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Data centre equipment market up 12 pc in 3Q11

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CIOL Bureau
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CAMPBELL, USA: Global revenue for data centre network equipment is up 12 per cent sequentially in 3Q11, with all segments posting growth, including general purpose, purpose-built and blade data centre Ethernet switches, application delivery controllers (ADCs) and WAN optimization appliances, says market research firm Infonetics Research.

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In its third quarter (3Q11) Data Center Network Equipment market share and forecast report, the research firm notes that the data centre network equipment market is also up 12 per cent year-over-year (from 3Q10).

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

Sam Barnett, directing analyst for data center and cloud at Infonetics Research, said: "Wow is the only word that can accurately characterize the performance of the purpose-built data center Ethernet switching market at the end of the third quarter, with year-over-year gains of over 800 per cent. That really tells the story of the data center network equipment sector: we are on the path to convergence in earnest."

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The North American data centre equipment market had the strongest regional performance in 3Q11 (up 16 per cent sequentially); Asia's sequential growth slowed significantly but remains up an astounding 39 per cent year-over-year; and Europe's 3Q11 results are in positive territory (following a dismal second quarter) despite continued economic concerns, the report adds.

"The resurgence in data center upgrades, virtualization, and data/storage/traffic growth bodes well for all categories in the data center network equipment market. Once final 2011 figures are in, we expect the market to be up about 6% over 2010, and we expect growth to nudge back up into double-digit percent territory in 2012," Barnett adds.

Overall data centre network equipment leaders Cisco and F5 increased their revenue and market share in 3Q11, while #3 player HP saw a drop in both, allowing F5 to jump into the #2 spot for the first time in a year.

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