wlan market trends and drivers

Prepared for Hewlett-Packard Corp. by Info-Tech Research Group, Indaba Division

Info-Tech Research Group, Indaba Division

WLAN Market Trends and Drivers The Expansion of the Untethered Universe

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Table of Contents

Introduction ................................................................................................................................................. Page 3

WLAN Market Dynamics ...................................................................................................................... Page 4

HP’s Market Position .............................................................................................................................. Page 5

HP’s WLAN Strategy and Product Lineup ...................................................................................... Page 7

HP Customer Scenario ........................................................................................................................... Page 10

The Situation .......................................................................................................................................... Page 10

The Value Proposition ........................................................................................................................ Page 10

Conclusion .................................................................................................................................................. Page 11

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The requirement for smartphones,

tablets, laptops, and media-

intensive applications in business

environments is putting greater,

and different, demands on the

enterprise WLAN.

Introduction

The Wireless LAN (WLAN) market is maturing, but still generates some significant innovations to compete with

wireline and cellular networking. It also continues to produce

differentiation, even though core features have become

commoditized, and consolidation among vendors continues.

WLAN speeds, as an example, are making exponential gains,

projected to reach multi gigabit-per-second rates as early as

2013. The all-wireless enterprise, once a theory, is now visible on

the horizon, coming ever closer as the positive perceptions of

WLAN reliability and security increase with each deployment.

New demands on businesses for WLAN capabilities are also evolving, particularly as mobile devices become

more prevalent and diverse. A key driver in this trend is business users demanding the usability and

functionality experienced with consumer devices. This means requirement for smartphones, tablets, laptops,

and media-intensive applications in business environments are putting greater, and different, demands on the

enterprise WLAN.

Technology, too, is supporting WLAN growth – laptops and tablets all support Wi-Fi. In addition, as hotspots,

hotel access, and other forms of public wireless access become more widely available, businesses and their

employees will increasingly take advantage of them and have similar expectations at the office. What this

leads to is WLAN-savvy organizations that are better prepared to support mobile workers, with the agility to

more easily support new wireless technologies as they are developed. This is particularly relevant as

businesses start demanding uninterrupted, high-speed delivery of multimedia applications, and all manner of

cloud-based functionality, via wireless networks.

At the same time, improved industry standards and vendor innovations have made WLANs significantly faster,

more reliable, and more secure. The current 802.11n standard provides a tenfold increase in data throughput

from the previous 802.11g version, from 54 Mbps to near GbE. This helps bridge the performance gap

separating wired and wireless environments. Indeed, businesses should consider 802.11n instead of cable

drops for workstations, as this standard – if deployed effectively – could create a truly wireless office with all

its advantages, while still meeting bandwidth expectations.

In addition, there are emerging standards and protocols that also must be considered, especially those around

the wireless office, which is the main trend in the access network of the future. Info-Tech Indaba has identified

six trends in this category based on anticipated adoption over the next three years (see Figure 1). As

networking and standards/protocols continue to evolve, future-proofing becomes important in being able to

take advantage of faster connectivity, and the enablement of private and public clouds, and network

virtualization.

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Figure 1: Six Hot Networking Trends

Source: Info-Tech Indaba

As wireless expectations and demands continue to rise, and as WLANs continue to meet those demands,

wired networks will increasingly become the difficult-to-justify cost that WLANs were a few years ago. The

question is not if, but when, to make the switch to prioritizing wireless implementations.

WLAN Market Dynamics

WLANs are typically used to augment wired network infrastructure rather than replacing it outright. An

overwhelming majority of users still connect their primary workstations to physical cables, which is related

mainly to concerns about bandwidth. However, adding wireless to an existing LAN, or upgrading old wireless

to 802.11n, can provide businesses with a variety of tangible and intangible benefits.

