Data centre equipment market down in 1Q11

BOSTON, USA: In 1Q11, the worldwide data centre network equipment market, which includes data centre Ethernet switches, application delivery controllers (ADCs), and WAN optimization appliances, declined seven per cent from the previous quarter, however is up two per cent year-over-year (1Q10 to 1Q11), finds market research firm Infonetics Research.

Matthias Machowinski, directing analyst, enterprise networks and video, Infonetics Research, said: "After massive growth (+50 per cent) in 2010, the data centre 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.

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In its first quarter (1Q11) Data Center Network Equipment market size, share, and forecast report, it finds that in 2010, the global data centre equipment market grew to $8 billion, and Infonetics Research forecasts it to top $10 billion by 2015.

"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 per cent territory. Purpose-built data centre Ethernet switches continue to enjoy strong growth as buyers transition to these devices to better address performance requirements in their data centres," he adds.

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

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

The report also adds that 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.