Data center network equipment market still growing

06/27/2011

In 2010, the data center network equipment market experienced significant growth due to demand created by companies not upgrading systems during the recession. That expansion is expected to continue into 2011, though not at the same rate.

According to a recent Infonetics Research report, the data center network equipment market will continue to grow during 2011, but its expansion will occur at a slow rate that will generate just a slight year-over-year expansion.

Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research, explained purpose-built data center Ethernet switches are one area that is exempt from the slowing expansion.

"Purpose-built data center Ethernet switches continue to enjoy strong growth as buyers transition to these devices to better address performance requirements in their data centers," said Machowinski.

Machowinski explained that slow public sector sales are a major part of the sector's impeded growth, but most of the blame falls on an extraordinary expansion rate during 2010.

A recent Dell'Oro group report solidifies Infonetics Research's findings. It found the Etherent switch market experienced unusually rapid growth in 2010, and is showing signs of declining sales in 2011 because the market cannot maintain 2010's pace.

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