In an Info-Tech Indaba survey of businesses that have implemented WLANs, approximately 27% improved

their bottom line by reducing costs, or increasing revenues in locations where wireless could be used as a cost-

effective replacement for wired networks, or where handheld devices could be used to track assets and record

inventory. These, however, were not the top benefits of the WLAN implementation; rather, it was the

intangibles. Approximately 88% of businesses experienced an increase in employee productivity, i.e. the ability

for them to work anywhere, as well as enabling increased co-worker collaboration. Other benefits included

decreased turnaround time for processing customers, reporting, and inventory/asset tracking, and customer

satisfaction.

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Figure 2: WLAN Benefits


If WLAN deployment is driven by employee demand, it’s also impacted by the need to provide network access

to other constituents. More than 40% of surveyed businesses use WLANs to directly benefit the experience of

customers, patients, or students. This includes providing them with an internet connection while on premise,

and improving customer interactions through the use of a mobile network connection.

At an industry level, organizations are using WLAN technology to support mission-critical, day-to-day

operations, especially those with highly mobile workers, including healthcare, education, manufacturing,

logistics, and retail. Company size also has implications to WLAN benefits in that as size increases, so does the

value of WLAN in its ability to support a broader range of processes and applications.

HP’s Market Position

Info-Tech Research Group’s Vendor Landscape on the WLAN market has positioned HP in the “Champions”

category. Champions score well across most evaluation criteria, which are focused on the product/solution

(i.e. features, affordability, usability, and architecture), and the vendor itself (i.e. viability, strategy, reach, and

channel). HP’s ranking was the result of high scoring for affordability, architecture, viability, reach, and

channel.

On a relative basis, HP maintained the highest Info-Tech Value Score of the WLAN vendor group. The value

score is not based on pure TCO, but on “features per dollar.” Info-Tech compares the three year TCO against

the features, and provides a ranking relative to the vendors in the Vendor Landscape. HP, in this case,

represented the index value (i.e. HP provided the most features for the price). Vendors were then indexed

against HP’s performance to provide a complete, relative view of their product offerings. The Value Score does

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not indicate vendor ranking. Rather, vendors that score high offer more bang-for-the-buck than the average

vendor, while the inverse is true for those that score lower.

Figure 3: Info-Tech’s WLAN Value Score Index


Info-Tech believes that HP has leveraged its global resources to offer a sophisticated array of integrated wired

and wireless networking solutions, which have been enhanced through the Colubris and 3Com acquisitions,

adding to HP’s existing Networking (formerly ProCurve) lineup. The solutions cater to mid-to-large enterprises

and include a comprehensive line up that offers a high level of security and support.

HP’s strengths include its full integration of wired and wireless networks, as well as its deep pockets, and

strong global presence through its sales and support channels. A key differentiator for HP is its single-pane-of-

glass management capabilities via the FlexNetwork Architecture. HP also has extremely competitive pricing,

lifetime warranties, and although security features are becoming standard fare, vendors such as HP are setting

themselves apart in this area.

However, HP also has its challenges in the WLAN market, including having multiple product lines. In addition,

HP is a large corporation with WLAN being only one relatively small business on its strategic radar.

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Figure 4: HP’s WLAN BIO


HP’s WLAN Strategy and Product Lineup HP’s WLAN strategy has been developed to address what it views as the key barriers to end-customer

adoption, identified by the vendor as encompassing the following areas:

1. Inconsistent user experiences (e.g. increasing the number of wireless users, devices, and higher-bandwidth applications can degrade the overall user experience).

2. Use of multiple tools to manage wired and wireless networks. 3. Different access control solutions. 4. Security. 5. Constrained IT budgets and headcount.

HP’s stated approach in addressing these key barriers is to deliver on a converged wired/wireless

infrastructure that includes single-pane-of-glass management, unified wired/wireless access control,

continuous RF vulnerability protection, competitive total cost of ownership, and high access speeds. The

central theme in HP’s overall networking strategy is one network, one tool, and one view.

HP provides a broad line of wired and wireless networking solutions for the small, medium, and large business

markets that spans the length of the network, from the edge to the core. It also provides options for scale,

from single-office requirements to the extended coverage of multiple branches. Tying this together is HP’s

standards-based approach to its features and protocols, and a single management console/tool in its

Intelligent Management Center (IMC) that also encompasses non-HP devices. In addition, The HP FlexNetwork

Architecture (see Figure 2) is a key driver in HP’s networking strategy, allowing customers to converge network

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silos using three “building blocks” (FlexFabric, FlexCampus, and FlexBranch) that share a common

management layer (FlexManagement).

