Infonetics Research: Carriers and enterprises gobbling up 10G, 40G, 100G ports to handle exploding traffic

Spending on high-speed ports on IP edge routers increased, while sales of service provider IP edge routers decreased in 2009, reveals a report by Infonetics Research.

MAY 10, 2010 – Spending on high-speed ports on IP edge routers increased, while sales of service provider IP edge routers decreased in 2009, reveals a report by Infonetics Research. The market research firm has released the first edition of its 2010 biannual 10G/40G/100G Networking Ports market size and forecast report, which tracks 10 Gigabit, 40 Gigabit, and 100 Gigabit optical and Ethernet ports on enterprise and service provider equipment.

"While worldwide spending on service provider IP edge routers declined overall in 2009, spending on high-speed 40G ports on IP edge routers increased 125%. A similar trend is playing out in other routing and switching segments and in the optical network hardware space. This is the clearest indication yet that service providers are turning to higher-speed options for their next-generation networks to handle skyrocketing traffic," notes Michael Howard, principal analyst and co-founder of Infonetics Research.

Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research and co-author of the report, adds: "Revenue from 10G port shipments to enterprises grew 32% in 2009, to $1.5 billion. Despite the significant pullback in overall investments in 2009--for example, Ethernet switch sales fell 19% in 2009--investments in high-speed networking devices increased as enterprises continued building out their core network infrastructure to respond to growing levels of traffic."

10G/40G/100G networking ports market highlights include:
- Uptake in high-speed (10G, 40G, and soon 100G) optical and Ethernet ports on enterprise and service provider equipment continues unabated, even in the face of global economic difficulties, driven by unrelenting network traffic increases
- Annual port shipments of 10G and 40G enterprise and service provider ports jumped 38% in 2009
- Worldwide revenue from 10G and 40G ports on enterprise and service provider equipment totaled $11.1 billion in 2009
- The number of 40G ports shipped on enterprise and service provider equipment doubled in 2009
- Strong growth in the high-speed port market is forecast by Infonetics to continue, with 10G, 40G, and 100G port shipments together increasing 10-fold from 2009 to 2014

Infonetics' 10G, 40G, 100G report provides worldwide and regional market size, forecasts through 2014 and in-depth analysis for 10G (10G Ethernet, OC-192/STM64), 40G (40G Ethernet, OC-768/STM256), and 100G (100G Ethernet, 100G Optical) ports, revenue, and revenue per port on service provider and enterprise networking equipment.

Enterprise equipment tracked in the report includes enterprise routers, Ethernet switches, and application delivery controllers. Service provider equipment tracked includes IP core routers, IP edge routers, carrier Ethernet switches (CES), multiservice ATM switches, CMTS, PON OLTs, and WDM and SONET/SDH optical gear.

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