Story image

Wireless by default, wired by exception – Part 2

30 May 14

It’s impossible to avoid wireless when talking network infrastructure, as Heather Wright discovers.

The figures Gartner says market revenue for enterprise network equipment in 2013 totalled US$36.3 billion – equivalent to a 6.2% increase from 2012.

Ethernet switch revenue rose by 5.6% from 2012 to 2013, whereas application acceleration revenue declined by 5.2%. WLAN was, unsurprisingly, the market that grew the most.

Looking ahead, Gartner predicts global spending on enterprise network infrastructure will grow 3.8% in 2014, 2.7% in 2015 and 2.3% in 2016.

Market revenue for firewall/VPN and wireless LAN solutions will grow the strongest through to 2018, while ethernet switches will decline from 84% of LAN spending in 2013 to 71% by 2018 – still a dominant chunk.

The industry analysts put Cisco, HP, Juniper Networks, CheckPoint Software Technologies and Huawei as the top five vendors worldwide in 2012-2013 for enterprise network equipment, with Huawei the biggest climber, seeing a revenue jump of 24.6%.

That revenue increase leaves them with a 2.5% revenue share, fast approaching CheckPoint at 3.1%. However, it's Cisco that continues to hold dominant sway, claiming a 51.6% revenue share in 2013 – a country mile ahead of nearest rival HP, on 8.5%.

Juniper, at number three, manages 3.9%. Munch says today's networking vendor landscape is 'unlike any we have seen before'.

He attributes that to four factors: dramatic changes in user requirements, migration of enterprise infrastructure from in-house to external cloud models, the aftermath of network vendor consolidation and the goal of large IT play.

Munch says the convergence of infrastructure and applications, software, the cloud and all aspects of data centre infrastructure, has transformed the market from small specialty offers into a key battleground for large players.

“We are witnessing battles among the IT giants — for example, among Cisco Systems, Juniper Networks and HP over infrastructure, and among Microsoft, Cisco Systems, IBM and others in communications applications and collaboration.

“As other major technology trends emerge, we anticipate other large vendors to join the battle.

"For example, SDN will change the dynamics in the data centre with vendors such as VMware and NEC entering, in addition to a plethora of new vendors eyeing an opportunity for disruption.

"However, the competitive impact of SDN has also emerged in other areas of the network, like the access network where SDN is making policy management more agile.”

Munch says network infrastructure must rapidly adapt to be able to support future highly virtualised, intelligent, applicationaware enterprise communications systems.

Older generations of network architecture, outdated designs and legacy technologies are barriers to deploying new infrastructure and application delivery method – in particular virtualisation and cloud computing, unified communications, video and mobile.

“This places a massive operational burden on the network administrator who is tasked with adopting new technologies such as virtualisation, wireless and convergence, but also has to struggle to support older systems.

“The trend toward ever-greater operational consolidation further compounds this problem because it is difficult to operationally integrate new systems with old systems.”

For part 1 click here and for part 3 check back to The Channel on Monday

InternetNZ welcomes Govt's 99.8% broadband coverage plan
The additional coverage will roll out over the next four years as part of the Rural Broadband Initiative phase two/Mobile Black Spots Fund (RBI2/MBSF) programme expansion.
Dr Ryan Ko steps down as head of Cybersecurity Researchers of Waikato
Dr Ko is off to Australia to become the University of Queensland’s UQ Cyber Security chair and director.
Radware joins Chillisoft’s expanding portfolio
The cloud DDoS prevention, app delivery controller, and web app firewall expert is another step toward a total enterprise security portfolio.
Commerce Commission report shows fibre is hot on the heels of copper
The report shows that as of 30 September 2018 there were 668,850 households and businesses connected to fibre, an increase of 45% from 2017.
Wearables market flourishing - fuelled by smartwatches
A market that has stuttered in the past now has a bright forecast as adoption of wearable technology continues to thrive.
The tech that helped the first woman to sail around Australia
Lisa Blair used devices from supplied by Pivotel to aid her in becoming the first woman to circumnavigate Australia non-stop.
Why there will be a battle for the cloud in 2019
Cloud providers such as AWS, Azure, and Google will likely find themselves in a mad scramble to gain additional enterprise customers.
WLAN market picks up thanks to high-end products
Dell’Oro Group have released a report showing that the WLAN market picked up in 2Q18 as 802.11ax saw its first shipments.