Enterprise WLAN Market to See Growth Amid Financial Turmoil

Dell'Oro Group, a trusted provider of information on networking and telecommunications industries, has recently published a report revealing that the enterprise wireless LAN (WLAN) market increased by more than 15 percent over the previous year. The enterprise WLAN revenues have been on a rising route during the third quarter courtesy of a stronger demand in 802.11n-based access points.

At the same time, leveraged demand drove to an increase in the size of WLAN deployments. Although the entire IT industry is facing hard times due to the economic downturn, the previsions on the enterprise WLAN market are rather positive. The market segment is expected to see growth during 2009 as enterprises will opt for higher performance 802.11n equipment.

“The combination of twice the speed, twice the distance, but less than twice the price of legacy 802.11a/g equipment is making 802.11n an increasingly attractive option for enterprises to provide network connectivity to their users,” commented Ben Kwan, Analyst of Wireless LAN research at Dell'Oro Group. “802.11n is increasing the size of WLAN deployments. Since the introduction of enterprise- grade 802.11n equipment in the fourth quarter of 2007, the access point to switch ratio has grown by over 40 percent,” added Kwan.

According to Dell'Oro Group's report, the 802.11a/g registered decline in revenue, yet the fact that 802.11n saw growth on both a sequential and year-over-year basis managed to offset the drop. In addition, Cisco gained almost four percentage points of revenue share during the quarter due to strong demand for 802.11n equipment. The company accounts for nearly two-thirds of the total WLAN market today.

The Wireless LAN Quarterly report published by the Dell'Oro Group offers information on the Service Provider, Enterprise, SOHO, and External Client Devices markets, including manufacturers' revenue, average selling prices, and unit shipments according to the following wireless standards: 802.11g, 802.11a/g and 802.11n. Those interested in purchasing the report should contact Emily Kendall.