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Data center equipment takes hit In 1Q13; Citrix gains on F5

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Abhigna
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BOSTON, USA: Infonetics Research released excerpts from its 1st quarter 2013 (1Q13) Data Center Network Equipment report, which tracks data center Ethernet switches, application delivery controllers (ADCs) and WAN optimization appliances.

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"Following two strong years of investment, growth in the data center equipment market is starting to slow," notes Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

"While the near term outlook remains positive, ultimately we think the market is headed for a peak, as data center operators improve infrastructure utilization, and adoption of cloud services moves hardware consumption from enterprises to large-scale data center operators," added Machowinski

Data center market highlights

* Worldwide revenue for data center network equipment (data center Ethernet switches, ADCs and WAN optimization

appliances) declined 11 percent sequentially in 1Q13, to $2.3 billion.

* Purpose-built data center switches grew 30 percent year-over-year in 1Q13.

* Following record sales in 2012, ADC revenue dipped 7 percent sequentially in 1Q13 and is only slightly positive (+2 percent) from a year ago due to declining sales to the US federal government and delays in tier 1 telco projects.

* Thanks to its partnership with Cisco (who exited the ADC market last year), Citrix is gaining momentum in the ADC

space, growing market share by almost 10 points in the last year and gaining on #1 F5.

* WAN optimization revenue is declining, due to feature integration and market saturation.