Submitted by Abner Germanow06.18.2008
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Worldwide enterprise network spending grows 2x faster than on servers and storage in 2008
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This prediction is closed and is in the process of being judged.
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)
Current Community Consensus 54%Prediction Statistics
| Betting Closes: | Mar 20 2009 | Current Consensus: | 53.74% | Total Bets: | 21 |
| Today's Change: | 0% | ||||
| Life Time High: | 62.25% | ||||
| Life Time Low: | 45.02% |
Price History
Comments
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.
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?
Abner, is this information from IDC readily available to the public to judge this?
@TIS, this prediction is way overdue for judgment. Any access to IDC data?
I'll check, David.
Ian Lamont
Managing Editor
The Industry Standard
twitter.com/ilamont
Nearly another month passed ... and no judgment :(
I contacted them but no reply. I'll try again.
Ian Lamont
Managing Editor
The Industry Standard
twitter.com/ilamont
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