F5 Networks' high-end ADC appliance off to 'strong start,' says Dell'Oro Group

Virtual ADC appliance sales grew 24 percent in third quarter

F5 Networks' new high-end VIPRION application delivery controller (ADC) is off to a "strong start," judged research firm Dell'Oro Group.

An ADC is a device that is placed in a data center between the firewall and one or more application servers and performs application acceleration and load balancing.

F5 offers two VIPRION ADC appliances: the 4480, designed for large service providers, enterprises and web-based businesses, and the 2400, geared toward mid-sized businesses.

Dell'Oro said the ADC market would grow 6 percent quarter-over-quarter to reach $414 million in Q3 2012. This growth is being driven by strong performance in the virtual ADC appliance segment, which grew 24 percent, and the physical high-end modular appliance segment, which grew 9 percent.

"This quarter we saw strength in these higher-end products which we attribute to a strong early ramp of F5's new VIPRION 8-slot chassis. Virtual appliances climbed to nine percent of total ADC market revenue-share this quarter, more than double the revenue-share in the same quarter last year," said Casey Quillin, senior analyst at Dell'Oro.

Last year, F5 was named an ADC market leader by both Gartner and Info-Tech Research.

Dell'Oro estimated that the sales of virtual appliances would triple in 2012. Vendors in the virtual appliance segment include A10, Cisco (Nasdaq: CSCO), Citrix (Nasdaq: CTXS), F5, Coyote Point and Riverbed Technology (Nasdaq: RVBD).

As enterprises move toward cloud adoption and data center virtualization, demand for ADCs will continue to increase. The next-generation ADCs are key components in cloud-based and virtualized environments.

For more:
- see Dell'Oro Group's release
- check out F5's VIPRION info

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