Ethernet Switch data center market to cross $11 bn in 2019: Dell’Oro

The Ethernet Switch – Data Center market is expected to exceed $11 billion in 2019, according to Dell’Oro Group.

“For Ethernet switching, there are two distinct markets in the Cloud and Enterprise that are evolving differently. In the Cloud, we see continued expansion of white box switching and a quick migration to 100 Gbps starting later this year,” said Alan Weckel, vice president of Data Center market research at Dell’Oro Group.

“By the end of the decade, the Cloud will be the larger of the two markets; leading to fewer, larger deals going forward. As SMBs move to the Cloud, millions of small deals will get consolidated to a few large Cloud deals, open to only a handful of vendors,” Weckel said.
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The Ethernet Switch – Data Center 5-Year Forecast Report also indicates that Cloud providers such as Apple, Amazon, Google, Facebook, and Microsoft are entering an expansion and mega-upgrade cycle driven by the increased demand in capacity and aging infrastructure that will be served by 25 Gbps server technology and 100 Gbps switch technology.

In another report, Dell’Oro Group reveals the Enterprise Edge market, which consists of Enterprise-class Wireless LAN and Campus Ethernet switches, is expected to exceed $17 billion by 2019.

“Multi-Gigabit Ethernet, which includes 2.5 Gbps and 5 Gbps speeds, solves an upcoming dilemma for enterprises that have already built a wiring infrastructure between switches and their WLAN infrastructure, and who don’t want to replace the cables but want to increase throughput to support emerging 802.11ac Wave 2 WLAN systems,” said Chris DePuy, vice president of Enterprise Edge research at Dell’Oro Group.

These Multi-Gigabit switches cost more than traditional 1 Gbps switches, but they allow re-use of existing cabling infrastructure, which for many enterprises, is a significant savings.

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