Enterprise WLAN Spending Surges

Spending on LAN switches and appliances was particularly strong, with a 22% increase in the quarter.
Enterprise spending on wireless LAN equipment surged nine percent in the third quarter of this year compared to the previous quarter, according to a study just released by Dell'Oro Group, a market research firm.

Total WLAN spending by enterprises was nearly $250 million for the quarter, the study noted. In particular, spending on LAN switches and appliances were particularly strong with a 22 percent increase in the quarter.

However, sale of WLAN equipment for homes and small offices (SOHO) saw tepid growth of only two percent for the quarter. Sales in this segment have been strong in the past, increasing by about 10 percent in the third quarter of 2004, according to the study.

Some of that slowed growth is coming from the fact that in-home broadband is increasing, the report author, Greg Collins, said in a statement. Also, home and small office users are waiting for a newer, faster WLAN standard, he added.

"The SOHO wireless LAN market is seeing increased competition from DSL customer premises equipment with integrated WLAN functionality," Collins said in a statement. "In addition, without a standards-based upgrade for 802.11g, which is almost three years old and accounts for 95 percent of SOHO wireless LAN shipments, many SOHO customers are hesitant to upgrade their 802.11g equipment."

He said he expected a surge in WLAN sales in the SOHO sector when the 802.11n standard is ratified.

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