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Midmarket Gearing Up for WAN Compression


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Midsize companies are starting to show an interest in WAN data compression.

The number of organizations with revenues between $300 million and $1.4 billion that have adopted or are considering adopting WAN data compression and acceleration technologies continues to grow.

According to a report released April 21 by TheInfoPro, an IT research company, more companies of this size are adopting these technologies because of exponential data growth and cost efficiency.


The report noted that 13 percent of the companies surveyed in this range currently were using these technologies, while an additional 16 percent planned either a pilot or evaluation program or near-term or long-term implementations.

Those numbers are in contrast to larger enterprises. The study showed 32 percent of the Fortune 1000 are currently using WAN data compression and acceleration technologies, while another 45 percent were considering it.

"Larger companies usually have greater network complexity and greater data volumes, and the depth and breadth of applications used is usually greater," said Bill Trussell, managing director of network research for TheInfoPro.

"But the midmarket is growing. It's not unusual to have a new or emerging technology be first adopted by the Fortune 1000, and as vendors start to tailor their pricing plans and scale the solution down to what midsized organizations can afford to buy, that's when the midmarket starts getting interested," Trussell said.

Although the trend may have started in larger organizations with remote offices or branch offices, it's definitely catching on in the midmarket, where companies have similar issues, said Bob Laliberte, an analyst with Enterprise Strategy Group.

"Just like larger companies, these technologies give midmarket companies better connectivity and security, and they are much more efficient," Laliberte said.

For both groups, however, the biggest driver by far is the constant growth of data.

"As data grows, it forces additional bandwidth, so anything companies can do to consolidate that bandwidth is a good thing," Laliberte said.

In general, there are two types of providers of WAFS (wide-area file services), data compression and deduplication technologies—technologies that largely make up WAN compression and acceleration technology, Laliberte said. Popular stand-alone vendors include Riverbed Technology, Packeteer and Silver Peak, while larger companies such as Juniper Networks and Cisco Systems are beginning to incorporate this functionality into their networking gear.

"So if you have an IP router on site, you can sometimes upgrade that hardware and get some of these technologies built into it," Laliberte said.

Other popular vendors in this area include F5 Networks, Expand Networks, IBM, Hewlett-Packard, NetApp, Crescendo Networks, Aspera, Blue Coat Systems, Stampede Technologies and Citrix Systems, according to TheInfoPro's report.





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