Report: Data center equipment market up 17% over last year

Infonetics Research reports that for 2012, the global data center equipment market is up 17%, year-over-year.

Infonetics Research reports that for 2012, the global data center equipment market is up 17%, year-over-year. The market research firm recently released excerpts from its 1st quarter (1Q12) Data Center Network Equipment vendor market share and forecast report.

"The data center equipment market was down sequentially, but is up nicely from the year-ago first quarter," says Sam Barnett, directing analyst for data center and cloud at Infonetics Research.

According to Infonetics, global revenue for data center network equipment -- data center Ethernet switches, application delivery controllers, and WAN optimization appliances -- fell to $2.2 billion in 1Q12, down 6% from 4Q11, but up a strong 17% year over year. The research notes that WAN optimization appliances saw the steepest revenue decline, down 20% from the previous quarter.

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Barnett adds, "For the remainder of 2012 and into 2013, we expect growth to be choppy as service providers and data center operators are at different stages in their data center upgrades and some are beginning to wind down their current investment cycle."

Globally, the research states that Asia Pacific posted the strongest sequential gain in 1Q12 for overall data center network equipment revenue, while North America still accounts for nearly half the market. The report adds that renewed fears of an economic meltdown in the EU community are pressuring investments; and that the EMEA (Europe, Middle East, and Africa) region was down 10% quarter over quarter, and had the worst year-over-year showing of all regions.

The report also reveals that Cisco maintains a commanding lead in the overall data center network equipment market, followed by ADC, then by F5 and HP. More information about the report can be found here.

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