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 MOUNTAIN VIEW, Calif., Jan. 6 /PRNewswire/ -- Sales of network management software, services, systems and hubbing will quadruple from $3.9 billion in 1992 to $15.8 billion by 1998, growing at more than a 25 percent compound annual rate, projects a new study just released by Market Intelligence.
 Software and "intelligent" hubs will pace the market, software ballooning from 10 percent of total U.S. network management revenues in 1992 to 19 percent by 1998 while the hubbing market grows from 19 to 27 percent, says the report, "LAN/WAN Network Management Software, Services and Systems Markets."
 Network management revenue growth will exceed 23 percent every year through 1998, says the report, spurred by dramatic increases in LAN-to- LAN and LAN-to-WAN connections, the shift to multi-vendor environments and the demand for interoperable solutions. These will push revenues to $5 billion in 1993 and $10 billion by 1996.
 Demand is growing for shorter and more flexible outsourcing arrangements and multivendor training environments, and interoperability is becoming an absolute requirement.
 The software market, where entry barriers are relatively low, is a particularly competitive segment. Price competition will become an increasing factor although currently overshadowed by performance differentiation. Artificial intelligence techniques will increasingly be incorporated into network management software. Outsourcing of services remains easily the largest portion of the network management market, although its share will decline as software and intelligent hubs increase their revenue contributions in the years ahead.
 There will be ever-increasing cooperation between carriers and other WAN management experts with traditional MIS-oriented systems integration specialists. The introduction of frame relay and other public data services is increasing the role of interexchange carriers in outsourcing. With the largest companies' customer networks increasingly consisting of many LANs internetworked via WANs, services from a single network management outsourcer acting independently will be increasingly insufficient.
 LANs are being installed in Europe at an even greater pace than the United States, and U.S. software and hub vendors face major opportunities in that market. For wide-area network (WAN) management, carriers with international services will have major strategic advantages, since many clients want to outsource management of international networks that link LANs abroad to LANs in the United States.
 Customers in this market continue to worry more about reliability than price and increasingly insist on fault-tolerant systems.
 Businesses are revolting against single-vendor environments and will not be locked into proprietary systems of any kind in local- or wide- area networking. The present dearth of standards has enabled top firms to develop de facto standards around their products. Vendors that develop products that work seamlessly with competing equipment will have major advantages. The eventual emergence of fully open systems late in the decade will eventually reduce demand for network management products and services.
 Market Intelligence is an international high-technology research firm specializing in telecommunications and data communications. All Market Intelligence reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Since 1982, Market Intelligence has emerged as one of the leading publishers of high-technology market research reports.

Total LAN/WAN Network Management Software, Services, and Hub Market:
 Revenue Forecasts (U.S.), 1988-1998
 Year Revenues Growth Rate
 ($ Million) (percent)
 1988 2,110.7 ---
 1989 2,347.2 11.2
 1990 2,680.5 14.2
 1991 3,166.6 18.1
 1992 3,909.3 23.5
 1993 4,956.9 26.8
 1994 6,379.2 28.7
 1995 8,119.8 27.3
 1996 10,230.4 26.0
 1997 12,792.1 25.0
 1998 15,772.5 23.3
 Compound Annual Growth Rate (1991-1998): 25.8 percent. Note: All figures are rounded. Source: Market Intelligence.
 -0- 1/6/93
 /CONTACT: Amy Arnell of Market Intelligence, 415-961-9000, or 415-961-5042, fax/

CO: Market Intelligence ST: California IN: CPR SU:

TB -- SJ012 -- 2226 01/06/93 13:14 EST
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Date:Jan 6, 1993

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