A new report from the Dell'Oro Group reveals that the Ethernet switch market resumed strong growth in the third qua...
November 22, 2004
A new report from the Dell’Oro Group reveals that the Ethernet switch market resumed strong growth in the third quarter of 2004 following a slight decline in the previous quarter.
According to the report, total sales of Ethernet switches were nearly US$3.5 billion last quarter, an increase of 9% over the second quarter of 2004 and 24% increase over the third quarter of 2003.
The average selling price for the total Ethernet switch market has remained flat at approximately US$97 for four consecutive quarters.
“We are seeing a two-pronged upgrade taking place,” said Seamus Crehan, director of Ethernet switch research at Dell’Oro Group.
“Sales of Gigabit and 10 Gigabit Ethernet switch ports are increasing as prices are dropping and users are future-proofing for additional bandwidth requirements.
“In addition, the market for the more feature-rich 100 Mbps fixed configuration switches continues to expand as users upgrade networks to handle newer applications such as IP telephony, security, and wireless LAN.”
Market leaders are Cisco, Nortel and Hewlett-Packard.