25 Gigabit Ethernet, 50 Gigabit Ethernet to reshape data center switching market says Infonetics

The IEEE has just started work on 25 Gigabit Ethernet specifications and won't take up 50 Gigabit Ethernet until its 25GbE work is done. Nevertheless, Infonetics Research says the two technologies will be game changers.

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The IEEE has just started work on 25 Gigabit Ethernet (25GbE) specifications and won't take up 50 Gigabit Ethernet until its 25GbE work is done. Nevertheless, Infonetics Research, now part of IHS Inc. (NYSE: IHS), says as it releases its new third quarter 2014 (3Q14) "Data Center Network Equipment" report that the two technologies will be game changers.

"The data center switching market is poised for another transformation, with 25GbE and 50GbE enabling new data center network architectures targeting large cloud service providers looking to migrate from 10GbE switching and server connectivity to 100GbE switching and 25GbE server connectivity," said Cliff Grossner, Ph.D., directing analyst for data center, cloud and SDN at the market research firm.

Technology developers aren't expected to wait for the IEEE to finish its work before jumping into the market, according to Grossner. "A new generation of Broadcom switching silicon will add 25GbE and 50GbE to the mix of port speeds in the data center for 2015," he reports.

In the nearer term, the global data center Ethernet switch market performed well in 3Q14, growing 5% sequentially to $2.2 billion. Spending by the U.S. public sector and cloud service providers led the way, according to the report. WAN optimization revenue was up 9% sequentially as well in 3Q14, but lost 1% from the year-ago quarter. Revenues for application delivery controllers (ADCs) faced the opposite situation: down 2% sequentially but growing versus the year-ago quarter for the sixth straight quarter. Vitual ADC appliances were a bright spot, with revenues increasing 20% sequentially.

The quarterly "Data Center Network Equipment" covers data center Ethernet switches, Ethernet switches sold in bundles, ADCs, and WAN optimization products.

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