Tuesday, July 15, 2008
The market for 10 Gbit/second Ethernet is just starting to ramp and still remains an open field for established companies and startups alike, according to a new report on the technology from International Data Corp. (Framingham, Mass.) which breaks out 10GE sales figures for the first time.
"What is interesting to note is the number of startups that are currently playing in this space, with some actually surpassing sales of 10GE chips compared with established companies," said Aileen Arcilla, a senior analyst for semiconductors at IDC. "However, since we are still in the early adoption phase, it remains to be seen who will clearly be the 10GE semiconductor market leader," she added.
The worldwide Ethernet semiconductor market remained flat in 2007 compared to 2006, but the 10GE segment is starting to grow, according to the IDC report. IDC's latest report is its first Ethernet study to break down the chip market by 100 Mbit, Gbit and 10 Gbit speeds.
The transition to 10GE is moving significantly slower than previous Ethernet generations, in part because the technology requires new copper cabling and components are still expensive. Today many data centers aggregate multiple Gbit Ethernet links that cost less than $200 per port rather than upgrade to 10GE links that can cost $2,500 per port, said Mark Thomson, a director of sales and market for the HP ProCurve Ethernet switching group in Hewlett-Packard.
"10G is probably another year or two from having a really competitive price story," Thomson said.
By: DocMemory
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