WAN optimization mkt eases up in 1Q08

BOSTON, USA: Infonetics Research reports that after three quarters in a row of strong double-digit growth, the WAN optimization market eased up, with worldwide revenue dipping 2 percent sequentially in 1Q08.

Infonetics’ report, Enterprise Routers and WAN Optimization Appliances shows the WAN optimization market is up 58 percent year-over-year (1Q07 to 1Q08). The report also shows worldwide enterprise router revenue held steady at $1.1 billion in 1Q08, the same as the previous quarter, buoyed by small increases in low-end/SOHO and branch office enterprise router sales.

“After being on a tear for the last three quarters, the WAN optimization market slipped in the 1st quarter of 2008. Incidentally, it did so a year ago as well, illustrating that even emerging segments aren't immune to the occasional slowdown. Regardless, quarterly revenue is up significantly from this time last year, and while vendors sounded a little down-beat after Q1, we still think this market will pass $1 billion in revenue this year,” said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.

Other report highlights:

* Unit shipments of WAN optimization appliances are forecast to more than double between 2007 and 2010.

* Worldwide enterprise router revenue is up 7 percent year-over-year (1Q07 to 1Q08).

* North American enterprise router sales were down 10 percent sequentially, while CALA router sales were on fire, with revenue up 53 percent, driven by a strong showing by Cisco.

* Cisco continues to lead the worldwide enterprise router market by far, with about 3/4 of all revenue and over 2/3 of the unit shipments; Juniper is 2nd for revenue, 3Com/H3C is 3rd; there are significant differences in regional market share.