Page 15 - Extra Report on Avaya Q2 2014

Second Quarter 2014
Telecom Reseller: Extra Report on Avaya 15
SevOne Acquires Log Analytics Ovum forecasts
selling network infrastructure.
CSPs’ capex to Report author and principal network
Provider RapidEngines
infrastructure analyst Matt Walker explains:
remain flat, while “The telecom world is changing. Established
market boundaries are falling by the wayside. S
telecom vendors Competition is tougher, service innovation is data across multiple infrastructure planning evOne, the leader of scalable performance
faster, and margins are often slimmer. Value and operations management use cases. But to monitoring solutions to the world’s most
(and profits) are shifting among industry fully realize the potential complementary value connected companies, today announced it
face a tough
segments. There are two things to remember in has acquired RapidEngines, a leading provider of unstructured log data, it must be aligned and
all of this. First, most of this change is great for of highly scalable log analytics software for IT integrated with structured management data,
the consumer. Users are capturing enormous enterprises, service providers and application and manual analysis must be replaced with marketplace
benefits from the technology investments and developers. The acquisition is the first from automated approaches,” explained Frey. “By R
new business models of CSPs and adjacent SevOne since closing the $150M investment combining the RapidEngines capabilities with
evenue growth rates for communications service providers (CSPs) remain modest, market players. Second, there are upsides to this industry change for vendors. Despite flattish from Bain Capital which remains one of the largest venture financings of 2013. SevOne’s its existing solution, SevOne will be the first
to truly integrate log data into an enterprise-
but CSPs will continue to invest heavily
CSP capex, there is a new sector of companies large customer base will now have access to class, carrier-grade performance management
building network infrastructure, partially RapidEngines’ log analytics software granting system.”
in their networks, expects Ovum. With global
offsetting the CSP weakness. To profit from this users the benefit of automatically collecting and “We’re excited to join forces with the SevOne CSP capital expenditures (capex) forecasted to
digital media growth, though, vendors will need organizing log data to better provide a detailed team,” said Thomas Grabowski, Co-Founder total more than $2.1tn from 2014–19, the global
strengths in both telecom/hardware and IT/ picture of user and machine behavior. and CEO of RapidEngines, and original co- analyst firm warns CSPs must continue to do
software, and learn to serve this new customer “SevOne’s patented architecture provides founder of LogLogic. “The acquisition catapults less with more, leveraging new technologies,
type.”
unique value to organizations that rely
SevOne to the forefront of performance network designs, vendors, and operating
Elsewhere, the analysis reveals three very heavily on the uninterrupted performance
monitoring and diagnostic solutions.” The models.
different country markets make up 45% of of their networks and data centers,” said Jack transaction closed on March 27, 2014. In a new report*, Ovum reveals 2019
expected CSP 2014–19 capex: the US, China, Sweeney, CEO of SevOne. “The acquisition of RapidEngines will be combined with SevOne’s capex is projected to be $367bn, yet vendors
and Japan. “The competitive landscape of
RapidEngines will enhance SevOne’s customers’ team. Additional terms were not disclosed.
face a tougher marketplace as spending is
CSPs differs starkly across these markets, as do ability to proactively identify and resolve More at www.sevone.com and on Twitter @ being pressured by modest revenue outlooks
regulations, demographics, local vendors, and performance issues by adding log data analytics SevOneInc
as growth remains weak for most carriers,
even technology standards. These markets are to their troubleshooting process.” SevOne’s particularly fixed carriers. Also, the rise of
expensive to address, requiring significant local Senior Vice President and CTO, Vess Bakalov, more software- and IT-centric opportunities,
investment (e.g. R&D facilities) for non-local adds, “Incorporating log analytics into SevOne’s driven by the emergence of SDN (software-
companies,” says Walker. The remainder of
all-in-one solution allows for deeper visibility SUBSCRIPTIONS
defined networking) and network function
the top 15 market list includes countries from within another dimension of performance Or change address, unsubscribe virtualization (NFV), means traditional telecom
all major regions: Brazil, Russia, UK, Canada, Germany, India, Italy, France, Australia, Korea, management.”
According to Jim Frey, Vice President of Call: 800 667-8965 • Fax 360 260-9726 Web: www.avayaextra.com vendors will come up against a different set
of vendors going after CSPs’ network budget
Spain, and Mexico. Beyond the top 15, capex is Research at Enterprise Management Associates, Email: publisher@usernews.com
dollars. Yet, with a diverse array of digital media
broadly distributed among a long tail of smaller “Organizations should ensure that log analytics ADVERTISING
companies now spending heavily on CSP-grade
country markets, from Argentina (0.7% of is a key component of their overall performance Call: 360 260-9708 • Toll Free: 800 667-8965 network infrastructure, vendor-addressable
2014–19 capex) to Thailand (0.8%) and beyond.
monitoring strategy. EMA research evidences Fax: 360 260-9726
capex could increase by $50bn or more in 2019,
More at http://ovum.com
strong and growing interest in leveraging log
Web: www.telecomreseller.com/avayaextra
presenting a promising upside for vendors

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