virtualization market share

Virtual WANop Leads the Way!

virtualization market share If the WAN optimization market made a strong recovery in the second quarter, following a disastrous Q1, then it was largely because of the stellar performance of the virtualized WANop market. As the virtualize-everything trend gathers momentum, it appears optimizing the network virtually is helping to lead the way.

According to the Q2 Data Center Appliance numbers from Dell’Oro Group, strong sales of virtual appliances contributed to 4% sequential revenue growth. “Virtual appliances makeup just 7% of total sales in the Data Center Appliance market, but contributed 37% of the revenue growth in 2Q12,“ said Casey Quillin, Senior Analyst at Dell’Oro Group.

“This quarter we saw strong sequential growth in virtual appliances, climbing 58% in the WAN optimization segment and 18% in the Application Delivery Controller segment. Virtual appliances continue to benefit from the proliferation of virtualization and cloud computing, and we expect they will progressively increase their presence in production networks going forward,“ he added.

Dell’Oro also expects that 2012 will be an important year to observe how virtual appliances take form in the Data Center Appliance Market. A number of vendors have virtual offerings in this segment, including Citrix, F5, Riverbed and Silver Peak. In April Silver Peak announced its  Virtual WAN Optimization Marketplace had exceeded 10,000 downloads after just two months of operation.

Last week, Henry Svendblad, Principal Research Analyst, Nemertes Research, noted that complexity of systems is cited as a key barrier to increased adoption of moving from physical to virtual servers. The ability to move virtual servers across the WAN, between and outside of data centers, may provide another incentive for organizations to boost their virtualization plans.

Svendblad was commenting on the launch of Silver Peak’s Agility initiative that integrates its WAN Optimization with VMware’s vCenter virtualization management console to simplify the process of moving virtual servers across the WAN while leveraging Silver Peak’s optimization capabilities. “Organizations with an existing investment in Silver Peak WAN Optimization and VMWare will want to take a close look at how this offering might ease system migration and improve business continuity,” Svendblad says.

The software-defined networking (SDN) market, which is as good a catchphrase for network virtualization as any, is expected to grow from $198 million this year to $2.10 billion in 2017. That will represent a compound annual growth rate of 60.43%, according to MarketsandMarkets, a  research and consulting company.

About the author
Steve Wexler
Steve is a proficient IT journalist, editor, publisher, and marketing communications professional. For the past two-plus decades, he has worked for the world’s leading high-technology publishers. Currently a contributor to Network Computing, Steve has served as editor and reporter for the Canadian affiliates of IDG and CMP, as well as Ziff Davis and UBM in the U.S. His strong knowledge of computers and networking technology complement his understanding of what’s important to the builders, sellers and buyers of IT products and services.