August 21, 2013
Dell'Oro Group: A Year of Growth for Session Border Controllers and More
By Steve Anderson
Contributing TMCnet Writer
Exciting news for those involved in the session border controller market, as well as for IP Multimedia Subsystem (News - Alert) (IMS) core and voice application server (VAS) systems, emerged from the Dell'Oro Group recently as the market information provider ran down the year-to-year results for several different markets. The results were looking good for the most part, though not without some issues in the mix.
The Dell' (News - Alert)Oro Group study—in this case, the Dell'Oro Group Carrier IP Telephony Quarterly Report—focused on not only the larger issues of the Carrier IP Telephony market, but also on segments within the market. It was bad news for the Carrier IP Telephony market, which saw revenues drop 12 percent overall compared to the previous year, but several other markets did quite well. The fully Carrier IP Telephony market, meanwhile, represents almost $1.4 billion total.
The combination of IMS core, session border controllers and VAS systems shot up 26 percent over the course of the last year, and perhaps more interesting was just where a good chunk of that growth came from. Just over one in every $4 generated by the session border controller market comes from the combined market muscle of Alcatel-Lucent and GENBAND (News - Alert).
One of the major components driving the session border controller market—according to the vice president for Carrier IP Telephony research for Dell'Oro Group, Chris DePuy—is the growth in wireless network construction overall. With several wireless projects going out of the planning stage and going into the point where revenue for vendors is being generated, DePuy notes, the end result means that service providers are stepping up measures to build relationships in the supplier market, and in turn are buying more hardware to make these projects happen.
Given the explosive growth seen lately in the field of mobile hardware—both tablets and smartphones alike—it's not surprising that companies would need to build out wireless networks. That in turn is going to be a big driver for several different markets, from session border controllers to small cells, and will likely give more than a few companies a little extra bolstering. It's unusual, however, to see that the Carrier IP Telephony market was down last year, though the emerging trends of WebRTC and the like may well be contributing to that. The Carrier IP Telephony market in general is still doing well, though, having cleared that billion-dollar mark and then some, but it's still likely worth keeping a weather eye on to see if new technologies may ultimately displace some of the more entrenched systems. Indeed, some reports point to a big gain in the second quarter of 2013 for the Carrier VoIP and IMS markets thanks to increased spending on Voice over LTE (VoLTE) projects, so it's possible that the year-to-year numbers may reflect a temporary slowdown.
Either way, though, there are some clear gains and clear losses, and though it will take some time to see if patterns emerge, there are some noticeable moves in the overall market that will make closer examination worthwhile.
Edited by Alisen Downey