[June 21, 2012]

Infonetics: Data Center Equipment up 17% YoY; Fibre Channel Switch Market to Hit $2.7B by 2016, Brocade Leads

Market research firm Infonetics Research today released excerpts from 2 1^st quarter (1Q12) vendor market share and forecast reports: SAN Equipment and Data Center Network Equipment.

ANALYST NOTE

"We see steady growth ahead for SAN switches and adapters, pushed by social networking, video sharing, data center innovations, and the eventual shift to cloud computing models. Fiber Channel continues to be the real star, with revenue from 16G Fiber Channel products growing at an astounding 52% compound annual growth rate from 2011 to 2016," expects Sam Barnett, directing analyst for data center and cloud at Infonetics Research.

Barnett adds: "The data center equipment market was down sequentially, but is up nicely from the year-ago first quarter. For the remainder of 2012 and into 2013, we expect growth to be choppy as service providers and data center operators are at different stages in their data center upgrades and some are beginning to wind down their current investment cycle."

SAN EQUIPMENT MARKET HIGHLIGHTS

• The global storage networking market totaled $1.3 billion in 1Q12, flat from 4Q11
• FCoE converged network adapters (CNAs) were a bright spot in the market in 1Q12, up 22% sequentially
• In the Fibre Channel SAN switch space, Brocade continues to be the #1 player, with 70% revenue market share
• Potential economic difficulties in North America and EMEA remain a concern in relation to service provider capex, as these regions together accounted for slightly over 70% of the global SAN equipment market

SAN EQUIPMENT REPORT SYNOPSIS

Infonetics' (News - Alert) quarterly SAN Equipment report provides worldwide and regional market size, market share, forecasts, and analysis for Fibre Channel host bus adapters (FC HBAs), iSCSI host bus adapters (iSCSI HBAs), FCoE converged network adapters (CNAs), and chassis and fixed Fibre Channel and all FCoE-capable switches that are purpose-built for the data center (10G FCoE, FC 2G, FC 4G, FC 8G, FC 16G, iSCSI). Companies tracked: Brocade, Chelsio, Cisco, Dell, Emulex, IBM (News - Alert) (BNT), Juniper, Mellanox, QLogic, and others. To buy the report, contact Infonetics Sales: http://www.infonetics.com/contact.asp.

DATA CENTER NETWORK EQUIPMENT MARKET HIGHLIGHTS

• Global revenue for data center network quipment-data center Ethernet switches, application delivery controllers, and WAN optimization appliances-fell to $2.2 billion in 1Q12, down 6% from 4Q11, but up a strong 17% year over year
• WAN optimization appliances saw the steepest revenue decline, down 20% from the previous quarter
• Cisco maintains a commanding lead in the overall data center network equipment market, followed by ADC (News - Alert) leader F5 and HP, who remain in a neck-and-neck battle for 2nd
• Asia Pacific posted the strongest sequential gain in 1Q12 for overall data center network equipment revenue, while North America still accounts for nearly half the market
• Renewed fears of an economic meltdown in the EU community are pressuring investments; EMEA (Europe, Middle East, and Africa) was down 10% quarter over quarter and had the worst year-over-year showing of all regions

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 include Alcatel-Lucent (News - Alert), Blue Coat, Brocade, Cisco, Citrix, Dell, F5, HP, IBM (BNT), Juniper, Radware, Riverbed, and others. To buy the report, contact Infonetics Sales: http://www.infonetics.com/contact.asp.

RELATED RESEARCH

Download Infonetics report highlights, prospectuses, etc. at http://www.infonetics.com/login (see DATA CENTER AND CLOUD).

• Latest Infonetics Data Center and Cloud research newsletter: http://bit.ly/L4MSPq
• Telecom capex spike expected in 2012; Asia is world's largest spender
• Virtual and data center security appliances to hit $4.4 billion by 2016; vendor battle looming
• Cloud and CPE managed security services forecast to hit $18 billion by 2016
• Enterprises plan 58% increase in data center security spending this year
• Storage area network equipment poised for 50% growth in 2012
• Overall data center equipment market up 9% in 2011; F5 and HP in dead heat behind Cisco

RECENT AND UPCOMING RESEARCH

• Log in to download Infonetics' 2012 Research Publication Calendar: http://bit.ly/zwjcRs
• Fundamental Telecom/Datacom Market Drivers
• Quarterly Total Data Center and SAN Equipment Pivot
• Data Center Deployment Strategies: North American Enterprise Survey
• Cloud Service Strategies: North American Enterprise Survey
• 2Q12 Data Center Network Equipment Market Share and Forecast
• 2Q12 SAN Equipment Market Share and Forecast
• Cloud Service Strategies: Global Service Provider Survey
• Data Center Deployment Strategies: Global Service Provider Survey

TO BUY REPORTS, CONTACT SALES:

N. America (West), Asia, Latin America: Larry Howard, [email protected], +1-408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, [email protected], +1-408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, [email protected], +44-755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

Infonetics Research (News - Alert) (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.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50319779&lang=en

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