|According to the latest IDC Worldwide Quarterly Ethernet Switch, Router and WLAN Tracker report, the Australian enterprise wired Ethernet switch market is feeling the impact of cloud computing with a 21% year-on-year (YoY) and 12% quarter-on-quarter (QoQ) decline for Q1 2017.
The report stated that Q1 2017 was the worst YoY and QoQ decline since 2015. Previous declines could be linked to events such as federal elections, but this decline is systemic and driven by the Australian enterprise maturing and moving workloads to both public and private clouds.
“We’re not seeing deployments of switches on premises like we did in the past,” said IDC market analyst Ahmar Karimullah. “This has two effects – less switches in the enterprise and better utilisation of ports already deployed. Combined with SDN overlays infrastructure is being more efficiently used.”
Growth is predicted to be flat through to 2021 with a compound annual growth rate (CAGR) of less than 2%, which will take the market to over AU$700 million by 2021. Wireless continues its march to become the defacto ‘last-metre’ connection technology in the commonwealth and has shown 5% YoY growth, with no indications of growth being tamed.
IDC predicts 9.9% CAGR between 2017 and 2021 with the market being worth $283 million by then. IEEE 802.11ac Wave 2 is helping vendors move product as the enterprise seeks better capacity in what is an increasingly mobile workforce, there is also interest in location-based services and the analytics that they bring.
“While increasing capacity is king, embedding of location-based services directly in the access point is very attractive for organisations wanting to understand both users and non-fixed devices connected to the network,” added Karimullah.
Software is taking control of the wireless LAN and the management of devices that connect to it. WLAN management software is increasing control and bringing more flexibility and agility to the access network and with the rise software defined networking, IDC expects to see SDN controller software more integrated into WLAN offerings from vendors.
“Software defined architectures help drive capacity utilisation,” concluded Karimullah. “As we continue to see SDN deployed, we expect this will impact on total ports deployed as infrastructure is more efficiently utilised.”