In the network optimization arena, glimmers of hope surface
While economic challenges remain, some signs of recovery are beginning to emerge in the network optimization arena. Not huge revenue gains, but glimmers of hope.
While economic challenges remain, some signs of recovery are beginning to emerge. On the job front, for instance, the worst may be over in terms of IT layoffs.
Among 1,400 CIOs polled, 86% said they intend to maintain their current staff levels for the remainder of 2009, while 6% plan to expand IT teams and 6% expect to see more cuts, according to survey data from Robert Half Technology. In addition, 21% fewer IT jobs were cut in August (76,456) than in July (97,373), according to Challenger, Gray & Christmas. (See the full story by my colleague Denise Dubie)
In the network optimization arena, there are also glimmers of hope to be found. Not huge, eye-popping revenue gains, but glimmers of hope.
For instance, the application delivery controller market was flat in the second quarter of 2009, reports Infonetics Research. Flat is better than dropping, right?
F5’s application delivery controller revenue share increased to 38% while Cisco’s decreased to 26% in 2Q09, “giving F5 the clear lead two quarters in a row,” the research firm reported.
Meanwhile, the WAN optimization market declined 6% in Q2 to $226 million. Not great news, but Infonetics found a bright spot: The 6% drop is a much smaller decline than in the first quarter of the year. Plus, Infonetics is predicting the market will grow in the third quarter.
In the big picture, Infonetics forecasts the WAN optimization appliance market will grow by 50% over the next three years from $953 million in 2009 to $1.4 billion in 2012. Now that’s something to look forward to.
In other research-related news, NetForecast analysts (and Network World bloggers) Peter Sevcik and Rebecca Wetzel shared some of IT users’ WAN optimization technology wishes. In particular, the firm focused on the idea of WAN optimization interoperability, which would allow companies to extend their acceleration solutions across corporate boundaries
In a survey of 127 enterprises, 30% of respondents told NetForecast that they need WAN optimization solutions that work between their data center and their business partners’ locations today, and 59% said they will need that capability within two years. Similarly, 41% need WAN optimization that works between their data center and their customers’ locations today, and 57% said they will need it within two years.
What do you think? Wishful thinking or a reasonable expectation?
