The Industry Standard - Worldwide enterprise network spending grows 2x faster than on servers and storage in 2008 - Comments

Readers: In the absence of

Ian Lamont — Thu, 11 Jun 2009 16:34:17 -0400

Readers: In the absence of data, this prediction cannot be judged.

Everyone who bet on it will have cash added to their accounts in the amounts that our records indicate they originally bet. I will be adding these amounts over the next 24 hours.

If you have any questions, please contact me at ian@thestandard.

Ian Lamont
Managing Editor
The Industry Standard
twitter.com/the_standard

I contacted them but no

Ian Lamont — Fri, 22 May 2009 10:03:42 -0400

I contacted them but no reply. I'll try again.

Ian Lamont
Managing Editor
The Industry Standard
twitter.com/ilamont

Nearly another month passed

David Kuan — Thu, 21 May 2009 17:24:31 -0400

Nearly another month passed ... and no judgment :(

I'll check, David. Ian

Ian Lamont — Wed, 29 Apr 2009 18:18:05 -0400

I'll check, David.

Ian Lamont
Managing Editor
The Industry Standard
twitter.com/ilamont

@TIS, this prediction is way

David Kuan — Tue, 28 Apr 2009 16:32:37 -0400

@TIS, this prediction is way overdue for judgment. Any access to IDC data?

Abner, is this information

Yi-Wyn Yen167771 — Thu, 02 Apr 2009 14:39:33 -0400

Abner, is this information from IDC readily available to the public to judge this?

Hiya Abner. A couple of

Zoltan Miko — Fri, 27 Feb 2009 20:39:19 -0500

Hiya Abner. A couple of numbers questions to drive you crazy:
1) How does the math work when servers and storage are both growing at negative rates (i.e. declining?). Does Networking have to decline 2x as much? :-)
2) You are combining Servers and Storage. What is the relative size of these two markets?

I've had two questions on

Abner Germanow — Tue, 01 Jul 2008 12:06:10 -0400

I've had two questions on what's in and what's out:

What's in:
Enterprise (as in businesses from the Fortune 10 down to Ralph's Pretty Good Grocery) and government spending on Ethernet Switching, Routers, Security Appliances, and Wireless LAN equipment. Google, Yahoo, Amazon are considered enterprise in IDC taxonomy as they own their own data centers.

What's out:
Service Provider (as in AT&T, Verizon, Vodaphone, etc) spending on network equipment to provide network services such as broadband Internet and mobile wireless services.

Measurement will be provided by IDC's Network, Server, Storage, and Security Tracker information services.

Worldwide enterprise network spending grows 2x faster than on servers and storage in 2008

Abner Germanow — Wed, 18 Jun 2008 19:49:15 -0400

Prediction: Combined global spending on ethernet switches (Layers 2-7), routers, and WLAN equipment by enterprise/business customers will grow at least 2x faster than spending on all servers and storage systems.

(If server and storage systems grow by 5%, network spending needs to grow by at least 10%)

In 2007 for example, the worldwide LAN switch market grew 13% to reach $19.6 Billion, while spending on enterprise LAN switch, router, WLAN, IP telephony equipment, and security appliances grew 12% to reach $41.7 billion.

In contrast, other IT markets such as the worldwide server market (4%) and the storage market (7%), have exhibited slower growth.

Final results for 2008 spending will be available in March of 2009 from IDC.

UPDATE: The Industry Standard has been unable to confirm the data used to make this prediction. All participants will be reimbursed for the amounts that they bet (see the last comment at the bottom of this prediction)

(Photo credit: Tracy O)