Cloud Changing Buying Behavior in SAN Fibre Channel's Strongest Segment--Enterprise, According to Dell'Oro Group

Overall SAN Market Declines Three Percent Year-over-Year in First Quarter 2014

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Jun 18, 2014, 09:00 ET

REDWOOD CITY, Calif., June 18, 2014 /PRNewswire/ -- In a recently published SAN quarterly report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, findings indicated The Cloud is causing weakness in the Fibre Channel (FC) SAN market and changing buying behavior in FC's strongest segment, enterprises. This weakness contributed to a decline in overall market revenues, including Fibre Channel (FC) switch and adapters, of three percent year-over-year in the first quarter 2014.

"Trends in the IT industry―including the explosion of mobility, the accelerated adoption of Cloud services, virtualization, software defined networking (SDN), and growth in unstructured data—are changing hardware purchase preferences," said Casey Quillin, Director of SAN research at Dell'Oro Group. "This change is disruptive because preference in the Cloud is increasing the need for new technologies such as distributed scale-out and object based storage options. Enterprise data centers are transforming into software defined data centers and the preference is also shifting towards interim Ethernet speeds and converged infrastructure," Quillin explained.

The report also discusses the outlook for market migration to 16 Gbps Fibre Channel, new product offerings, and analyzes how Fibre Channel over Ethernet (FCoE) is affecting FC adapter revenues. Vendors currently offering Fibre Channel switch and adapter offerings include: Brocade, Cisco, Emulex and QLogic.

About the Report
The Dell'Oro Group SAN Quarterly Report provides complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices, and port shipments by speed 1 Gbps (historical data), 2 Gbps (historical data), 4 Gbps, 8 Gbps and greater than or equal to 16 Gbps) for Fibre Channel switches and adapters, and 10 Gbps FCoE switches, controllers, and adapters. To purchase this report, contact Julie Learmond-Criqui at +1.650.622.9400 x244 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.

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SOURCE Dell'Oro Group