Switch Sales Boost WLAN

The burgeoning 802.11 switch market has helped drive a recovery in the overall enterprise wireless LAN equipment market, according to the number crunchers at research firm Dell'Oro Group.

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)
Vendor Rank
Symbol 1
Cisco 2
Aruba 3
Bluesocket 4
Total market value: $59 million
Source: Dell'Oro

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

freetoair 12/5/2012 | 3:05:30 AM
re: Switch Sales Boost WLAN from the grapevine - any perspectives?
kenmhall1 12/5/2012 | 3:05:27 AM
re: Switch Sales Boost WLAN I really don't think so...they just had a huge win with Microsoft...the only thing they may have is growing pains and the ability to ramp up to meet increasing demands, but I've been assured that that isn't an issue.
lrmobile_strungup 12/5/2012 | 3:05:25 AM
re: Switch Sales Boost WLAN Weird to see trapeze unranked and bluesocket on top? It's also unimaginable that symbol would be outselling cisco+airespace combined.
wlanner 12/5/2012 | 3:05:23 AM
re: Switch Sales Boost WLAN Trapeze doesn't report sales to Dell Oro. Also, this isn't overall wireless, just switch/controller/gateway (no APs, etc..), which Cisco just started selling with Airespace controllers. Bluesocket starts selling APs/Controllers this quarter, so Q3 Dell Oro will be interesting.
freetoair 12/5/2012 | 3:05:22 AM
re: Switch Sales Boost WLAN Also remember that these 'reported sales' are only as good as what the company provides and are typically optimistically/generously reported by companies.
lrmobile_justin 12/5/2012 | 3:05:20 AM
re: Switch Sales Boost WLAN Some detail direct from Dell'Oro:

"Symbol ($15.3 M) and Cisco/Airespace are very close in terms of revenue market share. Since Cisco/Airespace have been growing over the past several quarters, they seem to have more momentum in the market. Trapeze does not report their shipment information to us and we have categorized them in our 'Others' category. Moreover, we track market share on a brand basis such that Trapeze's OEM partners like 3Com, Nortel, and D-Link would get the market share credit in our reports. Therefore, its not clear that they would necessarily exceed Bluesocket in terms of share. Similarly, our Aruba figures are net of their OEM sales via Alcatel."

Unstrung Justin
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