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How Will the Acquisition of Independent Tap Manufacturers Affect Your Business?

How Will the Acquisition of Independent Tap Manufacturers Affect Your Business?

Jan 22 2014

As the demand for network access and security increases faster than ever, many manufacturers that produce Network Packet Brokers (NPB) and Taps are being acquired by analysis tool manufacturers in an attempt to become a one-stop shop for their customers. While these companies can now offer both data acquisition and a full suite of analytics solutions, customers may be reluctant to continue using their existing NPB and Tap manufacturers, since they want to choose the individual components for themselves.

Here are some things to consider with the recent market acquisitions:

Less innovation. Much of the sales and product development will admittedly revolve around all the bells and whistles of the sophisticated algorithms and reporting capabilities of application analysis tools and security probes. Since these represent key components of the selection criteria, they deserve additional attention. This will remove focus from NPB and Tap product development and features, eventually resulting in less NPB/Tap innovation since these constitute a small portion of the analytics vendors’ overall revenue.

Limited choices. Analytics tool providers offer convenient packages with the hope that when purchasing their tools, you’ll also select their NPBs and Taps. This is a classic upsell model, encouraging customers to simply choose the bundled solution without comparing competitive pricing and features.

Market Dynamics. Once bundled, NPBs and Taps will be influenced by the types of features and functions tool and probe vendors want to add, effectively diluting the usual market impact on NPB and Tap pricing and development.

Higher prices. Fewer manufacturers means higher prices due to a lack of competition. The pricing of larger, complex solutions can bury the true cost of NPBs and Taps, concealing higher prices within the bundle of other items.

As one of the few remaining independent manufacturers of Network Packet Brokers and Taps, Datacom Systems has a focused dedication to our customers’ needs. With an unmatched level of customer service, we provide a full range of customized solutions coupled with in-depth product knowledge and support. And Datacom’s products offer our customers the flexibility to choose analysis tools that best suit their individual needs.

Datacom Systems remains dedicated to providing customers with not only the most innovative products, but also the best customer service, technical support and industry knowledge available.

To find out the best way to navigate these latest developments, contact your expert.