Virtual solutions will continue to move the application delivery controller (ADC) market forward, according to a new research report.
The report from Infonetics Research said in the third quarter, worldwide application ADC revenue totaled $435 million – essentially flat (+0.5%) from the second quarter, dragged by internet content providers turning to homegrown load-balancing solutions
In the race for ADC revenue market share, A10 is challenging Radware for the number 3 spot. Though WAN optimization revenue increased 3% sequentially in the third quarter, to $210 million, it remains on an overall downhill course, with revenue falling 9% year-over-year this quarter
Cliff Grossner, Infonetics Research's directing analyst for data center and cloud said, “We believe that virtual solutions will continue to move the ADC market forward, and while the shift to virtual products might break top line revenue growth in the short term due to lower ASPs versus their hardware-based counterparts, it’s likely to be margin neutral.”
“Longer term, we expect virtual solutions to open the door for ADC penetration in small- to medium-sized business accounts, growing the size of the overall market and creating new opportunities for vendors,” he added.
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