Hello proffrink-ga,
I have sourced some useful documents with regard to the
server-load-balancing market (ITM) from 1999-2001 with projections.
The figures for size of market below differ depending on whose figures
you read :-)
- SIZE OF MARKET
- $625 million in 2000 (GoldMan Sachs)
- $550 million in 2001 (Dell'Oro Group)
- Global spending on ITM $2.8 bn in 2004 (GoldMan Sachs)
- Global spending on ITM $4 bn in 2004 (IDC)
Managing Server Traffic Loads by Paul Korzeniowski SW Expert Nov 2001
excerpt from PDF file from f5.com
http://www.f5.com/news/articles/SE.F1.NOV.01.pdf
“The Dell’Oro Group, ( http://www.delloro.com ) a Redwood City, CA,
market research firm, expects sales of these products to reach $550
million in 2001, up 12% from 2000’s figures. The growth attracted a
number of vendors, including Cisco Systems Inc., San Jose, CA; Coyote
Point Systems Inc., Sunnyvale, CA; the aforementioned F5; Foundry
Networks Inc., Sunnyvale, CA; Network Appliance Inc., Sunnyvale, CA;
Nortel Networks Corp., Ontario, Canada; Radware
Inc., Maywah, NJ; SysMaster Corp., Oakland, CA; and Resonate Inc.,
Sunnyvale, CA. Driving the need for these systems is the increased
volume of Web traffic. Companies are putting more data on Web servers,
adding more links to other sites, developing more
(Please reference document itself)
- Goldman Sachs 46 page document on ‘Radware (RDWR) Internet
Infrastructure: Hardware’, (Israel) excerpts from PDF at Radware.de by
Zivotofsky, Finkelstein and Shimon Levy Jun 2001
http://www.radware.de/ueber/gs.pdf
“Radware appears to be gaining momentum and share during the current
IT spending slowdown, competition could increase as the need for ITM
solutions grows. Nonetheless, we believe the main pure play
competition, F5 Networks, has been significantly weakened by the
current macro-economic environment and has less product breadth. In
addition, Cisco and Nortel seem to be focusing on providing ITM
solutions for the network backbone as opposed to corporate enterprises
and the edge carrier market Radware's sweet spot.”
“Industry overview
Driven by the shift of mission-critical content and applications to IP
networks, we conservatively forecast that spending on ITM solutions
will reach $2.8 bn in 2004 up from $625 mn in 2000, equating to a 45%
CAGR. Our checks with both distributors and customers indicate that as
much as 75% of organizations have not implemented even basic ITM
functions suggesting a very under-penetrated market and a strong
growth opportunity. We expect ITM solutions will be viewed as
complementary network products along similar lines as storage and
security. Further, as ITM is more widely deployed across networks, its
role should grow in importance given that these solutions have the
potential to "see" and "control" all of the traffic pulsing through an
organization's network.”
(Please reference document itself)
- MARKET SHARES OF MARKET LEADERS
1. Cisco 41.5%
2. Nortel 22.9%
3. F5 14%
=4. Foundry 9%+
=4. Radware 9%+
(May 16 2001 Dell'Oro Group extracted from excerpt below)
whmag.com Buldozer:Web Hosting's Slant on the Universe Sept 2001
http://www.whmag.com/content/0901/bulldozer/page5.asp
excerpt:
“4 Percent increase in F5 Networks' market share in the first quarter
2001 for the Layer 4/7 server load balancing switch market, according
to the latest survey by Dell'Oro Group, released May 16. That growth
outpaces F5's four largest competitors in the space, according to the
survey, which states Cisco lost 1.5 percent and Nortel lost 5 percent,
while Foundry Networks and Radware both gained 2 percent. The
4-percent gain in market share leaves F5 with 14 percent of the
market, according to the survey, but still leaves it short of its
larger competitors. Even with its loss, Cisco holds 41.5 percent of
the market; Nortel corners 22.9 percent. Foundry and Radware each hold
just over 9 percent of the market.
Trends in revenue followed suit, with F5 gaining $2.4 million to close
1Q01 at $19.5 million. Cisco lost $20 million from 4Q00, closing 1Q01
at $58.3 million; Nortel lost $12 million over the same period and
closed at $32.2 million.
"F5 has become a household name within corporate IT departments ...
