L2-3 Ethernet Switch market may approach $25 billion in 2016

Telecom Lead India: The L2-3 Ethernet Switch market is
forecast to approach $25 billion in 2016.

 

Growth will be primarily driven by Ethernet switches
optimized for larger data center deployments. 

 

By 2015, 10 Gigabit Ethernet is expected to comprise the
majority of revenue. 

 

By 2016, there will be robust growth in 40 Gigabit
Ethernet and 100 Gigabit Ethernet with the combined technologies will approach
$3 billion.

 

40 GE and 100 GE revenue is projected to exceed 20
percent of the modular market in 2016.  Vendors such as Cisco and Extreme
currently have Ethernet Switch offerings in this segment.

 

Alan Weckel, senior director of Dell’Oro Group, said the
Cloud is changing how networks are built and in who owns data center equipment.

 

Dell’Oro Group said all data centers in the future will
be similar to Clouds in which any server can connect to any resource within a
data center. It is unclear whether enterprises will tend to own and run
their own Clouds, or whether they will outsource their Clouds. 

 

An outsourcing model will reduce the number of data
centers and will intensify competition among vendors, as there will be
significantly fewer, but larger, deals.  Concurrently, we are moving
towards abstracting the network from the user/application, which is changing
where some of the engineering effort in data center switching is being deployed.

 

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