Huawei Overtakes Cisco in US5.6b Network Management Software Market: OSS Observer...

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Thu Oct 23, 2008 7:53am EDT

Huawei Overtakes Cisco in US5.6b Network Management Software Market: OSS Observer report

CHICAGO--(Business Wire)--
Huawei, the leading Chinese network equipment manufacturer, has
become the fourth largest supplier of network management software in
the world, and in doing so has pushed US giant Cisco into fifth
position, according to a report by OSS Observer, the global telecoms
software analyst house and subsidiary of premier telecoms adviser
Analysys Mason (www.analysysmason.com).

   According to the research, the top three, Ericsson, Alcatel-Lucent
and Nokia Siemens Networks have a combined market share of 61% in a
market that is forecast to grow from US4 billion (EUR2.7b) in 2007 to
US5.6b (EUR3.8b) in 2012.

   "Huawei has shown considerable growth over the last 5 years and is
now knocking on the door of the top three who've long enjoyed market
dominance, pre- and post-mergers. This proves to be an exciting
sub-sector of the telecoms software industry as we are estimating
USD1.6b growth between now and 2012 as operators and service providers
roll out new telecommunications services in mature and developing
markets," says Roz Roseboro, Senior Analyst at OSS Observer and author
of the report, Network Equipment Manufacturers Market Review.

   Roseboro adds, "As hardware pricing pressure continues, equipment
manufacturers are investing in software, such as network management
systems, to differentiate themselves, and capture a greater share of
operator spend. Whilst at the same time operators and service
providers are counting on next-generation services to sustain revenue
growth, and equipment vendors play a key role in providing the tools
needed to deploy services quickly, and manage them cost-effectively."

   According to OSS Observer's latest report, Network Equipment
Manufacturers Strategies Market Review, the growth of the network
management systems market will be driven by:

       --  The growth in residential broadband, which will grow at a
            compound annual growth rate (CAGR) of 12% through to 2012

       --  The deployment of advanced mobile data services in mature
            markets, where data will grow from 22% of revenues in 2007
            to 34% in 2012.

       --  The continuing growth in broadband and mobile subscribers
            in emerging markets which will grow at 18% and 12% CAGR
            repectively.

   The report provides a detailed five year forecast for network
management systems (NMS) by service: mobile, residential broadband,
business services and PSTN, further broken down by region: North
America, EMEA and rest of the world.

   The report is available to purchase online at www.ossobserver.com,
priced at USD5000.

   For more information, please call OSS Observer at +1 630 466 9223
or e-mail info@ossobserver.com

   Media Contact:

   Please feel free to contact us for more information on
press@analysysmason.com or telephone +44(0)1223 460600. Alternatively,
please contact our US press contact janita.goldman@analysysmason.com
or telephone +1 630 466 9223.

   Note to Editors:

   The top six suppliers of network management systems according to
the latest report Network Equipment Manufacturers Market Review:

-0-
*T
Company                  Market Share in 2007
Ericsson                 22%
Alcatel-Lucent           21%
Nokia Siemens Networks   18%
Huawei                   8%
Cisco                    7%
Nortel                   5%
*T

Analysys Mason
Gina Ghensi, +44 (0) 1223 460 600
press@analysysmason.com

Copyright Business Wire 2008
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