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Dell’Oro Group Sees Data Center Transformation as Key Driver to Ethernet Switch Rebound

10 Gigabit Ethernet to Grow in 2009

Redwood City, Calif. – May 18, 2009 – A recent market research report from Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, indicates that the worldwide Ethernet Switch market experienced a revenue decline of over 20 percent in the first quarter of 2009 and is poised to record its worst year on record. Despite this outlook, data center transformation will likely be a key driver to the Ethernet Switch rebound.

“Data center requirements are evolving and so are the vendors targeting this space,” said Alan Weckel, Director at Dell’Oro Group. “Similar to the early days in the migration toward Voice over IP, the data center is at the very early stages of a significant technology transition led by 10GB Ethernet that will transform future data centers significantly from those just built,” Weckel added.

The report also indicates that 10GB Ethernet will be the only segment to show growth in 2009, as the industry moves towards Ethernet as the converged fabric within the data center. Vendors such as Cisco, Juniper, and Force10 have already introduced new high-end data center switches over the past year. During Interop in Las Vegas this week, more vendors are likely to introduce purpose-built 10GB Ethernet boxes for the data center that will contribute significantly to 10GB Ethernet growth in 2009.

About the Report

The Dell’Oro Group Ethernet Switch Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, and port shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet) for Layers 2-3 (both managed and unmanaged) and Layers 4-7. To purchase this report, please contact Emily Kendall at +1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.

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