Pockets Of Great Opportunities for Network Management Software in Asia/Pacific (Excluding Japan)

Asia/Pacific (Excluding Japan)

IDC; The network management software (NMS) market is worth US$175.2 million in 2004. The market to reach US$310.0 million in 2009, a compound annual growth rate (CAGR) of 12.1%. Major global IT vendors continue to dominate the market, that strong local players in PRC and Korea will emerge. Although there are high entry barriers to this market, local players are poised to be strong contenders in niche market segments.

Even though the overall growth rates in the APEJ market may not seem impressive, high growth still exists in some countries. For instance, many companies in India and China are currently stretching their "good enough" network management tools to support increasingly sophisticated needs. It is expected that the peak in growth will come about when the existing infrastructure can no longer be incrementally upgraded to meet business requirements. The adoption of new network technology will also act as a catalyst for growth, as enterprises will then need to invest heavily in new network management capabilities to support or provide such services.

The major NMS vendors have firmly positioned their products as best of breed and are therefore able to demand a price premium. Large enterprises are willing to pay this premium for proven technology. Vendors who are targeting the mid-market should keep in mind that majority of the enterprises in this region remain extremely price sensitive, and need assistance in building a strong business case for their network management investments. The mid-market is where these global IT vendors face stiff competition from local players who offer basic network management capabilities at significantly lower prices.

There is a small segment of SMBs in APEJ whose business models are highly reliant on the availability and performance of their networks. In addition to addressing the target firm's capital budget requirements, a vendor's messages should focus on how their NMS solution will provide the firm with a tactical advantage over its competitors. NMS vendors are advised to consider their target customers' purchase behavior and resource constraints when planning their go-to-market strategies in APEJ.

Asia/Pacific (Excluding Japan) Network Management Software Market CAGR Forecast by Country Singapore's NMS market is expected to contract due to the already high broadband and telecommunications penetration, small volume of business and consumer users, and lack of killer applications. Singapore-based telecommunications service providers like Singtel recognize this deficiency and are looking to the emerging economies around the region to fuel their future market growth. The network management software market in Hong Kong is mature one and largely premised on upgrade, as well as up-selling and cross-selling spending. However, there are large pockets of opportunities in the SMB segment, which make up more than 90% of the population of companies. Vendors are aware that SMBs have very specific needs and reaching them requires different strategies and different sales channels. Existing partners and channels may not be able to reach such markets effectively. At the enterprise level, it is imperative for vendors to improve and enhance their direct, Tier-1 account management in order to maximize customer spending." Asia/Pacific (excluding Japan) Network Management Software Market 2005-2009 Forecast Publ 20050613 network management software?