Data centre equipment market up 9 pc in 2011

CAMPBELL, USA: Global sales of data centre network equipment -- data centre Ethernet switches, application delivery controllers (ADCs) and WAN optimization appliances -- grew nine per cent sequentially in 4Q11, to $2.36 billion, finds market research firm Infonetics Research.

In its fourth quarter (4Q11) Data Center Network Equipment market share and forecast report, the research firm also finds that from the year-ago fourth quarter, the data centre network equipment market is up a strong 15 per cent and for the full year 2011, data centre gear totaled $8.4 billion, up nine per cent from the previous year.

"Data center upgrades led all data center equipment market segments forward in 2011, though 2011 growth (up nine per cent) was modest compared to the 2010 surge (up 59 per cent). 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," expects Sam Barnett, directing analyst, data center and cloud, Infonetics Research.

Cisco continues to lead the overall data centre equipment market based on the strength of its data centre Ethernet switch sales, though it lost some share in 2011 in all three major segments of the market (switches, ADCs, and WAN optimization).

Meanwhile, F5 extended its #1 position in the ADC market with a 20 per cent increase in revenue and HP solidified its second place position in the Cisco-dominated data centre Ethernet switch market by bumping up its revenue by 38 per cent in 2011.