Datacentre Equipment Mkt Falls In 1Q11

After 50% growth in 2010, the data center network equipment market is slowing significantly in 2011, as some of the 2010 drivers like pent-up demand disappear and new challenges arise.

FP Archives|Feb 02, 2017, 23:08:44 IST

Accroding to Infonetics Research, the worldwide data centre network equipment market, which includes data centre Ethernet switches, application delivery controllers (ADCs), and WAN optimisation appliances, declined 7% from the previous quarter, but is up 2% year-over-year (1Q10 to 1Q11).

"After massive growth (+50%) in 2010, the data center network equipment market is slowing significantly in 2011, as some of the 2010 drivers like pent-up demand disappear and new challenges arise, such as slowing public sector spending. This dynamic is already playing out, with sales down on a sequential basis in the first quarter and year-over-year increases moving down to single-digit percent territory. Purpose-built data center Ethernet switches continue to enjoy strong growth as buyers transition to these devices to better address performance requirements in their data centres," notes Matthias Machowinski, Directing analyst, Enterprise Networks and Video, Infonetics Research.

Data Centre Network Equipmet Market Highlights

In 1Q11, the worldwide data centre network equipment market, which includes data centre Ethernet switches, application delivery controllers (ADCs), and WAN optimization appliances, declined 7% from the previous quarter, but is up 2% year-over-year (1Q10 to 1Q11)

In 2010, the global data centre equipment market grew to $8 billion, and Infonetics Research forecasts it to top $10 billion by 2015

Cisco continues to lead the data centre Ethernet switching market by far, with over 80% market share

ADC market leader F5 increased quarterly revenue only slightly, but gained 4 points of market share as rivals Cisco and Citrix declined

The data centre equipment markets in Asia Pacific (APAC) and Central and Latin America (CALA), posted strong year-over-year growth in 1Q11, driven by emerging economies

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