Confluence of Storage and Networking Technologies – How is It Transforming Physical Security? George C Paul, Industry Analyst Auto ID and Security October 28, 2009
Aug 17, 2015
Confluence of Storage and Networking Technologies – How is It Transforming Physical Security?
George C Paul, Industry Analyst
Auto ID and Security
October 28, 2009
2
Focus Points
Snapshot of Economy
1
2
Market Segmentation
Force field Analysis3
4 Vertical Market Growth Rates
5 Key Trends
Total Market and Segment Highlights
7
6
Major Market Participants and Conclusion
3
Market Segmentation
Physical Security Digital Storage MarketPhysical Security Digital Storage Market
Revenue Breakdown
Hardware
Software
Services
Product Categories
DAS
NAS
SAN
Source: Frost & Sullivan
Vertical Market
Government
Critical Infrastructure
Enterprise
Education
Healthcare
Retail
4
Key Revenue Generating Verticals
• This segment includes federal, state, and local government purchases for government buildings, correctional homes, defense projects and border security initiatives.
Retail
Education
Enterprise
Critical Infrastructure
Government
Healthcare
• This segment includes securing critical infrastructures such as airports, seaports, utility infrastructures and city surveillance.
• This segment includes hospitals, clinics, and other medical facilities.
• This segment includes retail outlets, malls, parks, tourist locations and retail bank branches.
• This segment includes kindergarten to grade 12 (K-12) schools, colleges, universities, and other educational institutions.
• This segment includes non-retail office space, high-tech facilities, corporate office premises, and industrial plants.
Source: Frost & Sullivan
5
Unemployment Rate Industrial Output
Retail Sales Consumer Sentiment
Economic Revival:Key Indicators (U.S.)
Source: Federal Reserve Bank of St. Louis
6
Infrastucture
16%
Education
13%
Public
Services
36%
Healthcare
35%
Economic Stimulus
Components of American Recovery and Reinvestment Act (ARRA) of 2009
• Bill signed into law on February 17, 2009
• Total Stimulus Package $ 787 Billion
• 22% of stimulus package paid out as of Oct 2009
Taxe Cuts
38%
Healthcare
7%
Education
7%
Aid for
Vulnerable
10%
Infrastructure
14%
Energy
5%
State and
Local Relief
18%Other
1%
Physical Security Components of ARRA, 2009
Source: Frost & Sullivan
7
Short Term Medium Term
Imp
ac
t
Ma
rke
t D
rive
rsM
ark
et
Res
tra
ints
Imp
ac
t
Long Term
Shift to Mega-pixel Cameras
Stimulus Program
Economic Slowdown
Installed Base Vs New Systems
Absence of Network Infrastructure
Falling Prices
Low
High
Low
High
Forcefield Analysis with Timeframe
Source: Frost & Sullivan.
Converting Hybrid Systems
Growth in Government Vertical
Shift Towards Network Storage
Lack of Awareness and Expertise
Return on Investment Reliability and
Maintenance
8
1
3
6
5
4
2
Small (<$100 million)
Large(>$500 million)
Market Size of Vertical Markets
Low(0-5%)
High(>10%)
CAGR for Vertical Markets
Medium($100-$500 million)
Medium(5-10%)
Sectors with highest total growth potential
CAGR is calculated from 2008 - 2012
Key Physical Security Vertical Growth Rates
Government1
Critical Infrastructure2
3
4
5
Education
6
Retail
Healthcare
Enterprise1
3
6
54
2
Source: Frost & Sullivan
9
Key Trends
Transition from Disk Attached to Network Attached Storage
Video Analytics
Storage Virtualization
Reducing Power Consumption
Mega – Pixel Cameras
Storage at the Edge
Key
Trends
Source: Frost & Sullivan
10
DAS, 25%
NAS, 35%
SAN, 40%
Tape Based,
7%
Disk based,
93%
Total Market and Segment Highlights
• The total storage products market was valued at $26.5 billion for base year 2008 and includes all the application markets
0% 5% 10% 15% 20% 25%
Others
Retail
Energy
Manufacturing
Financial
Education
Healthcare
Government
Storage Revenues – Vertical Market Split
Storage Revenues Tape Based Vs Disk based Storage Split
Storage Revenues DAS, NAS and SAN Based Storage Split
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
11
Major Industry Participants
• Data Direct Network (DDN)
• Dell
• EMC
• Fujitsu
• Hie Electronics
• Hitachi Data Systems
• HP
• IBM
• Intransa
• Iomega
• Isilon
• NetApp
• Nexsan
• Omneon
• Pillar Data Systems
• Pivot 3
• Seagate/Maxtor
• Teradata
• Western Digital
12
Key Trends & Conclusions
Government Market relatively unhindered by economic
recession thanks to mandates
Conclusion
Source: Frost & Sullivan
Greater integration of security sub systems likely to overcome
the lethargy in shifting towards IP based storage
Increased proliferation of wireless technology is expected to spur
growth for centralized network storage to stream video feeds.
Video analytics to be a major driving factor for networked security
once the reliability is established along with greater affordability
Storage virtualization to become the norm among enterprise
applications
13
Next Steps
� Request a proposal for a Growth Partnership Service to support you and your team to accelerate the growth of your company. ([email protected])1-877-GoFrost (1-877-463-7678)
� Register for the next Chairman’s Series on Growth:
The CEO’s Perspective on Competitive Intelligence, November 3, 2009(http://www.frost.com/growth)
� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities(www.frost.com/news)
14
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For Additional Information
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Global Director
Corporate Communications
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Diana Bragg
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Keith Robinson
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