DiameterGateway.com Diameter Market Outlook 2013 The overall diameter market opportunity consists of a myriad of elements that make up a new services ecosystem in all-IP networks. In this ecosystem many diameter and non-diameter based elements are needed to work together to allow operators to manage signaling challenges and flexible connectivity to enable advanced use cases across new and existing systems to drive new revenues. Elements that are key in the evolution to diameter are the " Diameter router" DSC (itself built-up of these elements; DRA, DEA and IWF), and many others control layer elements such as PCRF, PCEF, IWF and OCS/quota management. These elements all need to interwork with IT and network layers each themselves containing new and legacy systems. Signaling growth on LTE networks  "aka Signaling storm" is driving the need for DRA's (see http://www.tekelec.com/2012-press-releases/lte-diameter-signaling-traffic-to-grow- more-than-three-times-faster-than-mobile-data-traffic-over-five-years--tekelec-forecasts-.aspx) and the need for fast and frequent services enablement is driving a "integration storm". This put more and more emphasis on the need for interworking between legacy and diameter based systems and all other non- diameter protocols. Not only do carriers need to get more and more frequent use cases and interworking off the ground within domains (Fixed, Mobile, Wi-Fi, Cable) but also between them! Market revenue over the next four years will total over a $1 billion for Diameter routing alone. Diameter signaling revenue will have a CAGR of 106.2% from 2012 to 2016 (Infonetics). This number is in line with the growth in LTE networks and LTE subscribers worldwide. According to the Tekelec LTE Diameter Signaling Index™, Diameter signaling traffic growth will more than triple mobile data traffic growth through 2016.1 Tekelec forecasts Diameter Messages per Second (MPS) to increase to 47 million Diameter MPS by 2016, representing a compound annual growth rate (CAGR) of 252% between 2011 and 2016.  Not many vendors go public on their wins currently but In October 2011, Tekelec received 2 orders for its Diameter router product which accumulate to almost 50% of their Q3 orders:  "The Company received a Diameter Signaling Router ("DSR") related order in the amount of approximately $20 million in early October which was previously expected to be received in the third quarter [Verizon Wireless - here] . ..  The Company received a second DSR related order in the amount of approximately $13 million in late October from another large carrier" Also see Acme win references: http://broabandtrafficmanagement.blogspot.nl/2012/10/acme-packet-9- wins-for-diameter.html Key element is the Policy management related solutions market where growth is foreseen from $588M in 2011, to $1.9B opportunity by 2016 (Infonetics), The PCRF market growth is on average 30% annually:  compare ABI Research (33% CAGR, 2012-17) and Infonetics who sees CAGR of 26% (2011-16). Exact Ventures concludes that the "..Policy Charging and Rules Function (PCRF) server market grew nearly 40 percent in the third quarter of 2012 compared to the same quarter of 2011 .. the introduction and growth of voice-over- LTE, which is latency sensitive, will reinforce the continued advance of the PCRF market   Integration Integration is recognized being the key inhibitor for advanced services development: new Heavy Reading key research findings Q4 2012 reveal that: As 4G LTE (Long Term Evolution) becomes the standard network technology, service providers' marketing departments want to launch more advanced services and price plans   IT organizations need new capabilities in order to fulfill Marketing's wish lists (70 percent of respondents said their companies cannot enable innovative data price plans because of IT limitations)   There is overwhelming consensus among service providers that charging and policy management integration is key to enabling more advanced services and price plans (75 percent of respondents said their companies are looking to manage rules for policy and charging from one location, i.e. implement a centralized product catalog) Heavy reading: "Those who recognized the importance of charging and policy integration last year, have since launched tiered and family plans and are now looking to enable even more advanced services with real-time user visibility and control capabilities. Those who weren't convinced last year about the need for policy and charging integration are much more convinced today, and therefore they are now looking to enable tiered and family plans.