Report investigates data center Ethernet switch market challenges

The impacts of declining equipment prices, along with rising 10-GbE and data center SDN technologies, are examined.

Reportstack, an online library of market research publications, is offering a new report by Infiniti Research/TechNavio, entitled Global Data Center Ethernet Switch Market 2014-2018.

TechNavio's analysts forecast the global data center Ethernet switch market to grow at a CAGR of 16.27 percent over the period from 2013-2018. According to the report, among the numerous growth drivers of the market, the transition to 10 Gigabit Ethernet (10-GbE) switching ports is the major growth driver. The demand for 10-GbE ports is increasing at a much higher rate than the demand for Gigabit Ethernet switching ports, finds the data. The report finds that high demand for 10 GbE switches is not only due to the reduction in the price of these switches, but is also primarily due to the high speed provided by the switches. Further, the report states that one of the main challenges to the overall market is the decline in equipment prices.

Related: 10-GbE price declines seen driving record data center Ethernet switch market gains

The analyst finds that the growth rate for Ethernet switches is still far behind the increasing shipment of the networking ports. The gap between the revenue growth rate and the shipment growth is mainly due to the decline in equipment prices. One of the key factors contributing to this market growth is the transition to 10-GbE switching ports.

The report also investigates how the global data center Ethernet switch market has been witnessing the transition to software-defined networking (SDN) technology. “SDN is a network architecture where the software interacts directly and dynamically with the network infrastructure. The software includes functions such as applications, content, and services that are stored or executed in data centers," comments an analyst for TechNavio.

The analyst adds, "SDN is unique because applications and services do not normally interact with network infrastructure directly; neither are they visible to the network. Enterprises can partition their networks for private use through the adoption of SDN technologies. This can help organizations such as banks share confidential data more securely. Moreover, security firewalls can be added as application software in the network, making the network economical and manageable. Through SDN deployment, IT can become agile by organizing network services and monitoring the network through high-level policies instead of low-level network device configurations.”

More: 'Evolving' Ethernet switch market posts record quarter amid challenges

The report covers the Americas and the EMEA and APAC regions; it also covers the global data center Ethernet switch market landscape and its growth prospects in the coming years. TechNavio also includes a discussion of the key vendors dominating the market, i.e. Cisco Systems Inc., Hewlett-Packard (HP) Co., IBM Corp., and Juniper Networks Inc. Other vendors mentioned in the report include Alcatel-Lucent SA, Avaya Inc., Brocade Communications Systems Inc., Dell Inc. (Force 10), Enterasys Networks Inc., Extreme Networks Inc., Huawei Technologies Co. Ltd., and Oracle Corp. (Xsigo Systems).

Key questions answered by the report include:

-- What will the market size be in 2018 and what will the growth rate be?
-- What are the key market trends?
-- What is driving this market?
-- What are the challenges to market growth?
-- What are the market opportunities and threats faced by the key vendors?
-- What are the strengths and weaknesses of the key vendors?

Learn more about the report.

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