NetScout Systems, Inc. · NASDAQ:NTCT
NetScout Systems — Non-Deal Roadshow (April 2016)
30 slides from NetScout Systems's roadshow presentation, Apr 8, 2016
Slide 1: Service Assurance & Virtualization Investor Relations
Service Assurance & Virtualization Investor Relations Anil Rao, Senior Analyst, Analysys Mason Dr. Vikram Saksena, Office of the CTO, NetScout Systems, Inc. April 8, 2016 ©2015 NETSCOUT ° CONFIDENTIAL & PROPRIETARY
Slide 2: Agenda
Agenda • NFV / SDN – Current state of play Anil Rao, Analysys Mason o Key drivers of service provider interest o Market outlook o Opportunities and obstacles • NetScout’s Perspective Dr. Vikram Saksena, NetScout Systems o NetScout’s approach and capabilities o Early use cases o Supporting hybrid net
Slide 3: Safe Harbor
Safe Harbor Forward Looking Statements: Forward-looking statements in this communication are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and other federal securities laws. Investors are cautioned that statements in this communication, which are n
Slide 4: Key Investor Questions to Answer Today
Key Investor Questions to Answer Today • What is virtualization and why does it matter? • How might service provider deployment of virtualized network architectures evolve? • What parts of the network will likely continue to require traditional instrumentation for monitoring and service assurance? •
Slide 5: Network Virtualisation and Service Assurance: State of the Industry
NBED Title in sentence case NETWORK VIRTUALISATION AND SERVICE ASSURANCE: STATE OF THE INDUSTRY 8 APRIL 2016 ANIL RAO © Analysys Mason Limited 2016
Slide 6: Revenue growth expectations are fueling a focus on five areas
Revenue growth expectations are fueling a focus on five areas CSP DSP Communicat Digital ion Service Service Provider Provider Existing New investments opportunities Physical Virtual network network Trends behind CSP to DSP transformation Network innovation’s enabling role Personalised, dynamic comm
Slide 7: NFV/SDN is the "Sixth Wave" in telecom networking
NFV/SDN is the “Sixth Wave” in telecom networking Asynchronous Physical to virtual, featuring: Analogue to digital to synchronous Decoupled control & data plane (for example, PDH to SDH) Decoupled hardware & software 1960s 1980s 1990s 2000s 2015+ Fixed narrowband to Synchronous Copper to fibre mobil
Slide 8: Key market drivers and inhibitors for NFV/SDN
Key market drivers and inhibitors for NFV/SDN Drivers and inhibitors for NFV/SDN SCN will provide a long-term flexible, scalable vNGN platform for existing and HIGH new digital economy services. This will require long-term transformation NEW DIGITAL (process, people and systems). SERVICES REVENUE DR
Slide 9: Service agility enabled by increased OSS automation is the long-term driver for vNGN
Service agility enabled by increased OSS automation is the long- term driver for vNGN CSPs’ NFV deployment strategy 5% 15% Greenfield implementation of a Service-led strategy new service Lifecycle upgrade Upgrading end of life infrastructure with strategy virtual network functions Platform migration
Slide 10: Service assurance spend will be driven by the need to increase network efficiency
Service assurance spend will be driven by the need to increase network efficiency; NFV/SDN will create new SA requirements Exponential traffic growth with flattening CAPEX Network virtualisation includes: • Network function virtualisation (NFV) – Use of cloud computing technologies to run telecom ne
Slide 11: SA for NFV/SDN is a small portion of the overall SA market
SA for NFV/SDN is a small portion of the overall SA market 2014 – Service assurance market 8 • The market forecast presented here is for the period 2014 – 2019; Physical Virtual • For the period 2015 – 2020, we expect the growth rate to moderate to about 3% to 4%, with the SA market accounting for a
Slide 12: New SA must provide e2e monitoring of the physical and virtual network
New SA must provide e2e monitoring of the physical and virtual network, and assure services delivered over the hybrid network vNGN-SA for a hybrid telecoms network Key takeaways • The NFV evolution will be a gradual process, and the physical network will not perish overnight • As more network elemen
Slide 13: NetScout's Stages of Growth
NetScout’s 5 Stages of Growth Next 5 yrs. $450-$2B 2006-2015 Service Assurance2001-2006 in the Era of Virtualized, NetScout 4.0 $100-$450M Pervasive Software-centric $1-$100M Networks NetScout 3.0 Leap Frog Mainstream NetScout 2.0 Service Survival Provider Dr. Vikram Saksena, Office of the CTO Enter
Slide 14: NetScout Today
NetScout Today • Acquisition of Danaher Communications assets in July 2015 positions NetScout as the market leader in service assurance • Global footprint in top mobile, fixed, and cable operators in 50+ countries • Long history of software deployments in Enterprise Datacenters • Advancing developme
Slide 15: Adaptive Service Intelligence (ASI)
Adaptive Service Intelligence (ASI) One Software, Delivered on Multiple Platforms SUBSCRIBER • Real-time metadata and Key Performance Indicators (KPIs) • On demand session trace for APPLICATION subscriber troubleshooting NETWORK • Optimized workflows for service triage and root-cause analysis • Comp
Slide 16: Four Pillars of a Software-centric Network
Four Pillars of a Software-centric Network • Efficiency • Service Velocity • Elasticity • Innovation • Lower CapEx • Differentiation Virtualization Abstraction Assurance Orchestration • High-class user experience • Agility • Real-time • Automation Analytics • Lower OpEx © 2016 NetScout Systems, Inc.
