Bright Future Forecast for Data Center Appliance Market, According to Dell'Oro Group

Price Appreciation Will Supplement Unit Growth

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Feb 07, 2013, 12:40 ET

REDWOOD CITY, Calif., Feb. 7, 2013 /PRNewswire/ -- According to a recent report by Dell'Oro Group, the trusted source for information about the networking and telecommunications industries, the total Data Center Appliance market is forecast to approach $4.0 billion in 2017, a CAGR of just under ten percent. This market growth is expected to be largely due to the accelerated adoption of virtual appliances in production networks and cloud environments.

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"Although virtual appliances are rapidly gaining traction in the Application Delivery Controller and WAN Optimization markets, there are optimized performance advantages, such as for SSL and IPSec offloading that will continue to buoy sales of physical devices for years to come," said Casey Quillin, Senior Analyst of Data Center Appliance Market Research at Dell'Oro Group. "Virtual appliances are a nascent and fast-changing market. We foresee higher-end, higher-priced products that make networks smarter becoming more prevalent. Cloud applications are a perfect example of this. For example, F5, Riverbed, Citrix, and A10 have all recently announced virtual appliance solutions for the public cloud which are compatible with Amazon Web Services."

The report discusses network intelligence applications, and indicates that within the Data Center Appliance market, virtual appliances which currently comprise less than ten percent of the overall market are projected to reach over 30 percent of total market revenue in 2017.

About the Report
The Dell'Oro Group Data Center Appliance Forecast Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, units shipped and average selling prices for Application Delivery Controller and WAN Optimization Appliance equipment. Each of these markets is further segmented by Physical and Virtual technologies. To purchase this report, please contact Julie Learmond-Criqui, call +1.650.622.9400 x244 or email [email protected].

About Dell'Oro Group
As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.DellOro.com.

SOURCE Dell'Oro Group