Telecom Lead Asia: Cisco continues to lead the
overall data center equipment market based on the strength of its data center
Ethernet switch sales, though it lost some share in 2011 in all 3 major
segments of the market such as switches, ADCs, and WAN optimization.
F5 has extended its #1 position in the ADC market
with a 20 percent increase in revenue and HP solidified its
2nd place position in the Cisco-dominated data center Ethernet switch
market by increasing its revenue by 38 percent in 2011.
Global sales of data center network equipment– data
center Ethernet switches, application delivery controllers (ADCs) and WAN
optimization appliances grew 9 percent sequentially in Q4 2011, to $2.36
billion.
For the full year 2011, data center gear totaled $8.4
billion, up 9 percent from the previous year, according to Infonetics Research.
From the year-ago fourth quarter, the data center network
equipment market is up a strong 15 percent.
Data center upgrades led all data center equipment
market segments forward in 2011, though 2011 growth (up 9 percent) was modest
compared to the 2010 surge (up 59 percent). Because of increasing investments
in data center and cloud service offerings, we are forecasting double-digit
percent revenue increases for the overall data center equipment market this
year and next. After that, the market should taper as buyers finish off their
investment cycle and focus on other parts of their networks,” said Sam Barnett,
directing analyst for data center and cloud at Infonetics Research.
According to Dell’Oro Group, the
application delivery controller market is forecast to exceed $2
billion in 2016, while the WAN Optimization market is forecast to
exceed $1.5 billion in the same period. These growths are expected to
be in large part due to data center evolution, led by cloud and virtualization.
editor@telecomlead.com
