Having performed better than other networking segments during the ongoing economic crisis, the prospects for the WAN Optimization market continue to be bright, according to a new report from TechNavio Insights. The WANop market is growing rapidly, and is estimated to continue with the same growth in the near future, albeit at a slower rate, as enterprise IT organizations may have restraints on IT budgets and expenditures.
The report says one of the major drivers is the transferring of high-memory content — i.e. real-time video conferencing, video surveillance, and high-definition content — over the network. Another driver is the need to ensure smooth flow of such data without any glitches.
Another recent report, from TRAC Research, found that new adoption of WAN optimization technology is being driven by its effectiveness in supporting major IT projects, such as delivery of applications to mobile users, cloud computing, and virtualization. In addition, organizations are increasingly using the quality of user experience as the key metric for evaluating their WAN performance.
The TRAC Research report provides a current snapshot of just how WANop is deployed, and a glimpse of plans for the future, confirming that even though WAN optimization solutions are currently being predominantly delivered as hardware appliances, organizations are becoming more interested in new deployment methods such as software-based or cloud-based services. According to the report, 64% are currently using hardware appliances, and 26% plan to deploy them. Only 25% currently use virtual appliances, but 42% plan to do so, while 26% use software clients, and 39% plan to deploy them. From a services perspective, 19% use a managed service provided by a telecom carrier, while 17% plan to deploy, and 8% currently use a cloud service, but 38% plan to take to the clouds.
“Moving infrastructure towards the hosted environment of the Cloud and looking towards Software-Defined Networking is resulting in a battle for supremacy in data center. It is also causing unique requirements and solutions across the customers,” said Alan Weckel, Vice President at Dell’Oro Group.
Although virtual appliances in the data center only accounted for 7% of total sales, they delivered 37% of the revenue growth in 2Q12, according to Dell’Oro. SDN is also a relative newcomer to the enterprise, with only 16% of the market planning to implement some form during the next 12 months, but that number will grow to 40% over the next 24 months.
It would appear that 2013 will see the continuing evolution from hardware-based WANop to less-expensive but more flexible and agile solutions.
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