WAN Optimization Market Eases

BOSTON -- Communications market research firm Infonetics Research reports that after 3 quarters in a row of strong double-digit growth, the WAN optimization market eased up, with worldwide revenue dipping 2% sequentially in 1Q08.

Infonetics report, Enterprise Routers and WAN Optimization Appliances shows the WAN optimization market is up 58% year-over-year (1Q07 to 1Q08). The report also shows worldwide enterprise router revenue held steady at $1.1 billion in 1Q08, the same as the previous quarter, buoyed by small increases in low-end/SOHO and branch office enterprise router sales.

“After being on a tear for the last 3 quarters, the WAN optimization market slipped in the 1st quarter of 2008. Incidentally, it did so a year ago as well, illustrating that even emerging segments aren't immune to the occasional slowdown. Regardless, quarterly revenue is up significantly from this time last year, and while vendors sounded a little down-beat after Q1, we still think this market will pass $1 billion in revenue this year,” said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.

Infonetics Research Inc.