While the overall application delivery controller (ADC) market only grew slightly over 1 percent sequentially, virtual appliances helped make up the slack, rising 17 percent during the quarter, says Dell'Oro Group.
The gains in virtual appliances helped to offset the 1 percent decline in physical appliance revenue.
From a vendor perspective, F5 Networks gave a strong performance, reporting its sixth consecutive quarter of revenues following a revamp of its product line. As a result, the vendor reported that it had reached 52 percent revenue share in the overall ADC market.
Casey Quillin, director of Data Center Appliance research at Dell'Oro Group, said that the ongoing demand for security services will drive further demand for ADCs.
"ADCs typically sit in front of the web servers in the network, which positions them as an ideal platform for deploying some security services, such as web application firewalls," Quillin said.
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