Earlier this year the company said the enterprise WLAN sector suffered a first-quarter decline of 6 percent (see Enterprise WLAN Sales Fall 6%). However, second-quarter sales are now back on track, increasing 17 percent to $228 million.
A major driver of this growth, it seems, was booming demand for wireless LAN switches from the likes of Aruba Wireless Networks, Cisco Systems Inc. (Nasdaq: CSCO), and Symbol Technologies Inc. (NYSE: SBL). Dell’Oro states that the “wireless LAN switch/server/appliance market” grew 45 percent in the second quarter to reach $59 million.
"The dependent AP-plus-switch/appliance architecture is the major growth component in the enterprise wireless LAN market, comprising 35 percent of total enterprise sales," says Greg Collins, senior director of wireless LAN research at Dell'Oro, in a prepared statement. "Because dependent APs are controlled by a centralized switch/appliance, deployment, management, and security are easier for businesses, factors that contribute heavily to the stunning growth of this market segment."
Here’s how the switch players stack up now, according to Dell’Oro:
Table 1: 2Q05 Total Worldwide WLAN Switch/Server/Appliance Market Leaders (by Revenue)
|Total market value: $59 million|
Earlier this year an Unstrung Insider report noted how the wireless LAN switch market is bucking the industry trend of plummeting 802.11 equipment prices and will continue to provide vendors with a price premium over standalone, enterprise-grade access points (see 802.11 Switches Stand Ground).
— Justin Springham, Senior Editor, Europe, Unstrung