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Optically Networked : News: 10Gb Ethernet and Metro Ethernet Markets Booming


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10Gb Ethernet and Metro Ethernet Markets Booming
November 13, 2007
By Dan Muse

A report released today from Infonetics Research predicts the number of 10 Gigabit Ethernet (GbE) ports shipping on enterprise and service provider equipment will jump from more than 300,000 in 2006 to more 3 million in 2010.

According to the "10 Gigabit Ethernet Market Outlook," a report that tracks 10 GbE ports and revenue for telecom and datacom gear, 10GbE ports are most commonly deployed on Ethernet switches today.

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However, that will change over the coming years, according to Infonetics, as 10G Ethernet technology is increasingly used in other platforms, including IP edge routers and optical equipment.

"Bandwidth hungry applications, backup and archiving are the chief drivers behind enterprise traffic growth, and buyers will continue building out their networks via 10G Ethernet to accommodate these new traffic patterns," said Infonetics Research's Matthias Machowinski in a written statement.

"The primary driver for 10 GbE for carriers is the need to provide ever-increasing network capacities for bandwidth hungry applications, particularly video, to growing numbers of users, while keeping network expenditures under control," added principal analyst and co-founder of Infonetics, Michael Howard.

Metro on the Move
Infonetics also recently reported that worldwide sales of Metro Ethernet equipment will nearly double between 2006 and 2010, when they will reach $18.8 billion.

According to that report, the hottest technologies in the Metro Ethernet market are routers and carrier Ethernet switches, Ethernet over optical, and Ethernet over DSL.

"From 2006 to 2007, port shipments will increase in every Metro Ethernet equipment category we track, and we'll see revenue growth in all categories except Ethernet over DSL and cable. The slight decline in Ethernet over DSL and cable revenue is due to price erosion, as ports are up," said Howard.

Main drivers fueling the Metro Ethernet market, according to Infonetics, include its lower cost and the fact that the increasing number of broadband subscribers are forcing service providers to upgrade their networks with DSL, cable, PON and Ethernet FTTH.

The report also says that the rapid uptake in video and IPTV services are creating massive traffic increases that require more bandwidth, stringent QoS, and network transformations.

Infonetics reports that IP routers and carrier Ethernet switches will make up 52 percent of the total metro Ethernet equipment market in 2007. Ethernet microwave's share will grow from 2 percent in 2007 to 9 percent in 2010, accoring to the Campbell, Calif.-based research firm.

Dan Muse is executive editor of internet.com's Small Business Channel, EarthWeb's Networking Channel and ServerWatch.

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