The end-user's desire to capture all packets and retrieve historical data for analysis without any loss will further drive the NRM market, maximizing the increase in network traffic.
A new analysis by Frost & Sullivan (testandmeasurement.frost.com), "Analysis of the Global Network Recording Market," estimates that the market generated $345.5 million in revenue in 2012 and is projected to reach $2.04 billion by 2020. It covers the 1 gigabit-per-second (Gbps) segment, as well as 10 Gbps and higher. The 1 Gbps market segment accounted for 47.2 percent of total NRM sales in 2012, and the 10 Gbps segment, the remaining 52.8 percent.
Network logging is a feature of products in the Network Performance Management (NPM), Application Performance Management (APM), and network security markets. There are two types of network logging systems: standalone and integrated.
While data storage needs already represent a significant opportunity, another potential market for savvy vendors is data analytics, which often exhibits ambiguity and irregularities and lacks a predefined data model. Such unstructured data will not only lead to spiraling storage costs but also, in some cases, regulatory compliance issues. Vendors with the expertise to address these challenges stand to gain significantly.
Today, cloud services and big data are the two main technological developments driving the communications industry. Tracking data leaks and security breaches, and capturing data at high speeds without losing a single packet, is vital for network performance, and providers are eager to meet these needs.
"The market is now ripe for consolidation," says Sujan Sami, industry director for measurement and instrumentation. "Companies developing niche network recorders can partner with network performance testing providers to gain market access."
Several mergers and acquisitions have taken place recently, including Riverbed's acquisition of OPNET, Emulex's acquisition of Endace, and Fluke's acquisition of Visual Networks.
"Overall, end-user segments such as government organizations, financial institutions, enterprises, and healthcare are increasingly investing in security testing solutions as they manage vast amounts of data daily," Sami noted. "Network logging providers will find substantial opportunities to shine in these vertical markets by capturing, logging, and storing data."
