Mellanox (NASDAQ: MLNX), a provider of connectivity products for data center server and storage systems, recently announced a new pricing structure and expanded channel for its line of end-to-end 10 Gigabit Ethernet (10GbE) products including NIC adapters and software. Industry observers say the move signifies that Mellanox is now positioning itself as a low-cost alternative to competitors such as Cisco Systems, Juniper Networks, Brocade, and Arista Networks.
The new pricing structure is as follows: the company's SX1016 64-port 10GbE switch now costs $188 per port, while its 64-port 10GbE or 36-port 40GbE SX1036 switch costs $257 per port. Additionally, the Mellanox ConnectX-3 EN two-port 10GbE host adapter is now $390 per card.
"The launch of the Intel Romley and Sandy Bridge platform in the coming months is going to give the industry a strong push towards faster interconnect speeds," commented Eyal Waldman, chairman, president and CEO of Mellanox Technologies. "For data center managers, 10GbE is the minimum data rate they should be considering for all deployments this year. Mellanox products and solutions are delivering 10GbE and higher data rates today -- providing better application performance, lower power consumption and improved ROI."
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According to Crehan Research, currently there are almost 170 million data center and server-class ports installed for 1GbE worldwide and about 25 million ports for 10GbE; 10GbE currently accounts for just 13 percent of all those installed Ethernet ports. In 2012, Crehan expects 10GbE to increase to 37 percent of the total annual market shipments.
"In 2012, we expect to see a significant increase in the number of 10GbE deployments, with it becoming the dominant and de facto data center network connection by 2014," said Seamus Crehan, president of the firm. "Price declines, such as the ones announced today from Mellanox, will help drive volume adoption."