Figure 5: HP’s FlexNetwork Architecture

Source: HP HP’s WLAN-specific product strategy is focused on accessing wire-line performance via Wi-Fi certified GbE

WLAN client access, which the vendor says delivers up to a 50% increase in user density and performance for

delivery of multimedia and cloud-based applications. In addition, its management console provides centralized

configuration of multiple access points, supports up to 2,500 mobile devices, and wired and wireless device

status and network performance.

Recent HP WLAN products launched include the MSM720 Wireless Controller, MSM466-R Dual Radio Outdoor

802.11n Access Point, and FlexNetwork, a network architecture that brings together the data center, campus

and branch environments. HP is targeting the MSM720 at mid-market customers that want ease of use,

flexibility and low TCO for 10-40 AP configurations. The MSM466-R delivers high-performing indoor/outdoor

dual radio 802.11n APs, and the MSM firmware v5.7 automates and simplifies the deployment of WLAN

applications and services.

• MSM720 Wireless Controller: This product addresses multiple horizontal and vertical markets, such as

healthcare, hospitality, education, branch office environments, and mid-market enterprise. Workflows have

been automated to remove the complexity of setting up WLAN services, providing easy setup. Premium

package options include L3 mobility services. Network capacity starts at 10 APs and is upgradeable to 40 APs,

complementing the MSM710 (up to 10 APs) and MSM760/765 (40 to 200 APs). The scalable MSM controller

offers flexible physical configuration options, with four RJ45 Gigabit ports (non-Power over Ethernet) and two

dual personality G ports under software control.

• MSM466-R Dual Radio Outdoor 802.11n Access Point: This product addresses horizontal and vertical

markets, such as healthcare, hospitality, education, and other enterprise environments. It’s suited for

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indoor/outdoor deployments, such as campus courtyard client connectivity, or where wired connections are

either cost prohibitive or not feasible to implement. It’s also suited for point-to-point or point-to-multipoint

wireless communications to establish Wi-Fi connectivity among remote buildings. It replaces 100M or T3/DS3

dedicated lines with point-to-point distances up to a mile with a clear line of sight.

For outdoor WLAN performance, HP is one of the first in the industry to offer near Gigabit Ethernet WLAN

client access. Three-spatial-stream dual 802.11n APs deliver 450 Mbps per radio over 802.3af Power over

Ethernet. Concurrent operation in the 5 GHz band improves noise immunity, increases channel availability,

and enables higher utilization of 40 MHz channels (MSM466/MSM466-R). It also supports advanced and

future wireless applications that demand high-throughput and guaranteed coverage.

• MSM v5.7 Firmware: This firmware release provides automated workflows to decrease setup time and

reduce overall complexity. Initial controller settings, for example, define basic operational settings for the

controller, including network connections, security settings, and system time. Other workflows help set up

wireless access for employees or for guest users.

Clients can automatically assign their own IP address based on the contents of the RA, enabling correct IP

address assignment. Enhanced wireless status information includes broadcast statistics for each radio. Up to a

maximum of 800 total interfaces can concurrently be sampled in a team (with a maximum of 200 interfaces

per controller). AS well, XML data can be easily exported for use in applications such as Microsoft Word and

Excel. This firmware release also includes enhanced controller certificate management, as well as improved

reporting on licensing.

Figure 6: HP’s Mobility Portfolio

Source: HP

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AMC viewed HP’s WLAN

solution as the most cost-

effective on the market.

HP Customer Scenario

The Situation

ASAN Medical Center (AMC) of Seoul, Korea, is the largest hospital in Asia, treating 9,600 outpatients and 285

emergency patients on an average day, performing 57,000 complex surgeries annually, and supporting 2,743

beds. This center is also the parent of seven other hospitals that comprise the ASAN Foundation.

