Brocade leads Fibre Channel Switch market; Cisco dominates Data Center Equipment space

Telecom Lead America: The
Fibre Channel SAN switch space is growing continuously and revenue from 4G, 8G
and 16G Fibre Channel products is expected to reach $2.7 billion by 2016,
according to Infonetics Research. The newer 16G Fiber Channel segment is
growing especially fast, at a 5-year CAGR of 52 percent.

In the Fibre Channel SAN switch space, Brocade is
leading with 70 percent revenue market share.

The global storage networking market reached $1.3 billion in
Q1 FY12 with FCoE converged network adapters (CNAs) increased 22
percent sequentially.

The market study said that Fiber Channel SAN switch space is
growing continuously and revenue from 16G Fiber Channel products is expected to
grow at a CAGR of 52 percent to reach $2.7 billion by 2016.

North America and EMEA regions together accounted for
slightly over 7 percent of the global SAN equipment market.

“We see steady growth ahead for SAN switches and
adapters, pushed by social networking, video sharing, data center innovations,
and the eventual shift to cloud computing models,” said Sam Barnett,
directing analyst for data center and cloud at Infonetics Research.

The data center equipment market was down sequentially, but
is up nicely from the year-ago first quarter, the market study noted.

Global revenue for data center network equipment including
data center Ethernet switches, application delivery controllers,
and WAN optimization appliances stood at $2.2 billion in 1Q12,
declined 6 percent sequentially.

However, the market study said that the revenues increased
17 percent year over year.

Networking major Cisco is leading the market with
maximum share, followed by ADC leader F5 and HP.

WAN optimization appliances saw the steepest revenue
decline, down 20 percent from the previous quarter.

In terms of region, Asia Pacific posted the strongest
sequential gain in 1Q12 for overall data center network equipment revenue,
while North America still accounts for nearly half the market.

On the other hand, economic uncertainty impacted the EMEA
region, as it declined 10 percent quarter over quarter and had the worst
year-over-year showing of all regions.

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