In a report released yesterday,the Dell’Oro Group predicts that worldwide revenues from shipments of Optical Transport equipment will reach just over $10 billion in 2008,
However, research firm, which specializes in networking and telecommunications, goes on to say that revenue will then remain flat through 2011. The market will be impacted by mixed sales of WDM and SONET / SDH equipment, according to the report.
"Service Providers are continuing to rapidly deploy new systems equipped with higher bandwidth capabilities at record levels across all regions," said Jason Suey, an analyst who covers optical transport for Dell’Oro Group.
Suey goes on to say, "Despite these recent deployments, we expect Service Providers will eventually moderate their network spending and switch their priority to delivering new services and generating a return from their customers.
The Dell’Oro Group 5-Year Forecast Report tracks DWDM long haul terrestrial, WDM metro, SONET/SDH, and optical switch equipment, according to the company.
The research firm also reported that 10 Gigabit Ethernet switches will drive the overall Ethernet switch market, with annual revenues for the total market forecasted to approach $5 billion by 2011.
According to the Dell’Oro Group, a large part of 10 Gigabit Ethernet revenues will initially be driven by data center aggregation and then later by direct server connections.
"There are indications that various technology silos in the data center may start to consolidate, specifically, Ethernet, Fibre Channel and High Performance Computing technologies," said Seamus Crehan, vice president of Dell’Oro Group.
"10 Gigabit Ethernet is very much at the forefront of this consolidation as the early signs indicate that Ethernet could be the converged fabric of choice," said Crehan.
According to the research firm, enterprises are continuing to consolidate their data centers, and this is helped by innovations such as faster WAN connections, WAN optimization technology and server blades.
IE 7
Firefox 2.0