AMC had been using a WLAN for its data services with laptops, but was ready to take the next step in

upgrading its infrastructure to support demanding real-time applications, such as voice-over-Wi-Fi

smartphone access to electronic patient medical records. The hospital was also looking at Fixed Mobile

Convergence (FMC) services to allow staff to use their mobile phones over the local fixed wireless network

without interruption, in addition to Real Time Locating Systems (RTLS) for tracking assets such as its medical

equipment.

Ultimately, AMC was interested in empowering its staff with improved wireless services, helping to increase

productivity and improve client care.

The Value Proposition

As the result of benchmark testing of three vendor WLAN solutions, AMC chose HP. According to the

company, its decision was based on HP’s voice-over-Wi-Fi quality, its

product architecture, and ability to transfer data (including images) fast

across the network. In addition, AMC viewed HP’s WLAN solution as the

most cost-effective on the market.

AMC rolled out its entire infrastructure over a two-year period with

consulting assistance from HP service and support personnel. The hospital has 1,100 HP wireless access points,

each providing 300 meters of wireless coverage, and 800 HP Wi-Fi smartphones for its medical staff. An

additional 500 HP wireless access points will be deployed over the next year to accommodate a new wing

currently being built.

According to AMC, its HP WLAN solution has provided both medical staff and patients with a higher quality of

care and services. Medical staff can now access information using the wireless network linked to their Wi-Fi

smartphones, providing faster communications and more accurate patient data in real-time. A key benefit for

the hospital is that cases can be diagnosed faster – in some cases, two or three times faster than before the

solution was deployed. Staff productivity has also been boosted by the ability to take advantage of unified

communications and groupware for collaborative messaging.

From a management perspective, AMC believes it has bought strong investment protection in the HP WLAN

solution, with the hospital being able to cost-effectively add access points as required, and easily migrate to

new wireless standards as they are introduced.

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“We have seen big improvements since using this new solution,” said Cheon-Gueon Kim, AMC’s IT manager.

“With all employees using smartphones, we can access patient data much faster and diagnose treatments

quicker than ever before. Generally speaking, productivity has improved by two or three times.”

Read the full ASAN Medical case study here:

http://h20195.www2.hp.com/v2/GetPDF.aspx/4AA3-5771EEW.pdf

Conclusion

The Wireless LAN (WLAN) market is maturing, with many businesses deploying some level of wireless access for employees that is supported by a list of tangible and intangible benefits. WLAN market trends discussed in this Indaba White Paper will have a growing impact on business planning around WLAN, and should be considered essential to maintaining a future-proofed network. Emerging standards and protocols that encompass the access network of the future should be seriously

considered in any WLAN planning. These six trends (i.e. VoiP, consumerization, 4G, cloud, IPv6, and 802.11)

will help define overall network architectures and support decision making specific to supporting WLAN

functionality.

Businesses reviewing their WLAN options are encouraged to assess vendor solutions based on a set list of

criteria. Info-Tech’s Vendor Landscape methodology focuses on the product/solution (i.e. features,

affordability, usability, and architecture), and the vendor itself (i.e. viability, strategy, reach, and channel).

However, Info-Tech also distinguishes between standard (table stakes) features and those that are more

advanced. In assessing vendor WLAN solutions, Info-Tech reviewed advanced features (see Figure 7) that

businesses are encouraged to also review in their decision-making process.

http://h20195.www2.hp.com/v2/GetPDF.aspx/4AA3-5771EEW.pdf

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Figure 7: Info-Tech’s WLAN Advanced Features Criteria

Source: Info-Tech Indaba Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. Our practical approach is designed to have a clear and measurable positive impact on your organization’s bottom line. Info-Tech serves more than 21,000 clients at 8,000 organizations around the world. Since 1998, we have focused on making the work of IT professionals easier – and on helping them achieve greater personal and corporate success. For a free trial of our practical research – including our series on Asset Management – please visit www.infotech.com. Mailing Address: Info-Tech Research Group 43 Front St. East, Suite 200 Toronto. Ontario M5E 1B3 Toll-Free: 1-888-670-8889 Website: www.infotech.com

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