

2014/03/10 Virtual appliances going mainstream in the data center
Campbell, CALIFORNIA, March 7, 2014—Market research firm Infonetics Research released market share and preliminary analysis for application delivery controllers and WAN optimization products from its 4th quarter 2013 (4Q13) and year-end Data Center Network Equipment report.Market revenue for data center Ethernet switches and Ethernet switches sold in bundles, along with updated forecasts and more detailed analysis for all product categories, will be available March 11.
ANALYST NOTE
“Virtual application delivery controller (ADC) revenue is growing fast as cloud services, hybrid cloud, and the shift to cloud-architected data centers create demand for virtual appliances,” notes Cliff Grossner, Ph.D., directing analyst for data center and cloud at Infonetics Research.
“Hardware-based ADCs aren’t going away anytime soon. They still provide the performance required by larger-scale deployments, and vendors are working to fold in other services such as security, application traffic monitoring, and predictive analytics,” continues Grossner. “This will keep the market for hardware-based appliances healthy even as a portion of the ADC market turns to virtual appliances.”
DATA CENTER MARKET HIGHLIGHTS
- Global application delivery controller (ADC) revenue grew 10% in 4Q13 from 3Q13, and finished 2013 at $1.75 billion, up 4% over 2012, when the previous record high was set
- ADC virtual appliances are going mainstream, accounting for 14% of ADC revenue in 4Q13; Citrix is the market share leader in this segment
- F5 continues to lead the overall ADC market, but Citrix was the big winner upon Cisco’s exit from the space, gaining 5 points in market share
- In 4Q13, WAN optimization revenue is up 4% sequentially, but remains on an overall downward trajectory, down 8% from the year-ago 4th quarter
- Vendors are adding mobility functionality to WAN optimization products to drive new revenue while waiting for the cloud to have a positive impact
- The top 3 vendors in the WAN optimization space are Riverbed, Cisco, and Blue Coat
Source: Infonetics Research