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Wireless LAN market on fire, Motorola closing in on Aruba while Cisco slips

Market research firm dell’Oro Group has published its latest quarterly market update on the wireless LAN industry. According to the firm, the market hit an all-time high in the fourth quarter of 2009. The ratification of 802.11n has really set this market on fire. Apparently IT organizations in the retail, education, healthcare and hospitality sectors are all spending a ton of money on new wireless LAN infrastructure right now.

This is driving a lot of revenue growth, but some vendors are reaping the benefits more than others.  I asked dell’Oro analyst Loren Shalinsky for detials.

Cisco remains number one in the market by a huge margin, Shalinsky said. But Cisco did not have a good quarter. Its wireless LAN market share shrank by about four points he said, and revenue was down for the quarter (Shalinsky didn’t say by how much).

Motorola had an awesome quarter, growing by 40% sequentially from the third quarter, he said. The growth spurt nearly helped it overtake Aruba Networks as the number two vendor for enterprise wireless LAN. Aruba’s revenue grew by 7% in the same period. Shalinsky said total product revenue for the fourth quarter was $42 million for Aruba and $40.5 million for Motorola. Of course, Aruba would point out that it is also selling quite a few products through it’s OEM relationship with Alcatel-Lucent, which saw its revenue grow by 30%. Alcatel actually overtook Meru Networks in market share and claimed the number five position. (HP ProCurve is holding steady at number 4).

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