Market Review: Datacenter Networking in 2014

Market Review: Datacenter Networking in 2014

This IDC update provides a review and analysis of the worldwide market for datacenter networking in 2014. It includes a significant amount of biannual, historical market data, from the first half of 2011 through to the second half of 2014, as well as relevant contextual interpretations and observations. Datacenter networking comprises a number of technology markets, including Layer 2–3 (Ethernet) switching, ADCs (Layer 4–7 switching), WAN optimization, Fibre Channel switching, and InfiniBand switching.

For the most part, the first and second halves of 2014 were relatively prosperous for datacenter networking's foundational market segments. Macroeconomic headwinds that had made previous years challenging abated substantially early in 2014, setting the stage for robust global and regional growth across market segments. Although geopolitics and macroeconomics cannot be discounted as future threats, they did not derail significant progress in 2014.

What's more, 3rd Platform technology drivers — with cloud, mobility, and big data at the forefront — were increasingly in evidence, helping spur a new cycle of datacenter expenditures. That said, software-defined networking (SDN) and overlay-based network virtualization — as well as developments such as network disaggregation (through a number of open source initiatives) — had most of their impact at the higher reaches of the market, among hyperscalers and large cloud computing operations, and at large financial services companies, not yet reaching the broadest swathes of the enterprise market. Nevertheless, IDC remains confident that SDN and network virtualization, in particular, will have growing impact in 2015 and 2016.

We can see that 2014 was a year of much-awaited recovery. The recovery might not have been uniform across all technology segments of datacenter networking, but it was broad based and reasonable strong.

Note: All numbers in this document may not be exact due to rounding.

In This Update
Market Review: Datacenter Networking in 2014
Ethernet Switching and ADCs Power Growth
Geographic Segmentation
Cisco Remains Dominant, But HP, Arista, and Huawei See Significant Gains
Datacenter Switching Continues to Outpace Ethernet Switching Elsewhere in the Enterprise
Bandwidth: 40Gbps Surges as 100Mbps/1Gbps Wanes
Learn More
Related Research
Table: Worldwide Datacenter Network Revenue by Technology, 1H11–2H14 ($M)
Table: Worldwide Datacenter Network Revenue by Region, 1H11–2H14 ($M)
Table: Worldwide Datacenter Network Revenue by Vendor, 2H13–2H14
Table: Worldwide Layer 2–3 Switch Revenue: Datacenter Versus Non-Datacenter, 1H11–2H14 ($M)
Table: Worldwide Datacenter Layer 2–3 Switch Revenue by Speed, 1H11–2H14 ($M)

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