Report: Data Center Network Equipment Revenue Reached $13.7 Billion In 2017
Data center network equipment revenue, including data center Ethernet switches, application delivery controllers (ADCs) and software-defined enterprise WAN (SD-WAN), totaled $13.7 billion in 2017, increasing 13% over the previous year.
In the short term, investment in physical infrastructure is still driving data center network equipment revenue growth. However, in 2018 and 2019 the effect of server virtualization will slow the market, with fewer — but higher capacity — servers reducing the need for data center Ethernet switch ports, along with the move to virtual ADCs.