Slide 17: Enterprise Virtualization Engagements
Enterprise Virtualization Engagements • Server Virtualization – Proven NetScout deployments on hypervisor virtual server environments – Provides visibility into server to server communications and access to packets for detailed troubleshooting • Network Virtualization – Primarily in evaluation phase
Slide 18: Service Provider Virtualization Engagements
Service Provider Virtualization Engagements • Service providers examining a range of use cases – Mobility (IoT, e.g., Connected Cars) – IP Voice (Voice over LTE, Cable Voice) – Carrier-to-Carrier SIP Peering – Business Services • SIP trunking, Hosted VoIP • vCPE, Managed Services • Hosted Applicatio
Slide 19: Our Software Strategy Delivers Exceptional Value to Customers
Our Software Strategy Delivers Exceptional Value to Customers • Delivering the lowest total cost of ownership (TCO) with an optimized hardware footprint • Providing service assurance continuity across physical and virtual infrastructures to enable disruption-free evolution • Extending the monitoring
Slide 20: ASI Technology Delivers Lowest TCO
ASI Technology Delivers Lowest TCO Optimized Hardware Footprint 5-15 times compression for longer Smart Data Recording retention, faster retrieval, and lowest storage costs Process-then-Store model as opposed to Smart On-board Processing Store-then-Process model minimizes the number of back-end
Slide 21: Service Assurance Continuity
Service Assurance Continuity Seamless Monitoring across Physical and Virtual Networks nGeniusONE • Consistent end to end Service Assurance visibility for effective service assurance • Common ASI metadata from all IMS Core probes to facilitate seamless integration IP Backbone at the application Virtu
Slide 22: Pervasive Instrumentation
Pervasive Instrumentation Extend Monitoring to the Edges of the Network • Software probes can be deployed nGeniusONE in places where it was not Service Assurance feasible to instrument before • Expands the addressable market for NetScout Operator Edge Existing Small/Medium Infinistream Business vCPE
Slide 23: Critical Feedback for improved Automation
Critical Feedback for improved Automation Drive Lower CapEx and OpEx Service Request • Real-time performance alerts drive the Orchestration layer Real-time Service Orchestration Alerts Powered • Network auto-configures by NetScout nGeniusONE without any human Service Assurance intervention Service &
Slide 24: Summary
Summary • Software-centric Networks is the next major evolution in networking – Operators gain control of service creation and are able to innovate faster in response to customer and market needs – Networks become more agile and elastic, better managed and orchestrated, lowering the total cost of ow
Slide 25: Q&A Session
NetScout’s 5 Stages of Growth Next 5 yrs. 2006-2015 $450-$2B Q&A SESSION$100-$450M NetScout 4.0 2001-2006 Pervasive NetScout 3.0 1991-2001 $1-$100M Leap Frog Mainstream NetScout 2.0 1984-1991 $1-$100M Service Survival NetScout 1.0 Provider $0-$1M Enterprise Invention NetScout 0.1 Consulting Early Ad
Slide 26: Thank You
NetScout’s 5 Stages of Growth Next 5 yrs. 2006-2015 $450-$2B THANK YOU $100-$450M NetScout 4.0 2001-2006 Pervasive NetScout 3.0 1991-2001 $1-$100M Leap Frog Mainstream NetScout 2.0 1984-1991 $1-$100M Service Survival NetScout 1.0 Provider $0-$1M Enterprise Invention NetScout 0.1 Consulting Early Ado
Slide 27: Appendix
NetScout’s 5 Stages of Growth Next 5 yrs. 2006-2015 $450-$2B APPENDIX NetScout 4.0 2001-2006 $100-$450M Pervasive NetScout 3.0 1991-2001 $1-$100M Leap Frog Mainstream NetScout 2.0 1984-1991 $1-$100M Service Survival NetScout 1.0 Provider $0-$1M Enterprise Invention NetScout 0.1 Consulting Early Adop
Slide 28: About Our Speakers
About Our Speakers Anil Rao (Senior Analyst) is the lead analyst for the Service Assurance research and is part of the Telecom software research team within Analysys Mason. He has published research on real-time network analytics, NFV service assurance, assurance in SaaS model, IP probes and the imp
Slide 29: Research from Analysys Mason
NBED Title in sentence case Research from Analysys Mason We provide dedicated coverage of developments in the telecoms, media and technology (TMT) sectors, through a range of research programmes that focus on different services and regions of the world. PROGRAMMES PROGRAMMES Fixed Networks Mobile Se
Slide 30: Consulting from Analysys Mason
NBED Title in sentence case Consulting from Analysys Mason For 30 years, our consultants have been bringing the benefits of applied intelligence to enable clients around the world to make the most of their opportunities. EXPERTISE EXPERTISE Performance analysis Radio spectrum Consulting Technology o