Data centre equipment market up 4pc y-o-y in 2Q11

CAMPBELL, USA: In 2Q11, the global data centre network equipment market, including data centre Ethernet switches, application delivery controllers (ADCs) and WAN optimization appliances, grew 3.1 per cent sequentially and is up 4.2 per cent year-over-year, finds market research firm Infonetics Research.

Sam Barnett, directing analyst for data centre and cloud at Infonetics Research, said: "The foundation is finally set for true convergence of data centre network infrastructure. Any way we look at it, we see convergence accelerating, from growth in the purpose-built data centre switch market to the exploding adoption of Fibre Channel over Ethernet."

Also Read: WAN optimization for a better cloud

"Very soon we're going to hit the inflection point where we can unify all networking silos in the data centre, as companies rapidly adopt a single network infrastructure to lower costs, simplify management, and reap the benefits of economies of scale. Strong investment will continue in both the data centre and SAN equipment market segments going forward until the majority of enterprises complete this investment cycle," anticipates Barnett.

Data Centre Network Equipment Market Highlights

The Asia Pacific data centre equipment market had the strongest regional performance in 2Q11, up 16 per cent both quarter-over-quarter and year-over-year, driven by emerging economies.

Cisco captures 95 per cent of the global revenue derived from purpose-built data centre Ethernet switches; port shipment growth is outpacing revenue growth in this segment due to fierce competition that is eroding average selling prices (ASPs).

F5 continues to lead the ADC market, which was up strongly in 2Q11, however, is losing market share to Citrix, which increased its global ADC revenue by 55 per cent sequentially and displaced Cisco as the #2 player.

Year-over-year, from 2Q10 to 2Q11, in the overall data centre equipment market, Cisco's share has declined about eight percentage points while HP's share has nearly tripled, and Juniper's has inched up less than half a percentage point.

SAN Equipment Market Highlights

SAN switch and SAN adapter revenue is down one per cent sequentially, however up 16 per cent year-over-year, totaling $746 million in 2Q11.

Perennial market leader Brocade posted a six per cent decline in SAN equipment revenue in 2Q11, however, is up eight per cent year-over-year, and Cisco had a flat quarter, however, is up a phenomenal 39 per cent year-over-year.

Global revenue from 10G chassis and fixed Fibre Channel over Ethernet (FCoE) switches jumped 165 per cent year-over-year (2Q10 to 2Q11) and FCoE switch ports are forecast by Infonetics to make up 48 per cent of the SAN equipment market by 2015, up from four per cent in 2010.