Wireless LAN switch maker AirFlow has stopped selling switches and will just sell software plus a third-party chip to other switch makers: The move is an indication of how crowed the WLAN switch market has become. An AirFlow spokesperson in this story says that in order to succeed at selling WLAN switches, the company would have to make significant investments in international sales and marketing plus make sure its switch supports all the features that all the other WLAN switch developers include. That's an expensive and challenging proposition.
I'm not sure how big the market is for AirFlow's new software strategy, however. I would think that the other startup WLAN switch makers wouldn't need the software because they've already built their own. As Network World's John Cox notes, switch vendors such as Extreme and Foundry have already developed upgrades to their own switches to accommodate for WLANs. It doesn't seem like there's a very clear market for AirFlow's software.
As Cox also notes, we've already seen some struggles in the WLAN switch market. Trapeze and Vivato both had layoffs. It's a very crowded market and potential buyers are moving slowly as they wait for a shakeout and for product maturity. The switch vendors that survive will have to have deep pockets and innovative offerings.