40 and 100 Gigabit Ethernet Switch Expected to Become $3 Billion in 2016, According to Dell'Oro Group

Growth in Data Center Offsets Weakness in Enterprise Campus

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Aug 15, 2012, 09:00 ET

REDWOOD CITY, Calif., Aug. 15, 2012 /PRNewswire/ -- According to a recent report by Dell'Oro Group, the trusted source for information about the telecommunications and networking industries, the L2-3 Ethernet Switch market is forecast to approach $25 billion in 2016, with growth being driven primarily from Ethernet switches optimized for larger data center deployments. By 2015, 10 Gigabit Ethernet is expected to comprise the majority of revenue. Also expected by 2016 is robust growth in 40 Gigabit Ethernet and 100 Gigabit Ethernet with the combined technologies to approach $3 billion.

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"The Cloud is changing how networks are built and in who owns data center equipment," said Alan Weckel, Senior Director of Dell'Oro Group. "We believe all data centers in the future will be similar to "Clouds," in which any server can connect to any resource within a data center. It is unclear whether enterprises will tend to own and run their own Clouds, or whether they will outsource their Clouds. An outsourcing model will reduce the number of data centers and will intensify competition among vendors, as there will be significantly fewer, but larger, deals. Concurrently, we are moving towards abstracting the network from the user/application, which is changing where some of the engineering effort in data center switching is being deployed," stated Weckel.

The report also shows that 40 GE and 100 GE revenue is projected to exceed 20% of the Modular market in 2016. Vendors such as Cisco and Extreme currently have Ethernet Switch offerings in this segment.

About the Report

The Dell'Oro Group 5-Year Forecast Report offers a complete overview of the Ethernet Switch industry with tables covering manufacturers' revenue, average selling prices, and port/unit shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, 40 Gigabit Ethernet, 100 Gigabit Ethernet) for Layers 2-3 (both managed and unmanaged). To purchase this report, please contact Jessica Hsueh, call +1.650.622.9400 x222 or email [email protected].

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.

SOURCE Dell'Oro Group