Worldwide revenue from data center network equipment, including data center Ethernet switches, application delivery controllers (ADCs), and WAN optimization appliances, grew 2% in 3Q10 over 2Q10 to $1.9 billion, according to market research firm Infonetics Research. The gain has led Infonetics to predict that the market will have grown by slightly more than two-thirds year-on-year by the end of 2010.
RELATED: Survey says: Data center network-improvement activity ongoing
The information is contained in Infonetics Research’s third quarter of 2010 (3Q10) Data Center Network Equipment market share and forecast report.
"A new round of data center upgrades is underway, driven by virtualization, surging amounts of data, the growing need for storage, under-investment in 2009, and renewed life in the financial sector. Even with a relatively flat third quarter and an expected down fourth quarter, the market for data center network equipment is poised to grow 67% in 2010 over 2009 to hit a milestone $7.6 billion worldwide," predicts Matthias Machowinski, Infonetics Research's directing analyst for enterprise networks and video.
Other data center network equipment market data in the report includes:
-- Growth was led by activity in North America and EMEA.
-- 10G accounts for 14% of data center switch ports in 3Q10, much higher than in the total Ethernet switch market. Infonetics Research predicts 10G port penetration to reach about 50% by 2014, aided by rapidly falling prices.
-- The ADC segment is getting a big boost from telecom carriers, a healthy-again financial sector, and the general trend of data center upgrades. F5 continued to build its lead in ADC revenue share in 3Q10, and Citrix revenue jumped 25%, surpassing Cisco for the first time.
-- Riverbed's WAN optimization appliance revenue surged 22% in 3Q10 and is now enjoying a double-digit lead over their nearest competitors.
Infonetics' Data Center Network Equipment report is updated quarterly and provides worldwide and regional market size, market share, forecasts, and analysis for data center Ethernet switches, ADCs, and WAN optimization appliances.
