Test & Measurement

Report: IP Test Sector Set for More M&A

The IP test-and-measurement sector is set to experience more consolidation as the market for such IP test tools heats up, according to Light Reading's newest Enterprise VOIP Insider. (See IP Quality Put to the Test.)

There has already been a number of takeovers in the past 12 to 15 months, and "the most likely scenario for the IP test and measurement industry is more of the same," writes Denise Culver, the author of "IP Test & Measurement: Changing Market Dynamics." (See Ixia Completes Buy, JDSU, Symmetricom Snap Up Minnows, Tektronix Buys VOIP Test Firm, Spirent Buys VOIP Test Firm, and Spirent Buys Test Partner.)

Among the potential acquirers that might look to beef up their specialist test capabilities in the VOIP and video-over-IP sectors are such industry giants as Agilent Technologies Inc. (NYSE: A), Ixia (Nasdaq: XXIA), JDSU (Nasdaq: JDSU; Toronto: JDU) (formerly Acterna), Spirent Communications plc , and Tektronix Inc. , notes Culver.

But it's not just the big players that might pull the trigger, as Culver identifies Brix Networks Inc. , Ditech Networks Inc. (Nasdaq: DITC), and NetIQ Corp. (Nasdaq: NTIQ) as other potential acquirers.

The list of potential targets includes Apparent Networks , Empirix Inc. , IneoQuest Technologies Inc. , Psytechnics Ltd. , Shenick Network Systems Ltd. , and Telchemy Inc.

The key will be to identify those companies that have developed innovative technology that will help carriers deal with the demands of providing a greater mix of services. And to deal with those demands, they will need to invest in new test systems.

"Most of the estimated 12 million worldwide VOIP subscribers are telling carriers that they expect their service to perform as well as, or better than, what they've come to expect from the public switched telephone network," notes Culver, but "carriers are ill prepared to deal with such demands."

She adds: "A few years ago, the solution would have been to simply throw more bandwidth on the network. Today, with IP networks carrying voice in addition to data and video, carriers can't just keep throwing bandwidth at applications; they must learn how to better utilize the bandwidth they have."

The report also identifies key emerging applications in the IP test-and-measurement space, shifts in customer focus, and issues that need to be addressed in the IP test market, particularly customer education: "One of the most significant problems in the IP networking space is that the technicians attempting to control IP network problems are not trained to deal with the problems they encounter."

— Ray Le Maistre, International News Editor, Light Reading

The report, Voice IP Test & Measurement: Changing Market Dynamics, is available as part of an annual subscription (6 bimonthly issues) to Light Reading's Enterprise VOIP Insider, priced at $1,295. Individual reports are available for $900. For more information, or to subscribe, please visit: www.lightreading.com/entvoip.

jcrawshaw 12/5/2012 | 3:10:51 PM
re: Report: IP Test Sector Set for More M&A Spirent is more likely to be acquired than to acquire. The old management and board just went on a shopping spree but the new management and board is looking to find a buyer. Do you think Agilent is the only potential bidder or are there some left field players you can suggest?
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