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650 Group Reports Surge in Multi-Gigabit Ethernet Port Shipments

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650 Group Reports Surge in Multi-Gigabit Ethernet Port Shipments

June 15, 2017
By Michael Guta
Contributing Writer

The digital transformation taking place in our world is impacting the IT infrastructure across the board. This is putting pressure not only in data center networks, but also telecoms and enterprises as they continue to deploy bandwidth intensive solutions, including the Internet of Things, big data and cloud. According to the latest Quarterly Ethernet Switch report by 650 Group, the introductions of many products needing more than 1 Gbps of bandwidth have increased, which goes hand in hand with the firm’s revelation regarding the surge in multi-gigabit Ethernet port shipments.

The report says that multi-gigabit Ethernet port shipments for the 1Q of 2017 have seen a surge year-on-year. The Ethernet Switch Quarterly Report by 650 Group assesses vendor performance and market share covering modular, fixed managed, smart switching, white box and other segmentation across multiple port speeds. This includes: 100 Mbps, 1 Gbps, 2.5 Gbps, 5.0 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, and 100 Gbps.

The Ethernet switch market is seeing increased Multi-gig/NBASE-T port shipments as organizations large and small continue to deploy and access more bandwidth intensive services. The report says SMB and campus switching segments will make up the fastest growing sectors in the industry over the next year as 5 Gbps becomes a practical option in 2017.

“Since the beginning of the year we have seen market introductions of many products supporting NBASE-T as client devices begin to need more than 1 Gbps of bandwidth. Apple’s (News - Alert) iMac Pro at the WWDC conference earlier this week joins and increasing list of gaming PCs, workstations, WLAN APs, cameras, and other devices to push new levels of network traffic,” said Alan Weckel, Founder and Technology Analyst at 650 Group.

As to the vendors dominating the Ethernet switch market, the report ranks Cisco and HPE as having the highest market share in 1Q17, with Brocade (News - Alert) (Ruckus), Cisco, H3C, HPE Aruba, Huawei, and Netgear contributing to shipments.

One of the fastest growing segments is 100 Gbps, which surpassed 40 Gbps in revenue as more large enterprises and cloud providers adopt the faster speed technology. This was driven by both merchant silicon and custom ASIC solutions, according to Weckel.

In terms of monetary value, the International Data Corporation (IDC (News - Alert)) Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker reports a total of $24.4 billion in revenue for the year in 2016. Overall, the growth was tepid, coming at only 3.5 percent growth YoY in the Fourth Quarter of 2016 (4Q16) for Ethernet switch and 1.5 percent for the router market.

Edited by Alicia Young

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