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10 Gbps Ethernet Controller Shipments Well Below Third Quarter Estimates

November 26, 2012

10 Gbps Ethernet Controller Shipments Well Below Third Quarter Estimates

By Oliver VanDervoort
Contributing Writer

Despite the fact that Internet users are growing at an exponential rate, it appears that not all telecommunication and networking companies have made the switch to the 10 Gbps Ethernet controllers quick enough. A new report by Dell’ (News - Alert)Oro says that sales for these high-function Ethernet controllers were flat and almost decreased over the third quarter of 2012. These numbers are especially concerning considering that most people thought this would be the period of time when sales of this device actually started really heating up.

"We see two key factors constraining server migration to 10 Gbps network connectivity; first, slow migration to Romley-based server platforms, and second, users continue to opt for 1 Gbps—the price premium for 10 Gbps versus 1 Gbps is too wide of a gap," said Sameh Boujelbene, senior analyst covering the Controller and Adapter market at Dell'Oro Group. "The Romley server transition is looking to be a four-to-five quarter transition rather than a two-to-three quarter transition for many of the major server manufacturers. Third quarter 2012 was a critical quarter as we expected some of the large server manufacturers to be shipping mostly Romley-based servers, but this did not manifest."

This particular report is taking a look at 10 Gbps Ethernet controller adoption when comparing that adoption rate to blade servers. It was expected that these controllers would actually start overtaking blade servers near the end of 2012, but those increased sales never really materialized in the third quarter. The report that was issued also details a number of other sales numbers, including daughter card port shipments as well as the progress of 10 G Base-T devices that have picked up in sales pace over the last year.

Whether or not the lack of sales of 10 Gbps devices means that the struggles should continue into 2013 has not yet been determined, but it certainly doesn’t seem to bode well that it has struggled to this point.

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Edited by Rachel Ramsey
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