The Application Delivery Controller (ADC) market will reach $2.3 billion in 2017.
Revenue growth continues to be driven by strength in data center spend with ongoing projects, such as new data center build-outs as well as consolidation, according to Dell’Oro Group.
Despite a slow start for ADC product revenues, 2013 sales growth will exceed five percent.
In 2012, ADC revenue growth slowed.
“We saw less revenue from LTE build-outs, and increased competition made pricing more competitive, especially at the low-end of the market. The core market drivers, however, remain sound and we are only just beginning to see the positive impact of the public Cloud on virtual ADCs,” said Casey Quillin, senior analyst, Data Center Appliance Market Research at Dell’Oro Group.
In addition, Cisco’s discontinuation of its ACE module has left quite a sizable hole in the market, and while filling it in with new vendors will take time, Citrix, F5, Radware, and A10 have all won deals addressing this opportunity.