Recession hammers network management systems sector

Sales of network management systems (NMS) suffered more during 2009 than was originally expected, according to new research from analysts at Analysys Mason, as total sales dipped 8% year-on-year to $4.27bn (£2.95bn). Analysys Mason senior analyst Glen Ragoonanan said there had been several

Sales of network management systems (NMS) suffered more during 2009 than was originally expected, according to new research from analysts at Analysys Mason, as total sales dipped 8% year-on-year to $4.27bn (£2.95bn).

Analysys Mason senior analyst Glen Ragoonanan said there had been several factors contributing to the blight on the market, including lower spending from service providers, fewer contracts at lower value, headcount reductions within the industry and the bankruptcy and subsequent dismantling of Nortel.

The overall market remained highly consolidated, with the top six vendors controlling approximately 83% of the market. Ericsson accounted for 22% of sales, with Alcatel-Lucent, Huawei, Nokia Siemens Networks and Cisco rounding out the top five.

However Ragoonanan noted that growing levels of mobile data traffic across the Internet were reflected in "spending on mobile backhaul and transport capacity."

"Also, legacy spending continues to shift towards IP, supporting convergence in both backbone and access networks," he continued. "This was reflected in the marginal year-on-year growth in the business services NMS market segment."

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