Monday, May 20, 2013

Crehan: Strong 10-Gigabit Ethernet Growth Ahead

Crehan Research is predicting strong growth for the 10 Gigabit Ethernet (10GbE) market.  Some factors include:

  • 10GbE inventory reductions at major server OEMs, clearing the way for additional sales
  • Price reductions, stimulating end-user 10GbE demand
  • Broader product offerings including additional 10GBASE-T Modular LAN-on-Motherboard (LOM) and quad-port 10GbE  (despite the lack of a full set of offerings from all the major OEMs, 1Q13 10GBASE-T Adapter and LOM shipments jumped 60% to approach a one-million port annual run rate)
  • The launch of Intel-based Ivy Bridge server platforms in the latter half of 2013, bringing an opportunity and value proposition for users to upgrade their servers and incorporate 10GbE networking. 

"Reductions in 10GbE server adapter inventories and prices, broader product offerings and the launch of the new Ivy Bridge server platforms should drive increased 10GbE server networking growth," said Seamus Crehan, president of Crehan Research.  "This could be further accentuated by the backdrop of an expected improvement in the IT spending environment, more of which seems to be shifting toward the data center," Crehan added.

The research is published in a newly-released 1Q13 Server-Class Adapter & LAN-on-Motherboard (LOM) Report.