Customers stick to 10 Gig Ethernet

The economic downturn is holding back the deployment of new local area network core switching technologies, reports In-Stat/MDR.

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By  Neil Denslow Published  October 22, 2002

The economic downturn is holding back the deployment of new local area network core switching technologies, despite the benefits they offer, reports In-Stat/MDR. InfiniBand (IB) and SCSI over IP (iSCSI), for instance, both offer advantages in terms of ease of use and cost effectiveness, but consumers are preferring to stick with what they know, 10 gigabit Ethernet.

The analyst house predicts that the revenue generated by 10 gig will continue to dwarf new technologies’ for some time. In-Stat/MDR adds that the combined LAN core switching market, comprised of gigabit Etherhet, 10 gig, fiber channel (FC), IB and iSCSI switches, will reach almost US$25 billion in 2006, a compound annual growth rate (CAGR) of 43% over the next 4 years.

"IB and iSCSI have been pushed back significantly by the current economic conditions, and the end is not yet in sight," says Lauri Vickers, group manager, In-Stat/MDR.

"The economy has to pick up enough to cause company's networks to strain at the seams again. This is what will drive investment in new applications, which will require more robust switching infrastructure in the LAN core. However, for the moment, the economy has enough excess capacity," she adds.

Sales of 10 gig ports have also stalled recently with only approximately 500 ports shipped in the first half of 2002. However, In-Stat/MDR expects this demand to steadily pick up in 2003 and beyond to meet the pent up need for truly high-speed backbone aggregation.

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