A Network Management System (NMS) is a set of applications that allows network engineers to manage components inside a complex framework. It identifies, monitors, updates, and troubleshoots wired as well as wireless network devices and displays the data collected, which allows engineers to make changes as required.
NMS primarily manages five functional areas, namely:
At the fault management level, network problems are identified and then corrected. Steps are taken to analyze the root cause so that the problem does not re-occur in the future. The network is still operating, and the outage is minimized.
The configuration level deals with the monitoring and control of the network. Programing changes are made, including addition, modification, upgradation, and deletion of programs and systems.
At the performance management level, the overall performance of the network is managed. Repetitive problems are identified, and effort is made to determine which improvements will yield the greatest overall performance enhancement.
At the security management level, the aim is to protect the network from hackers, unauthorized users, and physical or electronic breaches. The data is maintained as confidential. Security systems allow network administrators to control what each individual authorized user can do with the system by giving permissions to files and folders.
The accounting management level is also known as the allocation level. It is designed to distribute resources optimally among network subscribers and is also responsible for ensuring appropriate billing for each user; thereby minimizing the cost of operation.
Thus, an NMS can be used to monitor both the software and the hardware components in a network. It records data from a network's remote points and sends it to a system administrator. The key benefit of a network management system is that it allows users to monitor and manage entire business operations using a central computer.
The advancements in technology, increase in implementation of Network Management Systems by data centers, and increasing network security breaches are the primary drivers of the Network Management System market. The growing demand for high-quality performance in all industry verticals is expected to propel the market growth during the forecast period. Network Management Systems enhance performance and reduce downtime risks. Big companies in the market are adopting this new technique to manage a large-scale high-complexity network to meet challenging business needs. An NMS’ ability to control entire business operations from a central computer eliminates the need to travel to different locations to check the status of the system and, hence, saves significantly on time. Since only one system is managing the entire framework, it also cuts down hiring expenditures and increases productivity.
A Network Management System has to manage the entire business and, therefore, requires to be installed correctly. The complex circuitry can be time-taking to install and requires highly skilled professionals to complete the task. Lack of available resources or professional technicians to install the complex set up is a major drawback.
The increase in the adoption of cloud-based services by Small and Medium Enterprises (SMEs) and penetration of IoT devices are projected to create immense opportunities for the Network Management Systems market. As they reduce the overall infrastructure cost and allow easy access to data, demand by enterprises, for such systems, increases. The security management functionality, out of the multiple advantages of Network Management Systems, is expected to offer multiple opportunities for market growth due to the increasing number of data breaches, hacks, and other online threats.
The number of functionalities to be handled by the network creates pressure on the network and may cause the network to suffer or shut down completely, leading to the poor performance of the network. The systems, therefore, are prone to security threats and cyber-attacks. Surveys in recent years have shown that more than 60% of IT budgets are allocated to maintain the existing service levels. Some federal government agencies are also spending more than 90% of their budgets to maintain such systems in their businesses.
The solutions segment represented approximately 70% of the overall market revenue in 2018. This is attributed to the increase in the adoption of NMS solutions by multinational companies. Standalone platforms and a customized interface are also expected to propel market growth. The increasing incidents of security breaches and cyber-attacks are creating demand for a secure network solution that is also user-friendly.
Small scale enterprises are opting for on-premise deployments rather than cloud-based ones due to the ability of on-premise solutions to reduce the turnaround time and provide support in case of failures, which is anticipated to propel market growth. However, the demand for cloud-based solutions and the Software as a Service (SaaS) model, has grown considerably over the past few years as they offer a reduction in overall infrastructure costs, rapid deployment of solutions, and easy accessibility. Therefore, the cloud-based deployment segment is expected to show significant growth in the years to come.
The leading industry verticals, IT, and telecom sectors have adopted numerous network management solutions to enhance their productivity. An increasing number of online users and a significant rise in the data traffic have demanded companies to shift to a sophisticated approach to handle business processes. Small and Medium Enterprises are likely to register a noteworthy growth rate.
Network Management Systems solutions have enabled service providers to allow customer engagement in activities and improve their experience. The healthcare industry is also showing a high rate of interest in adopting Network Management Systems solutions to deliver effective services. Government initiatives in funding advanced technological developments and regulations related to privacy and security, such as Health Information Technology for Economic and Clinical Health (HITECH) has completely aligned with the growth of the segment. Other sectors such as Banking, Financial Services, and Insurance verticals (BFSI) and travel and tourism also offer tremendous opportunities for market growth due to expansion in the industry infrastructure and abundance of data that requires to be managed.
North America is currently leading the Network Management Systems market due to the advent of 5G infrastructure, increased rate of adoption of advanced technologies, and the emergence of new businesses and data centers. This has significantly attributed to North America’s overall market share and results in North America continuing to dominate the market during the coming years.
Growing infrastructure, rapid digitalization, and industrialization in Asia-Pacific are expected to propel market growth in the near future. Developing countries such as India, China, and Japan are launching 5G, which is poised to pave the way for the adoption of Network Management Systems solutions. The IT and Telecom industry of India is growing at a rapid rate, thereby creating a significant requirement for NMS services by companies. Other major segments rapidly emerging in Asia-Pacific are media and BSFI, which are projected to create opportunities for the market.
With emerging businesses in the market, there is a strong demand among the technology savvy customers for new and improved network management solutions. SMEs can take advantage of the evolutions in technology and drive a revolutionary change, thereby getting an opportunity to compete with multinational companies. Public-private partnerships, as well as government funding, have helped companies to configure and launch new products and services rapidly. Some of the major players in the Network Management Systems market include IBM Corporation, Broadcom Inc., Riverbed Technologies, SolarWinds Inc., Cisco Systems Inc., Nokia Corporation, Oracle, Paessler AG, VIAVI Solutions Inc., NetScout Systems Inc., Colasoft Inc., Huawei Technologies Co. Ltd., Hewlett Packard Enterprise Company, Juniper Networks Inc. and Dell Technologies Inc., BMC Software. The U.S. comprises some prominent players such as Oracle Corporation, Dell Technologies, Cisco Systems, and Hewlett Packard Enterprise Company. The U.S. is anticipated to lead the market in the future due to the presence of these vendors in the region.