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Cloud and Virtualization in Datacenter Evolution to Boost WAN Optimization and Application Delivery Controllers

Virtual appliances to play a key role

REDWOOD CITY, Calif., Feb. 2 — According to a recent report by Dell'Oro Group, the trusted source for information about the networking and telecommunications industries, the Application Delivery Controller market is forecast to exceed $2 billion in 2016, while the WAN Optimization market is forecast to exceed $1.5 billion in the same period. These market growths are expected to be in large part due to data center evolution, led by cloud and virtualization.

"We continue to see vendors offer additional functionality in data center products to broaden their reach into adjacent markets," said Alan Weckel, senior director of Data Center Appliance Market Research at Dell'Oro Group. "Two examples are vendors embedding security into Application Delivery Controllers and building storage protocols into WAN Optimization devices. This is a trend that we expect to continue throughout the forecast period in two unique directions: First, vendors will continue to develop and acquire technology that fits natively on existing platforms. Second, we believe that as these markets expand and the boundaries among them become greyer, we will begin to see vendors offer new platforms in holistic markets," Weckel added.

The report also indicates that in each market, virtual appliances will steadily build larger shares during each year of the forecast period. Vendors who currently offer both Application Delivery Controllers and WAN Optimization in their offerings include Cisco, Citrix, F5, and Riverbed.

About the Report

The Dell'Oro Group Data Center Appliance Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, units shipped and average selling prices for Application Delivery Controller (Modular, Fixed and Virtual) and WAN Optimization (Physical and Virtual). To purchase this report, contact Jessica Hsueh, call +1.650.622.9400 x222 or email

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit


Source: Dell'Oro Group

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