WAN optimisation will be the next technology 'must have' in the networking market, according to a new IDC report.
Associate analyst for enterprise networks, Godwin Lee, said WAN optimisation grew in significance towards the end of last year. The analyst firm had been tracking this part of the market since 2005.
"WAN optimisation makes efficient use of core infrastructure and utilises existing WAN links without having the need to purchase bigger pipes. By deploying asymmetric devices at branch and remote sites, companies can take advantage of centralised architectures which reduce TCOs and increases ease of manageability," he said.
"Secondly, it allows increasing productivity with reduced latency through secure content and application delivery [SCAD] and Wide Area File Services [WAFS] technologies."
Lee said IDC would release two special reports on the WAN optimisation market as well as the application acceleration market in coming months.
Overall, the analyst group valued the Australian networking equipment market at $US882.82 million in 2006 and forecasted it would grow to $US947.48 million by 2011.
Lee said Cisco remained the top player in the Australian LAN equipment space but was seeing stiff competition from Alcatel in the LAN space, and Aruba in the WLAN space.
IDC reported the total market has been growing at higher than expected rates due to ongoing carrier deployments.
"We saw more shipments to carriers, which typically tend to spike the market. Layer 3 switching has been driving the market significantly in Australia, and high-end routing in the large enterprise and carrier space continued to grow in 2006," Lee said. "Recent feedback showed that some of these carrier deals have terminated and we possibly should not expect such strong growth from this segment in 2007."
The carrier with the big buy had been Telstra, he said.