SAN JOSE, Calif. -- The layer 4-7 switch/load balancer market was mixed in 2003, with revenue from L4-L7 switch/load balancers without SSL declining, and revenue from L4-L7 switch/load balancers with SSL growing strongly (up 62% from 2002), according to Infonetics Research's quarterly market share and forecast service, L4-L7 Switches and SSL Products.

The dedicated SSL hardware market experienced wild swings in late 2002 and most of 2003, ending down for the year at $34.4 million. A small rally in 4Q03 inched the market up a bit from 3Q03, with both revenue and unit shipments increasing in the single-digit percents. The modest fourth quarter gains mark the beginning of market stabilization for the dedicated SSL hardware segment.

"Demand in the L4-L7 switch/load balancer market from 2004 to 2007 will come from enterprises and service providers looking to replace existing devices with new ones that are integrated with security, and also because of normal depreciation and replacement issues," said Neil Osipuk, lead analyst of the report. "We see this trend of feature consolidation between security and traffic management products continuing, driving a 16% unit CAGR through 2007 for the SSL-enabled L4-L7 switch/load balancer market."

4Q03 Layer 4-7 Switch/Load Balancer Market Highlights

4Q03 SSL Hardware Market Highlights

Infonetics Research Inc.