Thursday, January 21, 2016

Dell'Oro: 25 Gbps Spurs Cloud to Upgrade Data Center

Technology transitions will propel sales of the Ethernet Switch market over the next five years as 25 Gbps data center upgrades for cloud operators, according to a recently published report by Dell’Oro Group. Likewise, 2.5/5.0 Gbps technology will spur enterprises to upgrade campus networks.

“All areas of the Ethernet Switch market are undergoing significant transitions to next generation technologies that provide higher speeds and increased functionality during the next several years,” said Alan Weckel, Vice President at Dell’Oro Group.  “The Cloud is driving the data center through at least three major product cycles by 2020, starting right now with the migration towards 25 Gbps, and the magnitude of the Cloud will cause several records to be set in the Ethernet Switch market during each product cycle.  At the same time, Enterprise campus switching is moving away from 1 Gbps, toward 2.5/5.0 Gbps, to support higher bandwidth access points with security being a feature most customers are looking towards as they evaluate their upgrade path,” Weckel added.

The Ethernet Switch – Layer 2+3 5-Year Forecast Report also predicts the bulk of the revenue growth during the forecast period will come from 25 Gbps and 100 Gbps while both 10 Gbps and 40 Gbps will decline significantly.

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