infoTECH Feature

March 23, 2012

Data Center Equipment Sales Flourished in 2011 says Infonetics Research

Infonetics Research (News - Alert) today released excerpts from its 2011 fourth quarter Data Center Network Equipment forecast and market share report. The report tracks several indicators, including blade center Ethernet switches, WAN optimization appliances and application delivery controllers (ADC (News - Alert)).

The published results show the overall data center equipment market is up nine percent. Global sales of Ethernet switches, ADCs and WAN appliances totaled $8.4 billion in 2011, according to the report. Looking at the numbers from the fourth quarter of 2010, data center equipment sales are even stronger at 15 percent growth.

Cisco (News - Alert) leads all data center equipment manufacturers in terms of sales, primarily due to its cornering of the Ethernet switch market. However, it lost some ground to other manufacturers in 2011 in all three major segments of the data center equipment market.

HP ranks just behind Cisco in the Ethernet switch market with a strong showing in 2011. The company increased its revenue by 38 percent last year. F5 extends its pole position in the ADC segment by posting 20 percent growth last year.

Sam Barnett, directing analyst for data center and cloud at Infonetics Research, stated in a press release, “Data center upgrades led all data center equipment market segments forward in 2011, though 2011 growth (up nine 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,”






Edited by Jennifer Russell
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