Monday, March 11, 2013

Crehan: Data Center Ethernet Switch Market Hits $8 Billion Run-Rate

Data center Ethernet switch revenues exceeded $2 billion in calendar 4Q12, putting this market on an $8 billion annual run-rate, according to a new report from Crehan Research.

The report shows that calendar 2012 revenue growth far exceeded that of 2011, helped by a leveling out in the decline of Chassis/Modular Ethernet switch shipments, coupled with increasing adoption of 10 Gigabit Ethernet (10GbE) switches.

“Given that data center Ethernet chassis or modular switches command a considerable price premium over the market average, mix shifts in this segment can have a significant market impact,” said Seamus Crehan, president of Crehan Research. “Aided by stabilization in the mix of this data center Ethernet switch category, total market average selling prices fell only a little in 2012,” he added.

Two other highlights from the report:

  • Data center Ethernet Fixed/Top-of-Rack switches continue to reach record levels, as this form-factor not only sees increasing server access deployment, but also data center aggregation deployments.
  • In line with the overall market, Fibre Channel Switches also enjoyed revenue growth in 4Q12 and 2012, as higher pricing offset port-shipment declines. 

http://www.crehanresearch.com

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