Need for Multimedia and Low-cost Services Drives Demand for Application and Media Server Infrastructure Equipment

Frost: Application and media service infrastructure equipment are crucial for the growth of new multimedia service technologies, such as Internet Protocol multimedia subsystem (IMS) and fixed mobile convergence, as well as for meeting the basic requirements for low-cost telephone services that use the IP technology.

World Media and Application Server Markets earned revenues of $246.3 million in 2005 and estimates this to reach $1.76 billion in 2012.

The Voice over Internet Protocol (VoIP) market is being driven by the need for lower-cost services as well as convergence with other technologies such as multimedia and wireless. Service providers in such markets seek novel ideas and revenue opportunities before upgrading their application server infrastructure.

Usually, VoIP service vendors would like to pursue this upgrade process at a reasonable pace, ensuring minimum disruption to their current services while simultaneously maintaining their market share. However, the massive base of legacy equipment in carrier networks, coupled with a lack of knowledge pertaining to IP technology, is a concern for vendors of application and media server infrastructure equipment.

Further, corporations have expensive legacy private branch exchange (PBX) systems that do not support VoIP, and it is difficult to convince them to replace such systems with equipment supporting IP communications. This is slowing the penetration of VoIP equipment into existing carrier networks, which in turn is obstructing the growth of the application and media server infrastructure equipment.

Carriers and service providers must upgrade the voice network in stages, which would minimize disruptions for customers, explains Hunt. Before upgrading, companies must pursue security and interoperability testing to ensure a smooth transition to new technologies.

Overall, media and application server vendors must focus on extensive interoperability testing and offer support for legacy systems. These platforms should support both current and next generation applications and services, which will increase the sales of VoIP carrier infrastructure equipment.

world Media and Application Server Markets

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