"The foundation is finally set for true convergence of data center network infrastructure. Any way we look at it, we see convergence accelerating, from growth in the purpose-built data center switch market to the exploding adoption of Fibre Channel over Ethernet. Very soon we're going to hit the inflection point where we can unify all networking silos in the datacenter, as companies rapidly adopt a single network infrastructure to lower costs, simplify management, and reap the benefits of economies of scale. Strong investment will continue in both the data center and SAN equipment market segments going forward until the majority of enterprises complete this investment cycle," anticipates Sam Barnett, directing analyst for data center and cloud at Infonetics Research.
DATA CENTER NETWORK EQUIPMENT MARKET HIGHLIGHTS
. In 2Q11, the global data center network equipment market, including datacenter Ethernet switches, application delivery controllers (ADCs) and WAN optimization appliances, grew 3.1% sequentially and is up 4.2% year-over-year
. The Asia Pacific data center equipment market had the strongest regional performance in 2Q11, up 16% both quarter-over-quarter and year-over-year, driven by emerging economies
. Cisco captures 95% of the global revenue derived from purpose-built data center Ethernet switches; port shipment growth is outpacing revenue growth in this segment due to fierce competition that is eroding average selling prices (ASPs)
. F5 continues to lead the ADC market, which was up strongly in 2Q11, but is losing market share to Citrix, which increased its global ADC revenue by 55% sequentially and displaced Cisco as the #2 player
. Year-over-year, from 2Q10 to 2Q11, in the overall data center equipment market, Cisco's share has declined about 8 percentage points while HP's share has nearly tripled, and Juniper's has inched up less than half a percentage point
DATA CENTER REPORT SYNOPSIS
Infonetics' quarterly Data Center Network Equipment report provides worldwide and regional market size, vendor market share, forecasts and analysis for data center Ethernet switches (general purpose, purpose-built and blade switches), ADCs, and WAN optimization appliances. Companies tracked: ADTRAN, Alaxala, Alcatel-Lucent, Arista, Avaya, Blade, Blue Coat, Brocade, Cisco, Citrix, D-Link, Enterasys, Expand, Extreme, F5, Force10, H3C, HP, Huawei, Ipanema, Juniper, NETGEAR, Radware, Riverbed, Silver Peak, others.
SAN EQUIPMENT MARKET HIGHLIGHTS
. SAN switch and SAN adapter revenue is down 1% sequentially but up 16% year-over-year, totaling $746 million in 2Q11
. Perennial market leader Brocade posted a 6% decline in SAN equipment revenue in 2Q11, but is up 8% year-over-year, and Cisco had a flat quarter but is up a phenomenal 39% year-over-year
. Global revenue from 10G chassis and fixed Fibre Channel over Ethernet (FCoE) switches jumped 165% year-over-year (2Q10 to 2Q11) and FCoE switch ports are forecast by Infonetics to make up 48% of the SAN equipment market by 2015, up from 4% in 2010
Tags: Storage Networking, Networks & Telco , Servers