DEMAND for bandwidth among New Zealand firms is growing so rapidly that they are turning to “packet shaping” technologies to make the most of the bandwidth they already have.
Lan Systems, the New Zealand distributor for the US-based application traffic management vendor Packeteer, reports booming demand for the technology with firms now buying the devices by the dozen instead of in just ones and twos.
Market analyst IDC estimates the trans-tasman WAN optimisation market will increase from $US236 million in 2004 to $US427 million in 2008.
The growing demand comes as the Packeteer launches a $100,000 lead-generation programme to boost the “packet shaping” market for its existing reseller base as the technology moves into the SMB market.
Packeteer claims to have created the ethernet-based technology that lets companies put controls on their bandwidth use and use compression technologies to get more bandwidth out of existing connections.
Packeteer ANZ territory manager Peter Owen claims New Zealand is blessed with cheap bandwidth, which has made Kiwi firms more technology-advanced than Australian businesses.
New Zealand also has many centralised WAN deployments controlling remote sites. Multinational companies with operations here also want WAN links with their overseas-based head offices.
“WAN is typically the largest expense in a budget. Rather than put more bandwidth in, customers want systems in place to make existing bandwidth more efficient. We are [often] deployed as a cost-recovery device so firms can work out where the network needs to be scaled,” Melbourne-based Owen says.
Packeteer is rolling out its “Three Packeteers” initiative across Australasia in the next few weeks. It involves mail-outs, seminars, visits by Packeteer sales staff to potential end-user customers.
The move follows other market development work from Packeteer, such as 30-day free trial evaluations and free reseller training which, Owens says, has seen the number of trained engineers working in channel organisations quadruple over the past year to nearly 50 in New Zealand.