Wireless networking is showing continued growth, according to figures from analyst Infonetics Research.
The global market for wireless LAN (WLAN) hardware increased by three per cent in the second quarter of 2004 to $719.5m compared with Q1, the firm said. WLAN switch turnover rose by 38 per cent to $39m in the same quarter. The analyst said the market is showing signs of further growth.
Richard Webb, directing analyst WLANs at Infonetics, said: "This is a young market segment, but one we believe has strong potential. We forecast healthy double-digit quarterly revenue growth for WLAN switches in 2004, and double-digit annual revenue growth through to 2007."
Infonetics said Cisco is leading the overall market for WLAN kit.
Simon Hill, director of UK distribution at Computer 2000 (C2000) division Azlan, said the SME sector is a healthy market for WLAN products. Vendors such as D-Link, Linksys, Netgear and Hewlett-Packard account for most of C2000's sales to SMEs.
"We are seeing a migration from the mid-market to the enterprise, rather than the other way around. In the enterprise market we sell mainly Cisco," he said.
Hill added that enterprise adoption has been slower due to security fears.
Webb said that the small-office/home-office and consumer markets make up most WLAN hardware revenue, but that enterprises are closing the gap.
Keith Humphreys, managing consultant at analyst EuroLAN Research, said: "Cisco has enterprise products under its own brand and home-networking products with Linksys. It is good for resellers because there are many services to add on."
However, he believes the enterprise is driving adoption, rather than the SME market.
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