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Global data center ethernet switch market: 14% CAGR between 2012 and 2016

Press Release   •   Feb 25, 2013 11:47 GMT

The Global Data Center Ethernet Switch market is to grow at a CAGR of 14.34 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing virtualization in network environments. The Global Data Center Ethernet Switch market has also been witnessing the evolution of data traffic profiles. However, the declining equipment prices could pose a challenge to the growth of this market.

Data traffic profiles have transitioned from asymmetric e-mail messages and low bandwidth client-server computing applications to large data traffic, latency sensitive and high bandwidth intensive computing applications. Currently, network latency has gained precedence over data accuracy and even 10 millisecond differences can win or lose customers. In the data centers, highly complex data traffic moves in a random order between storage, internet, servers, and intranet. Moreover, there are varieties of traditional and advanced data intensive applications including Voice over Internet Protocol (VoIP), storage access, emerging converged I/O, etc. This data traffic is increasing rapidly and increases exponentially if any unexpected event occurs across the globe. For instance, the data centers in financial institutions are flooded with data traffic in any major up- or downturn in the capital markets.

One of the main growth drivers is the increasing virtualization in network environments. Virtualization has increased deployment of multi-core and blade server platforms resulting in consolidation of storage environments. Virtual networks can be programmed, bonded to workloads, and are scalable to demand.

The key vendors dominating this market space are Cisco Systems Inc., Hewlett-Packard Co., IBM Corp., and Juniper Networks Inc. The other vendors mentioned in the report are 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).

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