VDC AUTHORS FIRST COMPREHENSIVE MARKET RESEARCH STUDY ON KVM SWITCH MARKET: KVM OVER IP DRIVES THE INDUSTRY DURING SLOWDOWN

VDC's research examined both personal/desktop and enterprise/rackmount KVM switches and paid special attention to developments in the KVM over IP product area. "KVM over IP is really the engine that is driving the market at this time," said VDC's Lanfear. He added, "Enterprise users are really seeing the value in having remote access to servers located around the world. Having the ability to reboot a server in Taiwan from New York, as if it were right there in the room, gives companies a tremendous amount of control and the edge in their markets."

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For further information or direct quotes contact the individual specified at the bottom of the press release.

To view the entire press release including charts go to
www.vdc-corp.com/telecom/press/02/pr02-38.html

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Natick, Massachusetts - Venture Development Corporation expects the keyboard video mouse (KVM) switch market to rebound in 2003 after a slow 2001 and disappointing 2002. A recently completed study on KVM switches in the United States, the first of its kind, revealed that in 2001 the market reached over $380 million and is expected to grow to over $800 million by 2006.

"The KVM switch market is closely tied to the overall market for servers and IT," said Chris Lanfear, Director of VDC's IT Accessories Practice, "but there are other factors that we see driving this market including trends in high availability computing, the globalization of the business enterprise and many others."

VDC's research examined both personal/desktop and enterprise/rackmount KVM switches and paid special attention to developments in the KVM over IP product area. "KVM over IP is really the engine that is driving the market at this time," said VDC's Lanfear. He added, "Enterprise users are really seeing the value in having remote access to servers located around the world. Having the ability to reboot a server in Taiwan from New York, as if it were right there in the room, gives companies a tremendous amount of control and the edge in their markets."

KVM Switches Ranked by Product Category, 2001
(rank order largest to smallest in US dollars)

Enterprise/Rackmount, Multi User/Multi Platform
Enterprise/Rackmount, Single User/Single Platform
Personal/Desktop, Single User/Single Platform
Enterprise/Rackmount, Single User/Multi Platform
KVM over IP
Personal/Desktop, Single User/Multi Platform

LEADING VENDORS

In addition to quantifying the KVM switch market and examining key trends, VDC also identified the leading vendors of KVM switch products. VDC's research confirms that publicly-traded Avocent (NASDAQ: AVCT) is the market leader, VDC reported market shares for the top 12 players in the market. "We felt it was essential in a ground breaking report to talk with as many companies as possible so that we could give the most accurate picture of the competitive landscape," said Lanfear, "in addition, we interviewed real users of the these products to get insights into their purchasing habits and requirements."

Top 5 Leading Vendors of KVM Switches to US Market
(rank order of sales in US dollars)

Avocent
Belkin
Raritan
Rose
CCC

September 2002

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ABOUT THE REPORT

This report, The US Market For Network Accessories is a multiclient study designed to provide subscribers with market intelligence to support strategic marketing and product planning decisions. The report analyzes, sizes and segments the market among 11 categories:

- KVM Switches

Other network accessories:

- Computer Cables
- LAN Testers
- Network Interface Cards
- Print Servers
- Power Line Surge Suppressors with Data Line Protection
- Data Line Surge Suppressors
- USB Adapters
- USB Hubs
- Under 5 KVA UPS for Networking Applications
- Wireless LANs

In addition, VDC has concluded an extensive phone and end-user mail survey, and has provided vendor profiles of the leading network accessories suppliers.

ABOUT VDC

Venture Development Corporation, a technology market research and strategy firm, was founded in 1971 by graduates of Harvard Business School and MIT. Over the years, VDC has developed and fine-tuned a unique and highly successful methodology for forecasting and analyzing dynamic technology markets. VDC has extensive experience in providing analysis of consumer electronics and electronic component markets. This includes multiclient and custom consulting engagements in a broad spectrum of related topics, including 12 volt electronics (including in-car computing), surge suppressors, uninterruptible power supplies, keypads and keyboards, keyboard alternative input devices, and a variety of electronic components.

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Report Availability
http://www.vdc-corp.com/telecom/reports/02/br02-22.html

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For further information regarding the "The US Market for Network Accessories" contact:

Chris Lanfear, Group Manager
chrisl@vdc-corp.com

Marc Regberg, Senior Vice President
msr@vdc-corp.com

If you would like to subscribe to more VDC updates go to: www.vdc-corp.com/subscriptions