Mediaboss Marketing

When Apple's new iPad went on sale this month, it effectively raised the speed limit for a new generation of Internet users. Its 4G wireless telecom technology is as much as 10 times faster than many corporate networks over which it will communicate.

That capability puts upward pressure on consumer expectations for just how fast data should move, and may well tax many existing data centers.

The higher bar is, however, good news for companies that make the gear and systems enabling corporate and telecom networks to keep pace. Those include stalwart gear makers such as Cisco Systems (NASDAQ:CSCO - News) and Riverbed Technology (NASDAQ:RVBD - News). Revenue and earnings growth for some players has been north of 20% in recent quarters.

The need for such equipment has soared as notepads and smartphones press the boundaries of broadband communications. Networking equipment a basic element of data center construction is critical for companies, including telecom carriers, attempting to manage rising tides of information being pushed through Internet pipes and wireless networks.

The move to cloud computing services which allow companies to store and access data over the Internet is also a factor, says Rohit Mehra, an analyst for technology researcher IDC.

The next five years are likely to see continued rapid expansion of large- and medium-sized data centers, Mehra says, to support cloud-type services.

"It's already quite big," he said, "but this train isn't stopping anytime soon.

The momentum helped lift the Computer-Networking group in February into the top 50 industries tracked by IBD. The group ranked No. 32 Friday, after starting the year with a No. 108 ranking.

1. Business Cisco is the group giant. The company's business reaches into all corners of computer networking ranging from Ethernet switches and routers to Web videoconferencing systems.

Another leader, Riverbed, is the top provider of wide area networks or WAN's that push data across states and continents. Polycom (NASDAQ:PLCM - News), a leading provider of unified communications, competes with Cisco in the Web videoconferencing market.

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The Internet's New Speed Limit