| Explosive Growth of WAN Application Delivery to Drive Application Networking Market in Asia/Pacific Excluding Japan, says IDC
October 31, 2006
Singapore and Hong Kong, October 31, 2006 – The Asia/Pacific (excluding Japan) Application Networking Market is estimated to be worth US$296 million with an annual growth rate of 36% in 2006. Significant growth will come from the WAN Application Delivery (WAD) segment, as enterprises strive to improve business efficiency and continuity at the branch offices. WAD will lead the overall market with an explosive 30% CAGR from 2005-2010, according to IDC's latest report, "Asia/Pacific Semiannual Application Networking Equipment Tracker with 2006-2010 Forecast".
"Remote branch offices are shaping up to be a key battleground in the IT world. With trends of datacentre consolidation and application outsourcing, enterprises need to deploy WAD solutions to maximize the network performance by shifting the application chattiness back to the datacenter," says Rachel Lo, Senior Research Manager for IDC's Asia/Pacific Networking Research. "It is worthy to note that WAD is a combination of WAN optimization as well as secure content and application delivery. Security plays a key role behind network optimization and it is increasingly a trend for WAN optimization vendors to include security elements into their solution. It is therefore crucial to look at WAD as a single segment," continues Rachel.
Numerous acquisitions in the past 18 months have transformed the competitive landscape as networking vendors enter the market with larger customer bases and more resources, resulting in an increase of market awareness.
Datacenter switching remains the largest segment of Application Networking. Virtualization trends will further stimulate demand of datacenter switching architecture to respond with higher-performing platforms. For the WAD segment, the launch of solutions and aggressive push from both the large and niche players will transform the market into a new dimension. The Integrated Network Message market, which ties in with Service Oriented Architecture (SOA) initiatives is at the infancy stage of development with limited deployment in 2006. Major products in this segment include Cisco's Application-Oriented Networking (AON) and IBM's DataPower SOA Appliances.
PRC overtook Korea as the largest market in 2006, followed by Australia. These three markets combined captured 70% of the total revenue in Asia/Pacific excluding Japan. A common characteristic of these markets is the larger network installed base and the historically stronger adoption on datacenter switching solutions.
Eyeing the huge opportunities ahead, many vendors have devoted more resources for the PRC market. Multinational corporations and key verticals; telecom, finance, government, education, transportation and manufacturing, are adopting application networking solutions. Likewise, India is another rising star despite the relatively lower market awareness. The aplenty opportunities available from the outsourcing platform has driven vendors to actively encourage enterprises in addressing the current pain points. The market is expected to achieve accelerating annual growth in 2007 and 2008 as increased market awareness translates into more widespread adoption.
APEJ Application Networking Market, 2006 vs. 2010
Notes to Editor
Economies covered in the IDC Asia/Pacific Semiannual Application Networking Equipment Tracker are Australia, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, PRC, Singapore, Taiwan, Thailand and Vietnam.
For more information about purchasing the research, please contact Selina Ang at +65-6228-7717 or sang@idc.com . For press inquiries, please contact Holly Fung at +852-2905-4225 or hfung@idc.com.
Contact
For more
information, contact:
Chong Chee Kian
Events & Marketing Executive
Tel: +603-2169-7521
Fax : +603-2163-5098
Email:ckchong@idc.com
|
