Dell'Oro Group: Fibre Channel switch sales to surpass $2 billion in '08

Feb. 1, 2007
FEBRUARY 1, 2007 -- As more and more enterprises install optical fiber, the economics of Fibre Channel make it a 'no brainer' choice for storage networking, say Dell'Oro Group analysts.

FEBRUARY 1, 2007 -- Fibre Channel switch revenues are expected to exceed $2.0 billion by 2008 and to continually increase through 2011, reveals a new report from Dell'Oro Group (search for Dell'Oro Group).

"More and more enterprises are installing fiber cabling to future-proof their network," explains Tam Dell'Oro, president and founder of Dell'Oro Group. "Once fiber cabling has been installed, Fibre Channel becomes a 'no brainer' choice for storage networking over alternatives such as iSCSI and Ethernet. For example," he says, "on a high-end switch, 1-Gigabit Ethernet over fiber is selling for about $600 a port--the same price as a 4-Gbit/sec Fibre Channel port that provides four times the bandwidth."

The Dell'Oro Group report also indicates that the shipments of Host Bus Adapter (HBA) ports will grow significantly over the next five years as blade server manufacturers shift the manufacturing of mezzanine HBA cards to HBA vendors such as Emulex and QLogic.

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