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January 21, 2015

Market research firm Infonetics says that the data centre Ethernet market should experience a shake-up soon, as 25 Gbps and 50 Gbps speeds drive the migration from 10 Gbps products.

Reporting on third quarter sales from last year, the company's Data Center Network Equipment report says that, with Broadcom set to ship its 25G and 50G products soon, it's vendors are pushing ahead with product development ahead of IEEE standardization.

These news were expected by most market observers. Data centre, cloud and SDN directing analyst Cliff Grossner told us this morning the emerging technologies will revise data centre architectures for “large cloud service provivders looking to migrate from 10 Gbps Ethernet switching and server connectivity to 100 Gig E switching and 25Gig E server connectivity”.

The 25 to 50 Gbps Ethernet development effort started in earnest last July when Google, Broadcom, Arista and others established a consortium to drive the standardization.

As expected, the IEEE soon followed with a study group to work on MAC layer specifications.

Infonetics says the current demands of data centres are giving Ethernet a nice boost, with Q3 global sales up 5 percent on the previous quarter to US $2.2 billion in sales.

The research also suggests that virtual application delivery controllers (ADCs) are supplanting pizza-box deployments-- the virtual ADC market rose 20 percent in the quarter, while revenue from traditional ADCs fell 2 percent.

Additionally, the WAN optimization market is also struggling. While it put on a 9 percent revenue growth quarter-on-quarter, it's still down 1 percent year-on-year, at least for now.

Source: Infonetics.

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