Core Insights - Enterprises in Asia Pacific are modernizing their networks with internet-first managed services to enhance performance, resilience, and governance [1][2] - The shift from legacy networks to software-defined wide area network (SD-WAN) and secure access service edge (SASE) architectures is driven by the need for reliable performance and regulatory compliance [2][3] - Managed and co-managed network services are increasingly adopted to address skills gaps and multivendor complexities [4] Group 1: Network Modernization - Networks are evolving into a strategic foundation for digital operations, essential for AI adoption, robotics, and automation [2][3] - The demand for SD-WAN and SASE architectures is rising as enterprises expand distributed operations and seek to improve application performance and cyber resilience [3][4] - Organizations are incrementally modernizing their networks while maintaining service consistency across varying infrastructure maturity levels [3] Group 2: Service Models and Trends - API-first, usage-based network-as-a-service (NaaS) models are gaining traction as companies shift spending from CapEx to OpEx [4] - Automation and AIOps are being utilized to enhance provisioning, application assurance, and change management, leading to faster deployments and lower total costs [4][6] - The report highlights the importance of addressing last-mile performance and edge connectivity complexities in managed network adoption [6] Group 3: Market Landscape - There is a growing market for local managed network service providers that comply with sovereign regulations, particularly in government and private sectors [5] - The report evaluates 63 providers across four quadrants, identifying leaders such as Accenture, GTT, NTT DATA, and others [7][8] - Tata Communications is recognized as the global ISG CX Star Performer for 2025, achieving the highest customer satisfaction scores [10]

Core Insights - Zscaler's stock has experienced a significant pullback of 25% since reaching a 52-week high on November 3, despite beating Wall Street's revenue and earnings expectations and raising its full-year guidance [1][2]. Company Performance - Zscaler reported a revenue increase of 28% year over year, reaching $788 million, with non-GAAP earnings per share rising by 25% to $0.96, surpassing consensus estimates of $774 million in revenue and $0.86 per share in earnings [5]. - The company expects revenue growth of 23% for the current fiscal year, projecting total revenue of $3.29 billion, an increase from earlier forecasts of $3.27 billion to $3.28 billion [9]. Market Trends - The zero trust security market is projected to grow from $34 billion last year to $161 billion by 2034, while the SASE market is expected to grow at an annual rate of 29%, reaching $25 billion in revenue by 2027 [3]. - A survey indicated that 72% of businesses recognize rising cybersecurity risks, highlighting the increasing demand for Zscaler's solutions [4]. Product Development - Zscaler's growth is attributed to its zero trust security solutions, data security offerings, and AI security tools, with annual recurring revenue (ARR) from AI security solutions reaching $400 million in Q1, ahead of expectations [6][7]. - The introduction of the Z-Flex contract program has led to a 70% sequential increase in bookings, totaling $175 million, by providing customers with flexibility in their spending [8]. Future Outlook - Zscaler's remaining performance obligations (RPO) increased by 35% year over year to $5.9 billion, indicating a faster pace of new contract acquisition compared to revenue fulfillment [10][11]. - Analysts have set a 12-month median price target of $334 for Zscaler, suggesting a potential 33% increase from current levels, with long-term revenue projections reaching $5 billion by fiscal 2028 [13][14][15].