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Q3 Experienced Record Adoption of 100 Gigabit Technologies, Says Dell'Oro Group

December 05, 2012

Q3 Experienced Record Adoption of 100 Gigabit Technologies, Says Dell'Oro Group

By Rory Lidstone
TMCnet Contributing Writer

Market research firm Dell' (News - Alert)Oro Group recently released its Routers Quarterly Report for the third quarter of 2012, which states that the Internet underwent a significant jump in transmission speeds during the period. This growth was led largely by network operators expanding deployments of 100 Gigabit Ethernet technologies in their backbone networks.

This migration is a significant jump over the 10 and 40 Gigabit technologies more commonly seen in Internet routers today. This new high-speed technology allows network operators to add network capacity in larger increments than previously available and at lower costs.

Q3 saw a record number of 100 Gigabit Ethernet router port shipments, while the adoption of 100 Gigabit technology is expected to stay strong for at least the next five years, according to the Dell'Oro report.

"Shipments of 100 Gigabit Ethernet for Internet-class routers have nearly tripled over the first nine months of the year and are on track to generate about $500 million in router sales for 2012," said Shin Umeda, vice president at Dell'Oro Group. "We expect demand to almost double again next year, making for a very significant opportunity for router manufacturers."

In terms of revenue, the top five vendors identified in the report for the third quarter in the Service Provider Router market that shipped 100 Gigabit technologies are Cisco Systems, Juniper Networks, Alcatel-Lucent (News - Alert), Huawei Technologies and Brocade.

Dell'Oro Group also recently released its Quarterly Access Report for Q3, stating that the access gear market saw modest growth during the quarter. In total, the market grew six percent year over year, while passive optical networking (PON) saw the most growth at 21 percent.

In September, the research firm stated that the Fiber channel SAN market saw sales of $1.3 billion during the first quarter of the year, while more vendors are averaging higher average selling prices as users are opting for more advanced products.

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Edited by Brooke Neuman
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