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

Abner Germanow — Wed, 18 Jun 2008 16:49:15 -0700

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.

(Photo credit: Tracy O)