The business of providing infrastructure tools for the Internet, things like routers and Ethernet switches, is steadily growing, as evidenced by a new set of figures recently released from the International Data Corporation, or IDC (News - Alert).
The numbers for the first quarter of 2012 show impressive gains, with the year to year growth in the worldwide Ethernet switching market increasing fully 7.4 percent, and the worldwide router market putting up much less substantial, but still reasonably impressive, gains of 2.8 percent year to year. Oddly enough, the driver for growth in the Ethernet switching market came from Latin America, where a 24.6 percent gain was posted, though there was also plenty of gain in the Asia-Pacific markets, which gained 9.2 percent, and North America, which gained 7.1 percent. Meanwhile, the Europe, Middle East and Africa corridor, collectively known as EMEA, posted just a 4.2 percent gain.
The worldwide router market was somewhat more restrained, posting its biggest gains in North America, who brought in 14.7 percent growth, as compared to Latin America's 10.8 percent growth, and 5.1 percent in the Asia-Pacific market. The EMEA group, meanwhile, saw a decline of 14.7 percent over the same time period.
But still, any time a market posts gains across most geographic sectors, especially in a global recession of the kind we're currently involved in, there's something to be said for that entire market. And indeed, the director of Enterprise Communication Infrastructure for IDC, Rohit Mehra, summed it up nicely when he said, "The positive market performance in the first quarter of 2012 speaks well to the network infrastructure needs of enterprise IT as it embraces cloud technologies."
Indeed, he's got a point. While Gigabit Ethernet is still alive and well, it's rapidly being swapped out for 10GbE, not to mention the upcoming 40GbE, which will help keep enterprise communications humming along at a rapid pace. Things like increasing video traffic on networks, both incoming and outgoing, will keep demand high for anything that moves bits faster or otherwise allows more of them in one place. Given the overall demand for data, the uncertainties in the larger economy are having less of an effect than they do on other markets.
With demand for the Internet generally high and unlikely to fall any time soon, it's a safe bet that those who make things that keep the infrastructure running will continue to see impressive growth numbers, even as the relative weakness of the economy persists.
Edited by Brooke Neuman