Virtual Application Delivery Controller Revenue Tripled in 1Q12, According to Dell'Oro Group

Citrix, F5, and Riverbed Drive Virtual Application Delivery Controller Growth

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May 21, 2012, 09:00 ET

REDWOOD CITY, Calif., May 21, 2012 /PRNewswire/ -- According to a recent report by Dell'Oro Group, the trusted source for information about the networking and telecommunications industries, the Application Delivery Controller (ADC) market continued to see strength with revenues growing five percent sequentially to nearly $390 million in calendar 1Q12. The increase in the quarter was driven by strength in two segments, the physical high-end modular appliances, and the virtual appliances. Physical high-end modular appliance revenue grew 14 percent over the previous quarter, while virtual grew 167 percent.

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"We saw a substantial increase in unit shipments of virtual appliances as virtualization and cloud deployments increase the demand for more flexible and scalable solutions," said Casey Quillin, Senior Analyst of Data Center Appliance Market Research at Dell'Oro Group. "The value of physical ADCs is apparent, as these specialized appliances are optimized to handle heavy workloads. However, this quarter showed us that many customers find virtual appliances have a compelling value proposition in both production and development environments," Quillin added.

The report also indicates that within the ADC market, virtual appliances which until recently have comprised less than five percent of the overall market, are projected to drive most of the revenue growth in 2012. Vendors who currently offer virtual Application Delivery Controllers include A10, Cisco, Citrix, F5, Coyote Point, and Riverbed.

About the Report
The Dell'Oro Group Data Center Appliance Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, units shipped and average selling prices for Application Delivery Controller (Physical Modular and Fixed, and Virtual) and WAN Optimization (Physical and Virtual). To purchase this report, please contact Jessica Hsueh, call +1.650.622.9400 x222 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