The LAN as a service market was valued at $656 billion in 2015 and is expected to reach almost $2475 billion by 2020, says Technavio.
Technavio has announced its latest market research report on LAN as a service to its IT spending by region and industry portfolio. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the LAN as a service market during the forecast period. Some of the top vendors listed in this industry analysis include Cisco, Huawei, Juniper Networks, and VMware.
In terms of geographical analysis, the Americas will be the fastest growing region in the global market, reaching revenues of $1079 million by 2020. The US and Canada will emerge as the key revenue-generators.
“The advent of LAN powered OpenStack is anticipated to disrupt the market for cloud-based networking services in the coming years. OpenStack is an open-source, cloud-based computing technology initiated as a joint project by Rackspace and National Aeronautics and Space Administration (NASA). Considered the future of cloud computing, the orchestrates various functions in cloud computing IT systems. Cisco, Rackspace, Dell, HP, IBM, Intel, Oracle, Red Hat, and VMware are some of the key vendors supporting OpenStack technology,” says Amit Sharma, a lead analyst at Technavio for research on IT spending by region and industry.
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The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Increased adoption of IoT
The popularity of smart connected devices is on a rise owing to the increase in the number of smart cities across the globe. The increase in the number of devices makes it challenging for organizations to manage, monitor, and maintain the data. This trend triggers an upsurge in the demand for M2M and machine-to-human (M2H) communications that can help end-users simplify the management, monitoring, and maintenance of connected devices. LAN as a service solution for smart homes allows smart home appliances to communicate with each other. It also provides low-cost connectivity solutions for smart connected devices for enterprise virtual private networks.
Shift from CAPEX to OPEX model
The recent shift from the CAPEX to the OPEX business model in organizations is propelling the adoption of LAN as a service solution globally. CIOs in organizations are embracing cloud-based solutions for the implementation of enterprise LAN infrastructure to scale-up or scale-down networking requirements at any point of time. LAN as a service solutions eliminate the need to maintain in-house management of networking of infrastructure to bring about cost efficiency. This enables new players in the market to avail networking solutions with the flexible pricing model.
Emergence of hyper-converged networking infrastructure
The architecture of hyper-converged networking systems revolves around software-controlled networking infrastructure for computing, networking, and storage. The adoption of cloud-based LAN solutions makes it possible to manage and increase the efficiency of the hyper-converged infrastructure. Hardware vendors in the market are currently shifting their business to virtualization, hyper-converged and software-defined technologies to provide next-generation networking and storage solutions for enterprises. The convergence of LAN and other networking infrastructure systems in organizations allows sharing IT resources for seamless M2M communications. Hyper-converged networking infrastructure provides reliable back and recovery features as opposed to traditional networking infrastructure systems.
Other prominent vendors identified in this report are Aerohive Networks, Aryaka, Brocade Communications System, Centiant International, Iricent, Microland, NetCraftsmen, Nuvem Networks, and Pertino.
This research report includes an in-depth analysis and market shares and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, key financials, etc. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio report titled, ‘Global LAN as a Service Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Industrial Ethernet Market 2016-2020
- Global Wireless LAN Security Market 2016-2020
- Global Connectivity Enabling Technology Market 2016-2020
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