Monday, December 20, 2010

Infonetics: Data Center Equipment Market poised for Growth

Worldwide revenue from data center network equipment, including data center Ethernet switches, application delivery controllers (ADCs), and WAN optimization appliances, grew 2% in 3Q10 over 2Q10 to $1.9 billion, according to newly released report from Infonetics. Growth was led by activity in North America and EMEA.

Infonetics reports that 10G now accounts for 14% of data center switch ports and 10G port penetration is predicted to reach about 50% by 2014, aided by rapidly falling prices.

"A new round of data center upgrades is underway, driven by virtualization, surging amounts of data, the growing need for storage, under-investment in 2009, and renewed life in the financial sector. Even with a relatively flat third quarter and an expected down fourth quarter, the market for data center network equipment is poised to grow 67% in 2010 over 2009 to hit a milestone $7.6 billion worldwide," predicts Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.