has no way to disable it.

 

2. The mobile operator Vodafone is using the company's Blue Soat Systems solutions to filter web traffic. To analyze the content for malicious content the system of web filtering Blue Coat uses a static database of malicious sites, and analysis of sites in real time. If there is no Web page in the database, then to analyze the page in real-time Blue Cost sends content to service WebPulse, which works on the technology of cloud computing.

 

3. French mobile operator Orange France has deployed FusionWorks Policy Manager solutions of Openet company to manage network resources. Office parental control and content management will also work on the basis of this solution. Besides FusionWork solutions of the company Openet, Orange France traffic analysis uses an integrated in FusionWork solution Content Services Manager of Cisco.

 

 

Currently, on the global market of traffic management are more than 20 companies offering solutions using various technologies, such as DPI, policy management, "transparent" caching. These systems enable operators to reduce the cost of upgrading the existing infrastructure on the background of growing traffic due to the growing popularity of the services, consuming large amounts of traffic. The introduction of DTM-systems has a positive impact on the market, allowing service providers to offer innovative services and tariff plans.


According to J'son & Partners Consulting, the demand for this type of service in Russia is stable, despite the fact that there are no Russian solutions on the market. Due to the experience and the number of implementations, accumulated by foreign companies, in the next 5 years, the situation with the dominance of foreign developers in Russia, apparently, will not change dramatically.

 

Content of the full version of the report «Analysis of the world market of systems/solutions for traffic management»

 

1. Introduction
2. Functions of modern solutions for traffic management and requirements for them
3. Traffic management technological solutions
  3.1. Foreign solution providers
      3.1.1. Openet
      3.1.2. Flash Networks – Harmony Gateway
      3.1.3. Elitecore
      3.1.4. Sandvine – Traffic Managenent Solution
      3.1.5. Tekelec
      3.1.6. Amdocs
      3.1.7. Newtec – IP software
      3.1.8. Huawei – Smart MBB
      3.1.9. Oversi
      3.1.10. PeerApp
      3.1.11. Allot Communication
  3.2. Russia solution providers
      3.2.1. Equila
      3.2.2. Evanti
4. Size and capacity of the traffic management market
  4.1. Foreign market of solutions (market size, including market prospects, competitive environment and its development)
  4.2. Russian market of solutions (market size, including market prospects, competitive environment and its development)
5. Estimation of the solutions cost of the existing players
  5.1. Estimation of installation cost
  5.2. Estimation of support cost
6. The takeover of similar companies or traffic management technologies
7. Business cases
  7.2. Foreign experience of Data Traffic Management-based service providing and functions in fixed networks
      7.2.1. USA
      7.2.2. Great Britain
      7.2.3. Germany
      7.2.4. France
  7.3. Foreign experience of Data Traffic Management-based service providing and functions on mobile networks
      7.3.1. Sprint Nextel Corporation
      7.3.2. Vodafone
      7.3.3. Verizon
      7.3.4. Orange
      7.3.5. T-Mobile UK
8. Conclusion

 

This information bulletin has been prepared by J'son & Partners Consulting Co. We make every effort to ensure that information and forests contained in our market reviews are accurate and up-to-date. J'son & Partners Consulting reserves the right to revise the data following the publication of new official information by companies.

 

J'son & Partners Consulting presents the research results of the world market of systems / solutions for traffic management.