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According to Dell'Oro Group, Layer 4-7 Server Load Balancing Market Continues to Grow Despite Overall Ethernet Switch Market Decline During 1Q05; Fixed Switch Revenue Drives the Growth in This Segment

Posted on: Thursday, 19 May 2005, 12:00 CDT

A newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, reveals that sales of Layer 4-7 server load balancing (SLB) switches increased three percent during the first quarter of 2005. In contrast, revenue for the total Ethernet switch market declined during the quarter.

The report indicates that there has been a favorable shift within the Layer 4-7 SLB market towards fixed switches over the past two quarters. During this time, revenues from fixed switches have grown in the double digits, and now account for over 60 percent of total server load balancing revenues.

"A number of factors are contributing to the sustained growth in this segment," said Seamus Crehan, Director of Ethernet Switch research at Dell'Oro Group. "These products continue to incorporate additional features, often focused on security, making them more attractive for enterprise deployments. Furthermore, server load balancing switches facilitate higher performance of web-enabled applications and increased server efficiency, both of which are currently an emphasis for businesses," he added.

Worldwide L4-7 Server Load Balancing Switches (Modular and Fixed) 1Q05 Market Leaders (Revenue) Total Market 1Q05 Quarterly ------------ ---- --------- Growth ------ Revenue ($ M) $150.8 3% Vendor Rank ------ ---- Cisco 1 F5 Networks 2 Nortel 3 Radware 4 Foundry 5

About the Report

The Dell'Oro Group Ethernet Switch Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices, and port shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet) for Layers 2/3 (both managed and unmanaged), Layers 4-7, Power-over-Ethernet (ports only), and Gigabit NICs and LOMs (units only). To purchase this report, call +1.650.622.9400 x223 or email Julie@DellOro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.DellOro.com.


Source: Business Wire

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