DC Equipment Market Up 9% In 2011

Worldwide Datacentre equipment market recorded a growth of 9% in 2011, according to the findings of the fourth quarter (4Q11) Datacentre Network Equipment report by Infonetics Research. For the full year 2011, datacentre gear totaled $8.4 billion. From the year-ago fourth quarter, the datacentre network equipment market is up 15%.

According to the report, Cisco continued to lead the overall datacentre equipment market based on the strength of its datacentre Ethernet switch sales, though it lost some share in 2011 in all 3 major segments of the market (switches, ADCs, and WAN optimisation).

Meanwhile, F5 extended its #1 position in the ADC market with a 20% increase in revenue and HP solidified its 2nd place position in the Cisco-dominated datacentre Ethernet switch market by bumping up its revenue by 38% in 2011.

According to Sam Barnett, directing analyst for datacentre and cloud at Infonetics Research, “Datacentre upgrades led all datacentre equipment market segments forward in 2011, though 2011 growth (up 9%) was modest compared to the 2010 surge (up 59%). Because of increasing investments in datacentre and cloud service offerings, we are forecasting double-digit percent revenue increases for the overall datacentre 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.”

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The report tracks general purpose, purpose-built, and blade datacentre Ethernet switches, application delivery controllers, and WAN optimisation appliances.