Feeds

Ethernet switch sales sizzle

Everybody needs – and is buying – bigger pipes

Gartner critical capabilities for enterprise endpoint backup

The server market may have stalled a bit as Intel, AMD, IBM, Oracle, and Fujitsu work through various stages of processor transitions, but the Ethernet switch market is going gangbusters.

According to the box counters at IDC, the worldwide market for Layer 2 and 3 switching gear that adheres to the Ethernet protocol accounted for $5.52bn in revenues in the second quarter as companies begin the transition to from Gigabit to 10 Gigabit Ethernet switching in the data center – that's an increase of 8.5 per cent year-over-year across all Ethernet port speeds.

At Layers 3 through 7 in the network stack, however, vendors sold $376.1m worth of gear, down 5.6 per cent and reflecting a move toward flatter and fatter Layer 2-3 networks for many workloads rather than the tiered networks that have been common for the past two decades.

In the quarter ended in June, IDC reckons that Gigabit Ethernet switches collectively accounted for 55 million ports and revenues rose 6.5 per cent. And if you don't yet think that 10GbE ports are taking off, know that shipments rose above 3 million ports in the second quarter and revenues for switches driving those ports were up 22.9 per cent – and that's as the per-port costs of a 10GbE switch and their companion server adapter cards have come down radically in the past year.

With the latest Intel Xeon E5 processors, server makers are also putting 10GbE ports on their motherboards, essentially making the 10GbE networking free as 100Mbit and Gigabit were ahead of them, driving adoption in the data center during the dot-com boom and the ensuing bust.

Cisco Systems is still the king of Ethernet, slicing itself a 62.1 per cent piece of the Layer 2-3 Ethernet switch pie in the second quarter – even though that represents a half-point smaller share. The company's piece of the 10GbE switch pie was higher, though, at 66.8 per cent in the second quarter, and close to the 70 per cent level that the company likes to have with emerging technologies.

HP was the number two Ethernet switch vendor, but far behind Cisco with only 9.2 per cent of that $5.52bn in dough from Q2 sales. Alcatel-Lucent ranked third with 3.07 per cent share, followed by emerging Chinese giant Huawei Technologies with its 2.85 per cent share.

Upstart Juniper Networks, which is going through switch and router product transitions right now as Cisco was doing two years ago, garnered 2.48 per cent of the Q2 pie. IBM, which has its own Networking division thanks to the acquisition of Blade Network Technology a few years back, got lumped into the Others category, as did Dell with its PowerConnect and Force 10 products.

By region, Ethernet switch sales were up 17 per cent in Latin America and 15.4 per cent in Asia/Pacific, with EMEA being a drag with only 5.2 per cent revenue growth and North America also lowering the class average a bit with its 5.9 per cent growth. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.