Embedding WLANs in the Enterprise

SUMMARY

Overview

Introduction

The enterprise WLAN market is now moving away from trial implementation stage and towards campus-wide coverage. To facilitate this move, centralized management of WLAN solutions is set to become increasingly commonplace over the next three years, which will in turn drive the potential of voice over WLAN services.

Scope

• Considers the key trends and issues that are impacting upon the development of the enterprise WLAN sector.
• Segments WLAN opportunities by geography, vertical market, technology and sizeband, providing revenue forecasts from 2004 to 2008.

Report Highlights

Enterprise WLAN infrastructure revenues will grow from $890 million in 2004 to almost $1.4 billion in 2008. Access points accounted for around 59% of equipment revenues in 2004, although a combination of falling prices and increased spend on wireless switches will dilute the importance of these devices in revenue terms.

North America will remain the largest market with regard to WLAN spending, with enterprises in the region investing over $500 million in related equipment in 2008.

Increasing complexity and scope are driving the need for more centralized management of WLAN solutions. As a result, revenues relating to wireless switches/appliances are set to grow rapidly over the next three years.

Reasons to Purchase

• Quantification of the revenue opportunities for both WLAN equipment vendors and third party integrators and consulting companies to 2008.
• Provides a framework for conceptualizing WLAN opportunities thereby improving vendors' go-to-market approach.

TABLE OF CONTENTS

• CHAPTER 1 EXECUTIVE SUMMARY
  • Introduction
  • Market context
    • Key findings
  • Customer focus
    • Key findings
  • The future decoded
    • Key findings
• CHAPTER 2 INTRODUCTION
  • What is this report about?
  • Who is the target reader?
  • How to use this report
  • Forecasts and assumptions
• CHAPTER 3 MARKET CONTEXT
  • Introduction
  • Key findings
  • Wireless LAN markets
    • WLAN market development
      • Enterprises are just part of the story
      • Large & medium enterprises demand greater functionality and reliability
      • Small enterprises may deploy solutions aimed at the consumer/SOHO sector
  • WLAN market drivers and inhibitors
    • Cost savings and improved flexibility are key WLAN drivers
    • Security becoming less of an issue
      • Security continues to hold back investment by some organizations
      • WEP still widely used despite concerns over effectiveness
      • WPA offers a more secure solution
      • Leading players work together to support WPA2
      • Enterprise concerns are reducing, but security will remain an issue
  • Key developments over the past 12 months
    • WLAN deployments becoming more widespread
    • Centralized approach gains traction and support
      • Distributed architecture complex and costly to manage
      • Centralized approach offers considerable benefits
      • WLAN management will increasingly be integrated into wired networks
    • Continued standards development
      • 802.11n on the horizon
      • Will a compromise be reached?
    • Restructuring of the competitive environment
      • Cisco acquires Airespace for $450 million
      • Cisco's activity has impacted heavily across the WLAN sector
      • Proxim feels the heat
      • Cisco leads the way following Airespace acquisition
    • Voice services starting to take center stage
      • Demand for VoWLAN services driven by cost and flexibility benefits
      • Widespread deployment still some way off
      • Vendors looking to exploit new opportunities
      • True benefits will be realized following move to dual mode
      • VoWLAN market offers huge potential
    • Location-based services and guest access offer potential
      • Location services offer opportunities across specific verticals
      • Guest access provision a potentially important differentiator
  • Summary: enterprise WLAN market evolution
• CHAPTER 4 CUSTOMER FOCUS
  • Introduction
  • Key findings
  • Identifying opportunities in the enterprise WLAN sector
    • Vertical opportunities broadening
      • New vertical opportunities, but horizontal applications increasing
    • Financial services firms will invest heavily by 2008
    • Large enterprises account for the majority of revenues
• CHAPTER 5 THE FUTURE DECODED
  • Introduction
  • Key findings
  • WLAN infrastructure opportunities
    • Enterprise WLAN infrastructure market to reach $1.4bn by 2008
    • The UK will remain the key Western European market for WLANs
    • Wireless switch opportunity set to grow rapidly
      • WLAN card revenues on the decline
    • Trend toward centralized management will drive thin AP sales
    • Wireless switching will increasingly be built into wired products
    • VoWLAN handset market to exceed $1.2 billion by 2008
      • Dual mode handsets expected to gain traction from 2007 onwards
  • Strong growth expected in WLAN services sector
    • Services will account for 57% of WLAN revenues by 2008
  • Summary
• APPENDIX
  • Definitions
  • Research methodology
  • Further readings
  • SPP writing team
  • How to contact experts in your industry
  • List of Tables
    • Table 1: Degree to which security concerns have hindered WLAN deployment, by geography
    • Table 2: WLAN security solution deployment by geography
    • Table 3: Extent of WLAN deployment among enterprises by geography
    • Table 4: Guest access market starting to gain momentum
    • Table 5: North American enterprise WLAN infrastructure revenues by vertical, 2004-2008
    • Table 6: EMEA enterprise WLAN infrastructure revenues by vertical, 2004-2008
    • Table 7: North American enterprise WLAN infrastructure revenues by sizeband, 2004-2008
    • Table 8: EMEA enterprise WLAN infrastructure revenues by sizeband, 2004-2008
    • Table 9: Global enterprise WLAN infrastructure revenues by region, 2004-2008
    • Table 10: Western European enterprise WLAN infrastructure revenues by region, 2004-2008
    • Table 11: Global WLAN infrastructure revenues by device type, 2004-2008
    • Table 12: Access point revenues by type, 2004-2008
    • Table 13: Wireless switch revenues by type, 2004-2008
    • Table 14: VoWLAN handset revenues by geography, 2004-2008
    • Table 15: Overall North American/EMEA VoWLAN handset revenues by device type, 2004-2008
    • Table 16: Global enterprise WLAN deployment opportunities, 2004-2008
  • List of Figures
    • Figure 1: Enterprise WLAN roadmap
    • Figure 2: Vertical WLAN opportunities
    • Figure 3: Global enterprise WLAN infrastructure revenues by region, 2004-2008
    • Figure 4: Enterprise spending accounted for 35% of overall WLAN revenues in 2004
    • Figure 5: Degree to which security concerns have hindered WLAN deployment, by geography
    • Figure 6: WLAN security solution deployment by geography
    • Figure 7: Extent of WLAN deployment among enterprises by geography
    • Figure 8: Key IEEE WLAN standards
    • Figure 9: Guest access market starting to gain momentum
    • Figure 10: Enterprise WLAN roadmap
    • Figure 11: Vertical WLAN opportunities
    • Figure 12: North American enterprise WLAN infrastructure revenues by sizeband, 2004-2008
    • Figure 13: EMEA enterprise WLAN infrastructure revenues by sizeband, 2004-2008
    • Figure 14: Global enterprise WLAN infrastructure revenues by region, 2004-2008
    • Figure 15: Western European enterprise WLAN infrastructure revenues by region, 2004-2008
    • Figure 16: Global WLAN infrastructure revenues by device type, 2004-2008
    • Figure 17: Access point revenues by type, 2004-2008
    • Figure 18: Wireless switch revenues by type, 2004-2008
    • Figure 19: VoWLAN handset revenues by geography, 2004-2008
    • Figure 20: Overall North American/EMEA VoWLAN handset revenues by device type, 2004-2008
    • Figure 21: Global enterprise WLAN deployment opportunities, 2004-2008