[the] rise in market share and revenue is a direct reflection of
this," says Steve Goldman, senior VP of sales and services.
Headquartered in Redwood City, Calif., Dell'Oro Group (delloro.com)
keeps tabs on market size and penetration across several tech-industry
fields.”
(Please reference document itself)
- TRENDS AND PROJECTIONS
- Goldman Sachs 46 page document on ‘Radware (RDWR) Internet
Infrastructure: Hardware’, (Israel) excerpts from PDF at Radware.de by
Zivotofsky, Finkelstein and Shimon Levy Jun 2001
http://www.radware.de/ueber/gs.pdf
“Organizations are moving an increasing amount of critical content and
applications to IP networks both for internal and external usage. From
email to Web applications, to CRM and ERP solutions, organizations are
increasingly interacting with employees, consumers, corporate
customers and partners via IP networks. IDC estimates that data
traffic is increasing 30%-50% annually for most enterprises and
bandwidth demand is significantly outpacing the growth in server
processing power. These statistics suggest that network bottlenecks
will increase unless additional expensive servers are added to handle
the traffic, increasing the complexity of networks. ITM solutions
offer an alternative. Instead of merely adding expensive,
under-utilized servers, ITM solutions can be placed at various points
within the network to both maximize current resources and allow for
efficient scaling.”
“ITM solutions can be deployed as standalone appliances, content
switches, or software on servers. IDC expects switch-based solutions
to take roughly 65% of the market by 2004 due to their higher
throughput and functionality. We expect that appliances and
switched-based solutions will split the market more evenly.”
(Please reference document itself)
USEFUL RESOURCES:
- Off Wall Street Consulting Group, Inc. document describes the 1999
ITM market in depth, although slightly out of date this 18 page
article gives some useful information.
http://www.offwallstreet.com/visitor/samples/NEW_FFIV_9.30.99.pdf
- Acuitive Inc. have used the term ‘Virtual Resource Management’ as a
more descriptive term for the scope of their ‘ Which Vendor is right
for you?’ document rather than ITM. This is a 137 page document that
outlines industry dynamics and vendors
UCCS.edu
http://piglet.uccs.edu/~chow/pub/contentsw/report/vrm-v-print.pdf
- The latest industry reports are available from Jupiter Research (
http://www.jmm.com ) and other equavalent agencies.
- Gigaweb.com Research on Load balancing
“Market Overview: Server Load Balancers - Products Offer Good Value in
2002 , 8 Feb 2002”
http://www.gigaweb.com/browsemktg/0,2973,strComp%25253Dtopics%252526strCategory%25253D2%25255F133%25255F1399,00.html
- “U.S. Networking Equipment Spending Slows: Server Load Balancing and
Layer 4-7 Switches Adversely Affected”
Full report available from Mindbranch.com$1500
http://www.mindbranch.com:80/page/catalog/product/2e6a73703f636f64653d523130342d39393038.html;jsessionid=aaa8I4RuevMVDN
- White papers from ITM Center
http://www.itmcenter.com/whitepapers/index.htm
- FINANCIAL/ COMPANY INFO
WSRN latest financial data, company info and news on Cisco
http://www.wsrn.com/apps/links/?s=CSCO
WSRN latest financial data, company info and news on Nortel
http://www.wsrn.com/apps/links/?s=NT
WSRN latest financial data, company info and news on F5
http://www.wsrn.com/apps/links/?s=FFIV
WSRN latest financial data, company info and news on Foundry
http://www.wsrn.com/apps/links/?s=FDRY
WSRN latest financial data, company info and news on Radware
http://www.wsrn.com/apps/links/?s=RDWR
- Search strategy:
BIG-IP cisco foundry server hardware figures industry OR market
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=BIG-IP+cisco+foundry+server+hardware++figures+industry+OR+market
market sales figures 2002 ITM vendors cisco
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=market+sales+figures+2002+ITM+vendors+cisco
market projections 2002 ITM cisco f5
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=market+projections+2002+ITM+cisco++f5&btnG=Google+Search
collaborative research itm
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=collaborative+research+itm
collaborative research itm 2002
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=collaborative+research+itm+2002
server "load balancing" market research 2002
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=server+%22load+balancing%22+market+research+2002
I hope that has answered your question to your satisfaction,
if not, I will try to clarify for you.
kind regards
lot-ga |
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