Enterprise WiFi Continues Significant Growth

Taken together, revenue for the consumer and enterprise wireless local area network (WLAN) market segments grew 13.9% year-over-year and declined 2.9% sequentially in a seasonally slow 1Q this year, according to preliminary results announced by International Data Corp. (IDC). Enterprise WLAN revenue continued its "torrid" growth in 1Q, surging 27.2%.

"The momentum behind bring your own device (BYOD) in the enterprise continues unabated, and is the single largest factor driving enterprise mobility and WLAN market growth," said Rohit Mehra, director, Enterprise Communications Infrastructure, at IDC.

"Along with the increasing use of Wi-Fi by service providers to offload cellular data traffic, current market drivers in key verticals will ensure the market for enterprise-class WLAN devices and solutions will see continued traction, and that the market is expected to stay vibrant for the foreseeable future."

Regionally, Latin America experienced the fastest WLAN revenue growth, registering "an impressive 73% year-over-year increase," according to IDC. North America WLAN revenue surged 34.5%, resulting in a very strong market performance for the Americas region overall.

WLAN sales were strong in the Asia/Pacific and Europe, Middle East and Africa (EMEA) regions as well. EMEA WLAN revenue was up 19.7% year-over-year while Asia/Pacific's was up 16.4%.  

Looking at key WLAN vendor performance, IDC found the following:

  • Cisco's 1Q12 worldwide enterprise WLAN revenue globally 27.0% year over year, reaching $414 million in the quarter. The North American market accounted for 49.4% of Cisco's worldwide WLAN revenue in 1Q12. Cisco's worldwide market share now stands at 52.4%, up from 51.0% in 4Q11 and on par with 1Q11.
  • Aruba (excluding its OEM business) increased a healthy 42.8% year over year in 1Q12, and now holds 11.6% of the enterprise WLAN market.
  • HP's 1Q12 enterprise WLAN revenue grew 10.0% year over year, below the overall market, and its market share declined from the 6.6% recorded in both 1Q11 and 4Q11 to 5.7% this quarter.
  • Ruckus outperformed in 1Q12 with a market leading 183% growth over last year's first quarter, driven by service provider and enterprise sales.

Enterprise WiFi represents yet another promising business opportunity for broadband carriers. Business customers continue to add WiFi capabilities and the ongoing proliferation of smartphones and tablets as business tools will only strengthen the trend. Service providers would do well to understand these trends. CHR Solutions is ready to work closely with our clients to help identify potential business opportunities.

Written by Kevin Kutcher at 00:00
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