WAN optimization preferred over additional bandwidth: Frost & Sullivan
By siliconindia   |   Thursday, 16 July 2009, 17:54 IST   |    1 Comments
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WAN optimization preferred over additional bandwidth: Frost & Sullivan
Bangalore: To support their regional expansion needs, an increasing number of companies are beginning to prefer WAN (Wide Area Network) optimization solutions over additional bandwidth to reduce bandwidth utilization. The extensive increase of corporate WANs across Asia-Pacific has meant inadequate and costly bandwidth for corporations. This is especially the case in developing economies and hence the need to ensure reliable IT connectivity has become more important. The Asia-Pacific WAN Optimization Controller Market study by Frost & Sullivan shows that the market covering 14 Asia-Pacific countries, including Japan grossed an estimated $246.8 million in 2008, growing 21 percent year-on-year. Growth is expected to decline to 13.3 percent in 2009 to close the year at revenues of $279.6 million, before picking-up again to grow 22.2 percent in 2010. Frost & Sullivan Industry Manager Arun Chandrasekaran says, "Even in countries where high bandwidth is cheaply and readily available, WAN optimization technologies are able to solve the issue of application latency that adding more bandwidth will simply not do." Overall, a healthy CAGR (Compound Annual Growth Rate) of 19 percent is expected from 2009 to 2015, to reach a market size of $831.6 million by end of 2015. Deployments have largely been limited to larger businesses with greater financial muscle compared to the budget conscious SMEs (Small and Medium Enterprises) given the perceived high cost of WAN optimization technologies in a recession hit economy. Large enterprises accounted for 61.6 percent ($152 million) of the revenues in 2008, the majority being, investments at data centres and branch offices. Chandrasekaran says that WAN optimization is the ideal technology for businesses with wide regional presence and multiple office locations, running a host of business applications that support a mobile workforce. "As businesses expand beyond their home borders, corporate WANs are no longer limited to bandwidth issues at country-level, but at regional level as well. WAN acceleration solutions enable companies to efficiently cope with varying bandwidth speeds, providing equitable access across the entire corporate WAN, regardless of branch office location," he explains. In 2008, Australia turned out to be the biggest spender on WAN optimization solutions accounting for 24 percent ($59.2 million) of the revenues, followed by Japan at 22.8 percent ($56.3 million), China at about 10.1 percent ($24.8 million) and India at 7.2 percent ($17.9 million). It is expected that uptake among SMEs can rise as WAN optimization solutions mature in scalability, functionality and affordability, especially if its integration with other security and networking solutions happens sooner. Additionally, managed WAN optimization services, will also drive SME adoption and speed up the use of the technology in the fast-growing Southeast Asian nations, India and China.

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