The wide area network (WAN) optimization segment posted double digit revenue growth in the second quarter of 2012, bouncing back from a poor showing in the first quarter, according to market research firm Infonetics Research.
Strong performances from Bluecoat, Cisco (NASDAQ: CSCO) and Riverbed Technology (NASDAQ: RVBD) fueled the growth in the WAN optimization segment, according to Infonetics' second quarter 2012 data center network equipment market report.
Riverbed dominates the WAN optimization segment with more than half of worldwide revenues in the second quarter, while Cisco is firmly in second place in the market.
The WAN optimization segment bounced back nicely from its train wreck in the first quarter to double-digit growth. However, we believe that market saturation will hamper any meaningful long-term growth in this space, driving the major players to eye adjacent markets for new revenue opportunities within established and loyal account bases," observed Sam Barnett, directing analyst for data center and cloud at Infonetics Research.
The report also found that the application delivery controller (ADC) segment grew three percent in the second quarter compared to the previous quarter, while the year-over-year growth slowed to 13 percent, down from much higher levels in previous quarters. F5 Networks, Inc. (NASDAQ: FFIV) retained its No. 1 spot in the market, followed by Citrix Systems, Inc. (NASDAQ: CTXS), which continues to gain market share.
"Despite modest improvement from the previous quarter, growth in application delivery controllers (ADCs) is slowing from a year ago, due in large part to the lower average selling price of virtual-based solutions. Though on a positive note, Infonetics expects virtual solutions to open the door for the penetration of ADC technology into small- and medium-sized businesses—an area that historically has not been targeted by the leading vendors in this space," Barnett commented.
