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Dell'Oro Group Forecasts Ethernet Switch Market Revenues to Exceed $18 Billion in 2010; Major Opposing Forces Impact Overall Market Prices.


REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif. -- According to according to
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1. As stated or indicated by; on the authority of: according to historians.

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 a recent report by Dell'Oro Group, the trusted source for information about the telecommunications and networking industries, Ethernet Switch A device that connects clients and servers to each other in an Ethernet network. See switched Ethernet.  market revenues are forecasted to grow from $14.6 billion in 2004 to $18.3 billion in 2010. Major market shifts in customer segments, application deployments, and switch port speeds will continue to have opposing effects on overall market prices.

The continued strength in the small business sector will have a downward effect on average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution.  as less-expensive fixed-configuration switches comprise the vast majority of port shipments for this sector. However, features such as Power-over-Ethernet incorporated into the switch infrastructure to handle converged application deployments will help offset these price declines. The report also predicts that strong growth of Gigabit and 10 Gigabit Ethernet An Ethernet standard that transmits at 1 Gbps. Used mostly to connect high-end workstations and servers as well as for network backbones, Gigabit Ethernet transmits full duplex from point to point using switches and half duplex in a shared environment (CSMA/CD) using a hub.  switch ports will help to prop up overall market prices.

"Given the strength in the small business segment, we anticipate that a 24- or 48-port Fast Ethernet An earlier name for 100Mbps Ethernet. See 100Base-T.

(networking) Fast Ethernet - A version of Ethernet developed in the 1990s(?) which can carry 100 Mbps compared with standard Ethernet's 10 Mbps. It requires upgraded network cards and hubs.
 fixed-configuration switch -- which can add features to securely handle applications such as VoIP and Wireless LAN A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area  without adding too much complexity or cost -- will be the product of choice for this market over the next couple of years," said Seamus Crehan, Director of Ethernet Switch Research for Dell'Oro Group. "By then we expect that Gigabit Ethernet prices will have fallen sufficiently to entice stronger adoption of this higher speed technology among small businesses," added Crehan.

About the Report

The Dell'Oro Group 5-Year Forecast Report offers a complete overview of the Ethernet Switch industry with tables covering manufacturers' revenue, average selling prices, and port shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet) for Layers 2-3 (both managed and unmanaged), and Layers 4-7. To purchase this report, call +1.650.622.9400 x223 or email Nancy@DellOro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.DellOro.com.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jan 25, 2006
Words:348
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