May 1, 2013
Recently published reports from top industry analyst firms IDC and Dell’Oro Group reveal that the market for virtual wide area network (WAN) optimization products, which are now broken-out and tracked separately from hardware, is identified as the fastest growing segment of the WAN optimization market. Moreover, analysis shows that Silver Peak is a key leader in this segment of the market and is now recognized as the fastest growing virtual WAN optimization company.
According to Brad Casemore, IDC’s research director for datacenter networks, “On an annual basis, revenue from virtual WAN optimization more than doubled in 2012 to reach $172.7 million. What’s more, virtual WAN optimization represented more than 6 percent of the overall WAN-optimization market in 2012.
IDC, which now tracks the virtual WAN optimization market, sees the virtual segment continuing to grow robustly, accounting for more than 8 percent of market revenue in Q4 2012.
Casemore added,” With virtual product now accounting for more than 40% of its total sales, Silver Peak is among the vendors benefiting from the increased demand for software-based WAN optimization.”
According to Dell’Oro Group’s Q4 2012 Data Center Appliance Report, “We believe virtual WANOP appliances will continue to realize growth in 2013 and reach $123 M; more than doubling their 2012 revenue.” The same report projects that in 2013, the market for virtual WAN optimization will grow by 100%, while the overall market is only expected to grow by 6%.
Silver Peak CEO Rick Tinsley praises the coverage and commented, “Virtual WAN optimization is undeniably the fastest growing and most important segment of the WAN optimization market, and anyone not tracking it is missing the boat.”
“Much like buying a new car that loses its value as soon as you drive it off the lot, enterprise customers no longer want to purchase and deploy hardware WAN optimization controllers (WOCs) for fear they will be forced to rip-and-replace that gear in three years,” said Jim Metzler, founder and vice president of Ashton, Metzler & Associates. “The majority of IT organizations today have virtualized at least some of their data center and branch servers and these VMs can now be used to host one or more virtual WOCs. Silver Peak is demonstrating great success with this model.”
Silver Peak credits its traction in the market to product superiority and breadth with products that deliver more than a gigabit-per-second of optimized throughput on any hypervisor, including VMware vSphere, Citrix XenServer, Microsoft Hyper-V, and KVM.
Tinsley concluded, “Our commitment to providing our customers with the fastest, easiest and most cost-effective WAN optimization software has resulted in Silver Peak gaining market share from competing WAN optimization vendors that insist on refreshing their customers’ hardware every three years.”
 IDC Worldwide Datacenter Networks Qview, 2012 Q4 Release (March 2013).