Sandvine has been a leader in network policy control long before anyone knew that there was a network policy control market. Others have caught on, of course, and now several industry analysts write research on the topic.
Conveniently, three such analyst groups have recently published their latest updates on Sandvine’s market:
- Heavy Reading: Policy Control & DPI Market Tracker, April 2013
- Frost & Sullivan Stratecast: Global CSP Policy Management Strategy Definition and Solution Supplier Market Analysis, March 2013
- Infonetics Research: Service Provider Deep Packet Inspection Products, April 23, 2013
- Infonetics Research: Policy Management Software, March 21, 2013
We thought this would be a good time to summarize their thoughts.
The Market is…Policy!
Each analyst defines the market slightly differently, including or excluding certain functionality and vendors from the analysis. Two of the reports – Heavy Reading and Frost & Sullivan’s – adopt Sandvine’s view – “Policy Decision” (or “Policy” or “PCRF” “PCMM”, depending on who you talk to) and “Policy Enforcement” (or “PCEF” or “DPI”, again depending…) are part of the same market. Certain vendors only provide half the functionality, while others like Sandvine provide an end-to-end solution. In any case, Policy Decision and Policy Enforcement are necessary and complementary halves to deliver the same goal – a more intelligent, profitable and agile network through the deployment of network policy control.
The Market is Growing
All analysts agree that the market will continue to grow.
|5-year CAGR estimate||2013 growth estimate||2013 market|
|Heavy Reading||18%||26%||$1,559 million|
|Frost and Sullivan Stratecast||10%||~20%||$2,720 million|
|Infonetics Research (DPI)||26%||31%||$780 million|
|Infonetics Research (Policy)||25%||40%||$1,080 million|
In their analysis, Frost & Sullivan Stratecast suggests that the Policy Decision aspect of the market will grow slightly faster than the Policy Enforcement aspect, based on the new use cases being deployed, which leads us nicely to the point that…
New Use Cases are Driving Deployment
There was considerable agreement amongst analysts that use cases for policy are continuing to evolve. While the service quality improvements and cost-containment benefits of traffic management represented the original use case for network policy control, operators are increasingly looking to policy to differentiate their service offerings and enhance ARPU. Here is a sampling of comments:
Heavy Reading: “Although congestion and fair-use management continue to be important, growth is being driven by the need for service differentiation and more granular service offerings, based on subscriber behavior and demographics.”
Frost & Sullivan Stratecast: “Instead of differentiating on price, which tends to be a losing proposition in the long term, policy allows new services to be built on top of the data service, allowing differentiation on customer experience.”
Infonetics Research: “Operators are also increasingly looking at different pricing models, particularly in the mobile realm, where tiered service plans and offerings that bundle applications with connectivity are replacing all-you-can eat models.”
These comments are consistent with Sandvine’s own results. Since 2010, Sandvine has seen the proportion of software order value represented by its Service Creation product suite rise from just under 20% to almost 50%. During that time we have supported several truly innovative new service models. There is little doubt: network policy control is moving from the control room to the board room. Additionally, analysts largely agreed on the following drivers for network policy control:
Sandvine is actively involved in these developing areas of the policy control market, working with operators that are seeking a more intelligent, profitable and agile network. Bookmark this article!
Sandvine is actively involved in these developing areas of the policy control market, working with operators that are seeking a more intelligent, profitable and agile network.
Bookmark this article!