SOURCE: Infonetics Research

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September 26, 2014 15:44 ET

Infonetics: White box switching having a big impact on data center networking, up 95% from a year ago

CAMPBELL, CA--(Marketwired - September 26, 2014) - Market research firm Infonetics Research released excerpts for its 2nd quarter 2014 (2Q14) Data Center Network Equipment report, which tracks data center Ethernet switches, Ethernet switches sold in bundles, application delivery controllers (ADCs), and WAN optimization products.

DATA CENTER ANALYST NOTE
"White box switching continues to be a transformational element in data center networking, with white box switch port shipments already accounting for 12% of data center Ethernet ports shipped," notes Cliff Grossner, Ph.D., directing analyst for data center, cloud, and SDN at Infonetics Research. "We look for white box switches to have increasing impact on data center switching. As an example, Dell is entering the market for data-center-in-a-rack and application-in-a-rack in partnership with VMware and Cumulus Networks, using Dell's bare metal physical switch hardware with Cumulus' switch operating system."

Grossner continues: "This shift toward bare metal and white box switches is driving revenue toward software and will lower margins for all Ethernet switch vendors."

2Q14 DATA CENTER MARKET HIGHLIGHTS

  • Worldwide, white box data center Ethernet switch revenue in 2Q14 is up 14% from the previous quarter, and up 95% from the same period a year ago
    • White box switches represented 6% of revenue and 12% of ports shipped in the data center in 2Q14
  • Data center Ethernet switch revenue grew 12% in 2Q14 from 1Q14, to $2.1 billion
  • Despite renewed interest as a result of cloud-managed WAN optimization, the WAN optimization market is still well below its 4Q11 high of $247 million
  • In 2Q14, global application delivery controller (ADC) revenue totaled $497 million and is up 15% over 2Q13 and up 8% over 1Q14, driven by cloud service providers (CSPs) and enterprises
  • Virtual appliance revenue made up 13% of total ADC revenue in 2Q14 and is growing rapidly as cloud services, hybrid cloud, and the shift to cloud-architected data centers create demand for virtual ADCs

ANALYST CONFERENCE CALL FOR CLIENTS
Clients, log in to view on-demand analyst Cliff Grossner's quarterly data center market recap and outlook: www.infonetics.com/cgp/login.asp?id=888.

DATACENTER REPORT SYNOPSIS
Infonetics' quarterly data center equipment report provides worldwide and regional market size, vendor market share, forecasts through 2018, analysis, and trends for data center network equipment including data center Ethernet switches, application delivery controllers (ADCs), WAN optimization appliances, and Ethernet switches sold in bundles. Vendors tracked: A10, Alcatel-Lucent, Arista, Array Networks, Barracuda, Blue Coat, Brocade, Cisco, Citrix, Dell, F5, HP, Huawei, IBM (BNT), Juniper, Kemp, Radware, Riverbed, others. To buy report, contact Infonetics: www.infonetics.com/contact.asp.

RELATED REPORT EXCERPTS

RECENT AND UPCOMING DATA CENTER / SDN RESEARCH
Download Infonetics' 2014 market research brochure, publication calendar, events brochure, report highlights, tables of contents, and more at www.infonetics.com/login.

INFONETICS WEBINARS
Visit www.infonetics.com/infonetics-events to register for upcoming webinars, view recent webinars on-demand, or learn about sponsoring a webinar.

  • SDN: vSwitch or ToR, Where Is the Network Intelligence, and Why? (Oct. 30: Sponsor)
  • Architecting Application Delivery Control for SDN (Nov. 12: Sponsor)
  • SDN and Hybrid Cloud: Getting the Most from the WAN (Dec. 4: Sponsor)
  • Bare Metal Switching: Is it for Everyone? (Sponsor)

INFONETICS IS HIRING
Infonetics Research is hiring analysts. See job openings here.

TO INQUIRE ABOUT RESEARCH, CONTACT:
N. America (West), Asia Pacific:
Larry Howard larry@infonetics.com +1 408-583-3335
N. America (East, Midwest), Lat. America: Scott Coyne scott@infonetics.com +1 408-583-3395
Europe, Middle East, Africa, India: Iyassu Soquar iyassu@infonetics.com +1 408-583-3397
Greater China, S.E. Asia: 大中华区 Jeffrey Song jeffrey@infonetics.com +86 21-3919-8505
Japan 日本 Takashi Kimura, TAK Analytics takashi.kimura@takanalytics.com +81 3-6408-5566
South Korea 대한민국 Doug Moon, MBAP dougm@mbap.co.kr +82 2-3453-9400

ABOUT INFONETICS
Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics' About Us slides here.

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Contact Information

  • PRESS CONTACT:

    Cliff Grossner, Ph.D.
    Directing Analyst, Data Center, Cloud, and SDN
    Infonetics Research
    +1-408-583-3385
    Email contact
    Twitter: @cliffgrossner